Bitcoin ETFs gain global traction, Japan still cautious- Expert
2024-10-23

The approval of the most awaited Bitcoin spot ETFs by the regulators of the United States has fueled the curiosity about ETF products. Following the decision of the U.S. several other nations have decided to approve the ETFs and explore their potential.
In the past few weeks, the debate in the market abounded with the discussion over the approval of Japanese regulators over the Bitcoin spot ETFs. An official of one of the leading asset managers noted in a media appearance that he thinks that the authorities of Japan are not in a position to approve Bitcoin spot ETF. 
While talking to Financial Times the director of investment at Sumitomo Mitsui Trust Asset Management, Oki Shiozawa argues that “ I can’t think of any way to successfully persuade those authorities at the moment. I am not saying that crypto-related ETFs are impossible. However, Japan’s Financial Services Agency, which approves financial products, is basically conservative.” 
Some other experts claim that the authorities want to dive deep into the potential risks of these products and structure rules accordingly before approval. The stance for cryptocurrencies in Japan is appreciable and there are more possibilities of approval compared to getting rejected. 
A person aware of the fact notes that the push for approval is a wise decision by authorities as they want to keenly observe the specific category in order to identify the pros and cons. Japan’s Regulator & Regulations Favoring Crypto! 
There is no restriction over the trading of cryptocurrencies in Japan, but there are specific laws to govern this digital assets market. The nation passed a law over crypto a few years back yet it has been constantly working on their amendment and improvements. 
It is worth noting that Japan is among the nations imposing the highest taxes on crypto and their earnings; the nation has also surpassed India which charges 31% of whole tax including 1% cess. 
The approach of the nation to explore the potential of crypto is appreciated, but the pace of its regulations and other related issues is steady or quite slow. Japanese crypto is expanding at a remarkable pace. The interest of institutional giants such as Metaplanet based in the nation reflects that at any time the nation might make a big decision over cryptocurrencies. 
According to data from Statista there are 29 crypto exchanges offering trading (buying and selling) of Bitcoin, 29 that facilitate Ethereum trading followed by 22 exchanges facilitating Bitcoin cash transactions, and 19 offering XRP. 
The size of the crypto market is flourishing and is expected to reach $1,315.6 million by the end of 2025 and by the same time frame, the user base of the national market is expected to reach 19.43 million.
Events like the sudden collapse of FTX, TerraLuna, and Voyager have raised the eyebrows of the financial authorities globally; this could be a possible reason behind the slow pace of legalization in some leading & developing nations. 
In terms of hard tussle from crypto, the U.S SEC has been topping the list and it also has become the leader in collecting penalties from companies offering cryptocurrency services. Some reports published earlier this month claimed that the commission has gathered billions of dollars from companies. 