Stubborn FSC? The Japanese Financial Services Agency also does not allow citizens to trade Bitcoin ETFs and prohibits delegated trading.

The Financial Supervisory Commission (FSC) of Taiwan has prohibited domestic securities firms from providing discretionary trading services to purchase U.S. Bitcoin ETFs, citing the high volatility and lack of intrinsic value of Bitcoin. This policy has sparked discontent within the local community. However, neighboring country Japan has similarly banned its citizens from trading Bitcoin ETFs and does not allow discretionary purchases.

Japanese Brokerage: Financial Services Agency Does Not Allow Bitcoin ETFs

Following the approval of a Bitcoin spot ETF in the United States, Japanese brokerage firm "SBI Securities" has also received numerous requests from clients for purchases. However, "SBI Securities" stated that in Japan, the purchase of overseas ETFs must be approved by the Japanese Financial Services Agency, and as they have not received any relevant notifications as of now, they are unable to provide the service.

Japanese Expert: Issuance and Sub-custody Not Possible!

According to industry professionals in Japan, Japanese brokerage firms have two paths to provide cryptocurrency ETFs: either by introducing existing cryptocurrency ETFs or by offering local spot ETFs.

However, based on Japan's laws related to investment trusts and investment corporations, cryptocurrency assets cannot be provided by investment trust funds.

Industry professionals in Japan also mentioned that even if they were to offer local spot ETFs, Japan currently lacks sufficient liquidity and cryptocurrency indices priced in Japanese Yen, posing another challenge.

Regions Where Virtual Asset ETFs Can be Purchased and Traded: Hong Kong

According to the Securities and Futures Commission (SFC) of Hong Kong, as long as they are licensed entities recognized by the SFC, they can issue and provide virtual asset spot ETFs.

The SFC of Hong Kong has established a regulatory framework for virtual asset spot ETFs, making Hong Kong a leader in cryptocurrency investment tools compared to many other regions. The Hong Kong Exchanges and Clearing Limited (HKEX) is the first exchange in Asia to offer cryptocurrency ETFs. Additionally, a Hong Kong-based asset management company has launched Bitcoin and Ethereum futures ETFs and raised a significant amount of funds before listing.

Investing in Bitcoin ETFs! Hong Kong SFC Introduces New Rules for Cryptocurrency ETFs