Japan Group Backs Prioritizing Bitcoin, Ether for Crypto ETFs
10/25/2024 13:29
(Bloomberg) -- A group of Japanese companies said discussion on allowing exchange-traded funds for cryptocurrencies should focus on major tokens such as Bitcoin and Ether, as the country contemplates whether to follow overseas moves to permit the instruments.Most Read from BloombergRobotaxis Are No Friend of Public TransportationBooming Cambridge Exposes England’s Widening Wealth GapOman Sees an Urban Future Distinct From Dubai and Abu DhabiArgentina Drug Trafficking Hotspot Sees Murders PlungeC
(Bloomberg) -- A group of Japanese companies said discussion on allowing exchange-traded funds for cryptocurrencies should focus on major tokens such as Bitcoin and Ether, as the country contemplates whether to follow overseas moves to permit the instruments.
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The large market value and “stable track record” of those cryptocurrencies make them suitable for investors to “build up assets over the medium to long term,” the group said in a set of proposals published on Friday. It also called for a review of taxation systems including separation of tax on income earned.
The debut of crypto ETFs in the US earlier this year was considered a watershed moment for the digital-asset industry, which had long battled with regulators over putting out funds backed by Bitcoin and Ether. Japanese regulators have taken a more cautious approach so far, with the head of the Financial Services Agency casting doubt on the merits of such funds in an August interview.
The group’s members include major trust banks such as Mitsubishi UFJ Trust and Banking Corp. and Sumitomo Mitsui Trust Bank Ltd., crypto exchanges such as bitFlyer Inc. and brokerages including Nomura Securities Co. and SBI Securities Co. It added a disclaimer saying the views expressed are a consensus rather the the opinions of individual members.
An FSA official said last month the agency will conduct a review of its approach to crypto regulation, a move that could open a path to fund investments as well as lower taxes. The official cautioned that the review had no foregone conclusions and could take some time to complete. Japan currently levies as much as 55% on crypto gains.
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