Japan’s Top Regulator Says Crypto-ETF Approvals Need ‘Cautious Consideration:’ Report

Japan’s top financial regulator has said any decision to approve crypto-based exchange-traded funds should be approached with caution.

While Japan has yet to approve cryptocurrency ETFs, the US, Hong Kong, and Australia have recently approved such products.

The head of Japan’s Financial Services Agency (FSA) said that the decision to approve cryptocurrency-related exchange-traded funds (ETFs) should be “carefully considered,” Bloomberg reported.

FSA commissioner Hideki Ito said in an interview with the financial news outlet that many people believe crypto assets “do not contribute to the wealth creation of the Japanese people in a stable and long-term manner.”

Japan has been a global leader in regulating stablecoins and Web3, digital currencies whose value is pegged to a real-world asset. It was one of the first countries to regulate crypto assets, even though strict consumer protection laws followed after the collapse of crypto exchange Mt Gox.

While Japan has yet to approve cryptocurrency ETFs, the US, Hong Kong, and Australia have recently approved such products.

Read More: Bitcoin’s Looming ‘Death Cross’ Could Trap Bears as Bank of Japan Eases Rate Concerns