Japan Group has urged regulators in the country to imitate the United States by focusing on Bitcoin and Ethereum ETF approval before considering other assets.
Financial regulators in Japan have been considering the approval of exchange-traded funds (ETFs) of several digital assets. This follows in the footsteps of the United States regulator (SEC), approving Bitcoin and Ethereum ETF earlier this year.
In the group’s argument in favor of the ETFs, it noted that Bitcoin and Ethereum have a pretty stable track record coupled with their large market values. These two attributes make the assets a go-to for medium and long-term investors.
In its report, the group also argued for the tax system in the crypto sector to be reviewed. It particularly stressed the division of tax on income.
Japan Group wants discussion around BTC and ETH ETFs
The Japan Group is a conglomerate of several companies in different industries nationwide. These companies include Mitsubishi UFJ Trust and Banking Corp. and Sumitomo Mitsui Trust Bank.
Aside from these companies, the group also has a crypto exchange and a platform that runs brokerage services. In its report, the group stressed that the ETF argument is a consensus and not a proposal from each member.
According to an official statement in September, an executive of the Financial Service Agency (FSA) said that the agency is planning to review its regulation to include the crypto industry. Once it flies, it could birth an institutional interest in the sector and the emergence of tax-reducing revisions.
The official noted that a conclusion had not been made on the review, and it could take some time before they get a green light. Similarly, FSA chief Hideki Ito has previously expressed his hesitant stance towards ETFs in August. The present tax policy sees crypto gains as miscellaneous income, pegging the tax figure at 55%.
United States and China approve ETFs
While Japan has been dragging its feet concerning regulations in the crypto sector, other countries like the United States and China are moving ahead. Aside from a clear crypto regulation, they have also approved spot ETFs of crypto assets.
This move by the United States and China reinstates a shift in the dynamic world of digital assets. It also underscores the intentions of countries to integrate crypto products into traditional finance.
Before their approval this year, regulators were hesitant to approve a Bitcoin and Ethereum ETF. ETFs of both assets were later approved in January and July, respectively.
Regulators in Hong Kong approved both a Bitcoin and Ethereum ETF in April, bringing a slice of hope to that part of the crypto industry that has suffered at the hands of regulators worldwide.
Bitcoin ETF has registered a cumulative flow of about $21 billion since its listing. According to data from Sosavalue, Bitcoin ETFs saw a daily net flow of about $188 million. United States spot Bitcoin ETFs presently have about $66 billion worth of assets under management.
Similarly, the United States spot Ethereum ETF registered inflows of around $2.30 million on October 24. It presently has about $7 billion worth of assets under management.