Japan's FSA deems derivatives on overseas crypto ETFs inappropriate

Japan's Financial Services Agency (FSA) has stated that derivatives based on overseas cryptocurrency exchange-traded funds (ETFs) are not appropriate, Yahoo Japan reported. In a revised Q&A document on the financial instruments and exchange business, the FSA commented that offering such products to domestic investors is unsuitable given the lack of a well-established system and environment for investor protection. In response, IG Securities has suspended its contract for difference (CFD) offerings based on U.S. spot BTC ETFs. The development suggests that Japan is unlikely to approve crypto derivatives linked to overseas ETFs in the near future.