Japan's Financial Services Agency: Instruments that invest in crypto assets do not meet the legal definition of investment trusts and cannot create cryptocurrency ETFs

According to Bitcoin.com, the Japan Financial Services Agency (FSA) has recently explained its recently adopted rules regarding the creation and sale of cryptocurrency exchange-traded funds (ETFs). In response to a question about whether the new law allows the use of cryptocurrency ETFs, a spokesperson for the FSA stated that in order for an instrument to be considered an investment fund in Japan, it is necessary under the Investment Trust Law to make it an investment trust "Corresponding. It is not possible to create such ETFs because instruments that primarily invest in crypto assets do not meet the legal definition of an “investment trust”. The FSA also said that qualified, institutional or recognized investors, including pension funds and regional financial institutions, are not suitable for investing in funds with crypto assets.