Cryptocurrency exchange-traded funds must comply with the investment trust provisions of the Investment Trust and Investment Companies Act

Japan's top financial regulator, the Financial Services Agency (FSA), recently explained to news.Bitcoin its recently adopted regulations on the creation and sale of cryptocurrency exchange-traded funds (ETFs). A spokesman for the Japan Financial Services Agency explained this week: In order for an instrument to be considered an investment fund in Japan, it must at least comply with 'investment trusts' in the Act on investment trusts 'Terms. In response to questions about whether the new law allows cryptocurrency ETFs, the regulator confirmed that it was not possible to create such ETFs because instruments that primarily invest in cryptoassets do not meet the legal definition of an “investment trust”. The FSA went on to say that the "Comprehensive Guidelines for the Supervision of Financial Instrument Business Operators" passed on December 27, 2019 stipulates that it is unacceptable to formulate or sell investment funds other than specific assets.