Bad news for Bitcoin: Japan denies crypto ETF

Last week, rumors started circulating that Japan could soon approve a crypto-based exchange-traded fund (ETF). Those rumors led to many wondering how the global crypto ecosystem would advance and if it could mean that a crypto ETF in the U.S., such as that proposed by the Winklevoss brothers or VanEck, would soon receive approval by the Securities and Exchange Commission (SEC). It would now seem the suggestion that Japan would accept a crypto ETF may have been precipitous and the country’s Financial Services Authority (FSA) is not considering approving a crypto futures product. It could, however, soon allow more crypto exchanges to operate in the country.

According to an FSA representative, “There is no such fact that we are considering approving ETFs which track crypto-assets at present. We are not currently considering approving them.” The spokesperson adds that the FSA doesn’t currently see the need for any crypto-based derivatives products, which could be a bad omen for both ETFs and futures.

Last week, a report from Bloomberg had cited a person familiar with the FSA as saying the regulator might approve such listings.

Cryptocurrency prices slumped on Monday, as Japan’s watchdog said it had no plans to approve crypto exchange-traded funds.

The news is the latest knock-back for crypto assets from global regulators, who have been reluctant to make it easier for investors to access them because of worries that it is too easy to manipulate cryptocurrencies.

Cryptocurrencies overall were lower, with the total coin market capitalization at $118 billion at the time of writing, compared to $122 billion on Sunday.

The U.S. Securities and Exchanges Commission has repeatedly rejected applications for crypto-based ETFs over the last year, but that still hasn’t killed speculation that it could change its mind in future. The SEC is still reviewing a number of applications from companies.

In other news, Denmark’s tax agency is now able to collect information on digital currency trades from exchanges, including names, addresses and personal tax numbers. The move is to ensure that citizens have paid taxes, the regulator wrote on its website, according to Bloomberg.

“Without going too far, I think one can say that this is a big market that we need to look at more closely,” Karin Bergen, a director at the agency, said in a statement.