Japan FSA calls overseas crypto ETF-linked CFDs undesirable ahead of domestic ETF approval

Japan's Financial Services Agency updated its Q&A on December 9 to say that offering derivatives such as CFDs based on overseas crypto asset ETFs in the domestic market is not desirable, citing the lack of approved crypto ETFs in Japan and insufficient investor protection, Yahoo News reported. The regulator said these products effectively track spot crypto asset prices and fall under the category of crypto derivatives, where risk disclosure and regulatory frameworks remain inadequate. IG Securities responded by announcing it will halt CFD trading tied to U.S. spot Bitcoin ETFs, including IBIT and similar products. The stance indicates that crypto derivatives linked to foreign ETFs are unlikely to see near-term liberalization in Japan, as reflected in the FSA's position.