On December 20, Japan's government officially responded to Senator Satoshi Hamada, refusing to consider Bitcoin as part of the country's forex reserves.
Japanese Government's Stance
In its response, signed by Prime Minister Ishiba Shigeru, the Japanese government stated it has no intention of including cryptocurrencies in the forex reserves. Lack of information on global trends and high volatility are the main reasons for this refusal.
Legal Aspects of Crypto Assets in Japan
Under Japan's system for special account management, cryptocurrencies are not classified as forex reserve assets. The Financial Instruments and Exchange Act does not regard 'crypto assets' as 'securities'. The Payment Services Act requires all providers to register with the Financial Services Agency to operate crypto asset exchanges.
Prospects for Crypto Funds in Japan
CEO of a Japanese investment bank, Akihiko Ogino, has suggested Japan introduce crypto ETFs. However, the government's current stance could delay such initiatives. Daiwa Securities, which manages the Nikkei 225 ETF, has not disclosed any plans for a crypto-backed ETF yet.
The Japanese government remains cautious regarding cryptocurrencies due to volatility and legal uncertainty, which may impact the development of crypto services in the country.
