Pioneering financial exchanges in Japan are facing reality towards the launch bitcoin futures after CME, CBOE and Nasdaq announcements. The Tokyo Financial Exchange is planning to launch the products on its market. Once the Financial Instruments and Exchange Act recognizes them as financial products.
It will be the first product of its nature in Japan. A group will be creating to study and research cryptocurrencies before the futures product is listed on the exchange.
“Once the Financial Instruments and Exchange Act recognizes cryptocurrencies as financial products. We will list the futures as quickly as possible. To achieve that, we will launch this working group to study various aspects. Including bitcoin’s present status, its outlook, and what form it will take root in Japan’s society.”
The news come after Japan licensed four more exchanges this week to total to 15 exchanges with licenses to operate in the country. BitFlyer, which recently acquired a license to operate in U.S., is the largest of all exchanges in Japan.
Thus, Japan, which commands 65 percent of the global Bitcoin market. Since it is far way ahead of many other countries in terms of Bitcoin-relating activities. It might not increase demand since the futures are cash-settled and the futures do not mean owning Bitcoin.
Licensing of more exchanges to trade Bitcoin and its products could create strong financial institutions to support Bitcoin as a financial product. Bitcoin futures are contracts to bet on Bitcoin price, usually within a range of 20% from the settlement price quoted by the exchange.