Japan’s leading financial exchanges announced their plan to launch bitcoin derivatives. The Tokyo Financial Exchange plans on introducing the Bitcoin Futures during the beginning of 2018, after taking a cue from its US competitors.
Japan has been one of the most crypto-friendly countries in the world. Not only did it legalize the digital currency in April 2017, but also made its cryptocurrency trade more secure for its users. Recently the Japan Financial Services Agency (FSA) officially licensed five more companies to work as cryptocurrency exchange operators, bringing the total sum of exchanges to fifteen.
The Tokyo Financial Exchange, which partnered with companies such as JP Morgan, Chase & Co., and Barclays Bank, aims to launch Bitcoin Futures in the January of 2018.
Shozo Ohta, CEO of the Tokyo Financial Exchange, stated that the company will improvise a team of researchers to study various features of bitcoin and work on cryptocurrencies before legitimately listing the Bitcoin futures. This statement was made during a press conference on December 1, 2017. The listings require changes to be made to the country’s security laws. Therefore, the very first task of the team would be the drafting of the legislation.
Bitcoin Futures is a solution for the price fluctuation of the virtual currency. Bitcoin Futures will provide its users with a safer environment. One of the characteristics of Bitcoin Futures is that it allows the investors to bet against bitcoin. In a future contract, the investors agree on an exchange price for a future date. The contract binds the two investing parties to fulfill their agreement when the contract is due. The futures option has emerged as an important tool to offset the risk of price volatility in the digital market.
The Tokyo Financial Exchange has leaped forward in launching the bitcoin derivative, as the Chicago-based exchange company CBOE, launched its own futures contracts on December 10th. Another leading financial exchange company, Chicago Mercantile Exchange, announced that it will be incorporating Bitcoin Futures into its exchange on December 17th.
The peer pressure is just too great for Japanese exchanges and they would not like to miss out on the growth opportunity that Bitcoin's futures option presents. This is why they are going to start offering the future options, without any trading fees. How this turns out for the Japanese exchange, only time will tell.
FSA will be launching Bitcoin Futures
Japan’s leading financial exchanges announced their plan to launch bitcoin derivatives. The Tokyo Financial Exchange plans on introducing the Bitcoin Futures during the beginning of 2018, after taking a cue from its US competitors.
Published on Dec 14, 2017 11:49 By Danish Yasin