By Alicia Maher
It is good news for Japan-based financial services company, SBI Holdings, who is making plans to launch a digital asset fund in the next three months. This digital asset fund would be the first to be launched in Japan, to the delight of crypto investors in the country. The investment platform would include tokens from major crypto blockchains including Bitcoin and Ether. Amazingly, it is set to include Ripple’s XRP, and this is a huge breakthrough for the Japanese crypto market. The main purpose of the fund is to expose users and investors to the benefits of diversification and splitting of digital resources.
For crypto investors who have challenges in making the right choices of multiple and diverse investments, the fund would provide a platform where they would get the experience of diversifying portfolios firsthand much to their benefit. However, being the first of its kind in the country, investors are advised to understand and fully grasp the risks associated with the project. According to SBI Holdings, the success of the crypto fund is not guaranteed as it is a pioneer asset fund being conducted. Expectations however are high that the platform set to be launched in December would be a success. Reports also have it that if the performance of the fund reaches or exceeds expectations, there are high chances of more subsequently following.
There are also talks on the launch of a separate investment platform solely for institutions and corporate bodies to invest in cryptocurrency. Developments like these would change the face of cryptocurrency in Japan. SBI Holdings as a firm has over time been interested and linked to cryptocurrency and crypto-related dealings. Their crypto interest solidified when they entered into a partnership with crypto giant Ripple in 2016 which has led to a strategic shift in their crypto affairs.
Japan’s Cryptocurrency Market Outlook
For a country that has the most progressive regulatory environment for cryptocurrency, stringent restrictions are a regular feature of its crypto economy. The Payment Services Act which exists in the financial sector of the country recognizes digital assets such as Bitcoin as legal properties. Although the country has the biggest Bitcoin market in the world, its policies on exchanges are stricter than other markets where Bitcoin isn’t flourishing as much. Crypto derivatives trading platforms are even more scrutinized and monitored with even higher restrictions placed on them.
This explains why it took SBI Holdings over four years to set up the crypto fund expected to launch in December. Various conditions had to be met by the financial group to make the fund a reality in the Japanese crypto space. It is also important to note that the regulations were put in place to prevent cyber hacks and virtual thefts. There are even plans to step the restrictions higher to ensure maximum security for crypto users in the country. However, experts are optimistic that this proposed asset fund would make a positive impact on the crypto ecosystem of the country.