RATE Group | Japan Crypto Exchanges Face Imminent Margin Trading Limits: Report
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Japan Crypto Exchanges Face Imminent Margin Trading Limits: Report

11 Jan Japan Crypto Exchanges Face Imminent Margin Trading Limits: Report

Posted at 18:48h in Cryptocurrency News by

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Bitcoin (BTC) and cryptocurrency exchanges in Japan will face significant restrictions on margin trading as soon as this Spring, according to reports.

Referencing sources at Japan’s finance regulator, the Financial Services Agency (FSA), local English-language news outlet Japan Times revealed plans to limit margin leverage to twice the total of traders’ deposits.

FSA seeks to counter crypto volatility

The move follows on from a limit of four times traders’ deposits which the domestic exchange industry imposed on itself through a self-regulatory body last year.

The reason, according to the FSA sources, is to guard against periods of volatility on cryptocurrency markets.

On the timeframe for implementation, Japan Times added:

“The new rule will be included in a Cabinet Office order linked to the revised Financial Instruments and Exchange Act which will go into force in spring.”

It remains unclear whether the restrictions will take effect immediately following the introduction of…

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