RATE Group | Japanese Crypto Exchanges Push for Limit on Margin Trading Borrowing
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Japanese Crypto Exchanges Push for Limit on Margin Trading Borrowing

25 Jul Japanese Crypto Exchanges Push for Limit on Margin Trading Borrowing

Posted at 08:30h in Cryptocurrency News by

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A self-regulatory organization formed by cryptocurrency exchanges in Japan is proposing a limit on how much investors can borrow when margin trading.

According to a report from Jiji Press on Tuesday, the Japan Virtual Currency Exchange Association (JVCEA) has suggested domestic trading platforms enforce a restriction that investors can only borrow up to four times their deposit.

The JVCEA said the proposed plan aims to protect domestic investors because there are currently no market rules governing the upper limit of how much cryptocurrency investors can borrow in margin trading.

According to statistics released by Japan’s market watchdog the Financial Services Agency (FSA) in April, there were around 142,000 crypto traders focused on derivatives in 2017, comprising a small fraction of the total 3 million traders in Japan.

However, over 80 percent of the entire cryptocurrency trading volume in the country in 2017 came from derivatives trading, which recorded $543 billion last…

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