RATE Group | Japanese Cryptocurrency Association Addresses Leverage Trading Concerns
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Japanese Cryptocurrency Association Addresses Leverage Trading Concerns

29 Jul Japanese Cryptocurrency Association Addresses Leverage Trading Concerns

Posted at 17:21h in Ethereum News by

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Margin trading is a controversial topic in the cryptocurrency community, to say the least. Some think that using leverage in cryptocurrency trades is a valid trading vehicle, while others see it as speculative nonsense and an unwarranted method of trading that is risky for common consumers.

For the uninitiated, margin trading allows you to borrow boat-loads of money from an exchange or platform to utilize in trades. While this may sound a great investment opportunity to some, margin trading can rapidly magnify a user’s gains or losses, with some unfortunate traders losing their life savings on high margin trades.

As per a report from the Nikkei Asian Review, a leading English news outlet on Asian business-related news, Japan’s leading cryptocurrency self-regulatory body is moving to limit margin trading in the country.

The so-called “Japan Virtual Currency Exchange Association” (JVCEA) recently proposed a ruleset which would see a 4-to-1 leverage cap placed on…

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