Japanese Gov’t to Limit Bitcoin Margin Trading Leverage to Just 2x

Margin trading has arguably been one of the most popular features of the crypto markets that has drawn in floods of traders over the past few years. These traders are lured by the ability to trade the already volatile assets like Bitcoin with leverage as high as 125x on some platforms.

Analysts have noted that the massive amounts of margin readily available to traders is one factor that has been driving the market’s volatility, as it allows users to magnify their positions without having to risk a significant amount of capital.

Naturally, margin trading is filled with significant risk, and the Japanese government is now taking actions to bar traders from using large amounts of leverage, which could be a growing trend that impacts Bitcoin and the nascent crypto markets.

Japanese FSA Looks to Limit Margin Trading Maximum Leverage to 2x

In a recent report from the Japan Times, the newspaper explains that the country’s Financial Services Agency (FSA) is currently moving to limit the…