RATE Group | Japan’s Crypto Watchdog Stomps on 100x Bitcoin Margin Trading, Malaysia Bans ICOs
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Japan’s Crypto Watchdog Stomps on 100x Bitcoin Margin Trading, Malaysia Bans ICOs

16 Jan Japan’s Crypto Watchdog Stomps on 100x Bitcoin Margin Trading, Malaysia Bans ICOs

Posted at 08:14h in Bitcoin News by

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Financial regulators around the world are issuing restrictions on the Wild West of Cryptocurrency in a bid to curtail runaway speculation on digital assets and new digital investments.

In Japan, the Financial Services Agency (FSA) plans to introduce a rule that will limit the leverage in cryptocurrency margin trading. Instead of permitting 10x to 100x leverage, the proposal limits margin trading to just twice the deposits of traders, reports the Japan Times.

A number of exchanges offer margin trading including BitMEX and OKEx, which offer up to 100x leverage on some of their products. Leading exchanges Binance, Kraken and Bitfinex also offer margin trading.

The legislation aims to reduce the risks of big losses due to Bitcoin’s wild swings and volatile price fluctuations spread across the entire cryptocurrency market where an estimated 80 to 90% of the transactions via cryptocurrency exchanges are speculative margin trading. The FSA’s 2x leverage cap, which sources…

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