RATE Group | Japan’s Financial Regulator Mulls Cap on Cryptocurrency Margin Trading
46735
post-template-default,single,single-post,postid-46735,single-format-standard,ajax_fade,page_not_loaded,,qode_grid_1300,side_area_uncovered_from_content,footer_responsive_adv,qode-content-sidebar-responsive,qode-child-theme-ver-1.0.0,qode-theme-ver-13.3,qode-theme-bridge,wpb-js-composer js-comp-ver-7.9,vc_responsive
 

Japan’s Financial Regulator Mulls Cap on Cryptocurrency Margin Trading

25 Oct Japan’s Financial Regulator Mulls Cap on Cryptocurrency Margin Trading

Posted at 11:10h in Cryptocurrency News by

[ad_1]

Japan’s Financial Services Agency (FSA) is planning to put a cap on the leverage available for crypto margin trading to curb speculation and risk.

According to a news report from Nikkei Thursday, the financial market regulator is considering limiting crypto margin traders’ borrowing power to two to four times their deposits.

Currently, there are no regulations specifically governing the cryptocurrency margin trading space in Japan, the report added, with exchanges offering as much as 25 times leverage. That means traders can effectively borrow cryptocurrencies worth up to 25 times the deposit with an exchange, however just a four percent drop in the purchased crypto assets would wipe out the initial deposit.

Nikkei said seven of the 16 licensed exchanges by the FSA now offer marge trading services, adding that a panel comprised of FSA officials and industry experts is now set to discuss ways to impose potential regulations in this area.

The news follows previous statistics…

[ad_2]

Source link

Tags:
, , , , , , ,