Japan’s Financial Watchdog Plans New Cryptocurrency Margin Regulation – Cryptocurrency R…

The Japanese Financial Services Agency (FSA), the nation’s financial regulatory body has plans to change cryptocurrency margin trading.

The latest news from Japan revealed the plans of the FSA to practically tighten margin trading of crypto in Japan. Thus, the agency plans to fully limit leverage. Furthermore, this limitation will be twice the traders’ deposit.

Reducing trading losses

Based on reports from the Japan Times, the decision’s aim is to reduce trading losses due to the fluctuating price of the digital assets.

Importantly, the FSA didn’t impose any virtual currency restrictions on leverage. But the regulatory body maintains a cap of roughly four times.

The new rule will reportedly become effective in spring and will be connected to the already revised Financial Instruments and Exchange Act.

Enforcement strategies already in place

The Japanese watchdog has already taken certain decisions after studying crypto price fluctuations and their risks.

Besides, the agency appears…