RATE Group | Japan’s FSA May Impose Margin Trading Limits on Cryptocurrency Exchanges
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Japan’s FSA May Impose Margin Trading Limits on Cryptocurrency Exchanges

12 Jan Japan’s FSA May Impose Margin Trading Limits on Cryptocurrency Exchanges

Posted at 07:03h in Cryptocurrency News by

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Japan’s FSA May Impose Margin Trading Limits on Cryptocurrency Exchanges January 12, 2020 January 12, 2020 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY

Coming Spring, cryptocurrency exchanges facilitating Bitcoin (BTC) and other altcoin trading may face considerable constraints on margin trading.

According to the English new outlet Japan Times, the Financial Services Agency (FSA), Japan’s regulator, intends to restrict leverage on margin to 2x the deposit held in a trader’s account.

Notably, local cryptocurrency exchanges in Japan had constrained itself to a leverage limit of 4x on traders deposits on the basis of a recommendation made last year by a self-regulatory body. As per the FSA sources, the rationale is to shield against durations of volatility on cryptocurrency markets.

On the timeframe for implementation, Japan Times added:

“The new rule will be included in a Cabinet Office order linked to the revised Financial Instruments and Exchange Act which will go into…

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