It looks like crypto traders in Japan are going to see tougher margin trading rules this year.
According to the Japan Times, the Financial Services Agency (FSA), the nation’s top financial watchdog, is planning to introduce a new rule which limits the amount of leverage cryptocurrency traders are allowed to use.
Crypto exchanges in the Land of the Rising Sun currently have a self-imposed cap of four times leverage. The FSA, however, is looking to halve that to two times.
The proposed cap is reportedly based on “past price fluctuations and cryptocurrency regulations in Europe and the United States,” and are designed to “reduce the risks of losses ballooning” because of crypto volatility.
The new rule will be included in a Cabinet Office order linked to the revised Financial Instruments and Exchange Act which will go into force in spring, informed sources said.
Photo: Yoshikazu TAKADA