Japan Considers Significant Caps on Cryptocurrency Margin Trading

Crypto News | Latest News

Japan’s primarily financial regulator is mulling a leverage cap on the amount of funds investors can borrow for margin trading with cryptocurrencies.

In a marked effort to clamp down on speculative trading to minimize volatility risks for investors, the Financial Services Agency (FSA) is considering leverage caps on margin trading, the Nikkei reported on Thursday.

There are presently no restrictions on margin trading borrowing currently in domestic Japanese markets, enabling some exchanges to offer traders up to 25 times the deposit as leverage, the default upper limit margin for foreign exchange trading. By contrast, the financial regulator is reportedly considering caps between two to four times the deposits, with limits as low as 2:1 also proposed.

According to the FSA’s own data from April this year, Japan is home to over 3.5 million active cryptocurrency traders, with a majority aged from 20 to 40 years.

While annual domestic trading in bitcoin – the world’s first and most traded cryptocurrency – rose from $22 million in 2014 to $97 billion in 2017, a majority of the total domestic trading volume in 2017 occurred in derivatives trading. Margin traders represented a significant majority behind the $543 billion traded in 2017.

The Nikkei report adds that seven of the sixteen licensed cryptocurrency exchanges provide margin-trading platforms. Incidentally, a self-regulatory body representing those licensed exchange operators has already enforced a 4-to-1 limit on margin trading earlier in July.

“This is just a provisional measure — I don’t think a ratio of 4 is adequate,” Japan Virtual Currency Exchange Association (JVCEA) chair Taizen Okuyama said.

The JVCEA now has the ability to monitor and self-regulate the sixteen licensed exchanges after being approved as a “certified fund settlement business association” following scrutiny over a two-month review by the FSA yesterday.

 

CCN

Author: Cryptobonx

Cryptobonx is a Crypto –Currency and Blockchain Enthusiast.He is a believer of transforming complex information into simple, actionable content.

Leave a Comment

Latest Crypto News

CNBC Reporting the surge of bitcoin to $100 back in 2013!!

https://www.youtube.com/watch?v=O3XvCbh8pQU reddit Buffer Facebook Twitter Author: CryptobonxCryptobonx is a Crypto –Currency and Blockchain Enthusiast.He is a believer of transforming complex information into simple, actionable content.

After Raising $80Million TenX Founder Linked to Pyramid Scheme

TenX president Julian Hosp has been implicated in connection with an Austrian discount shopping service called Lyoness. Lyoness has been declared an illegal pyramid scheme in Norway, Austria, and Switzerland. A video has emerged that appears to show Hosp presenting an

CoinAlpha Gets SEC on Their Ass

CoinAlpha got served with a cease and desist order today from the SEC on the grounds of operating as an unregistered entity. The SEC also accuses the company of being sneaky in the way of

Gazprom Bank Crypto Moves

In terms of assets, the above-mentioned bank is the third largest in Russia, with a management capital in form of assets worth $3.1 billion. And for this reason, for a renowned world power in every

Argo Blockchain Not Feeling the Crypto Winter

Crypto mining company Argo today reported that in the midst of the current bear crypto market, it is registering significant growth and more demand. Up until mid-November, Bitcoin prices had been holding out at the

Who Is Bitcoin’s Anonymous Whale?

A wealthy Bitcoin wallet which had remained inactive for the last 5 years made a surprising hefty deposit of 66, 233 BTC  ($256 million) two days ago. Now, Bitcoin whales (people who hold large amounts

Nexo Dividend Pay-outs Catapults it to the Top

Nexo is a blockchain based system that allows users to access instant loans in fiat dollars by using cryptocurrencies as collateral. This was interesting as the only way cryptocurrencies were in use was through selling

G-20 Okays Cryptocurrency Taxation

Regulation of cryptocurrencies has been a long time coming with the process full of twists and turns. Many countries have set up legislation or are in the process of doing so; it’s not unnatural that

Madness: Venezuela Raises Its Cryptocurrency Price

Venezuela’s President Nicholas Maduro announced on national television on Thursday that the country’s native cryptocurrency Petro’s price had been increased from 3,600 sovereign bolivars to 9,000. Petro was launched early 2018 in the middle of

A Flying Look At Blockchain Tech And Bitcoin

Do you need to know more about Bitcoin and blockchain tech in a hurry? Want to learn what mining is or what block time is? Or just more about the topic in general? The sheer

Sign Up Below!
Airdroppin the Latest Crypto News, Trading Strategies, Tools, & Reviews



1
Bitcoin
Bitcoin
$3,501.49
-3.13%
3
Ethereum
Ethereum
$91.573
-3.80%
2
XRP
XRP
$0.3030
-3.41%
5
Bitcoin Cash
Bitcoin Cash
$108.32
-0.97%
9
Litecoin
Litecoin
$24.660
-4.97%
11
Cardano
Cardano
$0.030231
-4.91%
4
Stellar
Stellar
$0.1183
-5.02%
18
NEO
NEO
$6.164
-3.88%
7
EOS
EOS
$1.9580
-4.05%
14
IOTA
IOTA
$0.2322
-4.85%

Crypto Guides & Tutorials

 Crypto Reviews

Subscribe to Our Social Media Daily Crypto Memes
Follow, Like, and Share Our Memes With The World


Pin It on Pinterest

Plus Free Crypto Trading Guides, Tutorials, Latest Crypto News,
and Altcoin Reviews. (Coming Soon: Pro Trading Signals)
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
Plus Free Crypto Trading Guides, Tutorials,
Latest Crypto News, and Altcoin Reviews
(Coming Soon: Pro Trading Signals)
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
Plus Free Crypto Trading Guides, Tutorials, Latest Crypto News,
and Altcoin Reviews. (Coming Soon: Pro Trading Signals)
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
Plus Free Crypto Trading Guides, Tutorials,
Latest Crypto News, and Altcoin Reviews
(Coming Soon: Pro Trading Signals)
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK