Japan To Ease Margin Trading Rules for Crypto

As per the Japan Virtual & Crypto Assets Exchange Association, industry players want to permit leverage for retail players of four to ten times. However, at present, customers can only double their exposure via borrowing.

advertisement

The association’s Vice Chairman Genki Oda said in an interview: “Reforming the leverage rule could make Japan more attractive for crypto and blockchain companies”. He also said that such a step would encourage more trading in the market.

Japan’s FSA In Discussion With Local Exchanges

The local crypto exchanges of Japan are already in talks to reach a consensus on the recommended leverage limit. They are likely to take their proposal further to the top financial regulator – Financial Services Agency (FSA).

According to an official from the Financial Services Agency (FSA), cryptocurrency companies are required to provide strong justifications for relaxing margin trading limits, which align with the government’s objective of expanding blockchain-related sectors. The FSA is willing to engage in discussions with digital asset businesses regarding this matter.

Recommended Articles
ethereum price crypto news
Crypto Presale Projects For 2023 To Invest; Updated List
Must Read
crypto exchange affiliate programs
Best Crypto Exchange Affiliate Programs In 2023
Must Read
ethereum price crypto news
Top Crypto Marketing Firms / Agencies 2023; Here’s Best Picks [Updated]
Must Read
ethereum price crypto news
Crypto Telegram Channels List 2023 [Updated]
Must Read
ethereum price crypto news
Top 10 Web3 Games To Explore In 2023; Here List
Must Read

This development comes just at a time when Hong Kong is making a greater push towards establishing itself as the crypto hub of Asia. Thus, Japan is also mulling to ease some of its crypto rules on token listing and taxation.

In Japan, cryptocurrency platforms used to allow trading with leverage up to 25 times, which led to high volumes of margin trading reaching around $500 billion in 2020 and 2021. However, the volumes significantly decreased by 75% in 2022 after the Financial Services Agency (FSA) implemented a limit of two times leverage. This measure aimed to reduce excessive speculation and protect investors from substantial losses.

In other parts of the world, the availability of spot margin trading on digital asset exchanges varies based on local regulations. Typically, these platforms offer leverage between five and ten times the initial deposit. Some platforms even provide more aggressive lending, which reflects the risky speculation that can create waves of greed and fear within the crypto market.

Oda said that crypto volatility has called down over the last three years and Japan’s local crypto exchanges are well-equipped to help investors manage risks with margin trading.

Mooky Presale
Mooky Coin Presale
$MOOKY is a meme token which helps planting trees by donating to charity.
Visit Here
AD

Comments

Post a Comment

Popular posts from this blog

Billionaire Ray Dalio Warns US and China on Brink of War, Beyond Ability to Talk — US-China Trade Could Collapse

Bridgewater Associates founder Ray Dalio has warned that the U.S. and China are “on the brink of war” and “are beyond the ability to talk.” The billionaire added that their relations “are getting so bad” that U.S.-China trade could collapse. He cautioned that the next 18 months “will be a very risky period.” U.S. and China on the Brink of War, Says Dalio Ray Dalio, the founder of the world’s largest asset manager, Bridgewater Associates, warned in a Linkedin post, published Wednesday, that the U.S. and China are on the brink of war. The billionaire, who has visited China for almost 40 years and has built close friendships there, shared his perspectives from his recent 13-day trips to China, as well as from meetings with Chinese citizens, experts on China residing outside the country, and policymakers in other countries, including the U.S. Regarding U.S.-China relations, Dalio stressed: The United States and China are on the brink of war and are beyond the ability to talk. He ...
Read more

Mooky Emerges as the Hottest Crypto Presale for 2023, Garnering Enthusiasm and Investors' Support⁣

Image
As the cryptocurrency market continues to soar, surpassing the $1.3 trillion mark in 2023, exciting opportunities arise for investors seeking significant returns. Among the myriad of upcoming presale cryptocurrencies, one stands out as the top contender for explosive growth: Mooky. With its ongoing presale rounds, Mooky has captivated the attention of the crypto community, raising over $578k in just 7 weeks.⁣ Mooky: The Continuously Thriving Crypto Presale Mooky has swiftly gained momentum and is currently in its 7th round of presale, attracting substantial investments and positioning itself as a force to be reckoned with. Priced at $0.0000051 per MOOK, Mooky has demonstrated its commitment to clean and green earth by allocating 3% of its total supply to eco-friendly charities. Additionally, 20% of the supply will be reserved for exchange listings, ensuring wider accessibility for investors.⁣ Unlocking a World of Opportunities with Mooky⁣ As an ERC-20 token, MOOK provides ac...
Read more

Kitsumon launches NFT land sale in partnership with top NFT and Gaming platforms

Image
After a successful  IDO  and  INO , Kitsumon is pleased to announce details of the highly anticipated NFT land sale in partnership with top gaming and NFT platforms, including; Babylons BalthazarDAO DareNFT ScottyBeam FantomStarter DAOLauncher Liquidifty GameStation Synapse Network   Land in the Kitsumon metaverse is a key element for the MMORPG: Professions gameplay due to release in 2023. Professions will allow players to explore a massively multiplayer world where players can use their land to level up their character in 6 different roles, such as farming, cooking, fishing, mining, crafting and alchemy. A full overview of professions  can be found here .  Become a master of one or a jack of all trades. Be a genius of agriculture and turn your harvest to cash, cook up amazing dishes to supercharge your Kitsus for battle, or relax by the sea to catch some fish. Everything players grow and craft in the Kitsumon world is represe...
Read more