Japan which is already well known for its stringent crypto regulations is about to add another set of rules. According to a recent report, the country is about to cap leverage trading on cryptocurrencies by 2020.
Leverage Trading on Cryptocurrency Exchanges to Get Capped
Japan’s top financial watchdogs have reportedly approved amendments to the country’s financial instruments and payment services laws designed to limit the amount of leverage cryptocurrency exchanges are allowed to offer their users when margin trading.
This newly amended cap is expected to be two-to-four times the trader’s initial deposits. This is similar to the rules governing foreign exchange (forex) trading portals
Also, all cryptocurrency exchanges offering margin trading to their users must now seek approval from the Japanese government through registration. This is going to be a new form of registration process, which is different from the preexisting process signed into law in the year 2017. Then,
digital currencies were officially recognized as…