Cryptocurrency margin trading can be extremely risky for investors. Japan’s uppermost executive body, the Japanese Cabinet, has accordingly greenlighted amendments put forth by the nation’s Financial Services Agency (FSA) that would limit how much leverage domestic crypto margin traders can use.
The FSA had first released a report proposing new rules for Japanese crypto services in December 2018. Therein, the agency called for cryptocurrency margin trading platforms to register with the government and for the imposition of stricter margin limits in these venues.
The Japanese Cabinet has agreed to the FSA’s positions on both fronts, determining last week that platform registrations and tighter margin limits were in order.
The development will bring the country’s crypto margin hubs in line with domestic foreign currency exchange (forex) institutions, which already have to register their operations with the FSA and impose strict margin limits for their traders.
“We intend to motivate operators to do what they can to…