• Thu, Nov 15, 2018 08:41 PM
  • All times are UTC
  • Edition :
Link copied

Japan’s Financial Services Agency mulls capping crypto margin trading

Oct 26, 2018 06:29 am UTC

In a bid to curb speculation and risk in cryptocurrency trading, Japan’s financial regulator is considering capping cryptocurrency margin trading, Nikkei reported.

While cryptocurrency exchanges in Japan are required to register with the Financial Services Agency (FSA), there is a lack of clear regulations governing cryptocurrency transactions.

The FSA recently updated and released the documents it requires for firms applying for a cryptocurrency exchange license, CoinDesk reported October 24. The details which the firms would now have to provide include their platform’s crypto reserves, offered trading pairs, security measures, and maximum leverage ratio in margin trading, among others.

Currently, 7 of the 16 FSA-registered crypto exchange operators offer margin-trading platforms. Certain crypto exchanges are voluntarily capping leverage at 25 times the deposit, emulating foreign exchange margin trading rules. Experts are reportedly now proposing caps between 2 and 4 times for cryptocurrencies.

A lower leverage cap is recommended for cryptocurrencies given their high volatility. According to Nikkei, an FSA panel is going to discuss new rules for possible legal changes.

The FSA recently approved Japanese Virtual Currency Exchange Association (JVCEA), a crypto exchange group formed earlier this year following Coincheck hack, as a self-regulatory industry body. The JVCEA sets a leverage limit of 4 to 1.

"This is just a provisional measure -- I don't think a ratio of 4 is adequate," said Taizen Okuyama, the Money Partners Group president who heads the association.

<Copyright © TokenPost. All Rights Reserved. >

The commenting service is available only after having logged in.
  • Bitcoin (BTC) $5,586.14(0.8%)
  • XRP (XRP) $0.4656(+3.4%)
  • Ethereum (ETH) $180.118(+1.2%)
  • Bitcoin Cash (BCH) $415.498(-3.4%)
  • Stellar (XLM) $0.2329(+4.2%)
  • Bitcoin (BTC) $5,586.14(0.8%)
Nov 15, 2018 (Thursday)
75 pct Irish people unwilling to consider career in blockchain technology: Study
American restaurant chain Sweetgreen plans blockchain push following $200M funding
Decentralized exchange EOSDAQ lists KEOS tokens
Smithfield Foods joins Subway, Tyson Foods and others in Food Industry Blockchain Consortium
Telecom giant Telefónica seeks to streamline core business processes using IBM Blockchain
Gibraltar Stock Exchange forms joint venture with fintech firms to develop blockchain technologies
Singaporean crypto startup KuCoin secures $20M in Series A round from IDG Capital, Matrix Partners, and Neo Global Capital
H&M subsidiary Arket trials blockchain for product traceability
Kakao’s blockchain platform Klaytn teams up with stablecoin project Terra
Nov 14, 2018 (Wednesday)
MAS, Bank of Canada begin work to link respective blockchain platforms
SIX Swiss exchange expects blockchain-based platform to replace existing system in 10 years
Circle Invest launches crypto reward program for new users
Thailand’s Democrat Party taps Zcoin’s blockchain for e-voting system in primary election
Chinese city of Loudi rolls out blockchain platform for real estate data
Crypto exchange OKEx adds support for Vietnamese Dong to C2C trading market
Shell and BP-backed VAKT to launch blockchain platform to digitize commodities trading industry by end of 2018
Nov 13, 2018 (Tuesday)
HSBC joins blockchain startup Axoni's Series B funding round
CSIRO’s Data61, CBA successfully complete trial of blockchain-powered smart money
Nine leading shipping companies team up for new blockchain consortium
Transoil International, Solaris Commodities conduct blockchain pilot for Black Sea wheat
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.