Japan’s Financial Services Agency is about to set new marginal trading limits striving to prevent speculations in the crypto market.
According to the local media, the authority considers the possible restriction of the marginal trading to 4-to-1. Notably, Japan has no specific rules for the marginal crypto trading, and in this context, some exchanges can set even 25 to 1 leverage rate.
The regulator intends to put new regulation for discussion with the key market experts in the near term. Specifically, the Japan Virtual Currency Exchange Association already noted the need for marginal trading restrictions earlier. Moreover, it has already developed a 100-page draft guidelines for the crypt segment.
For now, 7 out of 16 licensed exchanges in Japan reportedly offer marginal trading services.
Japan has recorded skyrocketing marginal trading lately, as the authority reported. The available data showed that derivatives accounted for 80% of overall digital coin trading, which means some $543 billion. Moreover, the bulk of these contracts are leveraged.
Earlier, it was reported that the JVCEA officially gained the power to develop guidelines and rules for the local crypto market, following the decision of Japan’s FSA.