Limits on marginal trading borrowings can be placed in Japan

Posted 25 July, 2018

The Japan Virtual Currency Exchange Association has put forward a proposal to limit marginal trading loans.

With this initiative, it is suggested that investors may get borrowed capital in an amount exceeding their own deposits only by 4 times. The Association says that they strive to protect investors and such measures are related to a lack of local market regulation that could limit the upper-end of the borrowings to those who targets margin trading.

The April statistics showed that last year 142,000 traders dealt with derivatives, while the overall number of traders is some 3 million in the local market. At the same time, derivative trading accounted for more than 80% of all crypto trading in Japan, with marginal trading covering over 90%.

The Japan Virtual Currency Exchange Association was launched after the Coincheck hack this January. The unit deals with self-regulation development to improve the local crypto market. The most recent initiative is to be presented to the financial regulator willing to achieve its large-scale implementation.

Notably, it is possible that some investors can start leaving the market after the new rules, so the Association plans to set limits step-by-step.

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26 July, 2018 11:24

← Financial Service Commission calls for prompt crypto rules approval

The financial regulator in South Korea reportedly claimed that the local officials must step up and approve the first crypto law promptly. The authority cited that trading platforms for cryptocurrencies involve insufficient security and risks of money laundering. The authority is striving to get initially the key rules that may help to fight against money laundering.

Financial Service Commission calls for prompt crypto rules approval

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