Japan crypto exchanges face margin trading limit dropping from 4x to 2x of deposits held

posted 3 months ago
Bitcoin and crypto exchanges in Japan will face significant restrictions on margin trading as soon as this spring. Japan’s financial regulator, the Financial Services Agency, plans to limit margin leverage to twice the total of traders’ deposits.

Previously the rule was 4x a trader’s deposits. In October, data showed open interest in margin trading was at an all-time high in Japan. Some say this is good as to reduce volatility in the crypto industry, it's worth noting that Japan has sought to become a friendly jurisdiction for cryptocurrency, fostering permissive regulations and closely monitoring exchanges.
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