Japanese financial authorities to clamp down with stricter rules on cryptocurrency margin trading
|- Japan’s Cabinet has drafted new amendments relating to cryptocurrency margin trading.
- Changes will be similar to that of forex trading and are expected to come into effect in 2020.
Japan is set to implement new firmer rules and regulations around cryptocurrency margin trading from 2020 onwards. The details were Japanese news wire Nikkei Asian Review, a draft of amendments has been approved by Japan’s Cabinet of the executive agency.
The noted amendments are related to; financial instruments, and payment services laws which cover two notable changes with regards to cryptocurrencies.
There will be a cap on margin trading for cryptocurrency in line with the forex trading, at two-to-four times the initial deposit. Secondly, all cryptocurrency exchanges in Japan of whom offer margin trading are going to be mandated to register with the government within 18 months of the date the rules come into effect, expected in April 2020, according to the report.
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