• The Cabinet of Japan, the executive branch of the country’s government, is limiting leverage in cryptocurrency margin trading at two to four times the initial deposit.
  • The new regulations will help the regulators to keep investors safe from Ponzi Schemes and encourage legitimate companies to practice offerings as fundraising tools.

As per Nikkei, Japanese financial regulators have introduced new regulations for cryptocurrency margin trading. The Cabinet of Japan, the executive branch of the country’s government, has allowed draft amendments to Japan’s financial instruments and payment services laws, limiting leverage in cryptocurrency margin trading at two to four times the initial deposit.

The new rules will come into force in April 2020. It will require cryptocurrency exchange operators to register within 18 months. The Financial Services Agency (FSA) will have the authority to deal with unregistered cryptocurrency "quasi-operators." This move will help the regulators to keep investors safe from Ponzi Schemes and encourage legitimate companies to practice offerings as fundraising tools.


 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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