• 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.

Recommended content


Recommended Content

Editors’ Picks

Ripple's XRP breaks out of downtrend as RLUSD receives greenlight from New York regulators

Ripple's XRP breaks out of downtrend as RLUSD receives greenlight from New York regulators

Ripple's CEO Brad Garlinghouse announced on Tuesday that the company received a green light from the New York Department of Financial Services on the launch of its stablecoin RLUSD. 

More Ripple News
Could Google's supercomputer crack Bitcoin? Crypto community maintains positive outlook

Could Google's supercomputer crack Bitcoin? Crypto community maintains positive outlook

Bitcoin faced mixed sentiments on Tuesday after crypto community members spoke on the potential of Google's new quantum chip Willow's ability to crack blockchain networks and render the security of public key cryptography useless.

More Bitcoin News
Crypto Today: Microsoft Rejects Bitcoin Reserve Plan, as Cardano, XRP Lead Market Rebound

Crypto Today: Microsoft Rejects Bitcoin Reserve Plan, as Cardano, XRP Lead Market Rebound

Amid an escalating geopolitical crisis, the global crypto market crash on Monday saw over $1.5 billion worth of liquidations, triggering double-digit losses across top-ranked digital assets.

More Cryptocurrencies News
Litecoin Price Prediction: LTC to hold $100 support as traders deploy $10M of leverage

Litecoin Price Prediction: LTC to hold $100 support as traders deploy $10M of leverage

Litecoin price broke below the $110 level on Tuesday, down 20% in a frenetic 24 hours as rising geopolitical risks triggered volatility across global crypto markets.

More Litecoin News
Bitcoin: Long-awaited $100K milestone meets profit taking

Bitcoin: Long-awaited $100K milestone meets profit taking

Bitcoin ends the working week hovering around $98,000 after a very volatile Thursday when it surpassed the $100K milestone and underwent a sharp correction. Strong institutional demand, whale accumulation, and the choice of a pro-crypto figure to lead the US SEC fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP