Japan Targets Cryptoasset Margin Trading With New Regulations

Asia Japan Regulations Worldwide

The revised law introduces a cap of two to four times the initial deposit on available leverage for cryptoasset margin trading.

As reported by Nikkei Asia Review, new amendments to Japan’s financial laws tightens the rules for cryptoasset margin trading.

The revised law introduces a cap of two to four times the initial deposit on available leverage for cryptoasset margin trading.

The new rules are set to be implemented by April 2020 and exchanges offering margin trading of cryptoassets will have 18 months to register with Japan’s Financial Services Agency (FSA) from that date.

Nikkei Asia Review claims that the amendment aims at improved customer protection via close exchanges monitoring, one way of achieving it would by treating exchanges issuing ICOs and those offering margin trading differently under the law.

By putting them in separate categories the regulators hope to improve their ability to track investment scams while providing the crypto sector with a healthy environment for growth.

About the author

Maciek Klimowicz

Maciek Klimowicz

A seasoned writer and editor with 10 years of experience in a variety of print and online media. Recognizing the transformative potential of the blockchain technology, Maciek has now put his pen to work to explore the key issues of this fast-evolving sector. Contact him on [email protected].

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