Japan's Financial Services Agency (FSA) intends to limit leverage in margin tradingcryptocurrency level 1: 2 to the initial deposits of traders, reports Japan Times.
The restriction will be more stringent than the previous decision of the regulator, according to which the leverage should not exceed the size of the deposit by 4 times.
According to the publication, the new rule will be included in the order of the Cabinet of Ministers related to the revision of the Law “On Financial Instruments and Exchanges,” which will come into force in the spring.
The FSA explained the halving of the leverage limit by half as a desire to protect traders from cryptocurrency price volatility and the rules adopted in Europe and the USA.
Earlier, the leading Japanese bitcoin exchange Coincheck announced the termination of margin trading in March 2020.
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