Japan’s FSA Mulls Margin Limit for Crypto Exchanges

Japan’s Financial Services Agency (FSA) plans to limit trading margin for crypto exchanges, in a move that is aimed at reducing fluctuations in the market, according to Japan Times website.

The market watchdog considers decreasing the trading margin to twice the trader’s total deposit.

Some exchanges are worried about the implementation of this plan, especially as they used to make margins four times the value of trader’s deposits.

FSA discussed the plan with Japan Virtual Currency Exchange Association, after it was passed by the government in May 2019.

However, it is still unclear whether the regulation will come into force after its approval.  

Some experts said such a move is aimed at preventing manipulation of prices in the crypto market. Margin trading in Japan reached all-time high in October 2019, official data unveiled.  

Japan is one of the countries that seek to create a friendly environment for the crypto industry. However, it constantly watches the market for any negative development.

The country is not ready to launch its digital currency because of a relatively low demand. However, it may study this issue if it is proved to be favorable for both investors and economy.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.