The Financial Services Agency of Japan (FSA) plans to set a limit on the size of leverage during crypto-trading in order to reduce risks and market speculation. This is reported by the Nikkei Asian Review .
The FSA is considering setting a limit on leverage at 4: 1. Currently in Japan there are no separate rules governing the margin trading of cryptocurrencies. At the same time, exchanges offer clients the opportunity to trade with leverage up to 25: 1. The Nikkei also reports that seven of the 16 licensed exchanges currently offer margin trading.
Representatives of the FSA and industry experts intend to discuss in the near future the possibility of introducing new standards for regulating the cryptocurrency industry.
Earlier, the agency published information about the rapid growth of marginal cryptocurrency trading in Japan. Thus, of the total volume of trading in digital assets, 80% ($ 543 billion) falls on derivatives. At the same time, 90% of such transactions are carried out with leverage.
The need to impose restrictions on the size of leverage to the 1: 4 ratio was previously stated by the Association of Virtual Currency Exchanges of Japan (JVCEA).
Also recall, the other day JVCEA received the status of "certified business association in the field of financial calculations . " This means that the organization will have the authority to develop rules for the local cryptocurrency industry, including measures to prevent insider trading, money laundering and asset protection.
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