Japan’s Financial Watchdog to Slash Crypto Trading Leverage

The Japanese Financial Services Agency (FSA) plans to set a limit for the leverage available for cryptocurrency trading at as low as 2:1, the local media outlet Nikkei Asian Review reports.

Currently, there are sixteen licensed domestic cryptocurrency exchanges registered with the FSA with seven of them offering margin trading. As the regulator has not provided clear guidance, some exchanges allow digital trading assets with up to 25:1 leverage, which is regarded as highly risky due to the speculative and unpredictable nature of the cryptocurrency market.

For example, a trader needs to deposit only 200,000 yen ($2,00…

This article appeared first on Cryptovest

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