Japan’s Crypto Exchanges Request Licensed Leverage For Investors Of 4 To 10 Times
According to Bloomberg, unbowed by last year’s global digital-asset market catastrophe, Japan’s crypto exchanges are pressing for an easing of margin trading restrictions. The Japan Virtual & Crypto Assets Exchange Association states that many individuals in the business want retail investors to be able to borrow four to ten times their initial investment, although consumers may presently only borrow twice their first investment.
Genki Oda, the Vice Chairman of the association, stated in an interview with Bloomberg that modifying the leverage rule could enhance the appeal of Japan to crypto and blockchain firms. He further mentioned that such a move would stimulate increased trading activity. According to Oda, the nation’s digital-asset exchanges are in negotiations to obtain an agreement on a proposed leverage limit and may submit their proposal to the Financial Services Agency (FSA) as soon as next month. Japan has loosened several crypto laws, such as token listing and taxes, but it is still seen as having severe regulations. Because of this emphasis on investor safety, the Japanese branch of collapsed exchange FTX was able to restore money to customers early this year.
