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According to the Japan Virtual Crypto Asset Exchange Association, the introduction of new limits for margin trading by retail investors, increasing the allowable leverage by four to ten times, will increase the attractiveness of the cryptocurrency industry.
“The reform of the leverage rule will stimulate trade growth and may also make Japan a more attractive country for crypto and blockchain companies,” the association explained in an interview with reporters.
Despite the general easing of digital asset listing rules and the taxation of cryptocurrencies, Japan’s Financial Services Agency (FSA) maintains strict rules limiting margin trading limits for retail investors. In line with measures to protect retail investors’ funds and counter aggressive lending policies by cryptocurrency platforms, the regulator has set a two-fold limit on exceeding the initial deposit.
Comments from an FSA spokeswoman said the agency is open to discussing the issue with digital asset cryptocurrencies.
But for a possible relaxation of margin trading rules,</nbsp;the crypto industry must provide the agency with compelling evidence that easing the restrictions would help the blockchain industry.
Earlier, Japan’s Financial Services Agency warned
foreign trading platforms Bybit, BitForex, MEXC Global and Bitget about possible sanctions for working illegally with nationals.