1. BITBILIHome
  2. Article

Japan’s crypto exchanges call for relaxed margin trading restrictions to boost market growth

• 301 views

TL;DR Breakdown

  • Japanese cryptocurrency exchanges are calling for the relaxation of margin trading restrictions on popular cryptocurrencies to boost market growth.
  • The Japan Virtual and Crypto Assets Exchange Association (JVCEA) is proposing higher leverage limits of up to 10 times the principal for retail investors.
  • Regulators will evaluate the proposals while considering market risks and investor protection, potentially attracting institutional investors and enhancing market liquidity.

Description

Japan’s cryptocurrency exchanges are urging regulators to relax margin trading restrictions on popular cryptocurrencies, such as bitcoin (BTC), to stimulate market growth and attract new participants, according to a report by Bloomberg. However, the Japan Virtual and Crypto Assets Exchange Association (JVCEA), a self-regulated body of local exchanges, has proposed increasing leverage limits for retail … Read more

Japan’s cryptocurrency exchanges are urging regulators to relax margin trading restrictions on popular cryptocurrencies, such as bitcoin (BTC), to stimulate market growth and attract new participants, according to a report by Bloomberg. However, the Japan Virtual and Crypto Assets Exchange Association (JVCEA), a self-regulated body of local exchanges, has proposed increasing leverage limits for retail investors to up to 10 times their principals. This move comes as Japan explores regulations to support the growth of NFT and virtual lands-related businesses and considers the issuance of its own stablecoins.

Margin trading, a practice where investors can borrow funds to amplify their trading positions, was once a thriving market in Japan. In 2020 and 2021, trading volumes on Japanese exchanges reached about $500 billion annually, with leverage of up to 25 times the principal capital. However, Japanese regulators imposed stricter rules early last year, capping leverage at only twice the principal capital. Consequently, trading volumes plummeted.

The JVCEA argues that these restrictions hinder market growth and discourage new participants from entering cryptocurrency. JVCEA Vice Chairman Genki Oda stated in an interview with Bloomberg that reforming the leverage rule could make Japan “more attractive for crypto and blockchain companies,” potentially resulting in increased trading activities.

The proposal for revised margin trading caps is not without scrutiny. Regulators are expected to evaluate the suggestions, taking into account market risks and investor protection. Any revisions to the existing caps will undergo thorough reviews and consultations with industry participants to strike the right balance.

The push for higher leverage limits is to attract diverse traders, including institutional investors while enhancing market liquidity. Allowing higher leverage would enable traders to manage their positions more effectively, potentially reducing risks associated with margin trading. At present, Japanese crypto exchanges have processed just over $110 million worth of trading volumes in the past 24 hours, with the majority of the volume generated by bitcoin (BTC), ether (ETH), and xrp (XRP) trading.

Crypto regulation Japan

Japan’s willingness to embrace crypto regulation and stablecoin usage has gradually increased. Lawmakers are reportedly exploring Web3 regulations to support the growth of NFT and virtual lands-related businesses in the country. Additionally, local banks are working on plans to issue their stablecoins, tokens pegged to the Japanese yen, in the coming months.

Japan has been known for maintaining strict regulations in the cryptocurrency space, prioritizing investor protection and security. The country’s regulatory framework was crucial in safeguarding FTX Japan customers’ funds during the parent company’s bankruptcy. Earlier this month, Japan introduced new regulations requiring crypto exchanges to share customer information to crack down on money laundering activities. However, Nikkei Asia reported that some loopholes still affect the effectiveness of implementing this rule.

Despite its strict regulations, Japan has made efforts to position itself as a crypto-friendly country. It lifted its ban on foreign-issued stablecoins last year and initiated a central bank digital currency (CBDC) pilot program earlier this year. The government has also been investing in developing metaverse and NFT-related projects, further solidifying its commitment to embracing the digital economy.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:Japan’s crypto exchanges call for relaxed margin trading restrictions to boost market growth

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年6月23日 12:06
Next 2023年6月23日 13:30

Related articles

  • Dollarization will be the downfall of Argentina

    TL;DR Breakdown Argentina’s decision to fully dollarize is a significant risk. Presidential hopeful, Javier Milei, promotes dollarization as a solution to the country’s economic issues. Global investors and financial experts, like Mark Sobel of the OMFIF, caution against it, highlighting potential catastrophic consequences. Description When discussing global economies, Argentina’s choice to fully dollarize stands out as a stark example of misguided ambition. It’s a dicey gamble, one that many financial experts are wary of, given the country’s tumultuous economic past and the lessons of history. Argentinian presidential hopeful, Javier Milei, fervently believes that dollarization is the balm for the … Read more When discussing global economies, Argentina’s choice to fully dollarize stands out as a stark example of misguided ambition. It’s a dicey gamble, one that many financial experts are wary of, given the country’s tumultuous economic past and the lessons of history. Argentinian presidential hopeful, Javier Milei, fervently believes that dollarization is the balm for the nation’s deep-rooted fiscal wounds. But history and seasoned economic pundits suggest he might be leading Argentina down a treacherous path. Milei’s High-Stakes Bet…

    Article 2023年8月21日

  • Crypto Twitter views on Google decline due to rate limit

    TL;DR Breakdown Crypto Twitter viewership on Google has dropped drastically following the enforcement of the new rate limit. The crypto community reacts as moves to alternative platforms begin. Description Twitter’s implementation of new rate limits has had a significant effect on the indexing and display of crypto Twitter’s tweets on Google’s search engine, resulting in a reduced reach of information shared on the microblogging site. Recent reports from Search Engine Land, an industry outlet focused on web search, reveal that Google Search has witnessed … Read more Twitter’s implementation of new rate limits has had a significant effect on the indexing and display of crypto Twitter’s tweets on Google’s search engine, resulting in a reduced reach of information shared on the microblogging site. Recent reports from Search Engine Land, an industry outlet focused on web search, reveal that Google Search has witnessed a sharp decline in the number of indexed URLs from Twitter over the past few days. On July 3, the number of indexed tweets dropped by over 60%, declining from 471 million to 180 million. Crypto Twitter suffers…

    Article 2023年7月7日

  • US government suspected of owning $2.46 billion in Bitcoin

    TL;DR Breakdown The US Government is suspected of controlling the fifth-largest Bitcoin wallet globally, with holdings equivalent to $2.46 billion. Investigations found a link between the hack’s seizure address and the wallet’s owner, with notable transfers of significant BTC amounts. In 2022, the US Department of Justice recovered about $3.55 billion in stolen Bitcoin from the said account. Description Recent findings suggest that the US Government might control the global fifth-largest Bitcoin (BTC) wallet, containing 94,643 BTC, equivalent to $2.46 billion. This revelation came from the esteemed cybersecurity firm, Peckshield. The wallet is believed to have direct ties to the 2016 Bitfinex hack. Investigations have unveiled a connection between the hack’s seizure address and … Read more Recent findings suggest that the US Government might control the global fifth-largest Bitcoin (BTC) wallet, containing 94,643 BTC, equivalent to $2.46 billion. This revelation came from the esteemed cybersecurity firm, Peckshield. The wallet is believed to have direct ties to the 2016 Bitfinex hack. Investigations have unveiled a connection between the hack’s seizure address and the wallet’s owner. Notably, a transfer was made…

    Article 2023年8月31日

  • IMF and G20 unveil coordinated roadmap to regulate crypto assets

    TL;DR Breakdown The IMF and Financial Stability Board under G20 leadership have released a joint policy paper outlining a coordinated approach to regulate cryptoassets, aiming to mitigate global financial risks. The paper emphasizes the need for comprehensive regulation and suggests targeted, temporary restrictions as more effective than blanket bans, particularly for emerging economies. The roadmap also addresses the risks posed by the proliferation of stablecoins and calls for clear tax treatment and application of existing laws to the crypto sector. Description The International Monetary Fund (IMF) and the G20’s Financial Stability Board (FSB) have released a joint paper outlining a coordinated approach to regulating crypto assets. However, the paper aims to mitigate the risks posed by cryptoassets to global financial stability and will be presented at the upcoming G20 summit in New Delhi. A comprehensive regulatory … Read more The International Monetary Fund (IMF) and the G20’s Financial Stability Board (FSB) have released a joint paper outlining a coordinated approach to regulating crypto assets. However, the paper aims to mitigate the risks posed by cryptoassets to global financial stability and…

    Article 2023年9月7日

  • Meta revamps Horizon Worlds metaverse with in-house game studio amid struggles

    TL;DR Breakdown Meta introduces in-house VR game studio, Ouro Interactive, to boost Horizon Worlds. Horizon Worlds plans to expand to app stores, targeting mobile gamers. Despite Q2 2023 losses, Meta continues investing in Reality Labs for product development. Description Meta, the parent company of Facebook, is taking significant steps to rejuvenate its Horizon Worlds metaverse platform. The company has established an in-house VR game studio, Ouro Interactive, to develop first-party titles and enhance the platform’s appeal. This move comes as Horizon Worlds grapples with a reported $3.7 billion loss in Q2 2023 and a … Read more Meta, the parent company of Facebook, is taking significant steps to rejuvenate its Horizon Worlds metaverse platform. The company has established an in-house VR game studio, Ouro Interactive, to develop first-party titles and enhance the platform’s appeal. This move comes as Horizon Worlds grapples with a reported $3.7 billion loss in Q2 2023 and a perceived decline in consumer interest in the metaverse. Meta’s new approach to boost Horizon Worlds Ouro Interactive’s first release, a game titled “Super Rumble,” is expected to showcase…

    Article 2023年7月30日
TOP