1. BITBILIHome
  2. Article

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

• 281 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

  • Apple users beware: New malware hijacks crypto via fake blockchain games

    TL;DR Breakdown “Realst”, a new infostealer malware, targets Apple macOS users through fake blockchain games. The malware silently scrapes web browser data, including passwords, and can quickly drain cryptocurrency wallets. Users can protect themselves by only installing apps from the official Mac App Store, verifying links, using strong passwords, enabling two-step authentication, and keeping devices and applications updated. Description Security researchers have identified a new infostealer malware named “Realst”, which is currently being used by cybercriminals to target Apple macOS users, including those on the upcoming macOS 14 Sonoma.  However, Web3 security firm SlowMist warned through a blog post that the malware is being propagated through fake blockchain games such as Brawl Earth, WildWorld, … Read more Security researchers have identified a new infostealer malware named “Realst”, which is currently being used by cybercriminals to target Apple macOS users, including those on the upcoming macOS 14 Sonoma.  However, Web3 security firm SlowMist warned through a blog post that the malware is being propagated through fake blockchain games such as Brawl Earth, WildWorld, Dawnland, Destruction, Evolion, Pearl, Olymp of Reptiles, and…

    Article 2023年7月27日

  • Senator slams crypto for putting Americans at risk

    TL;DR Breakdown Senator Sherrod Brown raises concerns over the lack of transparency in cryptocurrency disclosures. Brown reaches out to finance and trade leaders, including Treasury Secretary Janet Yellen and SEC Chair Gary Gensler, urging collaboration and strengthened oversight. The senator emphasizes the dangers of diluting America’s high investment standards and warns against minimal disclosure requirements for digital assets. Description While cryptocurrency continues its aggressive surge into mainstream finance, not everyone in the corridors of power is thrilled. Senator Sherrod Brown, representing Ohio, has sounded a clarion call on the clear pitfalls and risks it poses for the ordinary American. A Cry for Clarity in the Crypto Wild West The sweeping tidal wave of crypto … Read more While cryptocurrency continues its aggressive surge into mainstream finance, not everyone in the corridors of power is thrilled. Senator Sherrod Brown, representing Ohio, has sounded a clarion call on the clear pitfalls and risks it poses for the ordinary American. A Cry for Clarity in the Crypto Wild West The sweeping tidal wave of crypto has left regulatory bodies and government officials scrambling…

    Article 2023年9月15日

  • Vitalik Buterin outlines elements that will help Ethereum succeed

    TL;DR Breakdown Ethereum co-founder Vitalik Buterin has highlighted three elements that will help the blockchain succeed. The CEO wants to enhance user adoption and experience. Vitalik Buterin, the co-founder of Ethereum, has identified three crucial technical “transitions” that he believes will determine the success of the Ethereum blockchain. In a recent blog post, Vitalik Buterin emphasized the significance of layer-2 scaling, wallet security, and privacy-preserving features in driving Ethereum’s growth and adoption. Vitalik Buterin highlights Scaling as a key element Buterin argued that without a robust scaling infrastructure to reduce transaction costs, Ethereum faces a critical challenge. He highlighted the issue of high transaction fees, stating that Ethereum fails when transaction costs reach $3.75 per transaction (or even higher during bullish market conditions). To avoid such problems, he stressed the need for scalable solutions that enable affordable transactions, allowing Ethereum-based products to serve the mass market without resorting to centralized workarounds. The second point of concern for Buterin revolved around smart contract wallets. While acknowledging their advantages, he pointed out the complexities that arise when users manage multiple addresses simultaneously….

    Article 2023年6月15日

  • Litecoin price analysis: LTC recedes to $92 after rejection

    TL;DR Breakdown Litecoin price analysis shows strong resistance at $93.8.Possible decrease in LTC’s market value suspected.The current support level is at $91.3. The latest Litecoin price analysis shows a bearish trend despite its efforts to surpass the $92.8 resistance. In the past few hours, the price has faced rejection at this level, resulting in a continuous downward drift. Sellers’ pressure has pushed the price down to $92.1, with red candlesticks dominating the current graph. Litecoin price: Daily chart gives bearish signals for the market Based on the 1-day price chart for Litecoin price analysis, it becomes apparent that bulls and bears have engaged in intense competition over the past couple of days. The coin experienced a robust bullish trend, reaching its highest point at $93.8 on May 17, 2023, accompanied by substantial value growth. However, maintaining the $93 level has posed challenges, resulting in the current price decline to $92.15. The return of selling pressure today has further contributed to the downward movement. LTC/USD 1-day price chart. Source: TradingView A comprehensive assessment of the Bollinger bands reveals an average value of…

    Article 2023年5月22日

  • VeChain price analysis: VET obtains positive momentum at $0.0157

    TL;DR Breakdown VeChain price analysis is bearish today. The strongest resistance is present at $0.0218. The strongest support is present at $0.0142. VeChain price analysis shows that the price of VET/USD has followed a strong upwards trend in the last 24 hours. The price has maintained an upward trajectory, experiencing substantial growth and coming close to reaching the $0.016 threshold. The market sentiment is optimistic, with the cryptocurrency displaying an upward trend. Over the past 48 hours, the price has gained positive momentum, climbing from $0.0139 to $0.0151, peaking at $0.0155 throughout the day. At present, VeChain’s value stands at $0.0157. As of today, VeChain is priced at $0.0157, with a trading volume of $62.78M and a market capitalization of $1.13B. It holds a market dominance of 0.11%. Over the past 24 hours, VeChain’s price has increased by 4.31%. Currently, the sentiment surrounding VeChain’s price prediction is bearish, and the Fear & Greed Index indicates a neutral value of 47. VeChain’s circulating supply is currently 72.71B VET out of a maximum supply of 86.71B VET. The yearly supply inflation rate stands…

    Article 2023年6月14日
TOP