Japan is putting in place new, stricter rules for cryptocurrency margin trading from next year.
According to a report from Nikkei Asian Review on Tuesday, the Japanese Cabinet, the executive agency of the country's government, has approved draft amendments related to financial instruments and payment services laws that include two notable changes related to cryptocurrencies.
Firstly, there will be a cap on cryptocurrency margin trading in line with the forex trading, at two-to-four times the initial deposit.
Margin trading means using borrowed funds from a broker or exchange to trade an asset.
Secondly, all cryptocurrency exchanges in the country that offer margin trading will be mandated to register with the government within 18 months of the date the rules come into effect - some time in April 2020, according to the report.
The new registration scheme will exist over and above the existing licensing requirements, in which cryptocurrency exchanges are mandated to obtain a license as per the payment services law.
According to the report, speculation has outstripped cryptocurrency's use as a payment method.
Citing figures from self-regulatory group, the Japan Virtual Currency Exchange Association, it said crypto margin trading in Japan rose to about 8.42 trillion yen in December 2018 - a figure around 11 times higher than crypto/cash conversions.
The registration scheme would also separate cryptocurrency exchanges that provide margin trading and those who issue tokens through initial coin offerings, in order to protect investors from Ponzi schemes, Nikkei indicated.
It was looking to bring unregistered investment firms that solicit funds in cryptocurrencies rather than cash under the country's Financial Instruments and Exchange Act.
Japan to Tighten Rules on Cryptocurrency Margin Trading
Publicado en Mar 19, 2019
by Coindesk | Publicado en Coinage
Coinage
Noticias recientes
Ver todo
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.