Cryptocurrency exchanges in Japan have applied to the Financial Services Agency (FSA) to lift restrictions on margin trading.
The Japan Virtual and Crypto Assets Exchange Association has requested that up to 10x leveraged transactions be allowed in order to offer it to individual investors. Japanese stock markets knocking on FCA’s door demanded that tight regulations be relaxed. Individual investors can borrow up to twice as much on Japanese stock exchanges.
Japanese Stock Exchanges Set Their Eyes on Leveraged Transactions
Japanese exchanges have requested slack in leveraged trading to create a more engaging environment for crypto and blockchain companies. The Japan Virtual and Crypto Assets Exchange Association, which represents Japanese exchanges, submitted its request to the Financial Services Agency (FSA). The FCA will reportedly open this request for discussion.
Genki Oda, vice president of the association, suggested that reforming the leverage rules would benefit Japan. The Chamber stated that discussions are continuing with the stock exchanges in Japan about the proposed leverage limit and the result will be shared with the FCA.
Japan has begun to ease its rules on digital assets. However, Japan still takes a stricter stance on token trading. Aiming at better protection of the investor, Japan allowed a maximum of twice the borrowing for leveraged transactions.
Stock markets in Japan, on the other hand, set their eyes on leveraged transactions. Exchanges demand that this leverage limit be increased up to 10 times.
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