ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Caps on cryptocurrency margin trades weighed in Japan

Limits as low as 2 to 1 considered to protect users

An ad in Tokyo for a cryptocurrency exchange. Japan's regulators are considering stricter limits on margin trading of such instruments.   © Reuters

TOKYO -- Japan's Financial Services Agency is considering leverage caps for margin trading of cryptocurrencies to curb speculative trading and limit user exposure to volatility risks.

Cryptocurrency marketplace operators must register with the FSA, but no clear regulations govern the transactions themselves. Certain exchanges voluntarily cap leverage at 25 times the deposit, as with the rule for foreign exchange margin trading. For cryptocurrencies, many experts are proposing caps between 2 and 4 times.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more