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.
