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Japanese Financial Regulator introduces new regulations for Crypto Margin Trading


Per a local news agency Nikkei, Japanese financial regulators have introduced new regulations for cryptocurrency margin trading. 

The Cabinet has given an approval to the draft amendments of Japan’s financial instruments and payment services laws. Following which the cryptocurrency margin trading limiting leverage will be now two times the initial deposit, than the earlier 4x. 

The new rules are said to come in force in April 2020. It will require cryptocurrency exchange operators to register within 18 months of that date. Further, it will enable the Financial Services Agency to put in relevant measures when it comes to unregistered cryptocurrency "quasi-operators."

As a matter of fact, traders or investors dealing with cryptos will be monitored in the same manner as that of securities traders, to protect the interests of investors. In addition to this, crypto operators will be divided into groups. This will be to segregate those engaged in margin trading and the ones issuing tokens via an initial coin offering (ICO). 

By putting in new regulatory measures, regulators aim to protect investors from getting caught up in Ponzi schemes. In addition, to encouraging legitimate companies to raise funds. 

In January, FSA revealed that it was considering the regulation of unregistered firms that solicit investments in cryptocurrencies. The development is an attempt to close a loophole in the country’s prevailing regulatory framework. The loophole being, unregistered firms collecting funds in crypto rather than fiat currencies, and then they continue to remain in a legal gray zone.

Also,in August 2018, the commissioner of the FSA said that the agency wants the cryptocurrency industry to flourish, but under a regulated environment.  

“We have no intention to curb [the crypto industry] excessively. We would like to see it grow under appropriate regulation.”

The idea behind regulation is to protect investors and also foster technological innovation. 

SBI and Tangem

On 7th February, CoinMarketFeed reported SBI is offering its support to Swiss debit card maker “Tangem” with a $15 million investment. The capital will be used to expand into different areas such as Stablecoins, ICOs, Tokenized Asset Offerings & Digital Identity. 

Japan was the first country in the world to accept Bitcoin as an official form of payment.

Tangem has two primary products: a smart card & smart-notes that hold crypto and can be spent in the same way as cash, avoiding the transaction fees associated with wallet-to-wallet payments. Its hardware wallet has high-grade security and irretrievable private keys as their key features.