- Japanese Cabinet has already approved the draft amendments in connection to financial instruments as well as payment services laws.
- The new registration scheme will take place over and above the current licensing requirements.
The cryptocurrency progressive Asian economic giant Japan is planning to tighten the rules regarding cryptocurrency margin trading as from 2020. A report published by Nikkei Asian Review on Tuesday indicated that the Japanese Cabinet has already approved the draft amendments in connection to financial instruments as well as payment services laws. The amendments encompass two significant changes affecting digital assets.
One of the changes made is the introduction of a cap on cryptocurrency margin trading in tandem with the forex trading which is currently at 2:4 the initial deposit. For those who do not know what margin trading is, it using funds that have been borrowed from a broker or an exchange company to buy and sell an asset.
The second change requires all the crypto exchange companies offering margin trading to register with the government within a period of 18 months from the date the regulations will take effect – around April 2020 while the companies that will not comply will be closed.
It should be noted that the soon to be introduced registration scheme will take place over and above the current licensing requirements that requires all crypto exchange companies within that jurisdiction to obtain a license according to the payment services law that took effect in April 2017.
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