{"id":80498,"date":"2023-06-20T15:31:32","date_gmt":"2023-06-20T12:31:32","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=80498"},"modified":"2025-09-11T17:20:46","modified_gmt":"2025-09-11T14:20:46","slug":"japanese-regulator-to-consider-raising-leverage-in-cryptocurrency-trading","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/japanese-regulator-to-consider-raising-leverage-in-cryptocurrency-trading\/","title":{"rendered":"Japanese regulator to consider raising leverage in cryptocurrency trading"},"content":{"rendered":"

The Japanese Virtual Currency Exchange Association (JVCEA) intends to press the Financial Services Agency to raise the maximum leverage from 1:2 to at least 1:10. Bloomberg<\/a> reports.<\/p>\n

In an interview with the agency, JVCEA vice-chair Genki Oda said that implementing the initiative would make Japan “more attractive to crypto- and blockchain companies, and would spur expansion of trading”.<\/p>\n

The push to revise the restrictions is explained by a desire to broaden the investor base and boost asset liquidity. The current limits hamper market development and deter new entrants, the JVCEA said.<\/p>\n

In 2020-2021, when leverage could reach 1:25, annual trading turnover on local platforms exceeded $500 billion. After the decision to cap this at 1:2, the volume of operations collapsed by 75%. The regulator at the time explained the move as an effort to protect investors from heightened losses in the wake of FTX collapse<\/a>.<\/p>\n

Oda expects that in July the FSA reached out<\/a> to global regulators with a proposal to treat the cryptocurrency industry as strictly as banks.<\/p>\n

From June 1, in Japan came into force<\/a> the so-called Travel Rule from FATF<\/span>, requiring monitoring of VASP<\/span> transactions of digital assets for AML<\/span> purposes.<\/p>\n

Earlier, authorities amended<\/a> six foreign-exchange laws as part of anti-money laundering measures.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Japanese Virtual Currency Exchange Association (JVCEA) intends to push the FSA to raise the maximum leverage from 1:2 to at least 1:10.<\/p>\n","protected":false},"author":1,"featured_media":80499,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1166,135,36],"class_list":["post-80498","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-centralized-exchanges-cex","tag-japan","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"25","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/80498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=80498"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/80498\/revisions"}],"predecessor-version":[{"id":80500,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/80498\/revisions\/80500"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/80499"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=80498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=80498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=80498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}