Abstract : All the cryptocurrency exchanges which intend to offer margin trading have to obtain new registration with the government within 18 months of the effective date of the new law.
March 20 (ChainDD) Last Friday, the Cabinet of Japan approved an amendment draft of the laws on financial instruments and payment services, to tighten regulation on cryptocurrency trading.
According to the new law that is effective in April, 2020, the leverage of cryptocurrency margin trading shall be no more than 4X, in accordance with that trading of foreign exchange. All the cryptocurrency exchanges which intend to offer margin trading have to obtain new registration with the government within 18 months of the effective date of the new law. Major brokers could need to re-register if they want to conduct such businesses.
A report of Nikkei Asian Review indicated that any exchange that fails to gain the new registration may be shut down by the government, since it commented that the time limit would give the Financial Services Agency (FSA) tools to crack down on unregistered “quasi-operators” that handle crypto businesses, along with those waiting for approval of their registration applications.
The report noted that the new law requires cryptocurrency exchanges to be monitored the same way as securities dealers. Moreover, cryptocurrency operators that deal with margin trading has to be separately registered from those crypto operators issue coins through initial coin offering (ICO).