According to a report by Nikkei Asian Review on Tuesday, the Japanese Cabinet of Ministers, the Executive body of the government approved draft amendments related to laws on financial instruments and payment services, which include two significant changes related to cryptocurrency.
First, there is a limitation on the cryptocurrency trading in accordance with trading two to four times more than the initial Deposit. Margin trading implies leverage of the broker or of the exchange to trade an asset.
Secondly, all cryptocurrency exchanges in the country that offer margin trading, will be required to register with the government within 18 months from the effective date of the rules in force-some time in April 2020, the report said. Inappropriate platform will face closure.
New registration scheme will exist beyond existing licensing requirements, in accordance with which cryptocurrency exchanges are required to obtain a license in accordance with the law On payment services, which entered into force in April 2017.
According to the report, speculation ahead of the use of cryptocurrencies as payment method. Referring to the self-regulatory group, the Japanese Association of exchanges of the virtual currency, he said that crypto margin trading in Japan has grown to approximately $ 8.42 trillion yen ($75.6 billion) in December 2018, the rate is approximately 11 times higher than Krypto/money conversion (777.4 billion yen, or $6.9 billion).
A registration scheme would also do cryptocurrency exchanges which provide trading on margin and those who issue the tokens through the initial offering of coins (ICOs) to protect investors from Ponzi schemes, said the Nikkei.
In January, the financial services Agency stated that it wants to attract unregistered investment firms that are requesting funds in cryptocurrency, rather than cash in accordance with the Law on the financial instruments and exchange country.