"Japanese Crypto Exchanges Try To Increase Leverage On Margin Trading"

Japan's cryptocurrency exchanges are putting pressure on regulators to reduce margin trading restrictions on popular cryptocurrencies like Bitcoin.
According to Bloomberg, exchanges in the country once offered leverage of up to 25 times equity, and trading volumes were up to $500 billion annually in 2020 and 2021.
But Japanese regulators limited crypto exchanges to only twice the leverage of equity in early 2022, causing trading volume to drop drastically over the past year.
The Japanese Virtual and Crypto Assets Exchange Association (JVCEA), the local exchange's own regulatory body, currently claims that these restrictions are hindering market growth and scaring new entrants.
The body's demands include a request for a higher leverage limit of at least 10 times the equity capital.
Genki Oda, vice president of JVCEA, told Bloomberg that restoring leverage rules would make Japan "more attractive to crypto and blockchain companies" and encourage more trade.
According to JVCEA, efforts to revise margin trading caps aim to strengthen liquidity in the market and attract a variety of traders, including institutional investors. Allowing higher leverage will also allow traders to manage their positions more effectively.
These statements from JVCEA come with growing interest in cryptocurrency regulations and stablecoin use in Japan. Lawmakers are said to be examining Web3 regulations to support the growth of businesses in areas such as NFTs and virtual lands. Moreover, local banks are also known to be working on plans to launch their own stablecoins pegged to fiat currencies such as the Japanese yen in the coming months. #Bykaranteli# #GateioBountyCreator# #ContentStar# #BountyCreator# #Gateio10周年# #NewYearCelebration# #GateioTurns10# #CryptoObserves# #contentcreator# #NewsMessenger#
We will continue to closely monitor how these developments will impact the crypto industry and the future of Japan's cryptoasset regulation.