Japanese Crypto Exchanges Advocate for Margin Trading

TOKYO June 20 – Cryptocurrency exchanges in Japan are calling for regulatory relaxation on margin trading restrictions on Tuesday, according to NIKKEI Asia. Following a significant drop in trading volumes last year due to stricter regulations, the Japan Virtual and Crypto Assets Exchange (JVCEA), a self-regulated body of local exchanges, is now urging authorities to reconsider these limitations. 

The JVCEA asserts that higher leverage limits, specifically at least ten times the principal, would foster market growth, attract new participants, and make Japan a more appealing destination for crypto and blockchain companies.

Recent market data reveals that Japanese crypto exchanges processed over $110 million of trading volumes in the past 24 hours. Notably, the majority of this volume was generated from BTC, ETH, and XRP trading. However, with the implementation of revised margin trading caps, the Japanese crypto market could witness a resurgence in trading activity, leading to greater market participation and improved liquidity.