The Japanese Financial Services Agency has proposed a massive cryptocurrency regulation update

Japan’s financial regulator has suggested that the country should limit the margin trade in cryptocurrencies by reducing the leverage to a maximum of twice the deposits of traders

The Financial Services Agency (FSA) unveiled the proposed measure on Tuesday January 14 in a cabinet office ordinance, according to Coin Telegraph.

If the new law is enacted, it would be the first time the country’s lawmakers have regulated the rate of crypto margin trading.

The new rules were introduced as the FSA is trying to reduce the risks of trading with cryptocurrencies as they keep fluctuating, according to Finance Magnates, citing The Japan Times.

The FSA has now opened up to receive public comments on the new law proposal until February 13.

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