Share this article
Japanese Crypto Exchanges Push for Limit on Margin Trading Borrowing
A self-regulatory organization formed by crypto exchanges in Japan is proposing a limit on how much investors can borrow when margin trading
By Wolfie Zhao
Updated Sep 13, 2021, 8:12 a.m. Published Jul 25, 2018, 6:00 a.m.
A self-regulatory organization formed by cryptocurrency exchanges in Japan is proposing a limit on how much investors can borrow when margin trading.
According to a report from Jiji Press on Tuesday, the Japan Virtual Currency Exchange Association (JVCEA) has suggested domestic trading platforms enforce a restriction that investors can only borrow up to four times their deposit.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The JVCEA said the proposed plan aims to protect domestic investors because there are currently no market rules governing the upper limit of how much cryptocurrency investors can borrow in margin trading.
According to statistics released by Japan's market watchdog the Financial Services Agency (FSA) in April, there were around 142,000 crypto traders focused on derivatives in 2017, comprising a small fraction of the total 3 million traders in Japan.
However, over 80 percent of the entire cryptocurrency trading volume in the country in 2017 came from derivatives trading, which recorded $543 billion last year. And more than 90 percent of that was from margin traders.
Formed by Japanese crypto exchanges in a response to a heist on the Coincheck platform early this year, the JVCEA seeks to impose self-regulatory rules in a bid to create a healthy cryptocurrency trading market. It is now planning to submit the proposal to the FSA to get the regulator's endorsement for a potential wider implementation.
That said, the association indicated the new rule could lead to crypto investors' departure from exchanges. As such, it aims to add measures gradually and would allow exchanges to independently set their own limits.
Japanese yen image via Shutterstock
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
XRP Faces Downside Risk as Social Sentiment Turns Wildly Negative
The turn in crowd mood comes after a two-month slide of roughly 31%, leaving the token vulnerable to further downside if risk appetite weakens across majors.
What to know:
- XRP's price approached the $2 mark as social sentiment around the token turned sharply negative, according to Santiment data.
- The token has experienced a 31% decline over two months, making it vulnerable to further losses if market risk appetite weakens.
- Santiment's sentiment model indicates XRP is in a 'fear zone,' where negative commentary significantly outweighs positive talk, potentially influencing market positioning.
Top Stories
