financial regulators have reportedly introduced new for margin , local agency Nikkei on March 18.
The Cabinet of , the executive branch of the country’s , has reportedly approved draft amendments to ’s financial instruments and payment services laws, limiting leverage in margin at two to four times the initial deposit.
Margin is the use of borrowed funds from a broker to trade a financial asset, thus forming a collateral for the loan.
The new rules — which are reportedly et to come into force in April 2020 — will require exchange operators to register within 18 months of that date, which will purportedly enable the Financial Services Agency (FSA) to introduce relevant measures in regard to unregistered “quasi-operators.”
Following promulgation of the new regulations, entities dealing will ostensibly be monitored similarly to securities traders in order to protect investors. Additionally, operators will be divided into groups to identify those engaged in margin and those issuing through initial coin offerings ().
With this move, regulators reportedly aim to secure investors from getting caught up in Ponzi Schemes, as well as encourage legitimate companies to practice offerings as fundraising tools.
In January, the FSA that it was considering the of unregistered firms that solicit investments in . The development is reportedly a bid to close a loophole in the country’s existing regulatory framework, in which unregistered firms that collect funds in crypto rather than remain in a legal gray zone.
Back in August 2018, the commissioner of the FSA that the agency wants the industry to “grow under appropriate ” in order to find the “balance” between consumer protection and technological innovation, noting:
“We have no intention to curb [the crypto industry] excessively. We would like to see it grow under appropriate .”
Published at Tue, 19 Mar 2019 01:10:03 +0000
