On October 17, the Japan Cryptocurrency Business Association (JCBA) presented a proposal to the Japan Virtual Currency Exchange Association (JVCEA) to review the leverage ratio in cryptocurrency margin trading, according to Coinpost. JCBA argues that the current leverage ratio is overly restrictive compared to other derivative markets, suggesting a shift to a calculation method based on past price volatility (volatility), and has sought cooperation from JVCEA for the realization of the amendment proposal.
Previously, the maximum leverage of 25 times, akin to the domestic Forex (foreign exchange margin trading) market, was set for individual trading in cryptocurrency margin. However, it was reduced to four times in October 2019, and further lowered to a uniform two times in May 2020 following the enforcement of the amended Financial Instruments and Exchange Act.
On the other hand, for corporate transactions, a method of calculating…
