Japanese Financial Regulators Approve New Margin Trading Regulations
By Luke Flowers – Cryptocurrency Enthusiast
Japanese regulators have reportedly approved draft amendments to laws on financial instruments and payments services that limit leverage when trading cryptocurrency margins two to four times the initial deposit. Margin trading refers to the practice of borrowing funds from a broker to buy and sell Bitcoin or financial asset which forms the collateral. The trader is then able to use the financial leverage to possibly increase gains but could be subject to increased losses also.
There is an increased risk associated with margin trading, and most are offered through a different account. A trader looking to buy and sell crypto could use this vehicle subject to paying the margin. The margin refers to the amount of money the trader must directly invest from his own resources and can vary depending on the asset. The more volatile the asset the higher the margin is likely to be.
The new rules will see cryptocurrency entities monitored in the same way as security traders for the protection of the investor. Further to this, these businesses will be identified between those that are involved with margin trading and those who offer and sell cryptocurrency through an Initial Coin Offerings (ICO).
Japan is one of the most active countries delving into the crypto space and the new regulations are a move to protect the investor. Japan opted for a self-regulatory association named the Japan Virtual Currency Exchange Association (JVCEA) registered under the FSA back in October 2018. The association is responsible for overseeing operations. An organisation seeking to launch an exchange in Japan to buy and sell crypto or to exchange Bitcoin would need to apply to JVCEA.
Japanese authorities believe the new regulations will entice genuine companies to use the tools for fundraising. Japan is a leader when it comes to the approval and regulation of cryptocurrencies, yet still experiences poor merchant endorsement which stifles adoption.
Ensure you miss none of the latest most informative articles on crypto by heading over to our platform now! You can also find services to sell crypto UK and cash out crypto to fiat so make sure you look further!
Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards