According to the Nikkei Asian Review, the Japanese cabinet has approved draft amendments to the country’s financial instruments and payment services laws. The changes will result in Japanese cryptocurrency exchanges limiting leverage at two to four times the initial deposits.
All exchanges dealing in cryptocurrency margin trading will be required to obtain a new government registration. This will be in addition to the one which came into effect in 2017 focusing on platforms dealing in cash.
The new rules will monitor exchanges in a similar way to securities firms in order to better protect investors and are in line with those of foreign exchange trading.
However, implementation will take quite some time. The amendments come into effect April 2020, with an additional 18 month registration period for applicable exchanges.