As reported on the business insight-focused publication Nikkei on March 18th, several new bills have been introduced by the financial body of the Japanese government to provide better regulations for the country’s crypto margin trading.

Specifically, the Cabinet of Japan – the Japanese government executive branch consists of the Prime Minister and other Cabinet Ministers – have reportedly accepted a number of previously proposed changes to the current financial instrument as well as the payment services policies. According to the new rule, the amount of debt used in performing cryptocurrency margin trading cannot exceed 2-4 times the original deposit.

Cryptocurrency exchange firms will have at most 18 months from the day the new laws are widely applied (April 2020) to register, which will allow the Financial Services Agency (FSA) to come up with more appropriate solutions to deal with quasi-operators of cryptocurrency exchanges.

Once the new regulations are established, every individual and organization handling digital assets will be similarly supervised like securities traders to ensure investors’ security. Moreover, crypto exchange firms will be divided in a group-like manner to keep track of those participating in margin trading and the ones issuing tokens via initial coin offerings (ICOs). This is an attempt to help investors avoid the Ponzi Schemes along with encouraging legitimate companies to practice offerings as fundraising tools.