The Financial Services Agency plans to introduce a rule that limits leverage when trading cryptocurrency margins to twice the amount deposited by merchants, as announced on Friday.
Regulation, which is stricter than the industry’s fourfold self-restraint, is being introduced to reduce the risk of losses due to volatile price fluctuations.
The new regulation will be included in a Cabinet Ordinance, which is related to the revised Financial Instruments and Exchange Act and will come into force in the spring, sources said.
Among other things, cryptocurrencies are considered the payment of the future due to their low transfer fees. However, the actual use did not reflect these expectations.
Around 80 to 90 percent of transactions on cryptocurrency exchanges are speculative margin trading.
The FSA discussed leverage regulation with an industry association, the Japan Virtual Currency Exchange Association, after the revised law was passed by the state legislature last May.
The agency has set a double leverage limit based on past price fluctuations and cryptocurrency regulations in Europe and the United States.
The association plans to review its rules to reflect the new rules. Exchange operators are expected to be pressured to change their business model as the new regulations may cause speculative traders to lose interest in trading cryptocurrency margins.
Crypto.com adds Singapore-dollar pegged stablecoin
Hong-Kong-based cryptocurrency platform Crypto.com has announced the addition of XSGD, the Singapore-dollar pegged stablecoin, to its list of cryptocurrencies.
The announcement via crypto.com blog post also noted the cryptocurrency platform, is the first crypto firm to adopt XSGD.
— Crypto.com (@cryptocom) February 17, 2020
Notably, the addition of XSGD, Singapore-dollar backed and pegged stablecoin, brings the tally of listed cryptocurrencies on the Crypto.com mobile app to over 50.
The XSGD is issued by Xfers, a Southeast Asia’s leading Fintech platform for digital businesses, under the project name of StraitsX.
Additionally, the XSGD token is fully collateralized with the Singapore Dollar and is pegged 1:1 to SGD. Notably, in Singapore, Xfers is a holder of the Major Payment Institution license to carry on e-money issuance.
The XSGD is powered by Zilliqa, the high-throughput, high-security blockchain protocol.
Tianwei Liu, Co-Founder, and CEO of Xfers noted his team is excited about the new initiative and the possibilities enabled by the SGD-pegged stablecoin.
He said, “Since the announcement of the pilot of StraitsX in November last year. The listing on Crypto.com’s mobile app marks the first public appearance of XSGD. However, we are looking forward to having more merchants join us in this initiative.”
Crypto.com impressive growth
The platform established in 2016 on a simple belief. It’s a fundamental human right for everyone to control their money, data, identity. The crypto platform has witnessed an impressive growth afterward with an offering of various remarkable perks, recording over 1 million users on its platform today.
Kris Marszalek, Co-Founder and CEO of Crypto.com said: “Stablecoins play a critical role in the adoption of digital assets. We are thrilled to welcome XSGD to the Crypto.com platform. And look forward to working together on accelerating the world’s transition to digital assets.”
Notably, Crypto.com has been collaborating with Xfers, to provide easy access for customers to buy digital assets with fiat.
Recently the crypto platform offered CRO stakers bitcoin at a 25% discount and also listed EOS at a discounted price, amongst other remarkable features.
Crypto.com, the pioneering payments, and cryptocurrency platform, encompassing a range of products aimed at promoting the adoption of cryptocurrencies. While at the moment, the platform offers MCO Visa cards, wallets, and portfolio building services.
The platform is built on a solid foundation of security, privacy, and compliance and is the first cryptocurrency company in the world to have CCSS Level 3, ISO27001:2013, and also PCI: DSS 3.2.1, Level 1 compliance.