Japan's financial regulator will require cryptographic market leveraged trades to be no more than twice as large

Japan's top financial regulator plans to reduce the permitted leverage ratio to two times to reduce the risk to cryptocurrency margin traders, BlockBeats has said. While domestic Banks already comply with a maximum leverage ratio of four times, due to volatility in the cryptography market, regulators aim to halve the leverage ratio again, to no more than two times.

The decision follows talks with the Japan Virtual Currency Exchange Association, the country's self-regulatory body, according to BlockBeats. In the cryptographic market, some trading platforms can offer trading leverage of up to 100 times more, and Nouriel Roubini, the prominent economist and cryptography commentator, has previously attacked platforms that offer such high levels of leverage for taking too much risk on traders.Japan may implement the new rules ina revised Financial Instruments and Exchange Act next spring, according to reports.

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