Japan's financial regulator, which caps retail forex leverage at 25:1, registers crypto exchanges under the Payment Services Act, and oversees securities firms.
The Japan FSA supervises banks, insurers, and securities firms, and delegates day-to-day market surveillance to the Securities and Exchange Surveillance Commission. Retail margin foreign exchange, an enormous domestic market, is capped at 25 times leverage, far below what offshore venues offer, with mandatory loss-cut rules.
Japan registered crypto exchanges early, after major domestic hacks, and requires segregation of customer assets, cold storage thresholds, and membership of a self-regulatory association. Listing a new token requires screening.
Japanese investors also get the NISA tax-free investment wrapper, and domestic gains on listed shares face a flat separate taxation rate, which shapes how retail flow behaves around the fiscal year end.
Original diagrams for the ideas on this page. Illustrative, not real market data.
Margin and leverage. A $5,000 deposit can control a $100,000 position, which is 20:1 leverage. Because the loss is measured on the full $100,000, a 2.5% move against you halves the deposit and brings a margin call, and a 5% move uses all of it.
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