Japanese retail investors fought bitcoin markets from traditional forex trading

nBankruptcy Commentary: A recent Deutsche Bank study shows that more and more Japanese retail investors have shifted from leveraged foreign exchange transactions to leverage-encrypted currency transactions, driving the development of the cryptocurrency market. Meanwhile, several major forex platform operators such as GMO, SBI, Money Partners and Mitsubishi UFJ Financial Group will also step into the field of cryptocurrencies and launch a cryptocurrency exchange to provide up to 25 times leveraged transactions.n
nTranslation: Clovern
According to a recent Deutsche Bank study, a growing number of Japanese retail investors are moving from leveraged foreign exchange transactions to leverage-encrypted currency transactions, driving the development of the cryptocurrency market. Japan’s largest forex platform operator will also launch its own cryptocurrency exchange, offering up to 25 times leverage.n
From traditional foreign exchange to bitcoinn
Masao Muraki, head of research at Japan’s Deutsche Securities AG (DSI), said last week that more and more Japanese retail investors are moving from traditional foreign exchange transactions to cryptocurrencies. DSI is one of the Deutsche Bank Group companies.n

According to CNBC, Muraki explained that investors are turning their attention to leveraged-encrypted trading because leveraged foreign exchange deals fail to meet their profit targets.n
When it comes to “speculation in cryptocurrencies is growing to a degree that can not be ignored,” he elaborates:n
n”We think retail investors are moving from leveraged foreign exchange transactions to leveraged cryptocurrency, and Japanese men between the age of 30 and 40 who are engaged in leveraged forex trading are pushing for the development of cryptocurrencies.”n
nThe analyst pointed out that Japan accounted for 54% of global foreign exchange margin transactions. According to GMO Click Securities, one of the world’s largest forex trading platforms, 79% of Japan’s foreign exchange accounts are held by men, 63% of whom are aged 30-49.n

Although most Japanese retail investors are men, they are compared to “Mrs. Watanabe.” Traditionally responsible for managing the family’s financial position are generally housewives.n
High risk, high returnn
The Japanese market provides leveraged cryptocurrency trading services. For example, GMO Coin offers 5x, 15x and 25x Bitcoin / JPY leverage trading. Although these transactions do not charge any fees, but the daily leverage costs 0.05%. GMO Coin and GMO Click Securities are both GMO Internet subsidiaries.n

The Financial Times quoted Muraki as saying:n
n”Some major foreign exchange brokers are using the same 25x leverage limit as foreign exchange deals, but there are no direct rules for encrypting currency leveraged deals.”n
nWhen it comes to encrypting currency transactions that can take up to 10 minutes or more, analysts said that “there is more risk of a loss above margin than normal foreign exchange trading due to the large intraday volatility.”n

However, according to The Wall Street Journal, he also noted that “Japanese investors have a very positive view of volatility,” adding that “typical Japanese investment styles are low-risk – low-return deposits and high-risk – high-return investments Combined. “n
Foreign exchange platform operators to enter the encryption currency trading businessn
Since the Japanese government approved Bitcoin as a legal payment method in April of this year, more and more major Japanese foreign exchange platforms have started to develop the encrypted currency trading platform.n

News.Bitcoin.com reported in May that more and more companies are applying to register with the Financial Services Agency (FSA) to provide bitcoin products and services to “Aunt Nippon”.n
GMO Click Securities parent company GMO Internet launched its own Bitcoin brokerage service GMO Coin in May.n

SBI Group, the parent company of foreign exchange agency SBI FX Trade, will also launch eight different encryption businesses, including an exchange called SBI Virtual Currency.n
Money Partners, the parent of Money Partners Forex Platform, has invested in Kraken and the Zaif Exchange operator Tech Bureau. The group has also announced plans to launch a cryptocurrency exchange.n
MUFG’s subsidiaries also provide foreign exchange margin trading services and plan to launch crypto currency trading.n
DMM.com, the parent company of DMM FX, a foreign exchange business platform, will also launch the Bitcoin Mining business next spring with a cryptographic trading business called Next Currency.n

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