Increased Focus on Cryptocurrency Regulations

Authorities are emphasizing Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols for crypto exchanges and traders. Ensure your accounts are verified and transactions are compliant.

Governments are introducing clearer guidelines for taxing cryptocurrency gains. For example, in the U.S., the IRS now requires detailed reporting of crypto transactions, including staking and DeFi earnings.

Stricter Leverage and Margin Trading Rules

In Europe, the ESMA (European Securities and Markets Authority) has capped leverage for retail traders at 30:1 for forex majors and lower for other asset classes. This measure aims to protect retail investors from the high risks associated with excessive leverage. Similarly, Asia-Pacific and North America have implemented comparable restrictions to mitigate speculative trading risks. These regions recognize that high leverage can lead to significant losses for inexperienced traders, potentially destabilizing markets. By capping leverage, regulators seek to promote a more stable and sustainable trading environment, ensuring that traders do not take on more risk than they can manage. These regulatory efforts are part of a broader push to enhance investor protection and maintain market integrity amid the growing popularity of retail trading.