A self-regulatory organization created by Japanese cryptocurrency exchanges is proposing to introduce a limit on the size of the loan that investors can take out when trading on margin.
According to a report from Jiji Press, The Japan Cryptocurrency Exchange Association (JVCEA) has proposed that domestic trading platforms introduce a restriction that investors' maximum loan size cannot be more than four times the size of their deposit.
According to statistics published by the Financial Services Authority (FSA) in April, only 142,000 cryptocurrency traders focused on derivatives in 2017. This is a very small number, considering that there are more than three million active traders in Japan.
However, as of last year, more than 80% of the country's total cryptocurrency trading volume came from derivatives trading, namely $543 billion. More than 90% of this amount comes from margin trading.
JVCEA, which was created in response to platform hack This year, Coincheck aims to establish self-regulatory rules to create a healthy environment in the cryptocurrency trading market. JVCEA is currently planning to submit a proposal to the FSA to seek regulatory approval to use its powers more widely.
Representatives of the association indicated that the new rule could lead to cryptocurrency investors starting to leave exchangers. Therefore, at the moment, its goal is to gradually introduce measures that will allow exchangers to set their own limits.
According to coindesk.com
You May Also Like
BitPay will receive $70 million to develop its payment processing services
BitPay is an international payment service provider that allows companies to accept bitcoin as payment. Formally, BitPay participates in the transaction on behalf of the recipient, accepts and immediately converts bitcoin into one of 30 currencies of the client's choice, allowing clients not to worry about price volatility. BitPay transactions are irreversible, which makes them attractive to merchants who operate internationally.
BitMEX will release its token and airdrop
Crypto derivatives exchange BitMEX is preparing to launch its own token and will distribute it to both new and existing users.
