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
P2P marketplace “Finector”: working with crypto on your terms
We invite crypto investors who need opportunities for convenient, safe and profitable trading of digital assets to use our new crypto exchanger “Finector”! With finector.io you can safely and quickly buy or sell crypto for fiat at any time and from anywhere in the world. Just one transaction - and Finector will definitely become your favorite service in the world of web 3.0!
How the Behemoth Crypto Trading Platform Could Impact Switzerland
This is a new marketplace that will be available mid-2019. Its creator is the SIX Group, which operates the Swiss stock exchange. According to SIX, the fully regulated exchange will be “the world’s first market infrastructure to offer integrated trading and custody services for digital currencies.”
