JVCEA Plans to Modify the Cryptocurrency Market
Self-regulating organization, which was created by the Japanese crypto exchanges, proposes to introduce limits on the number of investors who will be able to borrow while using margin trades. According to the published report of Jiji Press, the Japan Virtual Currency Exchange Association (JVCEA) suggested that domestic trading platforms use certain restrictions for investors.
Representatives of the association noted that the proposed plan is aimed at providing protection to investors, as today there are no market rules governing the maximum limit of how many investors in digital currencies can take loans on margin trading.
According to statistics released in April by the Financial Services Agency (FSA), in 2017, about 142 thousand traders focused on the derivatives. At the same time, more than 80% of the volume of trading with the country's cryptocurrencies, last year, accounted for trade in derivatives. This figure amounted to 543 billion US dollars.
Thus, one of the main tasks of JVCEA is to create a healthy market for cryptocurrency trading. It is worth noting that, for wider implementation, it is planned to submit an existing offer to the FSA. At the same time, experts suggest that the new rules may help the emergence of cryptocurrency investors from exchanges.