The Japan Virtual Currency Exchange Association will Set Limits on Trades
The Japan Virtual Currency Exchange Association (JVCEA) commits to setting limits on trading activities for some of its customers. It is reported that the self-regulatory body will set a policy requiring that the crypto exchanges set the maximum limits on the volumes that customers trade on the exchange.
It is reported that this step is aimed at preventing a situation in which an investor with a small number of assets suffered from serious financial losses, and also had problems associated with basic daily expenses. At the same time, it should be noted that the JVCEA indicated that the crypto exchanges will be able to choose one of two options for how the trading limits are set.
The first option suggests setting a universal limit, which will be fixed for all traders with a small number of assets. The second option involves a more individual approach, setting different limits for clients, depending on various factors such as experience, income, cost and age.
It is also reported that JVCEA proposed to impose trade restrictions on persons under the age of majority. So, users will need to confirm their age.
Earlier, the Japanese Association of Crypto Exchange announced its intention to set limits on margin trading. It is reported that this will prevent the growth of significant losses in customers caused by the extremely volatile state of the crypto-currency market.
The Japan Virtual Currency Exchange Association was formed in early March this year. 16 crypto exchanges were combined to develop and coordinate rules, as well as policies to ensure security standards. Formation of the association occurred after a serious break in the Coincheck exchange took place in January. The total amount of losses is estimated at 534 million US dollars.
It is known that the activities of the association are aimed at regulating the market, together with the Financial Services Agency (FSA).