According to Nikkei Asian Review, the self-regulatory body for Japanese cryptocurrency exchanges – The Japanese Virtual Currency Exchange Association (JVCEA) – is planning to cap the margin limits available on their member’s exchanges.
Some of the exchanges in Japan allow up to a 1:25 ratio and the JVCEA now has plans to cap the margin limits available on their member’s exchanges to 1:4. The JVCEA are willing to allow an exception to this rule if the exchange meets other conditions such as giving the users the ability to use automatic stop-loss mechanisms.
The association has also previously tried to clamp down on insider trading and trading of privacy-focused coins like Monero and Dash on their member’s exchanges.
The JVCEA was created in April as a reaction to the theft of $530 million from the Japanese exchange Coincheck, and as a way to protect the interests of their users and promote virtual currency. The organization is a partnership made up of sixteen different exchanges in Japan.
In June the organization lost two of their Vice Presidents after Japan’s Financial Services Agency (FSA) told the members of the JVCEA’s exchanges to improve their businesses by adhering to KYC (Know-Your-Customer) and AML (Anti-Money-Laundering) requirements.
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Bought my first Bitcoin in 2013, but when Ethereum was released in 2015 I decided to make cryptocurrency my biggest focus in life since I realized what impact smart contracts will have on society. It has since then been my biggest passion in life and it usually takes up most of my waking hours. I like to program and have followed and interacted with what happens in blockchain pretty much constantly during this time, and spent countless hours researching this amazing technology. I believe this is why I have a good technical understanding of all the different blockchains and its concepts, which is something I try to do my best to spread while working at Toshi Times.