Japan’s self-regulatory Cryptocurrency Exchange Association plans new margin limits

  • July 29, 2018
  • 12:04 am ET

The JVCEA, Japan’s self-regulated group of crypto exchanges, is planning to introduce margin limits of 4-1 in local trading. The move is expected to help prevent investors from wild price swings inherent to Bitcoin andother tokens.

Tweet this

The Japan Cryptocurrency Exchange Association (aka Nihon Kasotsuka Kokangyo Kyokai) is reported to be planning margin cap rules to limit the amount of margin to 4 times.

With some Japanese exchanges currently permitting users to trade with leverage up to 25 times their deposited amount, a 4% move at 25x margin would wipe out all the funds in a user’s account.

By setting margin limits, participating exchanges would be protecting individual investors from wild price swings and curtailing their risk exposure in volatile crypto markets.

There is a possibility that exceptions to the 4x margin limit would be made in certain cases, for example, if a trader users a stop-loss mechanism to prevent from going negative.

Advertisement

Established in March and formally formally announced in April (2018), the association is comprised of all 16 FSA-registered Japanese crypto exchanges. (Here’s a video of the announcement event, in Japanese.)

Their goal is to self-regulate the national crypto exchange space and establishing guidelines for new players looking to enter the space with three areas of focus: consumer protection, regulation, and transparency.

Japan Virtual Currency Exchange Industry Association members in Tokyo

Japanese crypto exchange representatives announce the Virtual Currency Exchange Industry Association in Tokyo, April 23, 2018.

Image via CoinView

Here are the member exchanges of the Japan Cryptocurrency Association and their respective representatives, two of whom quit in late June:


Exchanges
Topics
Places
Japan Cryptocurrency Business Association
Japan’s self-regulatory Cryptocurrency Exchange Association plans new margin limits
CoinAgenda Caribbean Returns to Puerto Rico for its Third Year, Featuring Special Sections on Security Tokens, IEOs, NFTs, Exchange Innovations, Digital Currency Funds and Private Equity in Blockchain
Rocketpool developer releases extensive overview of Ethereum 2.0 roadmap
Gemini now offering digital asset insurance for customer funds
Diamond Reserve Club Hero Image
Judge rules ICOs could be subject to securities law
Abby johnson Fidelity Boston conference
Fidelity CEO Johnson drops clues about pending crypto products
VeChain Foundation Header Image
VeChainThor Mobile Wallet available now
Notice: Undefined index: refuse_opt in /var/www/vhosts/maxcryptonews.com/wp-content/plugins/cookie-notice/cookie-notice.php on line 930 Notice: Undefined index: refuse_opt in /var/www/vhosts/maxcryptonews.com/wp-content/plugins/cookie-notice/cookie-notice.php on line 933