Japan’s self-regulatory Cryptocurrency Exchange Association plans new margin limits
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
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.
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.
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:
- bitARG Exchange Tokyo Representative Director, Yoon Hee Yuan
- bitbank Representative Director & CEO,
- bitFlyer Representative Director,
- Bitgate Representative Director, Masato Kuroda
- BitOcean Executive Officer, Yoshikazu Hashimoto
- BITPoint Japan Representative Director & CEO, Genki Oda
- BiTrade Representative Director & CEO, Ryo Tadahama
- BTC Box Representative Director, David Zhang
- DMM Bitcoin Representative Director, Hitoshi Taguchi
- Fisco Cryptocurrency Exchange Representative Director, Naoki Ochi
- GMO Coin Representative Director & CEO, Tomotaka Ishimura
- Money Partners Representative Director & CEO, Tateyama Okuyama
- QUOINE Representative Director, Kariya Hayamori
- SBI Virtual Currencies Representative Director & Vice President, Ryo Saito
- Tech Bureau
- Xtheta Representative Director & COO, Hitomi Yoshimoto
Stay tuned for more about the Associations new margin limits, or subscribe to MCN and never miss a story.