фото показано с : blokt.com

The Japan Virtual Currency Exchange Association (JVCEA) is now recommending the exchanges providing margin trading services to introduce borrowing limits for crypto investors. The self-regulatory organization is proposing the rules to protect traders who could suffer because of lack of borrowing restrictions in margin trading transactions. According to the new recommendations, the trades can borrow only four times the amount of their deposits, JiJi Press reports.

According to statistics published in April by the Financial Services Agency (FSA), the crypto derivatives market is very small in Japan. The total number of derivative traders in the country is over 3 million, while active crypto derivative traders are barely 142,000. This could be because cryptos are still comparatively new and appropriate regulations are still not available in the plenty.

However, it is noteworthy that over 80% of crypto trading volume in the country comes from derivative trading only. The activity is expected to grow in the upcoming years as the government has identified Bitcoin as legal tender and also believes in the potential of digital currencies and blockchain technology. The activity in the region was growing unabashedly till local exchange Coincheck was hacked for over $500 million. It was then that the local trading platforms established the JVCEA.

The JVCEA intends to limit borrowings in margin trading to 4x the total deposits of a trader. The exchanges will now impose the newly proposed limits. The agency is looking forward to helping discourage investors from indulging in extremely risky behavior. Previously, the agency announced new rules that prohibited anonymous transactions in cryptocurrency. It also noted that there could be a ban on insider trading and employers who illegally trade could be liable to pay for the employees’ losses.

Earlier this month, the FSA announced that it would reevaluate the ways in which it regulates local crypto exchanges. Note that cryptos are currently regarded as legal tender in the country. They could also be classified as a financial product soon, because of which consumers will get several protections. This could also help in the rapid development and expansion of the industry.

Margin Trading Borrowing Limits Could Be Set in Japan as Recommended by the JVCEA was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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