JVCEA Suggests To Limit Loans On Margin Trading
The Japan Virtual Currency Exchange Association (JVCEA) recommended the teams of crypto platforms to set limits on the volume of loans for margin trading participants, CoinDesk reports with reference to Jiji Press.
As proposed by the JVCEA, if a loan sum is four times higher than the deposit, depositors won’t be able to borrow from the trading platform. Until now, there have been no such regulation in the Japanese money market.
According to the Financial Services Agency, more than 140 thousand of the 3 million crypto traders dealt with derivatives for a total of $543 billion, or 80% of the total transaction number last year. Of these, marginal trading accounted for more than 90%.
As previously reported, Yuzo Kano, the executive director of BitFlyer, and Noriyuki Hiroyuki, CEO of the Bitbank trading platform, resigned as co-chairs of the JVCEA.