Japanese exchange association wants crypto-trading limits for small customers
Japan’s cryptocurrency exchange association will compel its members to impose trading limits on certain of their clients.
The Japan Virtual Currency Exchange Association (JVCEA) wants to place maximum limits on the volumes traded by smaller customers.
It aims to prevent heavy trading losses for clients with smaller value accounts and limit daily expenses for such customers.
Limits
Under JVCEA’s plans, crypto exchanges could be given two options for how they establish trading limits.
They could choose a universal upper limit for those deemed to be small customers by the value of their accounts.
Alternatively, they could choose a more individual approach, selecting different limits for individual customers, depending on factors such as their age, investment experience, income as well as account value.
JVCEA could give exchanges some leeway in how they impose trading limits
Measures
In addition, JVCEA is considering measures to clamp down on trading by children and prevent money laundering.
It has also previously signalled its intention to limit margin trading to help prevent crypto exchange customers from accumulating big losses.
Standards
JVCEA was formed in March this year, as an association between 16 crypto exchanges pledging to work together to boost standards across the industry.
It’s foundation closely followed the high-profile hacking of Japanese crypto exchange Coincheck, which saw the theft of well over $500m in digital coins.