Category Archives: Bitflyer

Auto Added by WPeMatico

Japanese Crypto Exchanges’ Self Regulator Applies for Official Status

The recently formed Japan Virtual Currency Exchange Association has applied with the country’s financial regulator to become recognized as the official self-regulatory body representing cryptocurrency in Japan.

The JVCEA comprises of 16 licensed crypto exchanges, who are self-described as security inspectors of Japan’s cryptocurrency exchanges. The association has gone to great lengths to cover all aspects of how exchanges should function, drawing up nearly 1,000 pages of self-regulatory measures. The JVCEA was formed by Japanese crypto exchanges earlier this year in response to a $534 million heist on the Coincheck platform.

The chairman and president of the organization is Taizen Okuyama of Money Partners. Bitflyer CEO Yuzo Kano is the vice chairman, along with Bitbank president Noriyuki Hiroeno. The other two directors are SBI Virtual Currencies’ Yoshitaka Kitao and GMO Coin’s Tomitaka Ishimura. The JVCEA has said in a statement that it hopes to contribute to “the sound development of the virtual currency exchange industry and the protection of the interests of users.”

Its application for certification filed with Japanese Financial Regulator (FSA) will allow it to become what it calls a “certified fund settlement business association,” which will provide “guidance and recommendations to members to comply with regulations, laws and self-regulation rules.”

The JVCEA is not the only Japanese cryptocurrency association, as two others exist; the Japan Blockchain Association (JBA) and the Japan Cryptocurrency Business Association (JCBA), and most crypto exchanges are members of one of these organizations.

The JVCEA has already proposed regulations in place which it would hope to make official should the application to become the country’s cryptocurrency representative body be accepted by the FSA. The new rules would affect the way exchanges operate, and according to local news sources, privacy coin listings and insider trading will come under the regulatory microscope.

As suggested before, the JVCEA will enforce their 4 times leverage trading cap limit rule and possibly enforce trading restrictions for both the very young and the elderly. It has been reported that the FSA would be entrusting the new body with “the flexibility to rapidly develop technologies and to combine technological innovation and customer protection.”

Follow BitcoinNews.com on Twitter at @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Image Courtesy:Pixabay

The post Japanese Crypto Exchanges’ Self Regulator Applies for Official Status appeared first on BitcoinNews.com.

New Japan Internal Regulator Flexes Muscles, Limits Margin Trading Loans

The recently-formed Japan Virtual Currency Exchange Association (JVCEA) is proposing to set a limit on margin trading loans. Margin trading is the process of borrowing money from a broker to trade in cryptocurrency when the investor or trader has insufficient funds to do so.

It has been suggested that the new borrowing limit for trading platforms in Japan should be set at four times the customer deposit when margin trading. Currently, there are no limits on how much cryptocurrency investors can borrow when margin trading.

The Financial Services Agency (FSA) has released figures showing that in April, there were 142,000 crypto traders in Japan. That monthly figure represents a small percentage of the total of 3 million Japanese traders.

Out of 2017’s recorded USD 543 billion of crypto trading in Japan, margin traders accounted for more 90% of the derivatives trading total, which was over 80% of the entire cryptocurrency trading volume for that year.

The proposal which is now set to be presented to the FSA may rebound on the industry as there is some thought that by setting limits on investors, this may well lead to some investors moving away from using cryptocurrency exchanges, although the proposed changes would allow exchanges to set their own limits.

The JVCEA, which is proposing the new limit, comprises of 16 licensed crypto exchanges, who are self-described as security inspectors of Japan’s cryptocurrency exchanges. The association has gone to great lengths to cover all aspects of how exchanges should function, drawing up nearly 1,000 pages of self-regulatory measures. The JVCEA was formed by Japanese crypto exchanges earlier this year in response to a USD 534 million heist on the Coincheck platform.

The chairman and president of the organization is Taizen Okuyama of Money Partners. Bitflyer CEO Yuzo Kano is the vice chairman, along with Bitbank president Noriyuki Hiroeno. The other two directors are SBI Virtual Currencies’ Yoshitaka Kitao and GMO Coin’s Tomitaka Ishimura.

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Image Courtesy: Pixabay

The post New Japan Internal Regulator Flexes Muscles, Limits Margin Trading Loans appeared first on BitcoinNews.com.