Japan’s JVCEA To Regulate Own Member Exchanges and Place New Rules

The JVCEA will be self-regulating all its partner cryptocurrency exchanges by placing restrictions on their clients and their trading activity as reports have stated.



The JVCEA, Japan Virtual Currency Exchange Association has mandated that its digital trading exchanges place restrictions on the maximum number of trading volume by their users. This comes as a means of protecting lesser investors and providing them with safety from severe losses on the market. Referred to as “small assets”, nowhere in the report does it explain what constitutes small assets.

Two different approaches to the situation are available to the cryptocurrency exchanges membered with the JVCEA. The first approach suggests a cap on the maximum limit on small-time traders, presenting one solid and global limit. The second approach proposes handling each customer differently and providing limits to each depending on their experience, income and asset value.

In addition, the Association has proposed additional limits for underage investors and a guardian’s signature to pass off the investment as a means of protecting them from money laundering schemes. In July, the JVCEA also announced plans to limit the margin trading of its cryptocurrency exchange members due to similar concerns regarding the market and preventing or protecting customers from the unpredictable markets.

Japan’s crypto-association was founded in 2018 and signed on 16 different digital currency trading platforms as a joint effort in establishing proper guidelines and regulations with security as their priority. After the massive loss Coincheck in Japan, the exchange suffered almost $550 million in losses, eventually resulting in the foundation of the Association. As of now, JVCEA and the revamped FSA will monitor the market and apply the required regulations in several sectors including financial technology and crypto assets.

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