The association of government-approved crypto exchanges in Japan is working on several crypto trading restrictions. Reports from Japan have indicated that the association will put in place limits for all users as well as restrictions for the elderly and minors. The association comprises of all the 16 exchanges approved by the government to operate in Japan.
According to the Jiji Press News Agency:
“The association is already working on different regulations and limits. The issue will be completed very soon and then file with the Financial Services Agency for approval. The rule will be geared towards preventing crypto traders with small assets from heavy losses and having difficulties in their lives. It’s all made for the safety of the customers and will operate on the basis of experience in the crypto sector and income levels of the investors.”
At the moment crypto exchanges offer up to 25 times leverage,= rather than the recommended 4 times. This is something the association want to impose. There will be a regular check on the decision-making ability of the elderly when it comes to crypto trading.
Japan And Regulating The Crypotcurrency Sector
Japan was the first country to legalize crypto trading but in a controlled manner. The market has had its challenges especially because of cyber crime. There have been many cases of crypto exchange hacking with the latest one being that of Coincheck. It led to the losses of millions of dollars. However, the country has put in place very strict rules for trading. There are now requirements to join the association of self-regulation to maintain the focus of customer protection.
Japan currently controls more than 50% of all Bitcoin trading in the world. More people are using Bitcoin and companies are even offering to pay their employees using the digital currency. However, to ensure the security of the market, they keep on reviewing their rules and regulations for the crypto sector.
The G20 addressed the issue of cryptocurrency and the need for regulation. France and Canada also seem to be following the footsteps of Japan is regulating the sector and then allowing trading. In the United States, the matter is still before congress for discussion. Congress, through its chair, has previously indicated that its very important to understand the sector before regulating it. The government through its agencies has however been monitoring the sector and there have been several arrests and prosecution of people found to be trading cryptocurrency illegally. China is the only well know country to have banned all cryptocurrency trading.