Western Crypto Exchanges Document to Form Self-Regulatory Organization
Japanese Crypto Exchanges File to Type Self-Regulatory Organization
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Even more recently, the JVCEA stated it also wished to limit the sum of borrowing as it arrived to margin trading, that’s trading with borrowed money, to be at a maximum of four times an investor’s original deposit, as previously reported by CoinDesk.
A working draft of the proposed principles in the virtually 100-page document would require cryptocurrency trades to frequently conduct evaluations, as well as prohibit specific anonymous cryptocurrencies from being exchanged such as monero or dash, Nikkei Asia reported past month.
A group of Japanese cryptocurrency exchanges have formally submitted a comprehensive proposal to make a self-regulatory company to the state’s Financial Services Agency (FSA).
In addition, it follows from trends by Japan’s Financial Services Agency themselves to crackdown on the cryptocurrency sector by more closely scrutinizing the activity of accredited cryptocurrency exchange operations, devoting”business improvement orders” aimed at enhancing internal-auditing and user-protection systems.
These are suggestions by the institution aim to prevent repeats of incidents such as the Coincheck hack in which an estimated $533 million has been taken from the electronic pockets of the exchange.
This will allow the JVCEA to inflict rules as part of an attempt to create industry standards that are stricter.