The Japan Virtual Currency Exchange Association (JVCEA) will obligate its member exchanges to place limits on the trading activity of some clients, Cointelegraph Japan reports today, July 28.
The self-regulatory body has reportedly established a policy of to require its member crypto exchanges to place maximum limits on the volumes traded by the exchanges’ customers.
The move reportedly aims to prevent investors with “small assets” from suffering heavy losses and facing problems with basic daily expenses. The report does not specifically define “small assets,” nor does it specify the exact limits to be placed.
According to the report, member crypto exchanges will be able to choose from two options for how they establish trading limits.
The first option proposes a universal ceiling that implies establishing one fixed maximum limit for all “small asset” traders. The second option suggests a more individual approach by setting different limits for different customers depending on various factors such as their investment experience, income, the value of their assets, and age.
The JVCEA has also reportedly suggested trading activity limitations for minors, requiring an adult’s confirmation as a measure against money laundering…