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Japanese cryptocurrency industry group to set trading cap, sources say

JIJI

The Japan Virtual Currency Exchange Association, a cryptocurrency industry group, plans to have exchange operators set ceilings on customer trading, sources have said.

The association will decide on the issue soon, the sources said Friday. It will then file for Financial Services Agency approval to be recognized as a self-regulatory body under the payment services law, they said.

The planned rule is aimed at preventing cryptocurrency traders with relatively small assets from suffering heavy losses and facing difficulties with daily expenses, the sources said.

The industry group plans to allow exchange operators to choose from two options: A blanket ceiling that is low enough for the safety of customers with limited assets or setting different limits for different customers based on their age, assets, investment experience and income levels.

The group also plans to require minors to get permission from parents or other guardians before trading, prohibit margin trading in principle, and demand regular checks on the decision-making ability of elderly customers. It will also restrict large-lot orders as a measure against money laundering, the sources said.