The nascent Japan Virtual Currency Exchange Association (JVCEA) wants to place restrictions on member exchanges’ margin trading as a way of stemming losses, according to a Japanese media report.
Margin trading, the practice of borrowing money from a broker, is used in this case by crypto traders to buy or sell more cryptocurrency than they could afford on their own.
The self-regulatory cryptocurrency body only came into existence earlier this year. It wants to limit the amount margin traders can borrow to four times the amount of their investment.
According to Cointelegraph, Japanese cryptocurrency exchanges faced major upheaval throughout this year from, among other things, a January hack of operator Coincheck, which had $534 million stolen. Read more here.