The cryptocurrency scenario in the Eastern part of the world has seen some compliance related changes. In Japan, it would become mandatory for the exchange operators to set ceilings on customer trading as per the valid source of the Japan Virtual Currency Exchange Association. The association will soon file for Financial Services Agency approval in order to be recognized and self-regulated body under the payment services law in Japan.
The rule specifies for transaction, where it aims to prevent all those cryptocurrency traders that trade with the small assets and that are suffering from heavy losses and facing complexities with inadequate cash-flows to pay regular expenses.
As per the valid source, the industry group will allow exchange operators to select either of the options that will prevail transaction satisfactorily. The limit based options specified by the industry group where particular limits are set for different customers group based on their age, assets, income, among other parameters. On the contrary, another option is to place a blanket ceiling low for the safety of customers with limited assets. With this, the industry group has certain mechanism in place where minors have to get permission from parents or other respective guardians especially when they start trading activities, as well as it prohibits margin trading in principle and demanding regular checks on the decision making ability of elders. Besides this, the group may restrict large contracts as a measure against unethical practices like money laundering, etc.
On the whole, the industry group would like that all the transactions run while holding an ethical approach. Because when it comes to trade or transact either in capital market or crypto market, one has to hold medium to a long-term approach.