The self-regulatory organization of Japanese cryptocurrency companies called on cryptocurrency exchanges to limit the maximum amount of borrowed capital used in margin trading. The goal is to protect interests of investors.

The Japan Virtual Currency Exchange Association (JVCEA) sent a message to local trading platforms urging them to limit margin trading borrowing. The maximum borrowed capital should not exceed trader's deposit more than 4 times.

Now Japanese cryptocurrency exchanges offer marging trading with leverage much high than 4x. Thus, major cryptocurrency exchange bitFlyer allows traders margin trading of up to 15X based on their initial deposit.

According to the association, this proposal is aimed at protecting Japanese investors and traders in the absence of strict market rules for margin trading and high risk of losing all their funds.

According to statistics published by the Agency for Financial Services of Japan (FSA) in April, in 2017, there were almost 142,000 cryptocurrency traders in Japan that were concentrated on derivatives. In total, there are about 3 million traders in Japan.

At the same time, statistics say that more than 80% of the total volume of cryptocurrency trading in Japan in 2017 worth approximately $543 billion was produced by derivatives trading. More than 90% of this volume was margin trading.