Tokyo-based crypto exchange Coincheck announced they will be ending the leveraged trading service as we are reading further in the upcoming blockchain news.
According to the blog posts, the planned end date for the leverage crypto trading is Friday at 12:00 until March 13, 2020. After the deadline, all of the positions will be settled. The customers will have until the end of March 2020 to transfer any Japanese Yen balance in the exchange’s leverage account to their own accounts. The positions that are not settled by the end date will automatically be closed and any balance will be transferred to the leveraged account. Any leverage account balances that were not transferred by the end of March will be automatically transferred after that date passes.
The new order for leverage crypto trades is suspended although the transaction history of leveraged trades can still be accessed. The Tokyo-based exchange resumed leveraged crypto trading on October 31st and previously suspended the service temporarily at the end of the summer this year. This was only to implement a reduced leverage cap of about 4 times which is down by 20 percent from the previous cap of 5x. At that time, Coincheck explained that the move was mainly because of the order to comply with the latest guidelines from the Japan Virtual Currency Exchange Association since this regulator has been focusing on limiting the leverage available on crypto trading in Japan since 2018.
Coincheck has decided not to involve itself in the leveraged crypto trading services at all because of the low interest of the customers. In its statement, Coincheck assures the users that it will continue to improve the usability and work on new services that will be supported by the customers. The parent company of the exchange Monex, which has been rolling out initiatives, wants to increase the bitcoin uptake as of late. They announced in September that the shareholders with a Coincheck account would receive a 500 Yen reward in BTC. Back in October, they launched a program allowing the customers to pay the domestic bills such as electricity in BTC with a percent discount if they chose to do so.
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