Coincheck stops all operations and all-new margin trading orders until the end of next month due to the revision of the JVCEA guidelines as we can read in the altcoin news below.
The Tokyo-based crypto exchange issued a statement on its website at the end of this month as the platform announced the suspension of the new margin trading orders. Also, Coincheck stated that the services will be capped at 4x and this move will see a reduction of 20 percent from the former crypto margin trading cap set at 5x. The exchange also released guidelines for customers who already had trading orders that were active and those with the uncommitted trading orders will have to wait until the end of September 2019 so they can be able to enter into positions and avoid cancelation.
For the customers that are already in open positions, the exchange noted that they will have to check to see if the margin cap reduction affected their trader as we can read from the excerpt from the company’s statement:
‘’Loss cuts will occur if the margin maintenance rate falls below 50% after changing the magnification. Check the margin maintenance rate and add margin or reduce the position as necessary.’’
Coincheck explained that the move is a part of the efforts to comply with the new and revised regulation guidelines provided by the Japan Virtual Currency Exchange Association –JVCEA which is a self-regulated body established to sanitize the local crypto industry in the country. The JVCEA identified the issue as the first to be solved shortly after its formation in April 2018. Back in March, the FSA announced the plans to introduce a limit on the crypto leverage trading between 2x and 4x and at that time the Financial Japanese financial watchdog stated that the new rules will come into force by April next year. The authorities in Japan explained that the move was necessary to provide robust protection for the traders on the market which is why Coincheck stops all operations this time.
As it was reported earlier in the latest cryptocurrency news previously, there was a $9 million cut that the OKEx customers had to take in order to cover the $416 million Bitcoin bet and with volatility still being the key factor on the market, the narrative from the regulatory bodies is that the smaller margin caps will prevent a repeat such events from happening.
New Jersey Is Regulating Cryptocurrencies At State Level
“People see and hear about [Bitcoin] in their day-to-day lives, but most are not quite sure what it is. We must take steps to protect consumers looking to invest in cryptocurrency, while also allowing the sector to continue to develop and expand in New Jersey.”The bill apparently requires crypto companies to disclose their terms and conditions for consumer accounts. As such, they will be protected by the Federal Deposit Insurance Cooperation (FDIC) as are traditional bank account holders. The US crypto regulation news also show that anyone applying would need to provide a schedule of fees and any information regarding the risks of investing in digital assets.
“With this legislation, consumers will be better-informed of the risks involved when investing in virtual currency.”This is what is new in the US crypto regulation news. What is important now is that with the introduction of a state-level licensing scheme, New Jersey would join its neighbor New York in requiring crypto firms to obtain special permission to operate - something that has been known as the BitLicense which the regulators in New York introduced in 2014.
Cyprus SEC Embraces Blockchain Despite Unclear Crypto Regulation
Russia Decides To Outlaw Crypto As Means Of Payment
"A decision was made following a meeting in the government to establish a ban on the issuance and use of cryptocurrencies as a means of payment," the letter read.In the same letter, Chernyshenko said that the FSB insisted that some of the crypto-related proposals should be included in Russia's bill on digital financial assets, which is very likely to pass through the parliament this spring. If this occurs, we can see how Russia decides to ban cryptocurrencies. But before that, the FSB wants to identify all crypto owners in the country. For failure to comply with the upcoming law, the FSB is going to impose administrative and even criminal liability. While the FSB and the Bank of Russia reached an agreement on how to regulate crypto, the two departments would not concede on their intentions to independently influence the regulatory process. So far, the bank has not responded to the FSB proposals. What's also interesting in the altcoin news is that a BBC investigation from earlier this month showed that the FSB could be behind the disappearance of $450 million worth of crypto from an exchange platform. Meanwhile, the action on the market is the same and the market cap is at $280 billion while BTC's dominance is at 62.9%.
More Crypto Regulation Suggested By Michael Bloomberg
‘’Cryptocurrencies have become an asset class worth hundreds of billions of dollars, yet regulatory oversight remains fragmented and undeveloped. For all the promise of the blockchain, Bitcoin and initial coin offerings, there’s also plenty of hype, fraud and criminal activity. Mike will work with regulators to provide clearer rules of the game ‘’The document wants to establish consumer protection and to clarify the taxation rules by creating a framework for initial coin offerings by determining which of the tokens are legal securities. He also calls for more regulations for banks and other financial institutions. The proposal is short but notable as the other leading candidates have remained silent on this matter. The other presidential candidate Bernie Sanders made no statements about crypto nor Joe Biden or Elizabeth Warren has commented. Trump is still not a fan of cryptocurrency and has made no calls for regulation. More discussion about the blockchain development could be sparse among the presidential candidates but the topic will not go away. Some of the other branches of government have been addressing the impending wave of crypto adoption and the Federal Reserve Chairman Jerome Powell discussed Bitcoin before the entire House Financial Services Committee. The fact that Bloomberg wants to address blockchain assets is not surprising. He founded one of the most successful financial companies that specialize in software and technology. There’s sure no doubt that he is familiar with crypto and its potential. If the crypto market continues to recover, more candidates will make new positions on how the federal government should approach the blockchain development. There is no doubt that the next president will have to recognize the crypto potential and the change of the entire economic landscape.
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