Well-known Japanese crypto exchange will no longer support the leverage trading feature on its platform.
It made this unexpected announcement via a blog post on Monday, December 16, 2019. The announcement also disclosed that users on the platform can no longer create fresh leveraged positions.
Coincheck plans to end its leveraged trading on Friday, March 13, 2020, at 12:00. All pending leveraged positions should be settled before or on this date. Same applies to all relevant transfers. Users whose account has not been settled before this date will automatically be closed.
“If you have a current position, we would like to ask you to settle all positions by the deadline and transfer the Japanese yen balance in Coincheck’s leverage account to your trading account,” the company says.
Although users can no longer place new leverage orders, they can still view their transaction history.
Concurrently, the company reserves the right to change the schedule without prior notice.
Relaunched in October, shuts down again
To remind, in October 2019, the exchange relaunched leveraged crypto trading barely two months after its temporary suspension in August. Back then, it also reduced leveraged trading by 20%. According to Coincheck, the company was trying to fulfill Japan’s Virtual Currency Exchange Association regulatory guidelines.
Undoubtedly, the announcement has shocked the community. Yet, Coincheck’s officials have not commented on the decision yet (press-time).
To remind, last year, the exchange suffered a hack worth $530 million. It took 10 months for the exchange to recover.
Margin trading, in general, has taken a lot of hard blows in recent times. Interestingly, one school of thought actually blame Bitcoin volatility for that.
At the same time, Coincheck, assures that it will continue to function. And provide customers with different services.