The Japanese crypto platform Coincheck suspended all new orders for margin trading, and since March 13, 2020 Leverage trading function will not be available on the exchange.
Coincheck representatives in a statementwarned traders who have active trading orders of the need to close trades with leverage. Incomplete trading orders must be closed before noon on March 13, 2020 to avoid forced closure at the current rate. Until the end of the month, users will have time to transfer their funds from margin to main accounts.
This is the second limitation of margin trading onstock exchange for the last six months. In August, Coincheck already stopped trading, citing the requirements of the Japan Cryptocurrency Exchange Association (JVCEA). A self-regulatory body created to control the crypto industry in the country is interested in regulating the leverage limit available for crypto traders.
According to JVCEA representatives, the issue of leverage is identified as the first problem that the Association needs to solve.
In March 2019, the Financial Services Agencycountries (FSA) announced plans to introduce a crypto leverage restriction between 2X and 4X. At that time, the Japanese financial observer announced that the new rules would enter into force by April 2020.