Coincheck stops margin trading

The Japanese crypto platform Coincheck has suspended all new orders for margin trading, and as of March 13, 2020Leverage trading function will not be available on the exchange.

In their statement, representatives of Coincheckwarned traders who have active trading orders to close leveraged trades. Pending trade orders must be closed by noon on March 13, 2020 to avoid being forced to close at the current rate. Users will have until the end of the month 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 needs to be resolved by the Association. 

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.