Japanese cryptocurrency exchange Coincheck has revealed it’s going to end leverage trading on its platform, merely months after launching it.
According to the exchange’s blog post, it has already stopped users from entering new leveraged positions, and open positions must be settled by March 13, 2020. The blog post doesn’t go into detail or explain the move, but merely informs users it’s being made.
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.
It’s worth pointing out that in August of this year Coincheck reduce the scope of available leverage, reportedly following the guidelines of the Japan Virtual Currency Exchange Association (JVCEA), Japan’s self-regulatory cryptocurrency exchange body.
Coincheck is a well-known cryptocurrency exchange, as in 2018 it saw hackers steal over $500 million worth of NEM tokens from its hot wallets. Despite the security breach, it managed to stay afloat and later on sold to the Monex Group.
Earlier this year the Monex Group revealed it was looking to pay its investors dividends in bitcoin, a move some saw as supportive to the crypto industry. Coincheck also made headlines after a little-known cryptocurrency in the west, Monacoin (MONA), saw its price surge 140% after being listed on it.