Coincheck Cuts Leveraged Trading
In a surprising turn of events, Japanese cryptocurrency exchange Coincheck has decided to put the brakes on leveraged trading, mere months after reintroducing the feature. As of December 16, users were officially barred from creating new leveraged positions, marking a significant shift in the platform’s strategy.
March Deadline: Time to Settle Up
For those who already have open positions, it’s time to get your ducks in a row. Coincheck has set a hard deadline for settling these positions by March 13, 2020. Users are also advised to transfer any remaining balance in their leveraged accounts to their trading accounts by the end of the month.
- Deadline for Settling Positions: March 13, 2020
- Balance Transfers: Complete by March 31, 2020
The Mystery Behind the Move
Why did Coincheck decide to end leveraged trading? Unfortunately, the exchange has been tight-lipped about its motivations. Just six weeks prior, this trading option was back on the table after a temporary hiatus, suggesting a rollercoaster ride of policies.
Previous Adjustments to Leveraging
Back in August, Coincheck made headlines by scaling back the expected leverage by 20%, citing adherence to the guidelines from Japan’s self-regulatory body, the Japan Virtual Currency Exchange Association (JVCEA). Analysts have been scrutinizing margin trading recently, linking it to infamous market swings in Bitcoin prices.
Understanding the Broader Context
The decision to halt leveraged trading comes amid a backdrop of increased criticism of margin trading across the board. With many observers pointing fingers at this trading style for exacerbating volatility, Coincheck’s recent actions may signify their attempt to align with market norms and safeguard their users.
What’s Next for Traders?
As traders adjust to this sudden change, it’s crucial to take steps to protect your investments. Research alternative trading strategies, explore other platforms, or simply diversify your investment portfolio. Change might be daunting, but it can also be an opportunity for growth!
