Japanese cryptocurrency exchange Coincheck has abruptly decided to cancel leveraged trading just months after relaunching the tool.<\/p>\n
In a blog post on Dec. 16, the platform said it had already stopped users from creating new leveraged positions.<\/p>\n
Traders with open positions must settle by Mar. 13, 2020, and balance transfers should complete by the end of the month.<\/p>\n
Coincheck has decided to end the leverage transaction service on Friday, March 13, 2020, the blog post confirmed. Coincheck added:<\/p>\n
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.<\/p>\n
Officials did not give a reason for the move, which comes around six weeks since leveraged trading reappeared after a one-month absence.<\/p>\n
In August, Coincheck reduced the scope of available leverage by 20%. At the time, the exchange said it was following guidelines from Japans self-regulatory cryptocurrency exchange body, the Japan Virtual Currency Exchange Association, or JVCEA.<\/p>\n
More broadly, criticism has taken aim at margin trading offered by cryptocurrency exchanges in recent months. Specifically, analysts have linked the tool to increased volatility in Bitcoin (BTC) markets.<\/p>\n
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