Major Japanese cryptocurrency exchange Coincheck announced on December 16 that its leverage trading service will end on March 13, 2020.
The cryptocurrency exchange is asking users who currently have positions in the service to settle all positions before end of service and transfer Japanese yen balances from Coincheck’s leverage accounts to their trading accounts. The deadline for trading is March 13, 2020 at 12:00 p.m. (JST), and the deadline to transfer balances to trading accounts is at the end of March 2020.
Coincheck was subject to hacking in January 2018, in which approximately \58 billion ($534 million) worth of NEM cryptocurrency was stolen from the exchange through unauthorized access. Following this incident, Japan’s Financial Services Agency (FSA) issued an order in January and March 2018 for the exchange to improve its business operations. In April 2018, Coincheck was made into a wholly owned subsidiary of the major listed Japanese internet securities firm Monex Group, Inc., and the company resumed services as it proceeded with business improvements as a registered cryptocurrency exchange operator with the FSA.
In September 2019, in accordance with self-regulation and guidelines designated by the Japan Virtual Currency Exchange Association, Coincheck announced that it would adjust its leverage trading from 5x to 4x starting from October 31, 2019 at 2:00 p.m. (JST). As stated in the announcement, users will still be able to view their leverage trading history even after the leverage trading service has ended.
This announcement has brought attention to how other cryptocurrency exchange operators in Japan will be affected by a major cryptocurrency exchange ending its leverage trading services.
*This article was written by FISCO.