Japan Virtual Exchange Association

Japan Virtual Exchange Association

Coincheck’s Tokyo-based crypto exchange stopped all margin trading orders until the end of October 2019. As of November, the platform will limit leverage to 4X (up from 5X today).

Also, the Coincheck exchange announced on the official blog a number of indications for customers who already have active orders. Those who have pending orders must implement them by the end of September 2019 and enter positions to avoid cancellation.

For clients who are already in open positions, the exchange recommended that they check whether the reduction in the ceiling has adversely affected the funds.

Modification implemented at the request of JVCEA

The Coincheck Exchange announced that the decision was made as part of efforts to comply with the revised guidelines offered by the Japan Virtual Exchange Association (JVCEA). JVCEA is a self-regulatory body created to ensure the health of the country’s crypto industry.

Since mid-2018, margin trading has become one of the most discussed topics for Japanese crypto exchanges. In August 2018, an incident in the crypto market caused a loss of $ 9 million due to margin trading on the OKEx platform.

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In March 2019, the Financial Services Agency (FSA) announced that it intends to introduce a limit for crypto margin trading between 2X and 4X. At that time, the supervisory authority said that the new rules will enter into force by April 2020. FSA representatives argue that the limit is necessary to provide protection for traders.

The cautious position of Japanese exchanges is a contrast to other market players. For example, BitMEX offers margins of up to 100X – an aspect frequently mentioned by company critics.


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