Japan’s cryptocurrency exchange, Coincheck has announced that it will be reducing the transaction size of leveraged trading option by 20%. This means margin traders using the exchange will be able borrow a maximum of 4x the amount of their holdings within a period instead of the usual five times, starting from 14:00 GMT October 31, 2019.
The exchange has also gone a step further to suspend new orders for leveraged trading and added that orders from customers with uncommitted leveraged trading would be canceled from 14:00 GMT on September 30.
Coincheck made it clear that users may encounter loss cuts if the margin maintenance rate falls below 50%.
For customers to reduce the risk of incurring a loss in leverage trading, both new and existing users are urged to always keep in touch with the latest information on the margin maintenance rate, which will be continuously updated on the company’s websites.
Similarly, users who do not know how to check the margin maintenance rate, are advised to read the tips available on the exchange’s website.
Coincheck launched its Over-the-Counter (OTC) trading desk for large-scale institutional investors to trade on a larger amount of virtual cryptocurrencies in a single transaction and at an attractive price.
The exchange, after recovering from a $530 million worth of NEM cryptocurrency hack in January 2018, acquired an operating license from the Japanese Financial Services Agency (FSA) in January 2019.
At the time of the hack, the company paused fiat withdrawals on the platform, after which Japanese Internet broker, Monex Group subsequently bought the exchange. Since its resurgence, the exchange has been battling to gain back the trust of its existing customers.
Slow but steady, in October, the exchange resumed crypto service for top cryptocurrencies, including Bitcoin (BTC), Ethereum Classic (ETC), Litecoin (LTC), and Bitcoin Cash (BCH). Coincheck has been performing quite well since then.
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