Japanese digital currency exchange Coincheck has unexpectedly chosen to drop leveraged trading only after relaunching the service.
In a blog entry on December 16, the platform stated it had just prevented clients from making new leveraged positions.
Traders with open positions must settle by March 13, 2020, and balance transfers should finish before the month’s over.
“Coincheck has decided to end the ‘leverage transaction’ service on Friday, March 13, 2020,” the blog entry confirmed. Coincheck further said:
“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.”
Officials didn’t give a purpose behind the move, which comes around six months since leveraged trading returned following a one-month absence.
In August, Coincheck decreased the extent of accessible leverage by 20%. At the time, the exchange stated it was following rules from Japan’s self-regulatory digital currency exchange body, the Japan Virtual Currency Exchange Association or JVCEA.
On the other hand, criticism aimed at margin trading provided by digital currency hs surfaced as of late. In particular, analysts have linked the tool to heightened volatility in Bitcoin (BTC) markets.