Recently, the Japanese exchange Coincheck has made a new entry in its blog, through which they announced that they will end the trade based on leverage on their platform.
Coincheck himself has explained that they themselves resumed the leverage trade in October of this year, in order to comply with the guidelines of the Japan Virtual Currency Exchange Association. From that moment the leverage limit was reduced from 5 to 4. The main reason why Coincheck has decided to end this process is because of the general disinterest of the users. The risk market usually creates rejection usually in users with less capital.
Following this news, Coincheck has announced that they are constantly evolving and seeking to implement new services and functionalities.
Coincheck has set a deadline on March 13, 2020 at 12:00 to settle all open operations. Users will have until the end of that same month of March to transfer the balance of their leverage accounts to their business accounts.
If you have left trades open at the time the term ends, they will be automatically terminated and the balance will be transferred to the leverage account. The procedure was repeated with the balance, in case it has not been transferred at the end of March, it will perform the operation automatically.
From now on, no more leveraged trade operations will be accepted, only their history can be accessed.
Monex, the parent company of Coincheck, has been working for some time to implement initiatives that support Bitcoin. You may have seen this trade leverage harmful to your purpose.