Ever since Bitcoin and other cryptocurrencies became far more mainstream following the remarkable rally in 2017, there has been a lot of talk about large institutions getting into this space. For instance, banking giant JP Morgan came up with its own digital coin last year. However, in 2019, a bigger piece of news came to the fore.

It emerged that the Chinese central bank, the People’s Bank of China, was going to launch its own digital asset. It goes without saying that this is a major development in the history of cryptocurrencies, and, naturally, there is a lot of excitement about the Chinese government getting into space in such a big way.

Ease of Speculation

Yesterday, it emerged that the Chinese central bank was readying to launch the cryptocurrency in November this year. However, the speculation was dismissed by the Chinese newspaper Global Times, which is well known for being close to the government. The newspaper sent out a tweet through its official Twitter account and stated, “Refuting media reports of launching a state-backed cryptocurrency in the coming months, #China’s central bank termed them as ‘inaccurate speculation.’” The announcement put cold water on all the speculation that has gone on regarding the cryptocurrency over the recent weeks.

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Throughout the course of August, speculation has been rife that Chinese cryptocurrency was going to be launched at some point in November. At the start of August, the People’s Bank of China stated that the development of the digital currency had been accelerated.

Yesterday, several reports emerged in which it was stated that the central bank was going to distribute the coins among China’s biggest financial institutions in order to ensure that it is distributed efficiently across the vast population. Although it is true that no date has yet been given regarding the launch, it is fairly clear that the whole thing has probably been deferred for now.

Featured image: DepositPhotos © Alan

The crypto space has evolved at a breakneck pace over the past few years, and much of it is due to the fact that cryptocurrencies became a much more popular investment as well as a trading vehicle all over the world. While trading was always a big thing, the introduction of margin trading changed the game altogether, and many exchanges all over the world started providing the service.

Key Announcement

Some of the best traders in the crypto space are now engaged in margin trading. That being said, it was always going to come under regulatory scrutiny. In a new development, Japanese cryptocurrency exchange Coincheck announced that it was going to reducing transaction size in such trades by 20% due to regulatory requirements.

Prior to this announcement, margin traders had the freedom to borrow five times their total holdings, but following this move, they will only be able to borrow four times their total holdings. The crypto ecosystem has grown quite quickly in Japan, and the rules are quite stringent. The sector is overseen by the Japan Virtual Currency Exchange Association (JVCEA), and the move is a direct consequence of the rules made by the association. Coincheck announced the new update in a blog post, and it stated that in order to be in compliance with the rules and regulations, it had to reduce the margin trading limit.

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Moreover, the exchange also stated in its post that if a customer places new leveraged trades, then those trades would be canceled. Coincheck went on to state that customers could also stand to make losses if the margin maintenance rate drops below 50%.

The larger point about this development is that it remains to be seen whether this leads to a reduction of leveraged trades on the platform or not. In the initial period, something of that nature might happen, and it would be interesting to see how the exchange manages that period.

Featured image: DepositPhotos © maxkabakov