Monex Securities, a major Japanese online securities company, launched a cryptocurrency contract-for-difference service.
This is the first time a major online Japanese securities company has offered a crypto CFD.
A CFD is a type of derivative where the “buyer” of the contract pays the “seller” the difference between the current price of an asset and the price of that asset at a future date stipulated in the contract.
マネックス 主要ネット証券初、暗号資産 CFD の取扱いを開始 pic.twitter.com/CAQNuvAxZC — うしっクマ❌ (@bullbear48) July 8, 2020
According to an announcement on July 8, the CFD is available for:
Bitcoin (BTC)/yen
Ether (ETH)/yen
XRP/yen
Bitcoin Cash (BCH)/yen
The leverage rate limit is 2x. and said they would consider adding new coins after considering:
“demand, liquidity risks, price fluctuations risk and crypto blockchain network risk.”
Monex Securities‘ parent company, Monex Group, also runs Coincheck– one of the biggest cryptocurrency exchanges in Japan.
Recently, the Japanese government enforced the revised Financial Instruments and Exchange Law (FIEL).
According to the new law, every business involved in offering crypto derivatives trading is required to be registered as a Financial Instrument Business.
Monex Securities will offer the new crypto derivative service as a financial instrument regulated by the FIEL.
Source: Cointelegraph | Image: Unsplash