Monex launches its first crypto CFD in Japan

10 August

Monex Securities, one of the biggest online securities in Japan, recently launched the first-ever cryptocurrency contract-for-difference in the country. Since Japan is moving forward with cryptocurrency adoption, CFDs will play a big role in the crypto economy, especially since there has been a huge spike in crypto trading recently.  CFDs or contract-for-difference is an exchange […]

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Monex Securities, one of the biggest online securities in Japan, recently launched the first-ever cryptocurrency contract-for-difference in the country. Since Japan is moving forward with cryptocurrency adoption, CFDs will play a big role in the crypto economy, especially since there has been a huge spike in crypto trading recently. 

CFDs or contract-for-difference is an exchange between the buyer and seller that allows the buyer to pay the price gap between the current and future value of the asset being purchased. This agreement is ensured through a digital contract that binds the value of the asset. Additionally, CFDs allow a safer mode of selling and buying of crypto assets compared to trading using exchange sites. 

According to an announcement by Monex last July 8, they are opening CFDs for digital assets such as Bitcoin, Ethereum, XRP and Bitcoin Cash. 

Last May 1, 2020, The Financial Instruments and Exchange Laws or FIEL implemented the law regarding business with crypto trading. Based on this law, every business entity that will feature crypto derivatives is advised to register their business as a Financial Instrument Business. 

According to Monex, they will add more digital assets for their CFD service after they study the current trends in demand, liquidity risks, price fluctuation risks, and crypto blockchain network risks.

Aside from CFDs, Monex Group, Monex’s parent company, also runs one of the biggest crypto exchanges in Japan, Coincheck. The company recently announced that they will support Basic Attention Tokens or BATs. According to the Coincheck, BATs will allow investors to send, receive, and trade ERC-20 tokens within the exchange. 

READ MORE: Japan Crypto and Casino News

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