OKCoin Lowers Bitcoin Spot Trading Leverage
The Bitcoin situation in China continues to evolve, and a lot of exchanging are reducing their margin trading opportunities. In fact, OKCoin lowered its leverage to only 1x. All of these measures should help reduce the fake trading volume across Chinese Bitcoin exchanges. Things are evolving in the right direction; that much is certain.
OKCoin Spot Trading Leverage Reduced Significantly
For the longest time, there has been a lot of speculation regarding how Chinese Bitcoin exchanges fake their trading volume.Although that has never been officially proven, the recent drastic measures related to spots and margin trading across these platforms seem to indicate these speculations were not entirely wrong either.
Ever since the PBOC took a closer look at all major Bitcoin exchanges, things have been changing at an accelerating pace. BTCC And Huobi halted their margin trading, although Huobi has resumed the service not too long ago. Then again, they imposed restrictions while doing so, making it much harder for speculators to create wild price swings in the market.
OKCoin, on the other hand, is addressing their spot market by reducing the leverage to only 1x. That is quite a change compared to a few months ago, but it will help protect spectators and investors from crazy volatility. Reducing financial losses, while operating within the predefined boundaries of their financial license is the number one priority for OKCoin right now.
All of these measures should help reduce the fake order books across Chinese Bitcoin exchanges. Interestingly enough, the trading volume has remained virtually unchanged ever since these platforms decided to introduce new limits and measures to prevent financial losses. It is good to see Chinese traders not being dissuaded by these changes and keep the faith in Bitcoin and what it has to offer.
One possible downside to these new restrictions is how speculators and traders may move away from Chinese platforms for other companies. It remains to be seen if that will have an adverse effect on the market, though. Japan seems to be rather open-minded towards margin and spot trading with high leverage for now, although that situation may come to change shortly.
Header image courtesy of Shutterstock
You want the latest news about Crypto? Sign up to our weekly Newsletter!