BTCFX to go out of business
Crypto asset (virtual currency) exchange company Zaif announced the end of crypto asset FX service on the 1st.
It ends on the Bitcoin (BTC/JPY) and Ethereum (ETH/JPY) currency pairs, and any positions remaining after July 26 will be liquidated.
With the termination of the FX service, it has also been decided to abolish the “Type 1 financial instruments business” on July 31, 2023. “Type 1 financial instruments business” is a business model based on the Financial Instruments and Exchange Act (Financial Instruments and Exchange Act), and refers to the trading and intermediation of financial products conducted by securities companies and banks.
In the crypto-asset (virtual currency) industry, derivative transactions with crypto-assets such as Bitcoin as underlying assets have been added to the scope of regulation in the 2020 revision of the Financial Instruments and Exchange Act. was required to be registered as a Type 1 Financial Instruments Business.
Due to the decline in demand and the recent deterioration in sentiment, it is possible that the system development and maintenance costs related to derivative trading, and the costs related to operational audits and legal compliance became unprofitable and decided to downsize the business.
Spot trading services will continue
In addition, conventional regular services such as spot trading of Bitcoin and new Zaif accounts will continue to be opened.
Cryptocurrency FX in Japan was prosperous around 2018, but demand dropped sharply as the leverage of margin trading was drastically reduced from a maximum of 16 times to 2 times due to regulations.
