The leading Japanese online securities company, Monex Securities, has launched a cryptocurrency contract-for-difference service today. This marks the very primary time that a renowned online Japanese securities firm has offered a cryptocurrency related CFD.
A CFD is a form of derivative within which the “purchaser” of the contract pays the “seller” the difference between the present price of an asset and therefore the price of that asset at a future date stipulated within the contract.
Adding further, Monex said they might consider addition of new coins after considering “demand, liquidity risks, price fluctuations risk as well as crypto blockchain network risk.”
Monex Securities’ parent company, Monex Group, also runs Coincheck, one among the leading cryptocurrency exchanges within Japan.
Earlier on 1st May, the Japanese govt. enforced the revised FIEL [Financial Instruments and Exchange Law]. Consistent with this new law, every business involved in offering cryptocurrency derivatives trading is required to be registered as a Financial Instrument Business.
Monex Securities will offer the new cryptocurrency derivative service as a financial instrument regulated by the FIEL.