Coincheck, one of the largest exchange companies in Japan and across Asia, recently announced that it will add 11 new crypto-coins, in addition to bitcoin, to its loan market. Coincheck informed that from now on its clients will be able to enjoy the loan of 12 different crypto-coins, since in conjunction with bitcoin users will be able to lend funds in ether, ethereum classic, factom, augur, lisk, monero, ripple, dash, zcash, nem and litecoin.
The loan services now offered by Coincheck - after having undergone a process of regulatory adjustment by the Financial Services Agency of Japan - will allow customers to lend their funds for 14, 30, 90 or 365 days, with rates of 1%, 2%, 3% and up to 5%, respectively; Percentages that will represent extra profits for users, the company said.
Kagayaki Kawabata, director of Business Development at Coincheck, points out that this type of services has its risks, such as the price of the currency borrowed may vary at the time of the transaction. That is, the initial value of the cryptographic currency may be different when it is returned due to daily market fluctuations. Also, this type of loans works with a consumer contract that has no guarantees. That is, lenders run the risk that, if in the worst case Coincheck goes bankrupt, borrowed money can not be returned or covered.
Another risk that this type of practices presents is that all loan funds are blocked until the end of the agreed term and can not be sold or exchanged until Coincheck authorizes it. In the event that the loan is completed before the scheduled term, the exchange house has devised an annual rate that will be paid in a distributed and proportional way.
Japan in turn is experiencing its Bitcoin fever, after the currency was legally recognized as a payment service. Airlines, convenience stores, capsule hotels and travel agencies have joined the frenzy of crypto-coins and have begun to use them as payment methods to facilitate their customers' purchases; A panorama that understands the growing popularity of digital currency in Japan and that draws a promising horizon.
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