Coincheck Launches Bitcoin Interest-Paying Accounts Pending Regulatory Approval

Coincheck Launches Interest-Paying Bitcoin Accounts Pending Regulatory Approval

Japanese bitcoin exchange Coincheck announced on Monday the launch of interest-paying bitcoin savings accounts, allowing customers to earn up to 5 percent in bitcoin per year. However, the service is currently restricted, pending the approval of the Japanese Financial Services Agency (FSA).

Also read: The Japanese are Using Bitcoin More than Expected

Four Interest-Paying Plans

Coincheck Launches Bitcoin Interest-Paying Accounts Pending Regulatory ApprovalOn Monday, Coincheck co-founder and COO Yusuke Otsuka tweeted announcing the company’s new service that allows customers to earn up to 5 percent annual interest by depositing their bitcoin at the exchange. The news was also reported by the national newspaper Nikkei.

Coincheck Launches Bitcoin Interest-Paying Accounts Pending Regulatory Approval
News about Coincheck’s service in a national newspaper

On Coincheck’s website, the company calls this service “Coincheck Lending”. The exchange wrote: “Do you have spare bitcoin that is not used? Open Coincheck Lending account, and deposit your bitcoin. You can earn interest rate (Maximum 5%).”

There are four plans:

  • 14 days at 1% annual interest rate
  • 30 days for 2% annual interest rate
  • 90 days for 3% annual interest rate
  • 1 year for 5% annual interest rate

“An account holder depositing 10 bitcoin ($15,956) for 90 days would earn roughly 0.07 bitcoin,” wrote Nikkei.

Risks and Eligibility

Coincheck Launches Bitcoin Interest-Paying Accounts Pending Regulatory Approval“All Coincheck users who have completed sign-up processes are eligible,” the company wrote, adding that currently only bitcoin will be offered. However, there are plans to add other cryptocurrencies in the near future, including Ethereum, Ripple, Monero, Factom, and Augur.

Users wanting to participate in this offering “must agree with the consumption loan agreement, which is an unsecured contract,” advises the exchange, adding that “users have a risk of not being able to receive deposited cryptocurrencies back in a case Coincheck is bankrupt.” In addition, deposited cryptocurrencies are not managed as segregated funds.

The exchange details:

Users are prohibited from withdrawing, selling, or using deposited cryptocurrencies as margin trading until the end of a term or when Coincheck decides to return it.[…]The interest rate is paid to user’s account when Coincheck returns deposited cryptocurrency.

Pending Regulatory Approval

Coincheck Launches Bitcoin Interest-Paying Accounts Pending Regulatory ApprovalNikkei wrote that the Japanese FSA says “Coincheck’s deposit service is exempt from banking regulations and recent revisions to fund settlement law, as bitcoin is not legal tender.” However, this may not be the case since Coincheck told Bitcoin.com that the service is currently restricted and pending FSA approval.

Bitcoin is recently recognized in Japan as a method of payment similar to prepaid cards and gift certificates. “Hundreds of thousands of Japanese are said to have some bitcoin to their names, but many apparently let the currency gather digital dust. The ability to earn interest on their holdings may prove attractive,” wrote Nikkei.

What do you think of Coincheck’s new interest-paying account service? Let us know in the comments section below.


Images courtesy of Shutterstock, Japanese FSA, Twitter, and Coincheck


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  • Erik

    In other words, you loan money to them the loan it out for a higher profit. May as well loan it out yourself than for that higher profit

  • Amadeo Brands

    Sounds good

  • Robin Rae Swanson

    This is NOT GOOD. Basically they are becoming a bitcoin bank, which runs counter to what bitcoin is all about….decentralized and UNbanked! The key here is that they are holding your bitcoin for a designated amount of time, during which time they are “using” your bitcoin for loans, trading, etc. And you cannot withdraw or use your bitcoin until THEY release it to you, after your contract is up. Then you earn 5%. This is not much different than the current banking system, which we are trying to avoid by using bitcoin! SCARY!!

    • Zyo

      I agree with your comment but this is inevitable. The good news is that no matter what happens, the risk is isolated to those banks and the total supply cannot be inflated as the bank cannot “print” more.

  • I want this technology for my Digital Asset system. – horuscoin 2.0

  • Mohamoud Hassan

    luring the bitcoin customers but it seems there is risk with the subject exchange company