Japan LDP Lawmaker Calls 2x Crypto Leverage Cap Excessive, Pushes for Easing
Summary
- Seiji Kihara said he would pursue regulatory easing, calling the current 2x leverage cap on cryptocurrency trading excessive.
- The LDP’s Next-Generation AI and On-Chain Finance Project Team is pursuing regulatory improvements to boost crypto market liquidity and attract related overseas capital to Japan.
- As Japan moves to strengthen the competitiveness of its crypto industry, leverage rules are set to be discussed as a key area for reform.
Forecast Trend Report by Period
A lawmaker from Japan’s ruling Liberal Democratic Party called for easing leverage rules on cryptocurrency trading.
Seiji Kihara told a financial summit in Tokyo that Japan’s current 2x leverage cap on crypto trading is too strict and that he intends to pursue looser regulations, the Nikkei newspaper reported on July 27.
"Sufficient liquidity and a functioning price mechanism are essential for the healthy development of the crypto market," Kihara said. "Regulatory easing is an unavoidable trend."
Kihara leads the LDP’s Next-Generation AI and On-Chain Finance Project Team. The group is pursuing regulatory changes aimed at boosting liquidity in the crypto market and attracting related capital, including from overseas, to Japan.
As Japan works to strengthen the competitiveness of its crypto industry through regulatory reforms, leverage rules are set to become a key issue in future policy discussions.
