Japan Ruling Party Lawmaker Seeks to Ease 2x Crypto Leverage Cap

A lawmaker from Japan’s ruling Liberal Democratic Party called for easing leverage rules on cryptocurrency trading.

Nikkei reported on July 27 that Seiji Kihara told a financial summit in Tokyo the current 2x leverage cap on crypto trading is excessively strict and that he intends to pursue regulatory easing.

"The healthy development of the crypto market requires sufficient liquidity and a functioning price mechanism," Kihara said. "Regulatory easing is an unavoidable trend."

Kihara leads the Liberal Democratic Party’s Next-Generation AI and On-Chain Finance Project Team. The group is working on regulatory reforms aimed at boosting liquidity in the crypto market and attracting related capital, including funds from overseas, to Japan.

As Japan moves to strengthen the competitiveness of its crypto industry, leverage regulation is set to become one of the key areas for future reform.