Japanese Lawmaker Seeks Higher Leverage Limits on Crypto Trading
Seiji Kihara, a senior figure in Japan's ruling Liberal Democratic Party (LDP), is pushing for increased leverage limits on cryptocurrency trading. Speaking at a financial summit in Tokyo, Kihara argued that the current 2x leverage cap is overly restrictive and hinders the growth of Japan's crypto industry.
Kihara leads the Next-Generation AI and On-Chain Finance Project Team, an LDP policy group focused on promoting innovation in digital finance. He believes robust market liquidity and effective price discovery are essential for the healthy development of Japan's crypto industry.
Japan currently imposes a strict limit of 2x leverage on cryptocurrency margin trading, which is lower than many global markets. Kihara plans to campaign for a regulatory shift, stating that 'the current cap is too restrictive' for fostering a vibrant trading environment.