Japanese Lawmaker Seeks to Ease Crypto Trading Leverage Cap

Seiji Kihara, a lawmaker from Japan's Liberal Democratic Party (LDP), is pushing to ease the current 2x leverage cap on cryptocurrency trading. He believes that the restriction is overly strict and hinders the healthy development of the crypto market.

Kihara emphasized the importance of sufficient liquidity and a functioning price mechanism for the growth of the crypto market. He also stated that regulatory easing is an unavoidable trend, indicating that Japan's crypto industry needs to adapt to changing conditions.

As the head of the LDP's Next-Generation AI and On-Chain Finance Project Team, Kihara is working on regulatory changes aimed at increasing liquidity in the crypto market and attracting related capital from overseas. This effort is part of Japan's broader strategy to strengthen its competitiveness in the global crypto industry.

The current 2x leverage cap has been a topic of debate among cryptocurrency traders and investors. Some argue that it limits their ability to take advantage of price movements, while others believe it helps maintain market stability. Kihara's proposal to ease this restriction could have significant implications for Japan's crypto market, potentially leading to increased trading activity and investment.