Kihara Pushes for Higher Crypto Leverage Limits in Japan
Japanese lawmaker Seiji Kihara is pushing for an increase in crypto trading leverage limits from the current 2x cap. Speaking at a financial summit in Tokyo, he argued that this restriction hampers the growth of Japan's cryptocurrency industry.
Kihara believes robust market liquidity and effective price discovery are essential for the development of the sector. He stated that 'the current cap is too restrictive' for fostering a vibrant trading environment.
Japan's approach to regulating crypto leverage has been more cautious than in many major jurisdictions, focusing on reducing risk for retail investors. An increase in the leverage cap could make Japanese exchanges more competitive and stimulate trading activity, but it may also heighten concerns about investor protection and potential market volatility.