Japan LDP Lawmaker Pushes to Ease 2x Leverage Cap on Crypto Trading
Summary
- Seiji Kihara, a lawmaker from Japan’s Liberal Democratic Party, said the current 2x leverage cap on cryptocurrency trading is overly strict and that he will push to ease it.
- He said sufficient liquidity and a functioning price mechanism are essential for the healthy development of the crypto market, adding that regulatory easing is an unavoidable trend.
- The LDP’s Next-Generation AI and On-Chain Finance Project Team is pursuing regulatory changes aimed at increasing crypto market liquidity and attracting related capital, including from overseas, to Japan.
Forecast Trend Report by Period
A lawmaker from Japan’s ruling Liberal Democratic Party has called for easing leverage restrictions 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 overly strict and that he plans to pursue regulatory easing.
Sufficient liquidity and a functioning price mechanism are essential for the healthy development of the crypto market, Kihara said. He added that deregulation is an unavoidable trend.
Kihara leads the LDP’s Next-Generation AI and On-Chain Finance Project Team. The group is working on regulatory changes aimed at increasing liquidity in the crypto market and attracting related capital, including from overseas, to Japan.
As Japan moves to strengthen the competitiveness of its crypto industry through regulatory reform, leverage restrictions are set to be one of the key issues for future policy discussions.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.