Japan Plans to Relax Crypto Leverage Limits to Boost Market Liquidity

Liberal Democratic Party team deems current 2x crypto leverage cap too strict, advocating for regulatory easing to enhance price discovery and attract capital inflows.

Woofun AI reports that Seiji Kihara, head of the Liberal Democratic Party's "Next Generation AI and On-Chain Finance Project Team," characterized Japan's existing 2x leverage limit on cryptocurrency trading as "too strict." Speaking at a Tokyo financial summit, he argued that adequate liquidity and price discovery mechanisms are essential for market health.

The project team is actively promoting regulatory adjustments to loosen these restrictions. The stated objective is to draw more cryptocurrency funds back into the Japanese market by improving overall liquidity conditions.