Japan LDP Proposes Easing Crypto Leverage Caps to Restore Market Liquidity

LDP official Seiji Kihara argues current 2x leverage limits are overly strict, advocating for regulatory relaxation to boost liquidity and attract capital.

Woofun AI reports that Seiji Kihara, head of the Liberal Democratic Party's "Next-Generation AI and On-Chain Finance Project Team", addressed a financial conference on July 14. He characterized existing regulations capping crypto leverage trading at 2x as excessively restrictive. Kihara argued that relaxing these limits is essential to restore market liquidity and improve price discovery mechanisms. The initiative aims to draw capital back into Japan through virtual currency markets.