LDP lawmaker seeks to ease Japan’s 2x crypto leverage cap

Seiji Kihara, a lawmaker from Japan’s Liberal Democratic Party, said Japan’s two-times leverage limit on cryptocurrency trading is overly restrictive and pledged to pursue regulatory easing, Nikkei reported. Speaking at a financial summit in Tokyo, Kihara said sufficient liquidity and a functioning price mechanism are essential for the healthy development of the crypto market, adding that deregulation is an unavoidable trend. Kihara currently leads the LDP’s Next-Generation AI and On-Chain Finance Project Team, which is pushing regulatory changes aimed at improving market liquidity and attracting more cryptocurrency capital to Japan, according to the report.