Senior LDP Official Calls for Easing 2x Crypto Leverage Limits as Capital Flows Out of Japan

According to Nikkei, Seiji Kihara, chair of Japan's Liberal Democratic Party's Next-Generation AI and On-Chain Finance Project Team, called on July 27 for relaxing the country's strict 2x cryptocurrency leverage limit, stating that the cap is overly restrictive and has driven capital away from domestic exchanges. Kihara told a financial summit in Tokyo that sufficient liquidity and functional price mechanisms are essential for market development, and that deregulation represents an unavoidable trend. The lawmaker argued that Japan's conservative margin rules place domestic exchanges at a structural disadvantage compared with global counterparts, and that easing leverage restrictions would encourage trading volumes to return to Japanese platforms.
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