Japan plans to relax restrictions on cryptocurrency leverage trading to attract capital inflow

According to the Nikkei, Seiji Kihara, the head of the Liberal Democratic Party's "Next Generation AI and On-Chain Finance Project Team," stated at a financial summit held in Tokyo that Japan's current 2x leverage limit on cryptocurrency trading is "too strict." The healthy development of the market requires sufficient liquidity and a price discovery mechanism, and relaxing restrictions is an inevitable trend.

The project team is promoting adjustments to relevant regulatory policies, aiming to attract more cryptocurrency funds back to the Japanese market by enhancing market liquidity.