A leader of Japan’s Liberal Democratic Party proposes easing crypto leverage regulations to restore liquidity and attract capital inflows.

Foresight News reported, according to Nikkei, Seiji Kihara, head of the Liberal Democratic Party's "Next Generation AI and On-Chain Finance Project Team" in Japan, stated at a financial conference on July 14 that the current regulation of 2x leverage on crypto trading is too strict. To restore market liquidity and price discovery, it is necessary to ease the regulation. The relevant discussions aim to attract capital back to Japan through virtual currencies.