Japan Considers Raising Crypto Leverage Limit to Boost Market Liquidity

Japanese lawmakers are discussing a proposal to increase the current 2‑times cap on retail crypto‑leveraged trading. The suggested easing is intended to restore market liquidity, deepen order flow and make Japan more attractive to institutional investors as part of a broader pro‑crypto policy push by the ruling Liberal Democratic Party. Officials emphasise that any change would be controlled, balancing the goal of market growth with investor protection, and the measure remains a proposal, not a final rule.

The discussion follows concerns that the strict limit has suppressed trading volume and reduced Japan’s competitiveness in the global digital‑asset sector.