Japan has moved closer to easing its cryptocurrency leverage trading rules after a senior ruling party lawmaker said the current 2x cap is too restrictive for market liquidity and price discovery.

According to Nikkei, Seiji Kihara, who heads the Liberal Democratic Party’s Next Generation AI and On-Chain Finance Project Team, said during a financial conference in Tokyo on July 14 that Japan’s current leverage limit on crypto trading is limiting market activity and should be relaxed as part of the country’s ongoing digital asset reforms.

Speaking at the event, Kihara said the existing two-times leverage cap is “too strict” and argued that a healthy market requires enough liquidity and an effective price discovery mechanism. He said easing the restriction is a natural step if Japan wants to strengthen its cryptocurrency market.

His comments add another piece to Japan’s wider regulatory overhaul, which has gathered pace in recent months as lawmakers move crypto regulation closer to the country’s traditional financial markets.

Japan considers higher crypto leverage limits

Kihara’s project team is working on policy changes that would adjust existing regulations governing cryptocurrency trading. According to Nikkei, the proposal is intended to encourage more capital to return to Japan’s domestic crypto market by improving trading activity and liquidity.

Leverage trading allows investors to borrow funds against collateral deposited in their trading accounts, enabling them to control positions larger than the capital they initially commit. Japan currently limits leverage to two times the value of posted margin, one of the strictest caps among major crypto markets.

Kihara argued during the conference that active markets rely on sufficient liquidity and efficient price discovery, adding that relaxing leverage restrictions would help support those functions. While he outlined the project’s direction, Nikkei did not report a specific timetable for introducing revised rules.

The comments also come as policymakers continue discussing how digital assets should fit within Japan’s broader financial system instead of remaining under a framework originally designed for payment services.

Financial reforms continue to reshape Japan’s crypto market

The discussion over leverage follows major legislative changes approved earlier this month.

As previously reported by crypto.news, Japan enacted amendments to the Financial Instruments and Exchange Act that reclassify cryptocurrencies as financial products instead of treating them primarily as payment instruments under the Payment Services Act.

The legislation introduces insider trading rules for crypto transactions, requires annual disclosures from issuers of certain crypto assets and increases penalties for businesses operating without registration.

According to CoinPost, the maximum prison sentence for operating an unregistered crypto business will increase from three years to 10 years, while the maximum fine will rise from 3 million yen to 10 million yen.

The amended law also establishes the legal basis for separate taxation of crypto gains at an effective rate of about 20%, together with a three-year loss carry-forward deduction. Those tax changes are expected to take effect in January 2028 because enforcement is scheduled during the 2027 fiscal year, according to CoinPost.

Although cabinet ordinances and supervisory guidelines are still required before the new framework is fully implemented, the legislation has laid the legal foundation for several additional market reforms.

Bitcoin ETF plans continue to gather momentum

The same legislative changes have also advanced Japan’s plans for domestic cryptocurrency exchange-traded funds.

Earlier this month, crypto.news reported that the Financial Services Agency is preparing revisions to investment trust rules that would allow ETFs and investment trusts to hold crypto assets directly. According to Nikkei, the first domestic Bitcoin ETF could launch as early as 2028 once the regulatory framework is completed.

The legal amendments themselves do not authorize immediate ETF listings. Instead, regulators still need to finalize detailed investment trust rules before asset managers can introduce products that directly invest in cryptocurrencies.

Japan Exchange Group Chief Executive Hiroki Yamamichi previously said a crypto ETF could be introduced once the legal framework and tax treatment are completed.

Several large financial institutions have already begun preparing products ahead of the rule changes. Previous reporting has shown that SBI Securities, Rakuten Securities, Nomura, Daiwa, Asset Management One and firms affiliated with SMBC are studying crypto investment products that could enter the market after regulators complete the framework.

Beyond spot Bitcoin ETFs, SBI Global Asset Management has also explored funds focused on highly liquid cryptocurrencies, including Bitcoin and Ethereum, while Osaka Exchange has discussed launching Bitcoin futures if spot ETFs become legal.

Government continues expanding its Web3 strategy

The leverage discussion also fits within Japan’s broader effort to develop its digital asset sector alongside startup and technology policies.

Earlier this month, Prime Minister Sanae Takaichi told attendees at WebX 2026 that Web3 forms part of Japan’s national innovation strategy rather than serving as a standalone cryptocurrency initiative. Her remarks focused on encouraging collaboration between startups, investors and technology companies, although they did not include new funding commitments or immediate regulatory announcements.

Separately, Japan’s Comprehensive Startup Support Package and the government’s five-year startup plan continue supporting investment into emerging technology companies while lawmakers advance crypto-specific reforms covering taxation, market conduct and investment products.

If leverage limits are eventually revised, the change would add another regulatory adjustment alongside the country’s new financial product classification for crypto assets, proposed tax reforms and the ongoing work to establish a domestic Bitcoin ETF framework.

For now, however, Nikkei reported that Kihara’s project team remains focused on preparing policy changes designed to improve market liquidity and attract cryptocurrency trading activity back to Japan without announcing when those proposals could be implemented.

POSCO International is testing blockchain-based trade finance with LG CNS and Injective.

The South Korean trading company has placed receivables from real commercial transactions into a proof-of-concept system that can issue, transfer and settle the claims onchain.

The trial uses trade data from POSCO International’s overseas subsidiaries and their counterparties, rather than simulated invoices. The companies aim to create one shared record for buyers, sellers and financing partners while keeping compliance rules linked to each digital claim.

POSCO tests real commercial receivables on Injective

Trade receivables are amounts that customers owe after a company delivers goods or services. Businesses often record the same invoice across separate systems. Each party must check documents and payment status before settlement.

CoinDesk reported that the pilot covers live trade between POSCO units and outside counterparties. The partners are using Injective, a layer-1 blockchain built for financial applications, to test the issuance, transfer and settlement of the claims. A Korean business report said the project also tests AI-based trade-document processing.

POSCO International recorded 32.37 trillion won in 2025 sales, according to its. Its operations cover steel, energy and battery materials. However, the companies have not disclosed the total value or number of receivables entered into the system. 

A POSCO spokesperson said the proof of concept “validated the applicability of AI and blockchain technology based on real trade data and processes.” However, the companies have not published figures on processing speed, costs, error rates or settlement savings. POSCO plans to consider live production after the test phase later this year.

Shared ledger targets slow reconciliation work

The project aims to replace separate invoice records with a common ledger. Approved participants can view the same transaction status and ownership history. The system can also carry conditions that control who may receive or transfer a tokenized receivable.

This structure could reduce repeated checks when a shipment, invoice or payment moves between countries. It may also give banks and financing firms a clearer record when they assess a receivable for early payment. However, the pilot does not remove legal agreements, identity checks, accounting rules or local trade requirements.

Tokenization turns a financial or commercial claim into a digital record on a blockchain. In this case, the token represents money owed to POSCO International or one of its subsidiaries. It does not represent POSCO shares or give a holder ownership in the company.

The project has not announced an open market for the receivables or said whether outside investors will buy them. The current test focuses on business processes, transfers and settlement between approved parties rather than public trading.

LG CNS brings experience from Korean finance projects

LG CNS serves as the technology partner. The LG Group company has built blockchain systems for financial institutions. It also took part in the Bank of Korea’s central bank digital currency work and operates tokenization platforms for Koscom and Mirae Asset Securities. (

Injective supplies the blockchain layer used to record and move the receivables. The partners have not disclosed how they divide data between onchain records and private company systems. They also have not explained what access controls protect sensitive commercial information.

POSCO International has already tested blockchain in corporate funding. In April, it announced South Korea’s first foreign-currency digital bond issued by a non-financial company. The company said blockchain reduced the bond’s settlement period from five days to three. 

The receivables pilot moves that work into daily trade finance. Bonds raise funds from investors, while receivables arise from normal sales. Both projects use digital records to shorten processing and provide a shared view of ownership and settlement.

South Korean companies expand corporate blockchain tests

The POSCO project follows other corporate blockchain trials in South Korea. As crypto.news previously reported, Hyundai Motor’s U.S. and Mexican operations completed a $20,000 treasury payment using USDT on Avalanche. The companies said the transfer took about seven minutes. 

Meanwhile, Circle signed agreements with Kakao Group and Toss to study stablecoin payments, remittances and merchant settlement in South Korea. Separately, Mirae Asset placed tokenization, security tokens and stablecoins within the strategy for its newly renamed Digital X business.

POSCO’s pilot differs because it places a business claim onchain rather than sending a stablecoin payment. The receivable can carry ownership information and compliance conditions before payment occurs. A stablecoin may later serve as the settlement asset, but the companies have not announced that step.

The partners have not released technical documents, contract addresses or a production date. They also have not named participating banks or counterparties. POSCO is expected to decide whether to apply the system across more subsidiaries after completing the testing process.

Manufacturing is undergoing a digital transformation. Automation, artificial intelligence (AI), the Internet of Things (IoT), and cloud computing have already reshaped factory floors. Now, blockchain technology is emerging as another game-changing innovation—one that promises greater transparency, efficiency, and trust across the entire manufacturing ecosystem.

While blockchain is often associated with cryptocurrencies like Bitcoin, its real-world applications extend far beyond digital assets. In manufacturing, blockchain has the potential to solve long-standing issues such as counterfeit products, supply chain inefficiencies, poor traceability, and fragmented data management.

As global supply chains become increasingly complex, manufacturers need reliable systems that ensure every component, transaction, and process can be verified. Blockchain delivers exactly that.

What Is Blockchain in Manufacturing?

Blockchain is a decentralized digital ledger that records transactions in a secure, immutable, and transparent manner. Every participant in the network shares access to the same information, making it nearly impossible to alter records without consensus.

In manufacturing, blockchain can record every stage of a product’s lifecycle—from raw material sourcing to production, shipping, distribution, and even recycling.

Instead of relying on disconnected databases across suppliers and manufacturers, blockchain creates a single trusted source of truth.

Why Manufacturing Needs Blockchain

Modern manufacturing depends on hundreds—or even thousands—of suppliers operating across multiple countries.

This complexity creates challenges such as:

• Limited supply chain visibility
• Counterfeit materials
• Manual paperwork
• Delayed quality inspections
• Data inconsistencies
• Regulatory compliance issues
• Product recalls that take weeks instead of hours

Blockchain addresses these problems by creating an auditable record that everyone involved can trust.

Improving Supply Chain Transparency

One of blockchain’s strongest advantages is end-to-end visibility.

Every shipment, quality inspection, ownership transfer, and production milestone can be permanently recorded on-chain.

This enables manufacturers to:

• Track raw materials back to their origin
• Verify supplier authenticity
• Detect bottlenecks quickly
• Reduce fraud
• Improve inventory planning

For industries like aerospace, pharmaceuticals, electronics, and automotive manufacturing, complete traceability is becoming a competitive necessity.

Fighting Counterfeit Products

Counterfeit components cost manufacturers billions of dollars annually.

Fake electronic chips, industrial parts, automotive components, and medical equipment can cause severe safety risks.

Blockchain creates a digital identity for every legitimate product.

Manufacturers can assign unique identifiers such as QR codes, RFID tags, or NFC chips linked to blockchain records.

Customers and distributors can instantly verify:

• Manufacturing date
• Factory location
• Batch number
• Quality certifications
• Shipping history
• Authenticity

This dramatically reduces the circulation of counterfeit goods.

Better Quality Control

Quality assurance often involves paperwork, spreadsheets, and disconnected databases.

Blockchain enables inspectors to upload quality reports directly onto a shared ledger.

Every inspection becomes permanent and timestamped.

If a defect is discovered months later, manufacturers can quickly identify:

• Which production batch was affected
• Which suppliers provided materials
• Which customers received the products

Instead of recalling millions of products, companies can perform highly targeted recalls, saving both time and money.

Smart Contracts Automate Manufacturing Processes

Smart contracts are self-executing programs stored on blockchain networks.

They automatically execute agreements when predefined conditions are met.

Examples include:

• Automatically paying suppliers after delivery confirmation
• Releasing shipments after passing quality inspections
• Triggering inventory replenishment
• Managing warranty claims
• Tracking equipment maintenance schedules

Automation reduces paperwork, speeds up operations, and minimizes human error.

Real-Time Collaboration Across Suppliers

Manufacturing often involves dozens of independent companies.

Suppliers, logistics providers, warehouses, distributors, and retailers all maintain separate records.

Blockchain creates shared visibility without requiring participants to surrender control of their private systems.

Everyone sees the same verified transaction history, reducing disputes and improving collaboration.

Supporting Sustainable Manufacturing

Consumers increasingly want proof that products are ethically sourced and environmentally responsible.

Blockchain allows manufacturers to verify:

• Responsibly sourced raw materials
• Carbon emissions data
• Renewable energy usage
• Recycling history
• Environmental certifications

Companies can provide customers with verifiable sustainability data rather than relying solely on marketing claims.

Integrating Blockchain with IoT

IoT sensors continuously collect data from machines, warehouses, and transportation systems.

When integrated with blockchain, sensor data becomes tamper-resistant.

Examples include:

• Temperature monitoring during shipping
• Machine operating hours
• Equipment maintenance logs
• Warehouse conditions
• Production line performance

This creates trustworthy operational records that improve decision-making and predictive maintenance.

Enhancing Regulatory Compliance

Manufacturers must comply with strict regulations across industries.

Blockchain simplifies audits by maintaining immutable records of:

• Safety inspections
• Product certifications
• Supplier compliance
• Testing results
• Manufacturing standards

Auditors can verify records quickly without reviewing mountains of paperwork.

This reduces compliance costs while improving accountability.

Challenges to Adoption

Despite its advantages, blockchain adoption in manufacturing still faces several obstacles.

Integration with Legacy Systems

Many manufacturers rely on decades-old enterprise software that wasn’t designed for blockchain integration.

Industry-Wide Collaboration

Blockchain delivers its greatest value when suppliers, manufacturers, distributors, and logistics companies participate together.

Achieving industry-wide adoption takes time.

Data Privacy

Not every piece of manufacturing information should be publicly visible.

Permissioned blockchain networks help balance transparency with confidentiality.

Initial Investment

Implementing blockchain infrastructure requires upfront investment in technology, employee training, and process redesign.

However, long-term savings often outweigh the initial costs.

The Future of Blockchain Manufacturing

As Industry 4.0 continues to evolve, blockchain will become an essential layer connecting AI, IoT, robotics, cloud computing, and advanced analytics.

Future factories may operate with:

• Autonomous procurement systems
• AI-driven supply chain optimization
• Blockchain-based digital product passports
• Real-time supplier verification
• Automated compliance reporting
• Tokenized manufacturing assets
• Decentralized industrial marketplaces

Rather than replacing existing technologies, blockchain strengthens them by providing trusted, verifiable data that every participant can rely on.

Final Thoughts

Manufacturing is built on precision, efficiency, and trust. Blockchain enhances all three by creating secure, transparent, and tamper-resistant records that span the entire production lifecycle.

From combating counterfeit products and improving quality control to streamlining supplier collaboration and enabling sustainable manufacturing, blockchain is becoming a powerful foundation for the factories of the future.

As global supply chains grow more interconnected and customer expectations for transparency continue to rise, manufacturers that embrace blockchain will be better positioned to reduce costs, improve resilience, and build lasting trust with partners and consumers alike.

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On 21 July, Stats NZ reported an acceleration in inflation: the Consumer Price Index rose 1.5% in the second quarter, while the annual inflation rate climbed to 4.1%, its highest level in more than two years and slightly above analysts’ consensus forecast of 4.0%. The increase was driven primarily by higher fuel prices amid tensions in the Middle East. The data was released after the Reserve Bank of New Zealand raised the official cash rate to 2.50% on 8 July, reinforcing expectations of further monetary tightening in September. However, the impact proved short-lived, as escalating tensions between the US and Iran boosted demand for the US dollar as a safe-haven asset, causing the New Zealand dollar to surrender part of its recent gains during the second half of the week.

Technical Outlook

On the four-hour chart, NZD/USD has been developing a short-term uptrend since 26 June, with a trendline forming as the pair advanced towards 0.5870, where resistance emerged. The pair subsequently broke below the trendline, fell beneath the lower boundary of the current market profile and declined to the 0.5765 area, where the green support level is now located. Following a rebound from this zone, the pair moved on to test the lower boundary of the market profile at 0.5810. If this level holds and the price turns lower, the green support at 0.5765 could provide support. Should the pair continue to rise, attention may return to the POC area at 0.5840.

It is worth noting the close proximity of the upper boundary of the market profile at 0.5860 and the red resistance zone at 0.5870, making this a potentially strong resistance area. The RSI + MAs indicator currently reads 46, 37 and 46. It is also worth noting that the slower moving average has yet to leave the neutral zone, while the RSI briefly entered oversold territory before returning to neutral, casting doubt on the strength of the current breakout.

Summary

The pair’s near-term direction will likely depend on whether sellers can defend the lower boundary of the market profile. From a fundamental perspective, interest in the pair will hinge on whether the support provided by the stronger US dollar amid tensions in the Middle East proves more durable than the positive impact of New Zealand’s unexpectedly strong inflation data.

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The U.S. Commodity Futures Trading Commission has issued a second warning this year to prediction-market operators over broad, template-style self-certifications for event contracts. 

The agency’s Division of Market Oversight said registered exchanges must provide the terms, settlement method, data sources and compliance analysis for each contract they plan to list.

Meanwhile, the July 24 advisory does not remove the self-certification route. Designated contract markets can still list event contracts without waiting for prior Commission approval when they meet the Commodity Exchange Act and CFTC rules.