Japan’s Iron Lady Sanae Takaichi May Reshape Crypto Policy
On October 4, 2025, Sanae Takaichi was elected as the brand new chief of Japan’s Liberal Democratic Party. She is predicted to be nominated because the nation’s first feminine prime minister through the extraordinary Diet session on October 15.
Known for her pro-growth and fiscally proactive strategy, Takaichi’s financial insurance policies prioritize ending deflation and selling financial enlargement. While she has not made express statements on cryptocurrency, her fiscal stance and potential cooperation with opposition events may affect crypto taxation reforms, which the Japanese digital asset trade has lengthy anticipated.
Japan’s Iron Lady: Takaichi’s Profile
Takaichi has lengthy admired the late British Prime Minister Margaret Thatcher. Her admiration brings her nearer to realizing ambitions linked to the “Iron Lady” persona.
Born in 1961, Takaichi graduated from Kobe University’s Faculty of Business Administration, skilled on the Matsushita Institute of Government and Management, and gained sensible expertise as a US Congressional Fellow. After working as a tv broadcaster, she was first elected to the House of Representatives in 1993 and is at the moment serving her tenth time period.
As a politician, she has held key positions, together with three phrases as Minister of Internal Affairs and Communications and Economic Security Minister and particular appointments on the Cabinet Office. She performed a central function through the Abe administration, demonstrating financial and safety coverage affect.
After being elected LDP chief, she acknowledged, “I’ll have everybody work like carriage horses. I’ll abandon the idea of work-life stability,” emphasizing her willpower.
Contrasting Stances with Former Prime Minister Ishiba
Takaichi’s strategy to cryptocurrency and Web3 differs from that of former Prime Minister Ishiba. In August 2025, Ishiba expressed assist for Web3 and blockchain expertise at WebX2025, the nation’s largest Web3 convention. However, when questioned about separate taxation for cryptocurrency in December 2024 throughout a Diet session, Ishiba confirmed a cautious stance, which upset some trade stakeholders.
Although Ishiba spoke positively at public occasions, he remained reluctant to pursue concrete tax reforms. Takaichi has not made particular statements on cryptocurrency coverage, however her proactive fiscal strategy and tax-reduction orientation might not directly assist reforms within the sector.
Opposition Cooperation and Potential Tax Reforms
A key issue for potential cryptocurrency tax reform is Takaichi’s coverage towards opposition events. She has indicated intentions to strengthen cooperation with the Japan Innovation Party and the Democratic Party for the People, which have traditionally supported cryptocurrency tax reforms.
The Democratic Party for the People has traditionally supported crypto tax reforms. Its chief, Yuichiro Tamaki, expressed disappointment with former Prime Minister Ishiba’s cautious stance. The Japan Innovation Party has additionally been constructive towards deregulation and tax reform. If Takaichi strengthens cooperation with these oppositions, the chance of implementing cryptocurrency tax reforms as a part of a broader tax discount coverage may enhance.
On August 29, 2025, the Financial Services Agency(FSA) formally requested a review of cryptocurrency taxation for FY2026. Proposed measures embody: introducing separate taxation—aligning crypto good points with equities at roughly 20%, in comparison with the present progressive price of as much as 55%—and permitting loss carryforwards for as much as three years. The authorities’s “New Capitalism Grand Design 2025 Revision” explicitly mentions contemplating separate taxation. If Takaichi deepens cooperation with opposition events and prioritizes tax reductions, these reforms might be realized within the 2026 abnormal Diet session.
Trump Visits Japan: Implications for Crypto Policy
One of Takaichi’s first important overseas coverage challenges would be the scheduled go to of US President Donald Trump in late October. Trump is expected to visit Japan for 3 days beginning round October 27. During this go to, he’ll maintain his first summit with Takaichi.
Since assuming workplace in January 2025, Trump has acknowledged his intention to make the US a global center for crypto, implementing insurance policies comparable to constructing Bitcoin strategic reserves and establishing a cryptocurrency advisory committee. Both leaders’ shared pro-growth views might permit for financial coverage coordination through the assembly. However, Takaichi’s conservative values might have an effect on the diploma to which she aligns with Trump’s crypto initiatives. Any discussions on Bitcoin reserves or crypto deregulation might be an important indicator for Japan’s cryptocurrency trade.
Uncertainties and Potential Impacts
Significant uncertainties stay concerning Takaichi’s cryptocurrency insurance policies. Her main focus might stay on conventional trade insurance policies and nationwide safety. Cabinet appointments are a key issue. Finance Minister Katsunobu Kato’s retention may keep coverage continuity. However, Kato had restricted engagement on crypto points beneath Ishiba, which may restrict drastic adjustments. Digital Minister Masaki Taira has additionally not articulated particular positions on cryptocurrency or Web3.
Takaichi’s proactive fiscal coverage may have potential damaging impacts. Aggressive authorities spending would possibly speed up inflation, prompting the Bank of Japan to tighten financial coverage, which might be a headwind for danger belongings, together with cryptocurrencies. Her conservative orientation may result in stricter measures towards money laundering and terrorist financing. Furthermore, her curiosity in semiconductors and conventional manufacturing might deprioritize cryptocurrency and Web3.
Takaichi’s election as LDP leader represents a turning level for the cryptocurrency trade in Japan. Strengthened cooperation with opposition events and her tax-reduction stance might create alternatives for long-sought reforms, comparable to separate taxation and loss carryforwards. However, her restricted direct engagement with cryptocurrency, potential regulatory tightening, and monetary coverage dangers additionally create uncertainties. Cabinet appointments, opposition coordination, and the result of the Trump summit in late October might be vital elements influencing the trade’s future.
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