Sanae Takaichi, Japan’s first female prime minister, could ease crypto regulations, support blockchain innovation, and make the country a global Web3 hub.
Sanae Takaichi Could Turn Japan into a Global Crypto Hub
Sanae Takaichi, the newly elected leader of Japan’s Liberal Democratic Party (LDP), will officially take office as prime minister on October 15, becoming the first woman to hold the position.
Her election could be a turning point for Japan’s crypto industry, with experts predicting “refined but liberal” regulations that could make the country a new global crypto hub.
Tokenization lawyer Elisenda Fabrega (Brickken) notes that Takaichi’s policy stance “signals a willingness to actively promote the digital economy while maintaining legal certainty.”
“Its technological sovereignty policy means not only permissive but also proactive policies in the blockchain space,” Fabrega added.
From financial regulation to Web3 stimulus
According to Maarten Genskens, COO of Startale Group and chairman of Astar Foundation, the Japanese government already sees blockchain as “the foundation of digital transformation.”
He expects Takaichi’s looser monetary policy to support liquidity and demand for alternative assets, including cryptocurrencies.
“This is a strong environment for the development of the Web3 ecosystem in Japan,” Genskens said.
Expected changes in crypto legislation
The new leadership may review the classification of tokens under the auspices of the Financial Services Agency of Japan (FSA), which currently distinguishes between payment, value and utility tokens.
Fabrega predicts “clarification and expansion” of categories, including in terms of custodial services, tokenized financial instruments and investor protection.
Also expected:
- Strengthened AML/KYC oversight;
- New disclosure standards for public token offerings;
- A unified regulatory regime for platforms issuing or trading digital assets.
From Mt. Gox to the Web3 revolution
Japan has one of the oldest crypto regulatory regimes in the world. Following the collapse of Mt. Gox in 2014, the country passed the first amendments to the Payment Services Act (PSA), introducing exchange licensing.
- 2018: JVCEA established, granted self-regulatory status.
- 2022: Yen-backed stablecoins allowed to be issued only by licensed banks.
- 2023: LDP publishes “Web3 white paper” proposing tax breaks and ETF reforms.
- 2026: New regulations are expected to come into effect classifying crypto assets as traditional financial products.
Japan’s crypto breakthrough
According to Chainalysis, Japan has seen the highest annual growth in crypto activity in the Asia-Pacific region, at over 120%.
Experts expect that under Takaichi’s leadership, the country will combine a strict compliance culture with a flexible digital finance policy, creating “an eastern equivalent of Switzerland for the crypto economy.”
Related: A Japanese regulator has proposed a reform of crypto rules to be consistent with securities law
