On October 4, 2025, Sanae Takaichi was elected as the new leader of Japan’s Liberal Democratic Party. She is anticipated to be nominated as the nation’s first female prime minister during the extraordinary Diet session on October 15.
Recognized for her growth-oriented and financially proactive strategies, Takaichi’s economic policies emphasize ending deflation and fostering economic growth. While she hasn’t made specific comments regarding cryptocurrency, her fiscal approach and potential collaboration with opposition parties might affect anticipated reforms in crypto taxation that the Japanese digital asset sector has long awaited.
Japan’s Iron Lady: Takaichi’s Profile
Takaichi has consistently expressed admiration for the late British Prime Minister Margaret Thatcher, which aligns her with aspirations tied to the “Iron Lady” image.
Born in 1961, Takaichi graduated from the Faculty of Business Administration at Kobe University, trained at the Matsushita Institute of Government and Management, and gained hands-on experience as a US Congressional Fellow. After a career as a television broadcaster, she was first elected to the House of Representatives in 1993 and is currently serving her tenth term.
Throughout her political career, she has held important roles, including three terms as the Minister of Internal Affairs and Communications, as well as Economic Security Minister, while also taking on special roles at the Cabinet Office. She was instrumental during the Abe administration, showcasing her influence on economic and security policy.
Following her election as LDP leader, she stated, “I will have everyone work as hard as carriage horses. I will renounce the idea of work-life balance,” reflecting her resolve.
Contrasting Stances with Former Prime Minister Ishiba
Takaichi’s stance on cryptocurrency and Web3 diverges from that of former Prime Minister Ishiba. In August 2025, Ishiba voiced his support for Web3 and blockchain technology at WebX2025, Japan’s largest Web3 conference. However, in a December 2024 Diet session, he exhibited caution regarding separate taxation for cryptocurrency, disappointing some within the industry.
Despite his positive remarks at public forums, Ishiba hesitated to pursue concrete tax reforms. Takaichi has not issued detailed statements on cryptocurrency policy, but her proactive fiscal approach and tax-cutting agenda may indirectly facilitate reforms in this sector.
Opposition Cooperation and Potential Tax Reforms
A crucial element for prospective cryptocurrency tax reform is Takaichi’s stance towards opposition parties. She has indicated a desire to enhance collaboration with the Japan Innovation Party and the Democratic Party for the People, both of which have traditionally supported reforms in cryptocurrency taxation.
The Democratic Party for the People has historically backed crypto tax reforms. Its leader, Yuichiro Tamaki, expressed dissatisfaction with former Prime Minister Ishiba’s cautious approach. Similarly, the Japan Innovation Party has shown favor towards deregulation and tax reform. Should Takaichi strengthen ties with these opposition parties, the chances of executing cryptocurrency tax reforms as part of a broader tax reduction strategy could rise.
On August 29, 2025, the Financial Services Agency (FSA) formally requested a review of cryptocurrency taxation for FY2026. Proposed changes include: introducing separate taxation—aligning crypto gains with equities at roughly 20%, contrasting with the current progressive rate of up to 55%—and allowing loss carryforwards for up to three years. The government’s “New Capitalism Grand Design 2025 Revision” explicitly references the consideration of separate taxation. If Takaichi deepens collaboration with opposition entities and prioritizes tax reductions, these reforms might come to fruition in the 2026 ordinary Diet session.
Trump Visits Japan: Implications for Crypto Policy
One of Takaichi’s initial significant challenges in foreign policy will be the upcoming visit from US President Donald Trump in late October. Trump is set to visit Japan for three days commencing around October 27. During this visit, he will conduct his first summit with Takaichi.
Since taking office in January 2025, Trump has expressed his ambition to establish the US as a global hub for cryptocurrency, implementing initiatives such as creating Bitcoin strategic reserves and forming a cryptocurrency advisory committee. Shared pro-growth ideologies between both leaders may facilitate economic policy alignment during their discussions. Nonetheless, Takaichi’s conservative principles could influence how closely she aligns with Trump’s cryptocurrency strategies. Any conversations surrounding Bitcoin reserves or crypto deregulation will serve as crucial indicators for Japan’s cryptocurrency industry.
Uncertainties and Potential Impacts
Significant uncertainties linger regarding Takaichi’s cryptocurrency policies. Her main focus might remain on traditional industrial strategies and national security. Cabinet appointments will be pivotal. Retaining Finance Minister Katsunobu Kato could support policy continuity. However, Kato had minimal involvement with crypto matters during Ishiba’s term, which may limit the scope for drastic shifts. Digital Minister Masaki Taira has also yet to express clear positions on cryptocurrency or Web3.
While Takaichi’s proactive fiscal strategy could yield potential negative consequences, aggressive government spending may exacerbate inflation, urging the Bank of Japan to tighten monetary policy, potentially hindering risk assets, including cryptocurrencies. Her conservative stance could lead to stricter actions against money laundering and terrorist financing. Moreover, her focus on semiconductors and traditional manufacturing might push cryptocurrency and Web3 to a lower priority.
Takaichi’s leadership as LDP head signifies a pivotal moment for Japan’s cryptocurrency sector. Enhanced collaboration with opposition parties and her tax-reduction policy may open doors for long-awaited reforms, such as separate taxation and loss carryforwards. However, her limited direct engagement with cryptocurrency, potential regulatory protections, and fiscal policy challenges also introduce uncertainties. Cabinet appointments, opposition collaboration, and the outcomes from Trump’s visit in late October will be critical in shaping the future of the industry.
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