Sanae Takaichi made history on October 4, 2025, by being elected as the new leader of Japan’s Liberal Democratic Party. She is poised to become the country’s first female prime minister during the upcoming extraordinary Diet session on October 15. Takaichi is known for her pro-growth and fiscally proactive approach, with a focus on ending deflation and promoting economic expansion. While she has not directly addressed cryptocurrency policies, her fiscal stance and potential collaboration with opposition parties could have a significant impact on the long-awaited crypto taxation reforms in Japan.
Profile of Japan’s Iron Lady, Sanae Takaichi
Sanae Takaichi draws inspiration from the late British Prime Minister Margaret Thatcher, embodying the determined and strong-willed persona often associated with the “Iron Lady.” Born in 1961, Takaichi holds a degree from Kobe University’s Faculty of Business Administration and has extensive experience in government and management. She has served multiple terms in key ministerial positions, including Minister of Internal Affairs and Communications and Economic Security Minister. Takaichi’s leadership style reflects her commitment to hard work and dedication, as she famously stated, “I will have everyone work like carriage horses. I will abandon the concept of work-life balance.”
Contrasting Stances on Cryptocurrency with Former Prime Minister Ishiba
Takaichi’s approach to cryptocurrency and Web3 differs from that of former Prime Minister Ishiba. While Ishiba expressed support for blockchain technology at a conference, he remained cautious about implementing concrete tax reforms for cryptocurrencies. In contrast, Takaichi’s proactive fiscal approach and emphasis on tax reduction could indirectly support reforms in the crypto sector. By strengthening cooperation with opposition parties like the Japan Innovation Party and the Democratic Party for the People, Takaichi may pave the way for significant cryptocurrency tax reforms in Japan.
Potential Tax Reforms and Cooperation with Opposition Parties
The likelihood of implementing cryptocurrency tax reforms in Japan hinges on Takaichi’s policy towards opposition parties. The Japan Innovation Party and the Democratic Party for the People have historically supported crypto tax reforms, making collaboration with these parties crucial for driving change. The proposed measures for cryptocurrency taxation in FY2026 include introducing separate taxation and allowing loss carryforwards for up to three years. Takaichi’s commitment to tax reductions and potential cooperation with oppositions could lead to the realization of these reforms in the 2026 ordinary Diet session.
Implications of Trump’s Visit on Crypto Policy
An upcoming challenge for Takaichi’s foreign policy agenda is the scheduled visit of US President Donald Trump in late October. Trump’s initiatives to make the US a global crypto hub may align with Takaichi’s pro-growth stance, but her conservative values could influence the extent of collaboration on crypto policies. Discussions during the summit regarding Bitcoin reserves and crypto deregulation will be crucial indicators for Japan’s cryptocurrency industry.
Uncertainties and Potential Impacts on Crypto Policy
Takaichi’s proactive fiscal policies could have both positive and negative impacts on the cryptocurrency industry. While her tax reduction stance may support reforms, aggressive government spending could accelerate inflation and prompt monetary tightening, affecting risk assets like cryptocurrencies. Additionally, her conservative orientation may lead to stricter measures against money laundering and terrorist financing, potentially deprioritizing cryptocurrency and Web3 initiatives.
In conclusion, Sanae Takaichi’s election as LDP leader marks a significant milestone for Japan’s cryptocurrency industry. Collaboration with opposition parties and her tax-reduction stance offer opportunities for reforms, but uncertainties remain regarding regulatory tightening and fiscal policy risks. The outcome of cabinet appointments, opposition coordination, and the Trump summit will be critical in shaping the future of Japan’s crypto policy landscape.