tl;dr
Sanae Takaichi's leadership as Japan's likely first female prime minister could reshape the nation's crypto policies, with potential shifts in regulation, tax reforms, and international crypto diplomacy under her pro-growth agenda.
**Sanae Takaichi’s Leadership and the Future of Japan’s Crypto Policy**
On October 4, 2025, Sanae Takaichi made history by being elected as the leader of Japan’s Liberal Democratic Party (LDP), positioning her as the likely candidate to become the country’s first female prime minister during an extraordinary Diet session on October 15. Known for her pro-growth economic philosophy and fiscal assertiveness, Takaichi’s tenure could signal a pivotal shift for Japan’s cryptocurrency industry, though her direct stance on digital assets remains unclear.
### A Leader with a “Thatcherite” Vision
Takaichi, often dubbed Japan’s “Iron Lady” for her admiration of former British Prime Minister Margaret Thatcher, has built a career marked by resilience and a focus on economic revitalization. A graduate of Kobe University and a former U.S. Congressional Fellow, she has served in key roles such as Minister of Internal Affairs and Communications and Economic Security Minister under the Abe administration. Her recent declaration that she would “abandon the concept of work-life balance” underscores her no-nonsense approach to governance.
### Contrasting with Ishiba: A Shift in Crypto Policy?
Takaichi’s approach to cryptocurrency diverges from that of her predecessor, former Prime Minister Shigeru Ishiba. While Ishiba publicly endorsed Web3 and blockchain technologies at events like WebX2025, his reluctance to advance concrete tax reforms—such as separate taxation for digital assets—left industry stakeholders disappointed. Takaichi, though silent on specific crypto policies, has a track record of fiscal conservatism and tax reduction, which could indirectly pave the way for regulatory reforms.
### Opposition Cooperation and the Path to Tax Reforms
A critical factor in Japan’s crypto policy landscape is Takaichi’s potential collaboration with opposition parties. The Japan Innovation Party and the Democratic Party for the People, both advocates for cryptocurrency tax reforms, may gain influence under her leadership. The Democratic Party’s leader, Yuichiro Tamaki, has criticized Ishiba’s hesitancy, while the Japan Innovation Party has championed deregulation. If Takaichi strengthens ties with these groups, reforms such as separate taxation for crypto gains (aligned with equity rates of ~20%) and loss carryforwards could gain traction.
The Financial Services Agency (FSA) has already signaled a push for such changes, with proposed measures included in the “New Capitalism Grand Design 2025 Revision.” If Takaichi prioritizes tax cuts, these reforms might be enacted during the 2026 ordinary Diet session.
### Trump’s Visit: A Test for Crypto Diplomacy
Takaichi’s first major foreign policy challenge comes with U.S. President Donald Trump’s planned visit to Japan in late October. Trump, who has positioned the U.S. as a global crypto hub, has advocated for initiatives like Bitcoin reserves and a cryptocurrency advisory committee. While Takaichi’s pro-growth ethos aligns with Trump’s vision, her conservative values may temper her willingness to embrace aggressive crypto deregulation. Discussions on Bitcoin reserves or regulatory frameworks during their summit could offer clues about Japan’s future stance.
### Uncertainties and Risks
Despite potential opportunities, uncertainties loom. Takaichi’s focus may remain on traditional industries and national security, with limited direct engagement on crypto. Cabinet appointments will be crucial: Finance Minister Katsunobu Kato, who had minimal involvement in crypto under Ishiba, and Digital Minister Masaki Taira, who has not articulated clear positions on Web3, could shape the agenda.
Aggressive fiscal policies, while aimed at economic growth, risk inflation, prompting the Bank of Japan to tighten monetary policy—a headwind for risk assets like cryptocurrencies. Additionally, Takaichi’s emphasis on semiconductors and manufacturing may deprioritize crypto, while her conservative leanings could lead to stricter anti-money laundering measures.
### Conclusion
Sanae Takaichi’s leadership marks a turning point for Japan’s cryptocurrency industry. Strengthened opposition ties and a tax-reduction orientation may unlock long-awaited reforms, but her limited direct engagement with digital assets and potential regulatory shifts introduce uncertainty. As she navigates domestic priorities, international dynamics, and cabinet appointments, the crypto sector will be watching closely. The coming months—particularly the Trump summit and 2026 tax reforms—will determine whether Japan’s digital asset landscape enters a new era of innovation or faces renewed challenges.