TLDR
- Takaichi’s economic policies may support aligning crypto taxation with equities.
- Cooperation with opposition parties could speed up crypto tax reforms in Japan.\
- Takaichi’s first summit with Trump could influence Japan’s crypto regulation.
- FSA’s review of crypto taxation in 2026 could result in favorable changes for traders.
Sanae Takaichi, known as Japan’s “Iron Lady,” has risen to a pivotal role within the country’s political landscape. With her election as the new leader of Japan’s Liberal Democratic Party (LDP), she is poised to become the nation’s first female prime minister. While her stance on cryptocurrency remains unclear, her pro-growth economic policies and willingness to cooperate with opposition parties suggest potential changes in Japan’s crypto regulation and taxation.
Takaichi’s Economic Approach and Its Potential Influence on Crypto Policies
Sanae Takaichi’s economic policies focus on stimulating growth and ending deflation. Her fiscal strategies, centered around tax reductions, could indirectly affect cryptocurrency regulation. While she has not made explicit statements on crypto, her tax-cutting approach may create space for the long-anticipated cryptocurrency tax reforms. For example, she could support aligning crypto taxation with equities, as proposed in earlier discussions.
Takaichi’s willingness to work with opposition parties could also be a determining factor. Parties like the Japan Innovation Party and the Democratic Party for the People have consistently supported cryptocurrency tax reforms. By strengthening ties with these groups, Takaichi might foster a legislative environment conducive to revising the crypto tax code, addressing issues such as loss carryforwards and introducing separate taxation for crypto gains.
Cooperation with Opposition Parties Could Pave the Way for Tax Reforms
Takaichi’s potential collaboration with opposition parties could increase the likelihood of cryptocurrency tax reforms. The Democratic Party for the People, led by Yuichiro Tamaki, has long advocated for changes in the way cryptocurrencies are taxed in Japan. Similarly, the Japan Innovation Party, which supports deregulation and tax cuts, shares common ground with Takaichi’s economic goals. These synergies might prompt greater reform in the tax policies that affect digital assets.
In August 2025, Japan’s Financial Services Agency (FSA) formally called for a review of cryptocurrency taxation for fiscal year 2026. One of the proposed measures includes aligning cryptocurrency gains with equities for tax purposes, which would offer a lower tax rate of about 20% rather than the current progressive rate that can go up to 55%. If Takaichi works closely with opposition groups, these reforms could take shape sooner than expected.
Takaichi’s Upcoming Summit with US President Trump
One of Takaichi’s key challenges will be her first summit with US President Donald Trump, expected to take place in late October 2025. Trump has made efforts to position the United States as a global leader in cryptocurrency, advocating for policies like Bitcoin strategic reserves and a cryptocurrency advisory committee. Given both leaders’ pro-growth stances, their discussions could touch on digital asset regulation, potentially influencing Japan’s approach to crypto.
However, Takaichi’s more conservative values may affect her alignment with some of Trump’s crypto initiatives. While Japan and the US share economic growth goals, their approaches to cryptocurrency regulation could differ. The summit between Takaichi and Trump will be a significant event in shaping Japan’s crypto policy moving forward.
Uncertainties and Future Directions for Crypto Regulation in Japan
Despite Takaichi’s clear economic priorities, uncertainties remain about how her policies will directly impact cryptocurrency. Cabinet appointments, particularly for finance and digital ministers, will play a crucial role in determining the direction of crypto regulation. Finance Minister Katsunobu Kato’s position may influence policy continuity, as he has previously shown limited engagement with digital asset issues.
Additionally, while Takaichi’s focus on economic growth may foster tax reforms, her attention to issues like inflation and national security might steer her away from prioritizing cryptocurrency. If aggressive government spending leads to inflation concerns, the Bank of Japan may tighten monetary policy, which could negatively impact risk assets, including digital currencies.
Takaichi’s rise to power may signal a shift in Japan’s cryptocurrency landscape. While cooperation with opposition parties and a pro-growth agenda could lead to meaningful tax reforms, her broader fiscal and security priorities could complicate or delay the process. With the summit with President Trump and key cabinet decisions on the horizon, Japan’s cryptocurrency industry faces a period of uncertainty and potential change.
