Japan’s New PM Takaichi May Drive Crypto Tax Reform
Sanae Takaichi Becomes Japan’s LDP Leader, Paving The Way For Crypto Tax Reform
On October 4, 2025, Sanae Takaichi was elected as the new leader of Japan’s Liberal Democratic Party (LDP) and is expected to become the country’s first female Prime Minister during a special Diet session on October 15.
Known for her pro-growth, fiscally active policies, Takaichi aims to end deflation and stimulate economic expansion. While she has not yet made clear statements on cryptocurrency, her tax-cutting stance and willingness to cooperate with opposition parties could shape long-awaited reforms to Japan’s crypto taxation system.
Japan’s “Iron Lady”
Often compared to Margaret Thatcher, Takaichi has built a reputation for discipline and determination. Born in 1961, she graduated from Kobe University, trained at the Matsushita Institute of Government and Management, and served as a U.S. Congressional Fellow before entering politics in 1993.
She has since held multiple senior posts, including Minister for Internal Affairs and Communications, Minister of Economic Security, and key Cabinet positions under former Prime Minister Shinzo Abe.
Upon her LDP victory, she declared: “I’ll make everyone work like draft horses. The concept of work-life balance will be gone,” emphasizing her no-nonsense leadership style.
A New Approach To Crypto Policy
Unlike former Prime Minister Shigeru Ishiba, who supported Web3 but hesitated on tax reforms, Takaichi’s pro-business, low-tax philosophy could indirectly benefit Japan’s crypto industry.
In August 2025, Japan’s Financial Services Agency (FSA) formally requested a review of crypto taxation for fiscal year 2026. Proposed measures include:
- A flat 20% tax on crypto gains—aligning with stock taxation instead of the current progressive rate of up to 55%.
- The ability to carry forward losses for up to three years.
If Takaichi strengthens ties with the Japan Innovation Party and the Democratic Party for the People, both long-time supporters of crypto tax reform, these proposals could gain momentum in the 2026 Diet session.
Trump’s Visit And Global Coordination
Takaichi’s first major diplomatic test will be hosting U.S. President Donald Trump during his visit to Japan in late October.
Since returning to office in January 2025, Trump has sought to make the U.S. a global crypto hub, launching initiatives such as a Strategic Bitcoin Reserve and a Federal Crypto Advisory Committee.
Their shared pro-growth agenda could lead to joint policy coordination in digital finance, although Takaichi’s conservative values may limit how closely Japan aligns with U.S. crypto liberalization efforts.
Uncertainties Ahead
Despite optimism, uncertainty remains over Takaichi’s actual stance on digital assets. Her focus may lean toward national security and traditional industries like semiconductors rather than Web3.
Cabinet appointments will be crucial: retaining Finance Minister Katsunobu Kato, who has shown little interest in crypto policy, may signal continuity, while Digital Minister Masaki Taira has yet to state a position on blockchain.
Takaichi’s fiscally active policies could also fuel inflation, prompting the Bank of Japan to tighten monetary conditions—potentially weighing on risk assets, including cryptocurrencies.
A Turning Point For Japan’s Crypto Industry
Takaichi’s election marks a political inflection point for Japan’s digital asset sector. Her blend of fiscal expansion, potential tax reforms, and bipartisan collaboration could accelerate long-anticipated regulatory changes.
Still, her limited crypto engagement, regulatory caution, and policy uncertainty suggest a delicate balancing act. The outcomes of her Cabinet formation and the Trump–Takaichi summit later this month will be pivotal for Japan’s crypto future.
Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.