Japan’s iron lady Sanae Takaichi may reshape crypto policy

On October 4, 2025, Sanae Takaichi was elected as the new leader of Japan’s Liberal Democratic Party. She is expected to be nominated as the first female prime minister at an extraordinary Diet session on October 15th.

Mr. Takaichi is known for promoting growth and aggressive fiscal policy, and has advocated an economic policy that prioritizes ending deflation and promoting economic expansion. Although she has not made any explicit statements regarding cryptocurrencies, her fiscal stance and possible cooperation with opposition parties could influence the crypto tax reform that Japan’s digital asset industry has long anticipated.

Japanese iron lady Takaichi’s profile

Mr. Takaichi has long admired the late British Prime Minister Margaret Thatcher. Her acclaim brings her closer to the realization of the ambitions associated with the “Iron Lady” persona.

Mr. Takaichi was born in 1961. After graduating from Kobe University’s School of Business Administration, he underwent training at Matsushita School of Government and Management, and gained practical experience as a fellow in the U.S. Congress. After working as a television anchor, he was first elected to the House of Representatives in 1993 and is currently in his 10th term.

As a politician, he served three terms as Minister of Internal Affairs and Communications and Minister of Economic Security, and held important positions such as Minister of Special Missions in the Cabinet Office. It played a central role in the Abe administration, exerting influence on economic and security policy.

After being elected president of the Liberal Democratic Party, he emphasized his determination, saying, “I will have everyone work like workhorses. I will abandon the concept of work-life balance.”

Conflict stance with former Prime Minister Ishiba

Takaichi’s approach to virtual currencies and Web3 is different from former Prime Minister Ishiba. In August 2025, Mr. Ishiba expressed his support for Web3 and blockchain technology at Japan’s largest Web3 conference, “WebX2025.” However, when asked in the Diet about the separate taxation of virtual currencies in December 2024, Ishiba took a cautious stance, disappointing some industry insiders.

Although Mr. Ishiba has made positive statements in public, he has been reluctant to promote specific tax reform. Although Takaichi has not made any specific statements regarding crypto policy, her aggressive fiscal approach and preference for tax cuts could indirectly support reform in this area.

Opposition cooperation and the possibility of tax reform

The key to the possibility of cryptocurrency tax reform is Takaichi’s policy toward opposition parties. He expressed his intention to strengthen cooperation with the Japan Restoration Association and the Democratic Party of Japan, which have supported virtual currency tax reform.

The NDP has historically supported crypto tax reform. Representative Yuichiro Tamaki expressed regret over former Prime Minister Ishiba’s cautious stance. The Japan Restoration Society is also positive about deregulation and tax reform. If Mr. Takaichi strengthens his cooperation with these opposition parties, it may increase the likelihood that cryptocurrency tax reform will be implemented as part of a broader tax reduction policy.

On August 29, 2025, the Financial Services Agency formally requested a review of virtual currency taxation toward fiscal 2026. The suggested measures are: Introduction of separate taxation– Cryptocurrency returns match stocks at almost 20%, compared to current progression rates of up to 55% – and Allow losses to be carried forward Maximum of 3 years. The government’s “New Capitalism Grand Design 2025 Revision” clearly states that separate taxation will be considered. If Mr. Takaichi deepens his cooperation with the opposition parties and prioritizes tax cuts, it is possible to implement reforms during the regular Diet session in 2026.

President Trump’s visit to Japan: Impact on virtual currency policy

One of Takaichi’s first major foreign policy priorities will be the visit of US President Donald Trump, scheduled for late October. President Trump is scheduled to visit Japan for three days starting around October 27, during which he will hold his first summit meeting with Takaichi.

Since taking office in January 2025, Trump has announced his intention to make the United States a global center for cryptocurrencies, implementing policies such as building up a Bitcoin strategic reserve and establishing a virtual currency advisory board. If the two leaders share a pro-growth perspective, it may be possible to coordinate economic policies during the talks. But Takaichi’s conservative values ​​could influence how much she aligns with Trump’s cryptocurrency efforts. Discussions regarding Bitcoin reserves and virtual currency deregulation will be important indicators for Japan’s virtual currency industry.

Uncertainties and potential impacts

Significant uncertainties remain regarding Takaichi’s cryptocurrency policy. Her main focus is likely to remain traditional industrial policy and national security. The appointment of ministers is an important element. If Finance Minister Katsunobu Kato remains in office, policy continuity may be maintained. However, under the Ishiba administration, Mr. Kato’s involvement in virtual currency issues has been limited, and drastic changes may be limited. Digital Minister Masaki Hira has also not clarified his specific position regarding virtual currencies and Web3.

Mr. Takaichi’s aggressive fiscal policy could potentially have a negative impact. Aggressive government spending could accelerate inflation and prompt the Bank of Japan to tighten its monetary policy, which could be a headwind for risk assets including cryptocurrencies. Her conservative leanings could lead to tougher measures against money laundering and terrorist financing. Additionally, her interests in semiconductors and traditional manufacturing may deprioritize cryptocurrencies and Web3.

Takaichi’s election as Liberal Democratic Party president marks a turning point for Japan’s virtual currency industry. Strengthening ties with opposition parties and his stance on tax cuts could create opportunities for long-awaited reforms such as separate taxation and carryover of tax losses. However, her limited direct involvement in cryptocurrencies, potential for increased regulation, and fiscal policy risks also create uncertainty. Cabinet appointments, opposition coordination, and the outcome of the Trump summit in late October will be key factors influencing the future of the industry.

The article Sanae Sanae of Japan’s Iron Lady High School May Reshape Crypto Policy appeared first on BeInCrypto.