Japan has made history with the election of Sanae Takaichi as its first-ever female prime minister. On 21 October, the veteran conservative politician and long-time ally of the late Shinzo Abe was chosen as the nation’s 104th leader, marking a defining moment in the country’s 140-year parliamentary history.
Takaichi secured her victory after the ruling Liberal Democratic Party (LDP) formed a coalition with the Japan Innovation Party (JIP), defeating opposition leader Yoshihiko Noda by a vote of 237 to 149 in the lower house.
While her rise to power breaks a long-standing gender barrier, it also signals continuity in Japan’s pro-technology economic vision, a direction that could have major implications for the country’s crypto and Web3 sectors.
Sanae Takaichi’s Tech-Driven Vision
Though Sanae Takaichi has not been vocally active about cryptocurrencies in recent years, her political record paints her as pro-innovation and cautiously pro-crypto.
As a staunch advocate for technological sovereignty, she has long supported investment in strategic digital infrastructure, including blockchain, Web3 and AI governance frameworks. Her policy stance suggests that she sees crypto and blockchain not merely as speculative assets but as key technologies shaping Japan’s future economy.
Industry observers note that Sanae Takaichi’s administration is likely to focus on clarifying regulatory frameworks under the Financial Instruments and Exchange Act (FIEA), particularly around digital asset custody, tokenized securities and investor protection.
Recent steps by Japan’s Financial Services Agency (FSA), such as allowing banks to hold Bitcoin and banning insider trading in crypto, align with this pragmatic but supportive regulatory approach.
Her leadership may thus continue Japan’s current trajectory: regulated growth over unchecked speculation.
Japan’s Growing Crypto Momentum
Japan already stands out as one of the most progressive nations in Asia when it comes to digital assets. In the past five years, the country’s crypto user base has quadrupled to around 8 million and on-chain transaction value has surged by 120% year-over-year, the fastest growth rate in the Asia-Pacific (APAC) region.
The introduction of crypto exchange-traded funds (ETFs) and improved consumer protection standards have also enhanced investor confidence.
Experts believe that under Sanae Takaichi’s leadership, Japan could consolidate its position as a regional crypto hub, balancing regulation with innovation.
Her administration’s expected focus on economic revitalisation and digital transformation may provide fertile ground for Web3 startups and blockchain innovators, potentially attracting more institutional capital and global partnerships.
Tax Reforms Could Boost Adoption
A major talking point in Japan’s crypto landscape is the tax treatment of digital assets. Currently, crypto gains are classified as miscellaneous income, taxed at rates of up to 55%, making Japan one of the least tax-friendly environments for crypto investors.
However, Sanae Takaichi’s tax-cutting and pro-growth agenda could reshape this landscape. Her coalition partner, the Japan Innovation Party, has long pushed for aligning crypto taxes with equities at 20%, a move that would make Japan far more competitive globally.
If implemented, such reform could encourage both retail and institutional participation in the crypto market, spurring domestic innovation and capital inflows.
Moreover, Takaichi’s preference for monetary easing and fiscal stimulus, echoing Abe’s economic strategy, could inject additional liquidity into alternative assets like Bitcoin and Ethereum, indirectly fuelling broader adoption.
What to Expect Next
As Japan embarks on this new political chapter, the crypto industry is watching closely. While Sanae Takaichi is not expected to radically overhaul Japan’s financial regulations, her pro-technology and reform-oriented leadership could strengthen the country’s position as a model for regulated digital innovation.
If she succeeds in delivering clearer rules, tax reform and policy continuity, Japan could emerge as one of the most attractive and stable environments for crypto enterprises in Asia.
Her leadership represents not only a historic milestone for gender equality in Japanese politics but also a potential turning point for Japan’s digital economy, where blockchain, Web3 and crypto innovation are poised to play a pivotal role in the nation’s next phase of growth.
