Japan’s newly elected prime minister Sanae Takaichi, may open the door for more “refined” regulations to boost the country’s cryptocurrency economy, which can be set to appear as the next global hub for cryptocurrency companies.
Takaichi was elected as head of the Liberal Democratic Party (LDP) on Saturday and is set to be the first woman in Japan Prime Minister When he receives an office on October 15.
Experts said his leadership could introduce a more open bearing toward the technology experiment, including blockchain change, while maintaining Japan strict regulation criteria.
Takaichi’s election may have a “material impact on the understanding and management of digital ownership in the country,” according to Elsenda Fabrega, general advice on the brickken tokenization platform.
In previous public positions, Takichi has expressed support for “technology sovereignty,” including “strategic development of digital infrastructure, including blockchain technology,” Fabrega told Cointelegraph. “From a legal point of view, it suggests that his administration can adopt a posture that is not only allowed but potentially active in promoting the digital economy.”
Fabrega added that Takaichi’s political positioning could strengthen the “promise of Japan to legal certainty in the crypto space” and renew the country’s interest as a bare crypto hub.
The Japanese government recognizes Blockchain as a “pillar of strategy in digital change -We,” said Maarten Henskens, chief operating officer of the Startale Group and head of the Astar Foundation.
“A more spacious financial outlook under new leadership can maintain liquidity and interest in fuel investors for alternative ownership, including cryptocurrencies,” Henskens told Cointelegraph.
“In Startale and Astar, we see it as a strong environment to continue to advance Japan’s web3 ecosystem,” he added.
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During the election, Takaichi was the only candidate who suggests both a basic expenditure package and more spacious financial policy. His stance was well received by voters faced with a weak Japanese yen.
Japan’s Nikkei index rose to a new full time of 47,734.04 on Monday, climbing 4.75% in the news of his election.
Takaichi can “refine” existing token definitions, Crypto regulation frameworks
Experts said Takaichi’s administration could bring more clarity to the token classification under the Japanese financial service agency. The FSA is currently distinguished between payment tokens, security, and utility tokens, each with different regulatory requirements.
Takaichi’s leadership is likely to focus on the “refinement and expansion” of existing categories, especially associated with caution, tokenized financial instruments and investor protection standards, according to Fabrega.
“We can see the integration of administration tools related to anti-money laundering, the implementation of more stringent disclosure requirements for public offerings involving digital properties, and a more structured framework for the permission of platforms engaged in the issuance of token or trading.”
Japan has embraced crypto regulations since the collapse of Mt. Gox
Japan has developed the framework of crypto regulation since 2016, when the FSA reviewed the The Payment Services Act (PSA) to establish a regulation regulation that imposes the first registration requirements for cryptocurrency exchanges.
It came in response to the melting of Mt. Goxexposed to pressing regulations gaps in the country.
In April 2017, new amendments took place, which required exchanges to register with FSA and comply with anti-money laundering and find out your customer’s standards.
In April 2018, crypto exchanges gathered to form the Japan Virtual Currency Exchange Association (JVCEA), before FSA Providing JVCEA’s self -regulatory status In October 2018.
In June 2022, Japan’s parliament New regulations have been introduced Licensed financial institutions are allowed to issue FIAT-supported FIAT, which requires those who provided full back stablecoins with reserves held inside the yen.
In April 2023 Japan’s LDP released a white paper forming Strategies for Web3 and Blockchain adoption.
In June this year, the FSA The suggested reclassification of crypto assets as traditional financial products. It is expected to take effect from 2026, the new regime will be subject to cryptocurrencies in a new tax regime.
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Japan’s emerging regulations can make the country more appealing for cryptocurrency companies.
Japan’s policy transfer It has helped the country to double the crypto over the year leading until September, according to Chainalysis’ APAC Policy Lead, Chengyi Ong.
Japan has seen the strongest growth in the top five markets in the Asia Pacific region, whose onchain value has received more than 120% year-to-year from 12 months to June 2025, according to a quotation from Chainalysis’ 2025 geography of cryptocurrency reports.
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