Key takeaways
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Sanae Takaichi becomes Japan’s first female prime minister, the 104th in history.
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Shinzo Abe’s conservative protégé, she supports technological innovation and tax cuts.
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Analysts expect his government to boost cryptocurrency adoption in Japan.
Japan has elected its first female prime minister.
On October 21, Sanae Takaichi, a conservative politician and former ally of the late Shinzo Abe, was elected the country’s 104th leader.
Takaichi secured his victory after the ruling Liberal Democratic Party (LDP) formed a coalition with the Japan Innovation Party, defeating opposition leader Yoshihiko Noda by 237 votes to 149 in the lower house.
His election is historic for Japan, breaking a 140-year precedent in parliamentary politics while also signaling a new era of political continuity combined with reform.
Takaichi has not spoken openly about cryptocurrencies in recent years, but his political record suggests a cautiously favorable stance.
He has consistently advocated for technological sovereignty and investment in strategic digital infrastructure, including blockchain and Web3.
Industry analysts say this positions his government to clarify laws on custody, tokenized assets, and investor protection under the Financial Instruments and Exchange Act (FIEA).
Recent regulatory changes, such as the Financial Services Agency (FSA) allowing banks to own Bitcoin and banning cryptocurrency insider trading, reflect the pro-tech direction that is likely to continue.
While he considers cryptocurrencies speculative, Takaichi also recognizes their potential for innovation.
This balance between regulated growth and unbridled expansion has led some observers to label it “pro-tech and pro-crypto.”
Japan, as a nation, is quite progressive when it comes to digital assets.
The country has expanded access to crypto investment products, including exchange-traded funds (ETFs), and has seen its user base quadruple to 8 million in five years.
Value chain in Japan grew 120% year over year, the fastest in Asia-Pacific.
Takaichi’s focus on tax cuts could further accelerate adoption.
Currently, crypto profits are taxed as miscellaneous income at rates of up to 55%.
A push to align taxes with stocks by 20%, long supported by Japan Innovation Party allies, may gain new momentum under his leadership.
At the same time, its fiscal policies (a combination of monetary easing and stimulus spending) could increase the liquidity of alternative assets like Bitcoin and Ethereum, reinforcing Japan’s role as an emerging crypto hub.