Cryptocurrency

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April

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Japan’s newly elected prime minister, Sanae Takaichi, may open the door for more “refined” regulations to boost the country’s cryptocurrency economy, which could be set to emerge as the next global hub for crypto companies.
Takaichi was elected leader of the Liberal Democratic Party (LDP) on Saturday and is set to become Japan’s first female <a href="https://cointelegraph.com/news/japan-new-pm-boon-risk-assets-crypto-markets" rel="noopener noreferrer nofollow">prime minister</a> when she takes office on Oct. 15.
Experts say her leadership may introduce a more open stance toward technological experimentation, including blockchain innovation, while maintaining Japan’s <a href="https://cointelegraph.com/learn/articles/crypto-regulations-in-japan" rel="noopener noreferrer nofollow" target="_self">rigorous regulatory standards</a>.
Takaichi’s election may have a “material impact on the perception and governance of digital assets within the country,” according to Elisenda Fabrega, general counsel at tokenization platform Brickken.
In previous public positions, Takichi has expressed support for “technological sovereignty,” including the “strategic development of digital infrastructure, including blockchain technology,” Fabrega told Cointelegraph. “From a legal perspective, this suggests that her administration may adopt a posture that is not only permissive but potentially proactive in promoting the digital economy.”
Fabrega added that Takaichi’s political positioning may strengthen “Japan’s commitment to legal certainty in the crypto space” and renew interest in the country as an innovation-friendly crypto hub.
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 <img alt="New Japan PM may boost crypto economy, ‘refine’ blockchain regulations" src="https://s3.cointelegraph.com/uploads/2025-10/0199b8ef-b609-76c4-b1cf-4ee850006109" title="">
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 Sanae Takaichi. Source: <a href="https://x.com/The_Japan_News/status/1975097474273730958" rel="noopener noreferrer nofollow" target="https://x.com/The_Japan_News/status/1975097474273730958">The Japan News</a>
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Japan’s government is recognizing blockchain as a “ pillar of its digital transformation strategy,” said Maarten Henskens, chief operating officer at Startale Group and head of Astar Foundation.
“A looser monetary outlook under the new leadership could sustain liquidity and fuel investor appetite for alternative assets, including cryptocurrencies,” Henskens told Cointelegraph.
“At Startale and Astar, we see this as a strong environment to continue advancing Japan’s Web3 ecosystem,” he added.
Related: <a href="https://cointelegraph.com/news/stimulus-talk-shutdown-tariff-checks-would-mean-for-crypto" rel="noopener noreferrer nofollow">Stimulus talk meets shutdown: What tariff-funded checks could mean for crypto</a>
During the elections, Takaichi was the only candidate proposing both a major spending package and looser monetary policy. Her stance has been well received by voters facing a weakening Japanese yen.
Japan’s Nikkei index rose to a new all-time high of 47,734.04 on Monday, soaring 4.75% on the news of her election.
<h2 id="takaichi-may-refine-existing-token-definitions-crypto-regulatory-frameworks">Takaichi may “refine” existing token definitions, crypto regulatory frameworks</h2>
Experts say Takaichi’s administration could bring greater clarity to token classifications under Japan’s Financial Services Agency. The FSA currently distinguishes between payment tokens, securities and utility tokens, each with different regulatory requirements.
Takaichi’s leadership will likely focus on the “refinement and expansion” of existing categories, particularly related to custody, tokenized financial instruments and investor protection standards, according to Fabrega.
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 “We may see the consolidation of supervisory tools related to Anti-Money Laundering, the implementation of more strict disclosure requirements for public offerings involving digital assets, and a more structured framework for the authorization of platforms engaging in token issuance or trading.”
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<h2 id="japan-has-embraced-crypto-regulations-since-mt-gox-collapse">Japan has embraced crypto regulations since Mt. Gox collapse</h2>
Japan has been developing its crypto regulatory framework since at least 2016, when the <a href="https://cointelegraph.com/explained/japans-crypto-tax-overhaul-what-investors-should-know-in-2025" rel="noopener noreferrer nofollow">FSA amended the</a> Payment Services Act (PSA) to establish a regulatory regime imposing the first registration requirements for cryptocurrency exchanges.
This came in response to the meltdown of <a href="https://cointelegraph.com/learn/the-mt-gox-bitcoin-heist" rel="noopener noreferrer nofollow">Mt. Gox</a>, which exposed pressing regulatory gaps in the country.
In April 2017, the new amendments took effect, requiring exchanges to register with the FSA and comply with Anti-Money Laundering and Know Your Customer standards.
In April 2018, crypto exchanges came together to form the Japan Virtual Currency Exchange Association (JVCEA), prior to the FSA <a href="https://cointelegraph.com/news/japanese-financial-watchdog-grants-self-regulatory-status-to-local-crypto-exchanges" rel="noopener noreferrer nofollow">granting the JVCEA self-regulatory status</a> in October 2018.
In June 2022, Japan’s parliament <a href="https://cointelegraph.com/news/japan-passes-bill-to-limit-stablecoin-issuance-to-banks-and-trust-companies" rel="noopener noreferrer nofollow">introduced new regulations</a> allowing licensed financial institutions to issue fiat-backed stablecoins, requiring issuers to fully back stablecoins with reserves held domestically in yen.
In April 2023, Japan’s LDP issued a white paper outlining <a href="https://cointelegraph.com/news/japan-pushes-for-friendlier-environment-for-crypto-with-web3-proposals" rel="noopener noreferrer nofollow">strategies for Web3 and blockchain adoption</a>, recommending adjustments in tax policies and exchange-traded fund (ETF) approval frameworks.
In June, the FSA <a href="https://cointelegraph.com/news/japan-crypto-reclassification-etfs-tax-shift" rel="noopener noreferrer nofollow">proposed reclassifying crypto assets</a> as traditional financial products. Expected to take effect from 2026, this will subject cryptocurrencies to a new tax regime.
Related: <a href="https://cointelegraph.com/news/aging-wealth-fuels-crypto-demand-until-2100" rel="noopener noreferrer nofollow">Aging boomers and global wealth seen boosting crypto until 2100</a>
Japan’s evolving regulations could make the country a more attractive destination for cryptocurrency firms.
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 <img alt="Japan, Asia" src="https://s3.cointelegraph.com/uploads/2025-10/0199c87a-0275-7928-af4b-70f040d7ba1a" title="">
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 The value of crypto received by month in APAC shows an uptick in November 2024, coinciding with rising crypto prices after US President Donald Trump’s election win. Source: Chainalysis
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<a href="https://cointelegraph.com/news/japan-policy-shifts-double-crypto-adoption-chainalysis" rel="noopener noreferrer nofollow">Japan’s policy shift</a> has already helped the country double its crypto adoption over the year leading up to September, according to Chainalysis’ APAC policy lead, Chengyi Ong.
Japan saw the strongest growth among the five leading markets in the Asia-Pacific region, with onchain value received growing over 120% year-on-year in the 12 months to June 2025, according to an excerpt from Chainalysis’ 2025 Geography of Cryptocurrency Report.
Magazine: <a href="https://cointelegraph.com/magazine/hong-kong-isnt-loophole-chinese-crypto-firms-think/" rel="noopener noreferrer nofollow">Hong Kong isn’t the loophole Chinese crypto firms think it is</a>

New Japan PM may boost crypto economy, ‘refine’ blockchain regulations

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