Japan Eyes Crypto Growth Under New Leadership
Sanae Takaichi, the new Prime Minister of Japan and head of the Liberal Democratic Party (LDP), is expected to enact more cryptocurrency regulations as the country’s digital economy grows. Taking office on October 15, Takaichi becomes Japan’s first female prime minister.
Experts, including Elisenda Fabrega, general counsel at Brickken, anticipate that her leadership may improve digital asset governance, encourage blockchain innovation, and create incentives for crypto companies. Fabrega noted that support for technological sovereignty and strategic blockchain development could further nurture Japan’s digital economy.
Japan’s Crypto Regulation Outlook
Under the Financial Services Agency (FSA) framework, Takaichi’s administration may refine the classification of tokens, including:
Expected regulatory changes include:
- Enhanced custody standards
- Oversight over tokenized financial instruments
- Stronger investor protection
- Unified AML frameworks
- Improved disclosure regulations for public offerings
- Authorization mechanisms for token issuance and trading
Analysts, including Maarten Henskens, COO of Startale Group and head of the Astar Foundation, believe Japan’s leadership may continue to support crypto liquidity and investor interest through accommodative monetary policy, boosting the Web3 ecosystem.
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Japan’s Crypto Regulatory Evolution
Since the Mt. Gox incident in 2014, Japan has steadily revised its crypto framework:
- 2016: Cryptocurrency exchanges required registration with the FSA
- 2017: Mandatory compliance with KYC and AML standards
- 2018: Formation of the Japan Virtual Currency Exchange Association (JVCEA) as a self-regulatory body
- 2022: Regulatory guidance for authorized institutions
- 2026: Expected classification of crypto assets as financial products under a new tax regime
These reforms aim to provide legal certainty and strong investor protection, making Japan an attractive hub for global crypto businesses.
Cryptocurrency Adoption Spikes in Japan
The Asia-Pacific (APAC) region is witnessing strong growth in cryptocurrency adoption. Japan has seen a surge in investors, with Chainalysis reporting:
- Over 120% yearly growth in on-chain crypto value received
- Strongest adoption growth among top APAC markets
Analysts predict that Takaichi’s efforts to implement refined regulations and foster blockchain infrastructure could position Japan as a next-generation hub for blockchain and crypto investments.
