Japan crypto regulation reforms under Takaichi
Japan’s new leadership to refine crypto regulations
Japan’s newly elected prime minister, Sanae Takaichi, is expected to advance Japan crypto regulation reforms that could strengthen the country’s role as a global crypto hub. Takaichi, leader of the Liberal Democratic Party (LDP), will become Japan’s first female prime minister on Oct. 15.
Experts believe her government could create a more supportive environment for blockchain innovation while keeping Japan’s high regulatory standards. Elisenda Fabrega, general counsel at Brickken, said Takaichi’s election may significantly affect how crypto assets are governed and perceived in Japan.
Fabrega noted that Takaichi has long supported technological sovereignty and digital infrastructure development, signaling a proactive stance toward blockchain growth. She added that the administration may enhance Japan’s reputation as an innovation-friendly country committed to legal clarity in the crypto space.
Japan crypto regulation reforms may redefine token categories
Regulatory specialists predict that Takaichi’s administration will refine token classifications under the Financial Services Agency (FSA). Currently, the FSA separates payment, utility, and security tokens – each with distinct compliance rules.
Fabrega explained that Takaichi’s team may expand existing categories to better address custody rules, investor protection, and tokenized financial instruments. She expects stronger Anti-Money Laundering oversight, improved disclosure for digital asset offerings, and tighter controls over token issuance and trading platforms.
Japan strengthens blockchain policies amid monetary easing
According to Maarten Henskens, COO at Startale Group and head of the Astar Foundation, Japan’s government now considers blockchain a “pillar” of its digital transformation plan. He noted that a looser monetary stance under Takaichi could boost liquidity and investor demand for cryptocurrencies.
Henskens said this approach may further accelerate Japan’s Web3 ecosystem, making it more attractive to global blockchain startups. Takaichi’s economic platform, combining increased spending and relaxed monetary policy, has already lifted investor confidence, pushing Japan’s Nikkei index to a record high of 47,734.04 points.
Japan’s regulatory evolution since the Mt. Gox collapse
Japan began formalizing crypto rules in 2016 after the Mt. Gox collapse exposed major oversight gaps. The Financial Services Agency (FSA) amended the Payment Services Act to regulate exchanges and enforce Anti-Money Laundering (AML) and Know Your Customer (KYC) measures.
In 2018, crypto exchanges formed the Japan Virtual Currency Exchange Association (JVCEA), which later gained self-regulatory status. Japan also introduced a framework in 2022 allowing banks to issue yen-backed stablecoins.
In 2023, the LDP released a Web3 white paper proposing new tax and ETF policies. Most recently, the FSA suggested reclassifying crypto as traditional financial products by 2026, potentially placing them under new tax obligations.
Chainalysis data shows that Japan’s crypto adoption more than doubled in the year to September 2025, with onchain transaction volume rising 120% year-on-year. This growth reflects the success of Japan’s evolving regulatory landscape and renewed investor confidence.
