Potential Shift in Japan’s Crypto Landscape

Sanae Takaichi is poised to become Japan’s first female prime minister when she assumes office on October 15. Her election could lead to a more supportive regulatory framework for the cryptocurrency sector, experts suggest.

Takaichi, elected as the leader of the Liberal Democratic Party (LDP), might usher in progressive regulations to promote Japan’s cryptocurrency ecosystem.

“Takaichi’s election could significantly influence the governance and perception of digital assets in the country,” said Elisenda Fabrega, general counsel at Brickken.

Fabrega noted that Takaichi has a favorable view towards ’technological sovereignty’ and development in digital infrastructures, including blockchain technology.

The government recognizes the importance of blockchain in its digital transformation strategy, according to Maarten Henskens from Startale Group.

As Takaichi’s administration settles in, it may tighten regulations around token classifications and investor protections under Japan’s Financial Services Agency (FSA). This includes possible consolidation of supervisory measures for Anti-Money Laundering.

Japan’s regulatory evolution followed the downfall of Mt. Gox and has aimed to close gaps since the collapse.

With Takaichi proposing a spending package and an accommodating monetary policy, she is seen as a potential catalyst for renewed interest in Japan as a destination for innovation among cryptocurrency companies.

Japan’s Nikkei index responded positively to her election, reaching a record high.

As regulations continue to shift, Japan may emerge as a hub for the crypto industry.