Where does Japanese PM Sanae Takaichi stand on crypto? Here’s what we know

Core Viewpoint - The recent snap election victory of the Liberal Democratic Party (LDP) is expected to facilitate long-awaited crypto tax reforms in Japan, with Prime Minister Sanae Takaichi's leadership seen as a pivotal factor in this process [1]. Group 1: Election and Leadership - Prime Minister Sanae Takaichi called the snap election in January, leveraging her high pre-election approval ratings, and promised to resign if her party did not secure a decisive majority [1]. - The LDP achieved a supermajority of two-thirds in the lower house, which strengthens Takaichi's position to implement reforms [1]. Group 2: Crypto Industry Insights - A Japanese crypto trader noted that Takaichi's stance on crypto is neutral, neither particularly pro- nor anti-crypto, which may lead to continued reforms in Japan's restrictive crypto laws [2]. - The Japanese cryptocurrency industry is currently focused on tax reform and the reclassification of Bitcoin and leading altcoins as financial investment products rather than payment forms [3]. Group 3: Tax Reform Plans - The tax reform plan includes a flat 20% capital gains tax on crypto profits starting in 2028 and allows investors to carry losses over to the next financial year [4]. - Currently, higher earners can pay up to 55% of their crypto earnings in taxes, as profits must be declared annually [5]. Group 4: Continuation of Reform Policies - Takaichi, despite her conservative background, has allowed ongoing reform efforts by established taskforces and has made positive statements regarding the crypto industry [6]. - Takaichi's Minister of Finance indicated that Japan's cryptocurrency and web 3 industries are at a critical juncture, suggesting a supportive environment for future developments [6].