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].

XRP benefited more than most from that constant flow. Its smaller market depth and higher speculative positioning made it especially responsive to marginal liquidity shifts. But that dynamic is reversing. Japan's policy rate jumped to 0.75% in December 2025 and economists widely expect at least 1.0% by mid-2026.For years, the yen-funded carry trade quietly pumped liquidity into risk assets without most investors noticing the mechanism. Traders borrowed yen at near-zero rates and deployed the capital into hi ...

A Japanese financial industry chief has expressed frustration on X, complaining that crypto traders may have to wait until 2028 before key tax reform measures take effect. Quoting an unnamed political insider, the Japanese media outlet CoinPost reported that a one-year delay to the much-vaunted tax plans was possible, but was “yet to be finalised.” “This is an extremely slow schedule,” wrote Tomoya Asakura, the CEO of the wealth management giant SBI Global Asset Management. “Japan will lag behind not o ...