Morning Minute: Japan's Crypto-Friendly Takaichi Wins Landslide Victory
Sanae Takaichi, leader of Japan's ruling Liberal Democratic Party, won a decisive victory in Japan's lower house elections, securing a projected 274-326 seats out of 465. This result strengthens her mandate to pursue major reforms, notably slashing the crypto tax rate from 55% to a 20% flat rate, introducing loss carryforwards, reclassifying cryptocurrencies as financial products, and considering crypto ETFs by 2028. Following the election, the USD/JPY rose 0.2% and BTC/JPY surged nearly 5%. The Nikkei 225 also hit a record high, gaining 6%. Japan, the world’s third-largest economy, is poised to become one of the most crypto-friendly major markets, making it more competitive with Hong Kong and Singapore. The policy changes address previous high taxation that drove crypto investors abroad and capitalize on recent 120%+ growth in on-chain value. Takaichi’s supermajority removes political uncertainty, paving the way for swift reforms in crypto regulation, tax policy, and digital asset infrastructure.
