On October 4th, 2025, Japan’s Asamoto was elected as the new leader of Japan’s Liberal Democratic Party. She is scheduled to be appointed the country’s first female prime minister during an extraordinary diet session on October 15th.
Her high economic policy, known for her growth and financially positive approach, prioritizes promoting the end of deflation and economic expansion. Although she has not made an explicit statement about cryptocurrency, her financial stance and potential cooperation with the opposition could impact crypto tax reforms that Japan’s digital asset industry has long anticipated.
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Japanese Iron Lady: Takaichi’s Profile
Kochi has long praised the late British Prime Minister, Margaret Thatcher. Her admiration draws closer to realizing ambitions related to the “Iron Lady” persona.
Born in 1961, Kochi graduated from the Faculty of Business Administration at Kobe University, trained at the House of Representatives Government Management Institute, and gained practical experience as a fellow in the US Congress. After working as a television station, she was first elected to the House of Representatives in 1993 and is currently serving her tenth term.
As a politician, she has established important positions, including three terms of office as Minister of Home Affairs, Communications and Economic Security, and special appointments in the Cabinet Office. She played a central role during the ABE administration, demonstrating the impact of economic and security policies.
After being elected as LDP leader, she emphasized her resolve by saying, “I let everyone work like a carriage. I abandon the concept of work-life balance.”
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Contrast with former Prime Minister Isba
Kochi’s approach to cryptocurrency and Web3 is different from that of former Prime Minister Isba. In August 2025, Isba announced its support for Web3 and blockchain technology at WebX2025, the country’s largest Web3 conference. However, when asked about individual taxation on cryptocurrencies during a diet session in December 2024, Isba was cautious and disappointed stakeholders in some industry.
Isba spoke actively at the public event, but he is reluctant to pursue concrete tax reform. Kochi has not issued a specific statement on cryptocurrency policy, but her aggressive financial approach and tax reduction orientation could indirectly support sector reform.
Opposition cooperation and potential tax reform
A key factor in potential cryptocurrency tax reform is Takae’s policy towards the opposition. She has shown her intention to strengthen cooperation with the Japan Innovation Party and the Democrats, which have historically supported cryptocurrency tax reform.
Democrats have historically supported crypto tax reform. Its leader, Tanaka Kiyoshi, expressed disappointment at Prime Minister Isba’s cautious attitude. Japan’s Innovation Party is also positive about deregulation and tax reform. If Kochi strengthens its cooperation with these opposition, it could increase the likelihood of implementing cryptocurrency tax reform as part of a broader tax reduction policy.
On August 29, 2025, the Financial Services Agency (FSA) officially requested a review of the 201026 cryptocurrency tax. The proposed measures include: Introduction of individual taxation – includes lining up stocks with approximately 20% of stocks compared to current progressive tax rates of up to 55%. The government’s “New Capitalist Grand Design 2025 Revised” explicitly mentions it taking into account individual taxation. If Takachi deepens cooperation with the opposition parties and prioritizes tax cuts, these reforms can be achieved in the usual diet session in 2026.
Trump visits Japan: Impact on Crypto Policy
One of Kochi’s first important foreign policy challenges is the planned US President Donald Trump in late October. Trump plans to visit Japan for three days from around October 27th. During this visit, he will hold his first summit with Kochi.
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Since taking office in January 2025, Trump has stated his intention to make the United States a global center for crypto and implement policies such as building a Bitcoin strategic reserve and establishing a Cryptocurrency Advisory Committee. The shared pro-views of both leaders may allow for adjustments in economic policy during the meeting. However, Kochi’s conservative values could affect the extent to which she coincides with Trump’s crypto initiative. Discussions regarding Bitcoin reserves and deregulation of cryptocurrency are important indicators for Japan’s cryptocurrency industry.
Uncertainty and potential impacts
Important uncertainty remains regarding Kochi’s cryptocurrency policy. Her main focus may remain on traditional industrial policy and national security. Cabinet reservations are an important factor. Katsunobu Kato’s finance minister can maintain policy continuity. However, Kato’s involvement in the cryptographic problem under Isba could limit dramatic changes. Digital Minister Masaki Taira also has not made a clear specific location regarding cryptocurrency or Web3.
Kochi’s aggressive fiscal policy could have potentially negative consequences. Active government spending will accelerate inflation and encourage the Bank of Japan to strengthen its financial policies. This could be a headwind for risky assets, including cryptocurrencies. Her conservative orientation could lead to stricter measures against money laundering and terrorist financing. Furthermore, her interest in semiconductors and traditional manufacturing could potentially be deprived of cryptocurrency and Web3.
Kochi’s election as an LDP leader represents a turning point in Japan’s cryptocurrency industry. Her strengthened cooperation with the opposition and her tax reduction stance could create opportunities for long-standing reform, including individual taxation and carry-over. However, her limited direct involvement with cryptocurrencies, potential regulatory tightening, and fiscal policy risks also create uncertainty. The appointment of the cabinets for the Trump Summit in late October, opposing adjustments and results will be key factors affecting the future of the industry.
