Takaichi Memecoin Scandal Pushes FSA Crypto Bill Into Japanese Parliament Spotlight

Japan's Financial Services Agency submitted a landmark bill to parliament this week that would reclassify crypto assets as financial instruments, a move that coincides with new tabloid allegations that Prime Minister Sanae Takaichi's office may have known about the Sanae Token memecoin project before publicly denying it.

Takaichi Memecoin Launch and Fallout

The token launched on the Solana(SOL) blockchain on Feb. 25, as BeInCrypto reported. NoBorder DAO, a community led by entrepreneur Yuji Mizoguchi, issued it under a "Japan is Back" banner.

The project website featured Takaichi's name, likeness and a timeline of her political career.

On launch day, the token surged more than 40 times in value. Then Takaichi denied any involvement on Mar. 2, and the price crashed 58%.

The FSA opened a probe into NoBorder DAO for operating without a crypto exchange license. Token issuance was halted shortly after.

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Weekly Bunshun Allegations

Weekly Bunshun, a Japanese tabloid known for breaking political scandals, reported that developer Ken Matsui told the magazine his team informed Takaichi's office the project was a crypto asset.

That claim directly contradicts the prime minister's Mar. 2 denial, in which she said neither she nor her staff had been told anything about the token.

The publication says it obtained audio recordings of Takaichi's chief secretary spanning more than 20 years, in which the secretary reportedly described the project favorably. Another Japanese outlet reported that Takaichi's office had not responded to media inquiries as of Tuesday. She has not held a press conference since Feb. 18, when her second cabinet was inaugurated.

FSA Reform Bill Reaches Parliament

The regulatory dimension may carry more lasting weight. The FSA's bill, reported by Asahi Shimbun, would move crypto from the Payment Services Act into the Financial Instruments and Exchange Act, reclassifying digital assets as financial instruments for the first time.

Under the proposed law, the maximum prison term for unlicensed crypto sales would triple to 10 years. Fines would rise from ¥3 million to ¥10 million. The SESC would gain criminal investigation powers over crypto operators it has never previously held.

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