A Mainichi report said the dispute has focused on whether her chief public secretary knowingly communicated with operators tied to the Sanae Token project.
Japan Prime Minister Sanae Takaichi said she was not involved with a cryptocurrency token launched under her name, after questions emerged over contacts between people behind the project and her office. The token, dubbed "Sanae Token," was discussed during her appearance in the lower house of the National Diet of Japan, where she said she had been unaware of its existence. The controversy has centered on Tsuyoshi Kinoshita, Takaichi’s chief public secretary, who acknowledged communicating with business operators connected to businessman Ken Matsui. The token was reportedly developed by people linked to Matsui. Kinoshita said he believed the reference was to app points rather than an actual cryptocurrency. The episode stands out in a market where tokens named after public figures are easy to create and frequently appear, even as Japan has tried to balance support for Web3 with tighter protections against fraud and unauthorized token issuance. Takaichi has broadly backed Web3 and blockchain development, while her government has promoted tokenization (turning assets into digital tokens) and related crypto initiatives. The report also pointed to a broader policy backdrop in Japan. Japanese Finance Minister Satsuki Katayama recently said the country was on track to approve cryptocurrency exchange-traded funds, following the lead of the US, and Japan could approve its first Bitcoin fund by 2028.