Did Japan’s PM Actually Back the Memecoin Bearing Her Name?

Japans SANAE TOKEN saga has entered a new phase, with fresh media reports alleging the prime ministers office knew more than it admitted. But for crypto markets, the bigger story is what happens next in Tokyos legislature. The political noise and the regulatory signal are arriving at exactly the same time. How the Token Unraveled SANAE TOKEN launched on Solana on Feb. 25, as BeInCrypto reported. NoBorder DAO a community led by serial entrepreneur Yuji Mizoguchi issued it as part of a Japan is Back initiative, with Takaichis name and likeness on the project website. The token surged over 40x on launch day before Takaichis March 2 denial triggered a 58% crash. The FSA opened a probe into NoBorder DAO for operating without a crypto exchange license. The tokens operators halted issuance shortly after. The SANAE TOKEN website describes the token as not just a meme, but the hope of Japan, alongside a portrait of Prime Minister Takaichi and a timeline of her political career. Japanese Tabloid Reports Secretarys Approval Weekly Bunshun, a Japanese tabloid known for breaking political and celebrity scandals, says developer Ken Matsui told the magazine his team informed Takaichis office that the project was a crypto asset. That directly contradicts her March 2 denial. Takaichi said neither she nor her office had been told anything about the token. The publication says it obtained audio recordings of Takaichis chief secretary over a period of more than 20 years, reportedly describing the project favorably. Another Japanese online media reported that Takaichis office had not responded to media inquiries on the matter as of Tuesday. Takaichi has held no press conference since February 18, when her second cabinet was inaugurated. The political dimension remains unresolved. What matters for crypto is whether the scandal accelerates or complicates Japans regulatory overhaul. FSA Bill Changes the Rules Japans Financial Services Agency submitted its landmark crypto reform bill to parliament this week. The legislation moves crypto from the Payment Services Act into the Financial Instruments and Exchange Act, reclassifying digital assets as financial instruments for the first time. As BeInCrypto previously reported, the maximum prison term for unlicensed crypto sales would triple to 10 years, with fines rising from 3 million to 10 million. The SESC gains criminal investigation powers it has never held over crypto operators. The SANAE TOKEN case was explicitly cited in Nikkeis reporting on the legislative push. The bill would also void transactions with unregistered operators by default, making it easier for investors to seek refunds a provision directly relevant to the SANAE TOKEN case.