Reports in Japan suggest Prime Minister Sanae Takaichi’s office may have been aware of the SANAE TOKEN launch, contradicting earlier denials.
The memecoin, issued by NoBorder DAO on Solana, surged more than 40-fold after launch before falling 58% following Takaichi’s public rejection of any involvement.
Japanese tabloid Weekly Bunshun claims to have audio evidence indicating the prime minister’s secretary had prior knowledge of the project, though the office has not confirmed the reports.
The controversy has coincided with a major regulatory push, as Japan’s Financial Services Agency moves to reclassify crypto assets as financial instruments under securities law.
Under the proposed rules, penalties for unlicensed crypto sales could rise to 10 years in prison, while enforcement powers would expand significantly.
The SANAE TOKEN case has been cited in legislative discussions, with new provisions also allowing transactions with unregistered operators to be voided, improving investor protection.
The episode highlights the intersection of political risk and regulatory tightening in Japan’s crypto market, as authorities move to strengthen oversight following high-profile incidents.