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Japanese Prime Minister Sanae Takaichi was acquitted in public From a digital currency that bears his name and likeness. The token collapsed by 58% within hours, and regulators moved to investigate the source.
This episode is the latest in a series of political coins that have burned individual investors around the world.
The Prime Minister’s denial causes a collapse
Takaichi is Japan’s first female prime minister and one of the most popular presidents in decades. His Liberal Democratic Party won 316 seats in the February 8 general election, an overwhelming majority, and his approval rating in the Cabinet is nearly 70%.
The SANAE token was launched on the Solana blockchain on February 25 without the knowledge of the Prime Minister. Serial entrepreneur Yuji Mizoguchi’s NoBorder DAO community published this book as part of the “Japan Bounces Back” initiative. an offer opportunity The project has Takaichi’s name and a picture of her.
It was Mizoguchi had previously stated In the YouTube show “REAL VALUE” he is in contact with Takaichi. This statement increased speculation that the symbol carries some sort of official support.
On March 2, Takaichi posted On the X website To close the narrative. The post has collected more than 63 million views. She said that neither she nor her office knew anything about the code. She added that no approval had been granted before.
The price of the token dropped from $0.0137 to $0.0058 almost immediately after its approval. By March 4, the market capitalization had grown to about $62,000 with a liquidity of only $25,000.
The Foreign Security Agency launched the probe
Japan’s Financial Services Agency (FSA) is now investigating the token’s operators. The agency found that the issuing company did not have the necessary cryptocurrency exchange license.
Under the Japanese Payment Services Act, the sale or exchange of digital assets requires registration with the Financial Services Administration (FSA). Violators face up to five years in prison or fines of ¥5 million.
A company called NEO, led by CEO Ken Matsui, claimed responsibility for designing the symbol. Matsui posted A public apology to Channel X on March 3, saying they had taken over all operations.
Mizoguchi republished Matsui’s statement and promised to cooperate with a media investigation. He wrote about X not evading responsibility or shifting blame to others. He said he intends to address the matter based on facts, not feelings.
However, the gap between his earlier statements on YouTube and the Prime Minister’s outright denial remains unresolved.
The Financial Revenue Agency confirmed that NEO was not on its list of registered exchanges until January. No subsequent application has yet been filed.
The structure of the code has come under further scrutiny. 65% of the total supply was allocated to operators.
Political memecoins in the global spotlight
Japan’s scandal reflects a pattern that is now emerging in many countries.
In the United States, President Donald Trump launched $ TRUMP On Solana in January 2025. His family and partners retained 80% of the offer and earned more than $350 million in fees.
Senator Chris Murphy introduced Code MEME To prohibit officials from issuing financial assets. rose Trump’s chief crypto officer, David Sachs, said that meme coins are collectibles, not just securities.
In February 2025, Argentine President Javier Milley To promote the $LIBRA token. It rose to a market value of $4.5 billion before collapsing 89% in three hours.
Insiders are said to have withdrawn about $100 million before the collapse. Milley now faces fraud investigations and calls for impeachment.
The regulatory gap persists
Each case exploits a similar loophole. Meme coins are generally outside the definitions of securities in most jurisdictions.
Japan’s framework may offer a narrower path. The Payment Services Act covers cryptocurrency exchange activities regardless of the type of tokens. The FCA can act against unlicensed operators without classifying tokens as financial securities (securities).
In the United States, the Securities and Exchange Commission under the Trump administration has narrowed the scope of the application of digital currencies. Mime currencies remain largely unregulated at the federal level.
There is no international framework that currently specifically addresses political memecoins. This loophole leaves individual investors vulnerable to propaganda-driven programs linked to public figures.
Industry observers say the SANAE TOKEN case may set a precedent. Japan’s response may shape how other regulators deal with this growing trend.
