A new cryptocurrency called SANAE TOKEN, which used the name and likeness of Japan’s first female prime minister Sanae Takaichi without authorization, suffered a dramatic collapse in value after the leader publicly denounced the project. Launched on the Solana blockchain without any official approval, the token quickly lost 58 percent of its value within hours of Takaichi’s statement. The companies and individuals associated with the project soon faced public scrutiny, while Japan’s Financial Services Agency (FSA) swiftly initiated an investigation into the affair.
SANAE TOKEN Experiences Steep Downturn
The decision to release SANAE TOKEN drew on Takaichi’s prominence in Japanese politics and the strong showing by her Liberal Democratic Party (LDP) in recent elections. The cryptocurrency debuted on February 25 as part of the NoBorder DAO community’s “Japan is Back” initiative via Solana, prominently displaying Takaichi’s name and illustrations on its website. The speculation that the coin had an official connection to Takaichi was further fueled when entrepreneur Yuji Mizoguchi appeared on YouTube, claiming to be in contact with her team. This assertion significantly heightened expectations around the project’s legitimacy.
On March 2, Prime Minister Takaichi took to social media to declare that neither she nor her office had ever approved the project or authorized the use of her name. She underscored that neither she nor her staff had ever received information regarding the token and that no permissions had been granted. Following her announcement, SANAE TOKEN’s price nosedived from $0.0137 to $0.0058, while its market capitalization sank to just $62,000 by March 4.
FSA Initiates Regulatory Investigation
Japan’s Financial Services Agency opened a probe into the entities behind SANAE TOKEN soon after the controversy erupted. Initial findings revealed that the team behind the cryptocurrency lacked the mandatory crypto exchange license required under Japanese law. Regulations stipulate that any project offering or trading crypto assets must obtain official FSA approval. Failure to adhere can result in penalties ranging from hefty fines to prison terms of up to five years.
The company that claimed responsibility for the token’s design—“neu,” with Ken Matsui as CEO—issued a public apology on social media, emphasizing that all operations had been managed in-house. Yuji Mizoguchi also addressed the situation, promising transparent communication with the public and an evidence-based approach. Nonetheless, the discrepancy between initial project claims and Takaichi’s categorical denial remains unresolved. The regulator further stated that “neu” does not appear in official exchange records, nor has it submitted any licensing applications.
Regulatory Gaps Exposed by Political Meme Tokens
The SANAE TOKEN incident in Japan has revived global debate over the risks associated with meme tokens that link themselves to politicians. Similar controversial ventures, such as the $TRUMP token in the United States—which allocated a large share to Donald Trump’s family and inner circle—and Argentina’s $LIBRA token, connected to President Javier Milei amid dramatic price swings, have reignited questions over when and how regulators should step in.
Because meme tokens often do not fall neatly under existing securities law in most jurisdictions, regulatory loopholes persist. Japan’s Payment Services Act, however, does require all types of crypto exchange activity—regardless of a token’s structure—to be licensed. In contrast, U.S. agencies are narrowing legal definitions in the sector, but comprehensive federal regulation has yet to be enacted.
There are currently no international standards specifically addressing tokens associated with well-known political figures. This regulatory vacuum leaves individual investors vulnerable to schemes that appear to carry the endorsement of public personalities. Industry observers suggest that Japan’s experience with SANAE TOKEN could serve as a template for how other countries confront similar challenges in the space.
