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Japan’s Financial Services Agency (FSA), the country’s top financial regulator, may launch an official investigation into the Solana-based memecoin Sanae Token, which is named after Prime Minister Sanae Takaichi, who has previously confirmed that the token has nothing to do with her or her office.
According to a report from local news outlet Kyodo News, NoBorder, the company allegedly behind the memecoin Sanae Token, did not register with the FSA and has yet to apply, in violation of FSA rules.
Under Japan’s Payment Services Act (PSA), entities that conduct “crypto-asset exchange services,” such as buying and selling crypto assets or managing crypto assets for others, are required to obtain a license from the FSA.
Issuing a digital asset token does not automatically require registration, but a token issuer that conducts token sales or exchanges in Japan—as is the case with NoBorder—will generally need to register.
Therefore, the report said that “the facts will be investigated.”
The Sanae Token coin was launched by NoBorder, a political YouTube channel run by entrepreneur Yuji Mizoguchi, on February 25. It currently has a market cap of $8.8 million.
However, Prime Minister Sanae, who won a clear majority in last October’s vote to become the leader of the ruling Liberal Democratic Party (LDP), has made it clear that she is not involved in the memecoin named after her.
Posting on X on March 2, the Prime Minister said: “I have heard that a cryptocurrency called Sanae Token has been issued and is being traded to some extent. Due to the name, it seems there are various misunderstandings, but regarding this token, I have absolutely no knowledge of it, and my office has also not been informed about what this token is.”
She added that “we have not given any approval regarding this matter. I am making this statement to ensure that the public does not misunderstand.”
The following day, Kyodo News reported that an anonymous source at the FSA had indicated that the NoBorder team did not have a digital asset exchange operating permit as of the end of January, with “no subsequent applications lodged.”
The source reportedly told the outlet that the FSA had already begun “voluntary interviews with the companies involved.”
Japan’s regulator seeks to move the goalposts
The FSA recently caused a stir after releasing a report last December proposing to move digital asset regulation from its current position under the PSA to be governed by the Financial Instruments and Exchange Act (FIEA), which is the regulatory framework for securities markets, issuance, trading, and disclosures.
The regulator said that the purpose of its review into the digital asset rules was to “enhance user protection by establishing regulations for financial products that correspond to the characteristics of crypto assets, in light of the increasing investment in crypto assets and the occurrence of fraudulent investment solicitations.”
This came amid evidence of a surge in global crypto-related fraud and theft last year, with blockchain analysis firm Chainalysis finding that illicit cryptocurrency addresses received at least $154 billion in 2025. This represented a 162% increase year-over-year (YoY).
Meanwhile, a new report from business management consulting firm McKinsey & Company named Japan among a few notable jurisdictions that have seen a recent surge in stablecoin payment volume.
Together, these developments put the direction of travel for digital asset regulation in Japan under the FSA and PM Takaichi very much in the spotlight for 2026.
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