BrokersView
Search
Download
English
Sign In

Japan to Impose Stricter Anti-Money Laundering Requirements on Crypto Sector

2023-05-25 Brokersview

Japan's cabinet has decided to impose stricter anti-money laundering regulations on cryptocurrency businesses as of June 1, Kyodo News reports. The measure will bring Japan's regulatory framework in line with international standards and allow the government to track digital asset transactions.

 

The Japanese lawmakers amended the law in December 2022 on the recommendation of the Financial Action Task Force (FATF), the intergovernmental organization that aims to develop policies to combat money laundering and terrorist financing.

 

FATF evaluated Japan's previous AML procedures and found them insufficient. In addition to the legislative revisions, the country’s regulators have been tightening regulations on cryptocurrencies, which can potentially be used to launder illicit funds.

 

One such mechanism, called the "travel rule," allows Japanese authorities to better track digital currencies. It requires service providers to identify both parties of a crypto transfer, and that information "travels" with each transaction.

 

Besides cryptocurrencies like Bitcoin, the latest regulations also cover stablecoins linked to fiat currencies or various commodities. If an entity fails to comply with the amended orders by the Japanese regulator, it will face criminal prosecution.

 

The Group of Seven (G7), a group of developed economies, recently held a summit in Hiroshima, Japan. Prior to the meeting, FATF Chairman T. Raja Kumar had urged the G7 to bring an "end to the lawless crypto space." Recently, Pakistan announced its intention to ban online cryptocurrency services, citing FATF requirements.

 

(Source: Bitcoin.com)

Share

Loading...