Japan Plans To Enact Anti-Money Laundering Legislation That Targets Crypto Exchanges

By modifying some of the current financial sector legislation, Japan is stepping up its efforts to control the use of cryptocurrencies in supporting criminal activities through exchanges.

According to a September 27 article in Nikkei, new remittance regulations that will prevent criminal organizations from utilizing cryptocurrency exchanges to launder money will be introduced by Japanese officials.

A amendment to the Act on Prevention of Transfer of Criminal Proceeds that will likely go into effect in the spring would call for exchanges to share client information between operators. Japanese authorities seek to track money transactions made by those involved in unlawful activity through the legislation reform.

Communication of information – Japan

When sending cryptocurrency to another exchange, details including the customer’s name and address must be disclosed. In addition to criminal sanctions, crypto exchanges that break the law will also be subject to administrative counseling and corrective orders.

Amendments to the statutes are anticipated to be brought up during the extraordinary Diet session scheduled for October 3; if approved, cryptocurrency will be added to the list of prohibited payment methods.

Additionally, in the wake of the collapse of the Terra (LUNA) ecosystem, the law will also target stablecoins. Stablecoins will be subject to a registration mechanism under the proposed laws.

Additionally, the regulations were enacted in response to the Financial Action Task Force’s (FATF) recommendation that nations implement similar laws to combat money laundering. In this line, the United States, Germany, and Singapore are among the countries to pass the laws. 

Additional plans to govern the crypto industry

In general, Japan has changed its regulatory position to prepare for the expansion of the bitcoin industry, and officials expect to pass more regulations in the near future.

For instance, the nation has put out a proposal to add stablecoins to the list of regulated assets under the Foreign Exchange and Foreign Trade Act. The rule aims to forbid the use of stablecoins for transfers to nations like North Korea and Russia that are subject to sanctions.

The government sees the cryptocurrency industry as a key driver of economic growth despite an increase in laws surrounding it.  Japan’s financial services agency (FSA) suggested lowering the corporate cryptocurrency tax in order to boost the country’s economy.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

CoinCu News