Key Points:
The decision was announced by Japan’s cabinet on Tuesday, after the global financial crime watchdog FATF found the country’s anti-money laundering measures inadequate.
According to the research, oversight groups have increased their surveillance of crypto assets that might be used to launder money, a practice in which money earned from unlawful acts is made to seem legitimate by processing it via legal transactions.
The FATF suggested the travel rule in 2019 to prevent money laundering and terrorism funding using cryptocurrency. By June 2022, the FATF was pressing member countries to pass travel rules “as quickly as feasible.”
The regulation mandates a financial institution conducting a crypto asset transfer to pass on customer information to the next institution, including the sender and recipient’s names and addresses.
Stablecoins, or cryptocurrencies tied to a currency such as the US dollar or a commodity, are among the crypto assets sought. If offenders do not comply with authorities’ remedial directives, they will face criminal charges.
Earlier this month, the Group of Seven (G-7) international political body expressed support for the FATF’s efforts to hasten the worldwide implementation of its travel rule, which requires financial institutions to provide information about crypto money transfers. At the time, Japan had not enacted the travel rule. Japan’s decision to enforce the regulation is considered as an attempt to line with global norms backed by the G-7, of which Japan now serves as president.
Japan was an early embrace of cryptocurrency, legalizing it as property. Japan’s cryptocurrency restrictions are among the most severe in the world. After the massive hacks of Mt.Gox and Coincheck, Japan’s financial regulator, the Financial Services Agency, tightened regulations on cryptocurrency exchanges.
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
Harold
Coincu News
Cosmos Developer Interchain Foundation sold 3000 ETH from its ICO today, totaling 21,600 ETH sold…
George Town, Grand Cayman, 22nd November 2024, Chainwire
Inflation Warning by Vanguard highlights risks during Trump’s term, citing tariffs and tighter labor markets…
Clanker token trading volume hit $59.8M on Nov 21, accounting for 14.75% of PumpFun. Fee…
Bitcoin Spot ETF inflows hit $1.005B on Nov 21, led by BlackRock’s $608M and Fidelity’s…
Discover the success story of a New York tech entrepreneur who made $72M from a…
This website uses cookies.