Japanese Crypto Transfer Rules Aim To Prevent Money Laundering
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Exchange operators would be required to share client information as part of a revision to the Act on Prevention of Transfer of Criminal Proceeds. The action is intended to follow money transactions made by individuals involved in unlawful activity.
A proposed legislative change would be presented before the extraordinary Diet session, which will start on October 3. The law would expand the definition of cryptocurrency in the travel regulations that govern money transfers. May 2023 is the anticipated implementation date.
FATF's Suggestion to Implement Rules
In 2019, the Financial Action Task Force (FATF), a global group that studies anti-money laundering policies, suggested that nations implement the rules. The United States, Germany, Singapore, and other countries have already enacted laws, and the European Union (EU) is getting set to do the same.
Crypto exchanges must give their customers' names and addresses when transmitting their cryptocurrency to another platform to comply with the updated regulation. The rules aim to identify the times and locations when criminals transfer cryptocurrency.
If an exchange operator violates the regulations, they would be given administrative instructions and must comply with remedial actions. For anyone who disobeys the directives, a criminal sanction would be applied to them.
Regulation to Stablecoins
The rules would also apply to stablecoins. When the amended Fund Settlement Act, enacted during this year's regular session of the Diet, goes into force in the spring, the circulation of these coins would be subject to a registration system. The government would implement a more robust crypto surveillance system in readiness for the growth of cryptocurrencies in Japan.
In the case of international money transfers, the Society for Worldwide Interbank Financial Telecommunications (SWIFT) and the Japanese Bankers Association's Zengin System keep track of client information and record and make accessible cash transactions between banks.
