Japanese Government Takes New Cryptocurrency Decisions: What Will Their Next Behavior Be?

According to local news, the Japanese government cryptocurrency passed a cabinet decision to amend existing laws to prevent money laundering using the

Japan’s executive body, the cabinet, decided on Friday to move forward with amendments to the country’s Foreign Exchange Law and Prevention of Transfer of Proceeds of Crime Law, Bittimes reported over the weekend.

Users’ Names and Addresses to be Shared in Transfers to Cryptocurrency Exchanges in Japan

The cabinet decision comes after news that the government plans to revise the Prevention of Transfer of Proceeds of Crime Act, which targets remittances, in an effort to prevent criminals from using cryptocurrency exchanges for money laundering.

Legal penalties for money laundering-related crimes will also be increased, and the assets of organizations and individuals determined by the UN to be involved in the proliferation of weapons of mass destruction in the country can be frozen.

While Japan has sought to enforce anti-money laundering standards recommended by the Financial Action Task Force, a global watchdog, since last year, local cryptocurrency exchanges have struggled to limit the scope of the rules, citing the burdens and costs of compliance.

new changes, bitcoin and crypto exchanges to share information such as customers’ names and addresses when transfers are made between platforms, and could impose penalties for organizations violating these rules.

The cabinet-approved revisions are now scheduled to be submitted to the National Assembly, Japan’s legislature, the report said.

In Japan, the Crypto Asset Exchange Association (JVCEA) has requested its member organizations to take measures as self-control. Major local exchanges such as Coincheck and GMO Coin started responding to this demand around April.

*Not investment advice.