In a positive move for the crypto industry, Japan’s cabinet has given the go-ahead for new crypto regulation to tackle money-laundering crimes.
Japan has added a new item to its list of crypto-friendly measures being adopted in the last few months. In the latest development, Japan’s cabinet has lent support to new crypto regulation focused on anti-money laundering in the crypto sector. The crypto industry is affected negatively by such crimes, and the new rules could help it prevent such instances in the future.
The new crypto regulations passed by Japan’s cabinet will be enforced from June 1. As a matter of fact, the Financial Task Force (FATF) had outlined some drawbacks in Japan’s rules regarding anti-money laundering, after which the country made some changes in December 2022.
The new rules to be followed by the crypto sector in Japan are made on the same lines as the ‘travel rule,’ which was also a point of discussion at the recent G7 meet in Japan. The rule would require exchanges and other crypto firms to disclose transactions over $3000 to authorities while sharing information about the receiver and sender.
Japan’s domestic regulator of financial services, the Financial Services Agency, also has its own rules for the country’s crypto sector and several provisions to protect users and investors in crypto from fraud.
Earlier, the FATF President T. Raja Kumar had sent a message before the G7 meeting, saying, “The G7 must lead by example in fully and effectively implementing the FATF Recommendations, which are the global standards on combatting money laundering, terrorism financing and proliferation financing.”