The Japanese government tightened some rules regarding remittances and exchanges. Criminal activities that enter the crypto exchange are prohibited in order to prevent money laundering.
Japanese regulators will enact a Law on the Prevention of the Transfer of Criminal Proceeds, which will require exchange operators to share customer information. The initiative aims to track remittances made by individuals involved in illegal activities. The draft law is set to be released on October 3.
Latest Information Regulations
When sending cryptocurrency to other exchanges, some information will be shared, such as the customer's name and address. Any exchange operator who violates this legal regulation will face administrative penalties as well as criminal charges.
While this law applies to stablecoins that will be regulated in May 2023, Furthermore, the Financial Action Task Force (FATF) has reviewed these money laundering measures and made recommendations to other countries to adopt the rules. The United States, Germany, and Singapore are among those that have enacted the legislation.
Many Proposals to Regulate the Crypto Sector
In anticipation of the spread of cryptocurrency growth in Japan, the government will impose a broader cryptocurrency monitoring system. Japan, for example, has proposed amendments to the Foreign Exchange and Foreign Trade Act that would add stablecoins to the list of regulated assets.
The legislation aims to prohibit the use of stablecoins in transfers to sanctioned countries such as North Korea and Russia.
Amid increasing crypto regulations, the government views the sector as an important catalyst to spur economic growth. As reported by Finbold, Japan's regulator, the Financial Services Agency (FSA), is proposing to ease the corporate crypto tax to strengthen the economy.
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