Japani The government is preparing to incorporate the Financial Action Task Force’s (FATF) crypto anti-money laundering (AML) guidelines into the legal code after the country’s parliament voted in favor of the measure.
NHK The report said lawmakers voted for the amended Act on the Prevention of Transfer of Criminal Proceeds in a vote late on Friday at the plenary session of the House of Councillors.
They also voted in favor of amending six existing laws, including the Act on Prevention of Transfer of Criminal Proceeds, the Act on Punishment of Organized Crime and the Act on Freezing International Terrorist Assets.
Many of these will have crypto-specific wording built into the terms of the Act – in accordance with FATF recommendations for the countries governing it.
The measures will lead to statutory penalties for offenses relating to money laundering. They will allow law enforcement to freeze assets on domestic platforms such as Token bitcoin (btc),
The media outlet noted that the legal amendment will “make it easier” for law enforcement officials and customs officials to mine crypto by obliging business operators exchanging crypto to disclose information about recipients, including their names. to track. This will essentially remove anonymity from crypto exchange transactions.
The legal changes will also apply to stablecoins and their issuers.
The legal amendments also provide details of the kind of warning notices that should be issued to those who fail to comply – as well as what kind of criminal penalties courts should apply in legal cases.
Why is Japan so set on regulating crypto?
Japanese investors have been hit hard by crypto exchange hacks – including the 2014 Mt Gox hack and the massive 2018 breach of Coincheck.
Since then, the nation has fast-tracked its crypto regulations. It is also prompting international counterparts to follow suit and adopt FATF and other crypto regulations.
Last month, regulator Financial Services Agency (FSA) Issued a call to DeFi players to participate in a “fact-finding survey” On the sector – a suggestion that DeFi regulations may follow in the coming months.
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