Japan is moving forward to introduce monetary rules with the aim to prevent money laundering acts using cryptocurrency. The Japanese government’s this move has landed amid the increased uncertainty in the global crypto market.
Crypto trading to get tough in Japan?
As per reports, the authority will be revising the Act on Prevention of Transfer of Criminal Proceeds. This will require the customer to share details among exchange operators. The Japanese government claims that this will help them to track money transfers by users who are engaged in illicit acts.
An amendment draft against the law will be filed on October 3, 2022, to the extraordinary Diet session. However, this draft will also include digital assets in the money transfer rule. The report suggests that this amendment might come into effect by Mat 2023.
However, the revised rules will ask crypto exchanges to provide user details which will include the customer’s name and address. This rule will apply when users will be sending crypto to another exchange.
This will keep the authorities in the loop in order to keep in check. However, violators will be subject to criminal penalties.
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Nations adopting new rules
Earlier, the Financial Action Task Force (FATF) which examines anti money laundering measures asked the country to adopt rules. Nations like the United States, Singapore, Germany and other countries have already taken steps toward it. They have passed legislation towards it. While the EU is moving forward to apply them.
These set of rules are approaching the global crypto industry amid increased uncertainty among investors. The digital asset market cap has dropped under the crucial $1 trillion mark.
However, the market has absorbed massive hits like Terra LUNA and UST. This historic collapse vanished around $62 billion from the market in just a few days.
Earlier, Coingape reported that Binance, the world’s largest crypto exchange is trying to return to Japan after 4 years.
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