- The country will adopt tougher laws to combat money laundering in cryptocurrencies
- The rules will come into effect on June 1st.
Japanese legislators decided toughen up anti-money laundering (AML) measures to track cryptocurrency transactions. On Tuesday, May 23, the parliament decided to introduce an enhanced anti-money laundering procedure, which will come into force next month.
Officials decided to revise the legislation after the International Financial Action Task Force (FATF) found it insufficient. Also in early May, the organization called on G7 countries such as Japan to lead by example in applying their controversial “travel rule” to cryptocurrency transfers.
Under this rule, any financial institution that processes crypto-currency transfers greater than $3,000 must transfer customer information to the exchange or recipient institution. This data should include the names and addresses of the sender and recipient, as well as account information.
The implementation of the rule in Japan is seen as a step towards meeting global standards, which are supported by the G-7 countries.
Recently, Japan has been promoting the spread of cryptocurrencies. At the end of 2022, the country simplified the process of listing tokens on exchanges, and at the beginning of the year it proposed to equalize crypto companies with the banking sector.