The Japanese government will implement remittance rules next spring to deter criminals from utilizing cryptocurrency exchanges to launder money. Exchange operators would be required to share client information as part of a revision to the Act on Prevention of Transfer of Criminal Proceeds. The action is intended to follow money transactions made by individuals involved in unlawful activity. A proposed legislative change would be presented before the extraordinary Diet session, which will start on October 3. The law would expand the definition of cryptocurrency in the travel regulations that govern money transfers. May 2023 is the anticipated implementation date. FATF’s Suggestion to Implement Rules In 2019, the Financial Action Task Force (FATF), a global group that studies anti-money laundering policies, suggested that nations implement the rules. The United States, Germany, Singapore, and other countries have already enacted laws, and the European Union (EU) is getting set to do the same. Crypto exchanges must give their customers’ names and addresses when transmitting their cryptocurrency to another platform to comply with the updated regulation. The rules aim to identify the times and locations when criminals transfer cryptocurrency. If an exchange operator violates the regulations, they would be given administrative instructions and must comply with remedial actions. For anyone who disobeys the directives, a criminal sanc...
