- Japan is planning new rules that will combat crypto-exchange money laundering.
- The country’s travel rules will be expanded to include crypto and stablecoins.
- The legislation will come into effect in May 2023.
The Japanese government is said to be planning to implement new remittance restrictions in the near future, a report shows. These rules, which would compel exchange operators to share client information with one another, are intended to deter criminals from utilizing cryptocurrency exchanges as a means to launder money.
The legislation Act on the Prevention of Transfer of Criminal Proceeds is going to be changed to include a provision that requires exchange operators to share client information with one another. At the National Diet (Japan’s bicameral parliament) session, which is going to take place on October 3, the proposed new legislation amendment will be presented for consideration.
The laws governing the movement of money, often known as travel rules, would be expanded to include cryptocurrency transactions if the legislation is passed. It is anticipated that it would go into effect in May of 2023.
If an exchange operator is found to be in violation of the regulations, they will be subject to administrative advice and remedial actions. Those who disobey these kinds of demands will be subject to legal repercussions, the report says.
In addition to that, the legislation will be applied to stablecoins as well. Effective in the spring of the next year, the issuance of such coins will be strictly governed by a registration system. Lastly, the new rules will help the Japanese government in restricting the financial and real estate dealings of anyone engaged in North Korea’s and Iran’s nuclear projects. This is done with the goal of cutting off funds for nuclear development in these nations