Japan Revises Six Laws To Combat Cryptocurrency Money Laundering

• Japan revises six laws related to the Foreign Exchange Act.
• The bill proposes an increase in penalties for crimes related to money laundering
• Crypto exchanges will now be required to verify information such as the users name.

On October 14, the Japanese government passed a proposal to revise six laws related to the Foreign Exchange Act to combat cryptocurrency money laundering, as reported by  local media.

As per the new laws, crypto exchange firms will now be required to verify information such as the user names and will also have to notify the business operators.

As a part of its rather stringent approach towards crimes fuelled by cryptocurrencies, the bill proposes an increase in penalties for crimes related to money laundering. Additionally, if found involved in the proliferation of weapons of mass destruction, the Japanese government can also freeze the assets of organizations and individuals designated by the United Nations.

The Cabinet has already approved the revised bill, and it will soon be submitted to the current Diet session.

The local news also reported that the government would bring in new remittance rules to digital currency exchanges as an anti-money laundering step. The bill also makes it mandatory for providers to make sure that they have the updated list of individuals and groups subject to sanctions.

The new rules are expected to come into effect in May 2023.

This decision comes in the backdrop of Japanese officials re-assessing and easing corporate tax rules for crypto companies from 2023 after crypto lobby groups criticized and said that the tax rules are harsh. However, amid all the crypto-related regulations people can not ignore the fact that the government is looking to boost the web3 space for strengthening thier economy.