Japan Greenlights Tougher Anti-Money-Laundering Rules for Crypto

A cabinet decision to revise six foreign-exchange laws closely follows a government plan to introduce new rules for remittances, all aimed at tightening AML measures for crypto.

AccessTimeIconOct 17, 2022 at 1:28 p.m. UTC
Updated Oct 17, 2022 at 2:40 p.m. UTC

Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.

Japan's government has approved a cabinet decision to amend existing laws to curb money laundering using crypto, according to local news reports.

  • The cabinet, which is Japan's executive body, made the decision to move forward with the changes to the country's Foreign Exchange Act and the Act on Prevention of Transfer of Criminal Proceeds on Friday, Bittimes reported over the weekend.
  • The cabinet decision follows a Nikkei report from September that said the government was planning to revise the Act on Prevention of Transfer of Criminal Proceeds targeting remittances in an effort to stop criminals from using crypto exchanges to launder money.
  • Japan has been looking to implement anti-money-laundering standards recommended by the Financial Action Task Force, a global watchdog, since last year, while local crypto exchanges have been fighting to limit the rules' scope, citing compliance burdens and costs.
  • The new amendments order crypto exchanges to share information like customers' names and addresses when transfers are made between platforms, and could introduce penalties for entities that violate those rules.
  • The revisions, which were approved by the cabinet, are now scheduled to be submitted to the National Diet, Japan's legislature, the report said.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.

CoinDesk - Unknown

Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.