Japan is set to implement tougher money laundering (AML) laws in the cryptocurrency sector, including adopting the "travel rule" recommended by the Financial Action Task Force (FATF).
Japan Prepares to Set Strict Rules to Prevent Money Laundering in Crypto Industry
This decision came in response to the FATF's assessment, which found Japan's current AML measures insufficient to combat financial crime.
According to local news outlet Kyodo News, Japan will implement stricter anti-money laundering measures, including the so-called "travel rule" of the Financial Action Task Force (FATF) from June 1.
The implementation of the travel rule is an important step for Japan as it aligns the country's AML framework with the international standards set by the FATF.
The travel rule requires cryptocurrency exchanges to share customer information during transactions to prevent money laundering and terrorist financing.
By adopting the travel rule, Japan aims to strengthen its efforts to combat financial crimes associated with cryptocurrencies.
The rule would increase transparency in transactions and make it easier to trace funds, making it more difficult for illegal actors to exploit the anonymity often associated with digital currencies.
The decision to implement stricter AML measures reflects Japan's commitment to maintaining the integrity of its financial system and protecting against illegal activity.
By addressing the shortcomings identified by the FATF, Japan aims to strengthen its reputation as a responsible and compliant jurisdiction in the cryptocurrency space.
*Not investment advice.
