Japan is focusing on implementing new rules to prevent money laundering, according to local reports. The rules focus on remittances and sharing of customer information.
The Japanese government has announced new actions in its bid to regulate the crypto market. Local media outlets reported that the government would monitor virtual currency transactions to prevent money laundering and would mandate the sharing of KYC-related information.
The new rules will come into effect from spring 2023 and will result in an amendment in the Act on Prevention of Transfer of Criminal Proceeds for the purpose of collecting customer information. The remittance rules regarding the prevention of money laundering will require regulation at the level of banks in order to be enforced.
The move marks yet another step by Japanese authorities at regulating the crypto market. The government has been particularly keen on ensuring that no illicit activity takes place and has also laid an emphasis on comprehensive taxation rules. Meanwhile, companies like SBI are working on crypto-related initiatives.
Attempt to regulate the industry
Japan’s authorities and stakeholders in the crypto industry have been experiencing challenges in their attempt to regulate the crypto market, even if outwardly, progress might be showing. There have been reports about self-regulation not working out as intended, though perhaps that might just be a limited development.
The changes in regulatory attitudes have led to the likes of Binance wanting to reenter the market. Other major developments include the passing of a landmark law focused on stablecoins, intended to protect investors as a result of the Terra incident.
Japan still attracting crypto exchanges
The whole swathe of crypto regulations coming into Japan has resulted in more exchanges wanting to enter the market, like Binance, as mentioned earlier. The latter has been out of the country, where cryptocurrencies are popular, for four years, and its reentry would mark a major win for it.
Among the positive changes that are forming is the fact that tax breaks are on the cards for crypto companies and investors. Japan’s Prime Minister Fumio Kishida hopes that this will stimulate the economy, and he has also talked about the importance of web3 in Japan’s future.
The developments have also led to FTX launching FTX Japan, which has been granted a related license to operate. The increase in crypto exchanges in the country should attract more investors to the space, which in turn could foster the economic growth that Kishida has hoped for.
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