Japan Greenlights Tougher AML Rules for 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 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 Oct. 14, Bittimes reported over the weekend.
- The cabinet decision follows a Nikkei report from September that said the government is planning revisions to 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 global AML watchdog, the Financial Action Task Force (FATF), since last year, while local crypto exchanges have been fighting to limit the rules' scope citing compliance burdens and costs.
- The new amendments seek to mandate crypto exchanges to share information like customers' names and addresses when transfers are made between platforms, and could introduce penalties for entities in violation of these requirements.
- The revisions, which were approved by the cabinet, is now scheduled to be submitted to the national legislature of Japan, known as the Diet, the report said.