The legislators in Japan have decided to introduce a stricter Anti-Money Laundering measure to trace the cryptocurrency transactions from 1st June.
On 23rd May, the parliament in Japan decided to roll out tougher AML procedures from the next month, according to a report that came in the same day from Kyodo News, a local media outlet. This move aims at bringing the legal framework of the country in line with the global regulations surrounding crypto. The legislators then revised the AML Legislation in December, after it was considered to be insufficient by the Financial Action Task Force, the international financial watchdog.
Japan Has Introduced Stringent crypto Regulation
According to multiple reports, a major feature of the new measures has been the enforcement of the Travel Rule which would keep a far more accurate track of proceeds from criminals. This rule requires any financial institutions that have been processing a crypto transfer greater than $3000 to pass on the information of the customer to the recipient exchange or institution.
This data should also include the address and name of the sender, as well as the recipient and the information from their account. The Travel Rule was negotiated by most global leaders in the middle of May at the G7 meeting that took place in Japan. The G7 Committee was pretty clear in its support for the Travel Rule to track crypto transactions.
For those wondering, Japan was one of the earliest adopters of cryptocurrency, wherein they legalized it as property. Crypto regulations in this country are some of the most stringent globally. The Financial Services Agency, the financial regulator of the country has also tightened the rules on crypto exchanges following the major hacks of Coincheck and Mt. Gox.