- The country will adopt tougher laws against money laundering in cryptocurrencies
- The rules will take effect on June 1
Japanese lawmakers have decided to tighten anti-money laundering (AML) measures to track cryptocurrency transactions.
Parliament on Tuesday, May 23, decided to introduce enhanced anti-money laundering procedures that will take effect next month.
Public officials decided to review the legislation after the International Financial Action Task Force (FATF) found it insufficient.
Also in early May, the organization called on G7 countries like Japan to lead by example in applying its controversial “travel rule” for cryptocurrency transfers.
The rule requires any financial institution that processes cryptocurrency transfers over $3,000 to share customer information with the exchange or beneficiary institution.
This data must contain the names and addresses of the sender and recipient, as well as account information.
The introduction of the rule in Japan is seen as a step toward meeting the global standards that G-7 countries support.
Japan has recently promoted the spread of cryptocurrencies.
At the end of 2022, the country simplified the process of listing tokens on exchanges, and earlier this year it proposed to equalize cryptocurrencies with the banking sector.
In late 2022, the country simplified the process of listing tokens on exchanges.