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Japan to Combat Money Laundering by Revising Regulations

Japan is about to revise the currency money laundering regulation to reduce crypto money laundering instances. The world is gripped under the threat of cryptocurrency money laundering and illicit funding.

The Japanese government took the decision to establish new regulations even though they are well-advanced. This is because, when it comes to virtual currencies, the Act of Prevention of Transfer of Criminal Proceeds fails to serve the purpose. To rectify this gap, the government will reassess the existing legislation.

The update of the regulations will lead to cryptocurrencies being included in it. The review will also validate user data sharing across exchanges. This essentially will allow authorities to request exchanges for data on clients. This might include user data like name and address, as well as transaction details.

Japan’s decision is aimed to help them learn how cryptocurrency is being used to launder money.

All forms of digital currency, even stablecoins, will come under the purview of this law. The proposed change will be presented during the October 3 special Diet session by the authorities concerned.

If the revised law is passed, it’ll go into force in May 2023. The exchanges that are noncompliant will be issued mandatory remedial actions. However, failing to adhere to the law will lead to legal consequences.

Authorities were forced to take the sector seriously after crypto-related crimes surged in Japan. The authorities have also resolved to amp up cryptocurrency monitoring. As a result, businesses and investors are expecting stricter regulations in the future.

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