Japan To Tighten Rules On Tracing Crypto Transactions To Fight Money Laundering - Reports

MOSCOW (UrduPoint News / Sputnik - 23rd May, 2023) The Japanese government on Tuesday ruled�to tighten the rules designed to trace cryptocurrency transactions and combat money laundering through such assets in order to comply with global legal standards, Japanese news agency Kyodo reported on Tuesday.

Last year, the Japanese authorities decided to review its legislation aimed at preventing money laundering after the Financial Action Task Force, an international financial watchdog, described it as insufficient.

Under the new rules which will go into effect from June 1, Japanese oversight bodies will trace transactions by enforcing the travel rule which requires a financial institution involved in processing a crypto asset transfer to collect information about the sender and the recipient of assets and pass it on to other relevant institutions, the news agency reported.

The information should include the Names and addresses of the individuals or entities involved, the report said.

The assets targeted by the measures will include stablecoins and cryptocurrencies pegged to traditional currencies or commodities, Kyodo reported.

Those who fail to comply with the new rules introduced by the authorities may reportedly face criminal punishment.