Beginning June 1, Japan will introduce stronger measures against money laundering for cryptocurrency transactions. This step is taken to bring Japan’s laws in line with international standards for cryptocurrencies.
As part of the new measures, Japan will implement the “travel rule” for financial institutions and crypto exchanges. This rule mandates the sharing of customer information when processing cryptocurrency transfers exceeding $3,000. The shared data must include the names, addresses, and account details of both the sender and receiver.
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During a G7 meeting in Japan in mid-May, the “travel rule” was a topic of discussion among member countries. This rule is a part of the Financial Action Task Force’s (FATF) efforts to improve the tracking of real-world identities associated with crypto asset transactions.
In response to security breaches at Mt.Gox and Coincheck, Japan’s financial regulator, the Financial Services Agency (FSA), introduced new rules for crypto exchanges. These regulations aim to safeguard customers and include measures such as keeping customer and company assets separate, conducting yearly audits to verify holdings, restricting leverage trading on exchanges, and mandating licensed exchanges to store at least 95% of customer funds in secure cold wallets.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
