Japan to introduce strict policy against crypto money laundering
The Japanese government is now ready to take action against potential money laundering activities, which include cryptocurrency transactions tracing.
Japan is a good region for crypto investors. In this country, crypto investment is fully legal, and also the country’s Payment Services Act defines cryptocurrencies as a financial tool. In short holding & investing in cryptocurrencies is fully legal and also people aren’t required to pay any tax against profit below 200k JPY but above it, traders are required to pay nearly up to 55% tax.
On 24 May 2023, The Japanese government introduced a new framework as a new enforcement measure of Travel Rules to better track the proceeds of crime.
Under the new framework, government agencies will strictly & precisely track crypto-like financial transactions in line with global standards, to prohibit illegal crypto money laundering activities and this new measure will come into effect by next month.
In 2021, the country’s Financial Services Agency (FSA) requested crypto companies to implement its Travel Rule, after that decision the crypto companies under the Japanese jurisdiction are struggling. So crypto entrepreneurs believe that more challenges for crypto companies will occur shortly.
Japan is one of the top trusted friends of Hong Kong and recently Hong Kong introduced several rules against the crypto service providers and also proposed a plan to allow retail investors to enter the crypto sector.
Japan vs North Korea
Recently at the G7 central bank governors and finance ministers’ summit, a Japanese Ministry of Finance official talked about the North Korean government’s surging activities in the crypto sector.
The Japanese government official said that Korea used stolen cryptocurrencies to fund more than 50% of the missile programs, despite financial sanctions.
The Japanese ministry official urged the countries to bring more strict measures against the bad actors, which are involved in the crypto sector.
Read also: Global securities body suggests use traditional + new rules to regulate crypto
