Japan will prohibit Crypto use in money laundering with new laws: Report

The government of Japan is now working to prohibit possible situations of money laundering, which are possible via the crypto transactions in between exchanges.

Japan is a high-tech adaptive country and crypto trading & holding crypto assets are fully legal under the country’s laws. Also every company or service which provides crypto-related or any kind of services, will falls under the category of crypto business. 

Recently the lawmakers of Japan decided to revise the Act on the Prevention of the Transfer of Criminal Proceeds, to make the existing “laws on crypto transactions” better, in order to prohibit the illegal use case. 

The new revised regulatory rules will be able to trace the bad actors with better potential.

Under the new rules, all crypto businesses will be required to ask the details of all crypto transactions, even between the exchanges. New rules mandate all crypto businesses to keep the full name, and addresses of the customers. 

The drafted amendment to bring the new change in existing policies will be submitted to the extraordinary Diet session, which is to take place on October 3. 

This newly drafted bill will be added to the money transfer rules. And it will come into effect in May of 2023. 

High crypto tax 

No doubt that crypto businesses are allowed to provide services in Japan openly under the regulatory framework but the laws on crypto are not very friendly for the citizens. 

At present, every crypto Investor in Japan is allowed to invest in crypto but at the cost of up to 55% tax on the profit gained on investment, which is a very crucial law for the Japanese Crypto Community. 

In August of this year, a few crypto proponents & blockchain advocacy groups proposed a new tax reform to reduce the Japanese crypto tax, from 55% to 20%.

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