Japan updates six laws to fight money laundering through cryptocurrencies. Details here

According to the local media, the Japanese government passed a proposal on October 14 to amend six laws associated with the Foreign Exchange Act to stop cryptocurrency money laundering.

The cryptocurrency exchange companies will now need to confirm information such as user names and notify the business owners, according to the new laws.

The measure suggests raising the penalty for money laundering offences as part of its relatively strict approach to crimes fueled by cryptocurrencies.


The Japanese government also has the authority to freeze the assets of groups and people named by the UN if they are discovered to be complicit in the proliferation of weapons of mass destruction (WMD).



According to the local press, the government will introduce new remittance regulations for digital currency exchanges as a measure against money laundering.

Additionally, the bill requires providers to ensure they have the most recent list of people and organisations facing sanctions.
This choice was made in the context of Japanese officials reviewing and lowering corporation tax regulations for cryptocurrency companies starting in 2023 in response to criticism and claims that the laws are onerous from lobbying groups for the industry. People cannot, however, overlook that the government wants to expand the web space to grow their economy amid all the crypto-related rules.

FAQs:

1. When will the new laws take effect?
   The amended regulations are anticipated to take effect in May 2023.
2. Has the amended bill received approval from the Cabinet?
   The amended bill has already received approval from the Cabinet and will soon be presented to the current Diet session.