Japan preparing amendment to enforce FATF travel rules on crypto by May 2023: report

Compliance with international anti-money laundering standards is the latest in a series of measures that Japan has taken in recent months to improve its cryptocurrency regulations. New

Japan should adopt new rules on money transfers to prevent the use of crypto for money laundering purposes, according to local news agency Nikkei. The amendments will allow Japan to keep abreast of the recommendations of the Financial Action Task Force (FATF).

An amendment to the Prevention of Transfer of Proceeds of Crime Act will be presented to the National Diet on October 3 that will add cryptography to the so-called travel rules on money transfers, Nikkei reported. The rules will be changed to require exchange operators to collect customer information in transactions involving cryptocurrencies and stablecoins, as they already do for cash transactions.

The Foreign Exchange and Foreign Trade Act and the International Terrorist Assets Freeze Act will be updated to reflect the same changes, which will come into force in May 2023. The amendment provides for the issuance of "administrative guidelines and Remedial Orders” for trades that violate the new rules, with criminal penalties for violations of the remedial orders.

Coming soon… FATF assessment of Japan.#FollowTheMoney #StopMoneyLaundering #AML pic.twitter.com/0tvdWFOcyb

The amendment will incorporate into Japanese law the recommendations introduced by the FATF...