Japan’s government has approved a cabinet decision to amend existing laws to curb money laundering using crypto, according to local news reports.
- The cabinet, which is Japan’s executive body, made the decision to move forward with the changes to the country’s Foreign Exchange Act and the Act on Prevention of Transfer of Criminal Proceeds on Friday, Bittimes reported over the weekend.
- The cabinet decision follows a Nikkei report from September that said the government was planning to revise the Act on Prevention of Transfer of Criminal Proceeds targeting remittances in an effort to stop criminals from using crypto exchanges to launder money.
- Japan has been looking to implement anti-money-laundering standards recommended by the Financial Action Task Force, a global watchdog, since last year, while local crypto exchanges have been fighting to limit the rules’ scope, citing compliance burdens and costs.
- The new amendments order crypto exchanges to share information like customers’ names and addresses when transfers are made between platforms, and could introduce penalties for entities that violate those rules.
- The revisions, which were approved by the cabinet, are now scheduled to be submitted to the National Diet, Japan’s legislature, the report said.