Japan is planning to introduce remittance rules to prevent money laundering through cryptocurrencies, Nikkei Asia reported Tuesday.

See related article: China says it busted US$5.6B crypto money laundering ring

Fast facts

  • The Japanese authorities plan to revise “The Act on Prevention of Transfer of Criminal Proceeds” to require exchanges to provide user data when sending crypto to another exchange, according to Nikkei Asia.
  • The amendment is expected to be submitted to a parliamentary session in October, with the rules scheduled to take effect in May 2023.
  • The Financial Action Task Force (FATF), the world’s money laundering and terrorist financing watchdog, has suggested jurisdictions worldwide introduce the cryptocurrency “travel rule,” which requires digital asset firms to share and screen customer data for transfers above a certain threshold.
  • Japan’s neighboring nation South Korea introduced FATF’s travel rule in March.

See related article: DeFi, NFT access at stake as FATF travel rule takes effect in South Korea