The Japanese government has been concerned with the growing volume of money laundering. They have decided to revise six laws related to foreign exchanges. This was carried out in hopes of combating money laundering.
Businesses that complete transactions through cryptographic assets (or virtual currencies) will now be obliged to verify information on usernames and other information as a preventive measure against money laundering.
The Japanese government has also increased the severity of penalties faced for crimes relating to money laundering. This development allows the Japanese government to freeze domestic virtual assets organizations and individuals that have been recognized to be involved in distributing weapons of mass destruction. The government expects that such activities will be reduced on passing these regulations.
The Cabinet has passed this newly decided amendment to the Diet.
The government has been paying close attention to the increase in money laundering for a while now. They have been devising strategies for implementing regulations and measures to restrict such activity. The Nikkei newspaper had reported that by the end of September, specifically, September 22nd, Nikkei would be imposing new regulations and measures to prevent money laundering crimes through virtual currencies.
Individuals and corporations are now required to submit recipient addresses and transaction purposes when international transfers are being made. This will require verification for the transaction to pass through.
This decision by the government was supported by FATF (Financial Action Task Force) on international wire transfers to prevent criminal money exchanges. Japan Cryptographic Assets Trading Association (JVCEA) is a self-regulating organization that requests affiliates to take measures.
The Financial Services Agency has been warning JVCEA since December 21st. However, the delay in their action-taking process has been a matter of concern and is raising suspicion among authorities. The organization is yet to be transparent with its deliberation methods, decision-making processes, current backgrounds, and executive responsibilities.
