Japan is working on bringing regulating the cryptocurrency markets with the same anti-money laundering laws. Local media outlets have expected that these laws are going to be implemented on the Japanese digital currency markets starting from the 1st June of the ongoing year.
The cabinet of Japanese Legislatures passed the decree last Tuesday. The report of the incident was shared by Kyodo News, a local media house in Japan.
Japanese authorities are also considering the possibility of introducing a travel rule that is penned by the Financial Action Task Force or FATF. FATF is the global superintendent for money laundering and terror financing activities in the international markets.
The travel rule has been imposed on many nations by FATF to ensure their financial cooperation in the matter of global trade. FATF officials believe that these rules are going to pave the way for curbing any terror financing activities using digital assets.
New Travel Rule
The travel rule is in line with the operations of the Central Banking and other financial regulators that are used for traditional financial assets. This rule entails that the regulators mandate that the cryptocurrency trading platforms and digital wallet services providers report all transactions to the government that is above $3000.
The new amendments from the FATF were imposed on the country when the global steward of financial transparency diagnosed the existing laws of the country as insufficient.
Meanwhile, another nation to implement stringent AML laws on the crypto sector is South Korea. At the same time, India has done some important work in this regard on the matter of complying with the crypto regulatory requirements of FATF in March this year.
However, the Japanese government has introduced new policies to attract more crypto entities to the region. Under this context, the new regulations influenced by FATF will help the country comply with the international standards for regulating crypto businesses.
NextTech Week was arranged in Japan in all its glory this month. The 3-day event was held in Tokyo. This event is a chance for the local tech industry to exhibit their products and services to national and international investors.
The main theme of this year’s event was centered on blockchain and AI. The tech industry of the region had dedicated an entire floor to cryptocurrency, blockchain, quantum computing, and other disruptive technologies.
The event was attended by important political figures in Japan such as Prime Minister Fumio Kishida. Considering that the Japanese government published a Whitepaper on cryptocurrencies last month indicating the backing of the state and regulators.
Nevertheless, there are some reservations among the locals concerning the favorable stance of the political leadership of the nation. It seems like the state agencies in the nation are planning to become the global industry leaders in the crypto sector.