According to local sources, Japan is concentrating on enforcing new regulations to curb the practice of money laundering. The regulations center on the dissemination of consumer data and the transmission of payments.
Modernization Of the Act
With an aim toward bringing order to the cryptocurrency market, the Japanese government has proposed more measures. Local media said the government would monitor crypto to prevent money laundering and impose “Know Your Customer” information sharing.
The country seeks to modernise the Act on Prevention of Transfer of Criminal Proceeds and new legislation enacted to gather consumer data in the spring of 2023. Regulating financial institutions is necessary to prevent money laundering via remittances.
The action coincides with a global trend of governments trying to prevent criminals from using cryptocurrency and other digital assets for money laundering. The British government proposed to make it easier to ” freeze, seize, and recover” cryptocurrency.
Initiatives To Control the Market
On October 3, the Japanese National Diet allegedly received a draft amendment. However, the new remittance regulations won’t kick in until May 2023. The law will include stablecoins in addition to cryptocurrencies.
Stablecoins are digital tokens with a pegged value to another asset, such as a fiat currency like the U.S. dollar or a commodity like gold.
Despite some apparent progress, the Japanese authorities and crypto sector actors are still struggling to regulate the crypto economy. Studies have shown that self-control isn’t functioning as expected, although this may be an isolated incident.
As a result of the shift in regulatory views, companies like Binance are considering making a comeback. In addition, the country passed a landmark rule on stablecoins to protect investors in the wake of the Terra catastrophe.
Cryptocurrency Trading Platforms Continue to Flock to Japan
In the wake of new regulations, several cryptocurrency exchanges, Binance among them, are looking to set up operations in Japan. The largest cryptocurrency exchange, Binance, is looking to get a license in Japan. Sources say it’s been four years since the company left the nation because it lacked the proper paperwork.
A massive win for Binance would be returning to a country where cryptocurrencies are now widely used. New developments have been encouraging, such as the potential for crypto firms and investors to get tax advantages. Prime Minister Fumio Kishida has stressed web3’s importance for Japan’s future and believes it would stimulate the economy.
Since these events have taken place, FTX has also launched its subsidiary in Japan. Japan recently granted the compulsory license for FTX Japan to do business in this field. More cryptocurrency exchanges in a country will likely attract more investors, boosting the economy.