Starting on June 1, Japan will implement stricter anti-money laundering (AML) measures for cryptocurrency transactions.
Japan To Implement Stricter Rules on Crypto Exchanges
Starting on June 1, Japan will implement stricter anti-money laundering (AML) measures for cryptocurrency transactions. The move aims to align Japan's legal framework with global crypto standards.
The new measures include the enforcement of the "travel rule", which requires any financial institution or crypto exchange that processes a crypto transfer greater than $3,000 to share customer information with the receiving exchange or institution. The data should contain the name and address of both the sender and receiver, as well as their account details.
The travel rule was discussed by G7 members during a meeting held in Japan in mid-May. The rule is part of an initiative by the Financial Action Task Force (FATF) to better track the real-world identities behind those transacting via crypto assets.
Previously, Japan's financial regulator, the Financial Services Agency (FSA), implemented new regulations on crypto exchanges in light of hacks at Mt.Gox and Coincheck. The FSA has several rules to protect customers, such as separating customer and company assets, verifying holdings in annual audits, limiting leverage trading on exchanges, and requiring licensed crypto exchanges to hold at least 95% of customer funds in cold wallets.
