April 25, 2024

Japan to Finetune Crypto Rules; Effects on Global Markets?

Japan is going ahead to introduce better monetary regulations as it plans to curb money laundering schemes while using crypto. The government of Japan’s latest move is coming in the midst of uncertainties pervading the crypto market.

Japan Swings to Action

According to reports in the media, the Japanese authority will be reviewing the Act to prevent the transfer of criminal funds. The new amendment would require that customers share some details with exchanges. The government says this will enable them to keep track of money moved around by users engaged in crime.

The 3rd of October has been set for there will be an amendment draft filed against the regulation to the Diet session. Nevertheless, the expected draft is set to include crypto assets within the fund transfer regulation. Available reports indicate that the expected amendment could be effected by May 2023.

It is also stated that the revised regulations would require digital exchanges to make the details of their users available – it will include the name and contact details of the users. This will, however, become necessary when users want to send cryptocurrencies to other exchanges.

It will keep the regulators in the loop so they can keep transactions in check. Note that any violator would be subject to criminal litigation.

Crypto Market Survives It All

Japan had been earlier tasked to adopt anti-money laundering rules by the Financial Action Task Force which leads anti-money laundering campaigns. Countries like Singapore, the US, Germany, and some other countries are already on board. They have passed laws on it while the European Union is going ahead to apply the rules.

This set of new laws is becoming popular in the crypto sector globally while there are still uncertainties among industry investors. The market capitalization of the digital asset space has fallen below the significant $1 trillion benchmark.

Despite all its faults, the crypto market has taken and survived hits such as the Terra collapse. The huge collapse took away about $62 billion from the market’s value in a matter of days.

It made news rounds early that the world’s number 1 crypto exchange, Binance, is planning to get back to Japan following a 4-year hiatus. Although Binance has running legal battles in different countries, analysts hope the firm will tidy up all loose ends on its return.

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