Japan tightens regulation of its cryptocurrency industry

The Japan Financial Services Agency (FSA) will implement FATF guidance on anti-money laundering and countering the financing of terrorism for local cryptocurrency companies. This is stated on the regulator’s site.

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The agency has asked representatives of the community to prepare for stricter regulation. The changes will take effect by April 2022 and will require providers of virtual asset services to disclose transaction data.

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In June 2019, the Financial Action Task Force urged Bitcoin exchanges and companies related to digital assets to comply with AML/CFT procedures, in line with traditional financial firms.

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Later, executive secretary David Lewis said that the industry just begins to adapt to the requirements that many countries have already incorporated into their laws.

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In February 2021, FATF announced an update to regulatory rules. In the draft document, the group mentioned the decentralized finance and NFT sector.