From June 1, in Japan VASP will begin to comply with the so-called ‘Travel Rule’ from FATF, which envisages monitoring crypto transactions for AML. The corresponding decision was adopted by the local parliament, according to Cointelegraph.
The initiative aims to bring Japan’s legal framework in line with the standards of the international organisation.
The Travel Rule obliges an institution handling crypto transactions over $3,000 to transmit to the exchange or recipient institution information about the client. The data should include the sender’s and recipient’s names and addresses, as well as account details.
The parliamentary decision aligns with стремлением «Большой семерки» to accelerate the adoption of the international organisation’s standards, including Travel Rule.
“G7 countries must lead by example and regulate the crypto sector so that there are no safe havens for illicit crypto transactions,” — FATF President T. Raja Kumar.
“G7 countries should lead by example and regulate the crypto sector so that no safe havens exist for illicit crypto transactions”#FATF President T. Raja Kumar´s message to #G7 leaders ahead of the summit in Japan
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?: https://t.co/GqHhVwoqY9 pic.twitter.com/uDurg1QSDu— FATF (@FATFNews) May 18, 2023
In January 2023, the FSA turned to global regulators with a proposal to treat the cryptocurrency industry as strictly as banks.
In October 2022, Japanese authorities amended six foreign exchange laws as part of anti-money laundering efforts.