The Japanese authorities are planning to introduce new rules that will oblige local trading platforms to exchange customer information when moving cryptocurrencies between platforms.
Japan’s money laundering prevention law is planned to be amended, which will apply not only to cryptocurrencies, but also to stablecoins. The draft amendments will be presented at the parliamentary session on 3 October. The new rules are expected to come into effect in May 2023.
The amendments to the law are intended to provide the Japanese authorities with additional opportunities to track the money transfers of persons engaged in illegal activities. Violators can be brought to administrative and even criminal liability.
Japanese crypto exchanges have been in talks with the government to share customer information since March last year after the Japan Financial Services Agency (FSA) required exchanges to put in place a structure to comply with the Crypto Travel Rule. Exchanges are concerned about high compliance costs.
In August, it became known that Japanese regulators, against the backdrop of increased competition among cryptocurrency market participants, are considering the possibility of exempting token issuers from tax.