From April 1, Japan’s cryptocurrency exchanges will be required to identify their customers and report to regulators.
The Japan Virtual Currency Exchange Association (JVCEA), the self-regulatory body of all licensed crypto exchanges in the country, has announced that it will adopt the rules of the international Financial Action Task Force on Money Laundering (FATF) as of April 1.
This means that legal Japanese cryptocurrency exchanges will have to ban anonymous transactions in order to combat money laundering. In addition, exchanges will have to flag suspicious transactions and inform regulators.
Every digital currency transaction will now show the name of the recipient, the details of the exchange from which the transaction originates, and the details of the recipient, including whether the wallet is registered with that exchange.
Note that the FATF rules were supposed to come into force on October 1, but the JVCEA decided to introduce the rules in two stages – in April and October 2022. In the second step, exchanges will need to provide more detailed information about the recipient, as well as information about the purpose of the transaction. It is reported that additional information will be required from anyone who conducts transactions in excess of $865.
Junichi Nakajima, Commissioner of the Japanese Financial Services Agency (FSA), said last August that regulators should assess the risks of using digital currencies before making them publicly available.
Source: Bits
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