The decision was made following a close review of relevant laws from December 2022, when the Financial Action Task Force (FATF) found existing measures to be insufficient. The most important regulatory change will involve the addition of the FATF Travel Rule, which requires financial institutions to provide detailed information about their customers’ transactions, including all their registration data such as names and addresses.
The move comes in the context of Japan’s ongoing efforts to fight money laundering in the crypto sector. Tightening the rules could also support greater transparency in cryptocurrency transactions on a global scale, while Japan stands to improve its position in the cryptocurrency industry, providing greater confidence to both investors and users.
According to coinspeaker.com, Japan has some of the strictest cryptocurrency regulations in the world, as this was one of the first countries to legalise the use…