Crypto Exchanges May Share Customer Info Following New Remittance Laws in Japan
The Japanese government will potentially establish a change to its remittance rules to include crypto exchanges having to share info about crypto customers and transactions.
The Japanese government is considering adding a new rule in its bid to regulate the crypto market. Officials discussed a “bundling bill” at a cabinet meeting on Oct. 16, the plan being to combine six to leave no room for money laundering in the crypto market.
Among the laws is the Prevention of Transfer of Criminal Proceeds and the Foreign Exchange Act. This would require crypto exchanges to provide info on the sender and receivers of a transaction. Furthermore, it also wants exchanges to create a system where it has a list of those entities that have been sanctioned, which could help in the freezing of assets.
The change focuses on transactions where the funds have been moved off the platform, which will help trace transactions. Those who are found guilty of engaging in illicit activities could have punitive actions. Should the change be passed, the rules are expected to come into effect in May 2023.
Japanese police say Lazarus Group behind many thefts
The Japanese government has also revealed that North Korea’s Lazarus group was behind years of crypto hacks in Japan. They said that phishing was one of the most common methods of attack.
Officials issued the statement to raise awareness among the public. The group is also believed to be targeting Japanese businesses, and the National Policy Agency warned users against opening email attachments carelessly.
Japan working on multiple regulation changes
Japan, like most other nations, is keen on exerting more control over the crypto market. The Financial Services Agency has, time and again, made statements to that end. Officials are also reviewing corporate tax rules for crypto companies from 2023, following lobbying by crypto groups that say the tax rules are harsh.
The country passed a landmark law related to stablecoins following the crash of the Terra ecosystem. Meanwhile, it is working on its own CBDC, following the approach of Sweden and not China.
However, it is also keen on encouraging innovation and development in the space. The government has announced an interest in web3 to boost the economy. This would include a social integration of web3, metaverse, and NFTs.