Introduction
Japan’s Financial Services Agency (FSA) has announced that new anti-money laundering (AML) measures for cryptocurrency will begin in June. The new regulations will require cryptocurrency exchanges to strengthen their customer verification processes in order to prevent money laundering and terrorist financing.
Customer Verification Process
Under the new regulations, cryptocurrency exchanges will be required to verify the identity of their customers using government-issued identification documents, such as passports and driver’s licenses. They will also be required to confirm the purpose of the transaction and the source of the funds.
Suspicious Transactions
Cryptocurrency exchanges will be required to report any suspicious transactions to the authorities. The FSA will also be able to conduct on-site inspections of exchanges to ensure compliance with the new regulations.
Related:Attacker Hijacks Tornado Cash Governance via Malicious Proposal
Impact on the Industry
The new regulations are expected to have a significant impact on the cryptocurrency industry in Japan. Some smaller exchanges may struggle to comply with the new requirements, leading to consolidation in the industry. However, the new regulations are also expected to increase investor confidence in the industry, which could lead to increased investment.
Conclusion
Japan’s new AML measures for cryptocurrency are an important step in preventing money laundering and terrorist financing. While they may have a short-term impact on the industry, they are expected to increase investor confidence in the long run. Cryptocurrency exchanges in Japan should prepare for the new regulations and ensure that they are in compliance by the June deadline.
