Japan approves tougher crypto AML regulations
The Japanese government approved amendments to existing financial regulations to prevent crypto-based money laundering and increase fines for offenders on 18 Oct, according to local media reports.
The Cabinet, Japan’s executive body, has agreed on revising the country’s Foreign Exchange Act and the Act on Prevention of Transfer of Criminal Proceeds.
The amendments include placing an obligation on crypto exchanges to disclose customer’s names and addresses when they conduct cross-platform crypto and stablecoin transfers. They will also grant the Japanese government the authority to freeze assets of local entities and individuals named by the United Nations for aiding the proliferation of weapons of mass destruction.
The updated bill also requires exchanges to have the most recent list of people and organizations facing sanctions.
The amendments are approved by the Cabinet and scheduled to be presented to the National Diet, Japan’s legislature.
Chief Cabinet Secretary of Japan Hirokazu Matsuno announced the government has frozen assets of five entities who contributed to the development of North Korea’s nuclear weapons and missiles.
The amendments follow cyberattacks on Japanese crypto firms by North Korea’s state-sponsored Lazarus group through phishing and social engineering, reported Japan’s National Police and Financial Services Agencies last week.