Japan will enforce stricter anti-money laundering (AML ) measures to trace cryptocurrency transactions. The country’s cabinet has already approved the laws, which will become effective on 1 June, local Kyodo News reported.
The new AML laws around crypto will put Japan’s legal frameworks around the industry in line with global standards. The new rules came following the Financial Action Task Force (FATF), an international financial standard-setting agency that deemed specific revised crypto-centric laws brought in December insufficient.
One of the significant features of the new crypto rules will be the enforcement of the so-called ‘Travel Rules’ for tracking transactions in the decentralized industry.
Under the Travel Rules, crypto exchanges, wallet platforms, and other service providers need to collect customer information in transactions of more than $3,000. The information should include the name and address of the sender and recipient, along with their account information. These laws are expected to curb criminal activities using cryptocurrencies
