Japan’s regulator Finance Service Authority announced Wednesday the Financial Action Task Force (FATF) rule requiring virtual asset service providers to share transaction data of senders and recipients will be adopted in the country by April 2022. Once the law is implemented, it will prompt all providers of digital assets to share the transaction details of the traders of digital assets. Governments around the world are working on regulating the crypto industry.
The FSA is in a liaison with the Japan Virtual and Crypto Assets Exchange.
The Financial Service Authority has stated that they were in a liaison with the Japan Virtual and Crypto Assets Exchange (JVCEA) to inform its members of the preparations they need to put in place as they await implementation of the travel rule. The FAFT travel rule’s primary purpose is to make sure that cryptocurrencies are not used to fund terrorism activities or for money laundering activities. Government authorities in Japan have raised concerns over the use of cryptocurrencies to fund criminal activities in the country.
Governments worldwide look to regulate the crypto industry.
Recently, regulations into crypto assets have been increasingly rising across the world. Regulators in different countries have been looking for new ways to control the use and the nature of cryptocurrencies. This is because of the heightened risk associated with crypto assets being used for criminal activities. The recent surges in Bitcoin trading activities can also be seen as the cause for regulators to start enforcing lawns around the currency and other cryptos. Earlier, South Korea provided stringent laws to prevent money laundering through crypto assets, and this has pushed some firms such as OKEx out of the country. However, firms and investors in the crypto industry have stated that the new regulations are unfair to the industry’s active players.