Japan will tighten controls on transfers between crypto exchanges

Japan will tighten controls on transfers between crypto exchanges

Platforms will be required to provide regulators with the names and addresses of customers who send cryptoassets to another site

The Japanese government will introduce new cryptocurrency transfer rules in spring 2023. They aim to prevent exchanges from being used to launder money, Nikkei Asia reports.

This will require amendments to the legislation, which will be considered at an extraordinary session of the Japanese parliament on October 3. The innovations will require cryptocurrency exchanges to provide customer information, including their names and addresses, when sending cryptocurrency, including stabelcoins, to another exchange. Violators could face criminal penalties.

The Intergovernmental Financial Monitoring Commission (FATF) recommended the rule in 2019. The U.S., Germany, Singapore and several other countries have already adopted it, and the European Union is also preparing to do so. In Japan, the rules are expected to take effect in May 2023.

At the same time as the transfer amendments, the law on currency and foreign trade will be revised. According to the newspaper, it will spell out the addition of stabelcoins to the list of assets that cannot be transferred to sanctioned countries, including Russia.

In July, the U.S. urged Japan to increase pressure on local cryptocurrency companies to cut ties with Russia. U.S. officials called on Japanese cryptocurrency exchanges to stop serving Russian customers. In addition, mining companies were advised to stop mining cryptocurrency in Siberia, according to the article.

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