In a recent revelation, some added cryptocurrency regulations are expected to be levied in Japan following the Financial Action Task Force (FATF) Travel Rule by 2022. The ordinance will be allowing the Japanese regulatory bodies to deal appropriately with money laundering activities.
FATF Travel Rule to be Implemented in Japan by 2022
FSA, the Financial Service Authority, has recently released a statement saying that they are planning to administer the FATF travel rule by April 2022.
Moreover, it was revealed that the ordinance that will come after this administration will evoke all the providers of digital assets to share the transaction details of digital assets traders.
In addition to this, the regulator stated that they were in an alliance with JVCEA, the Japan Virtual and Crypto Assets Exchange to provide information to its members. The members need to put it in place as they wait for the implementation of the travel rule.
The aim behind the implementation of the FATF travel rule is to ensure that the digital currencies are not used to fund terrorist activities or for money laundering.
Government officials in Japan have recently raised concerns regarding the usage of cryptocurrencies to fund illegal activities in the country.
The latest implementation of the travel rule in Japan will only be enhancing the already established crypto regulations in the country.
Along with Japan, another country that has taken measures to govern cryptocurrencies includes South Korea, which has provided strict jurisprudence to prevent money laundering activities through cryptocurrencies.
This move ultimately pushed firms such as OKEx out of the country.
The Rise in Cryptocurrency Regulations
As witnessed in recent times, the regulations into cryptocurrencies have been surging across the globe.
Authorities of different countries in the world have been actively looking for new methods that will enable them to control the usage and the basic nature of cryptocurrencies.
Along with the countries that are searching for new methods to prevent the usage of cryptocurrencies for illegal activities, there are some countries that have taken a strict decision to completely prohibit the usage of these decentralized digital assets.
Talking about the largest crypto market in Asia, India, a highly anticipated and debated crypto bill is expected to be introduced in a few months.