Japan is one step closer to adopting the Financial Action Task Force’s anti-money laundering regulations, the Japanese daily Cointelegraph reports.
Japan’s Financial Services Agency announced Wednesday that by April 2022 it will adopt the FATF Travel Rule, a set of rules requiring virtual asset providers to share transaction data with senders and receivers. Travel rules should be introduced and enforced in every country, the FSA said.
The FSA has asked the Japan Virtual Currency Exchange Association, a local self-regulatory body for cryptocurrencies, to prepare for the introduction of the Travel Rule :
To ensure that the exchange of crypto assets is correct and secure, we will examine the exact implementation of the travel system in terms of technology and operations. We would like the JVCEA to set up the necessary system, so please inform the members.
As previously reported by Cointelegraph, the FATF introduced a travel rule in 2019 that includes a number of measures to prevent the use of cryptocurrencies for money laundering and terrorist financing.
Japan, which has been a member of the FATF since 1990, is one of the most receptive countries to the Travel Directive, along with other Asian countries such as South Korea and Singapore.
This news comes shortly after the FATF released an update to the original travel rule for public comment in February 2021.
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