Earlier theseย 30ย days, worldwide financial crimes watchdog FATF urged G-7 economies like Japan to lead by example to implement its controversial โtravel ruleโ for cryptocurrency transfers.
Japan is set to implement stricter anti-money laundering measures, including the so- wasย known โtravel ruleโ of the Financial Action Task Force (FATF) from June 1, reportsย by local news outlet Kyodo News.
The decision wasย created by Japanโs cabinet on Tuesday after the nationโs anti-money laundering steps were deemed insufficient by worldwide financial crimes watchdog FATF, the report said.
In 2019, the FATF recommended the travel rule to combat money laundering and terrorist financing using cryptocurrency. By June 2022, the FATF was urging member countries to introduce travel rule legislation โas soon as possible.โ
Earlier theseย 30ย days, the Group of 7 (G-7) intergovernmental political forum signaled its support for the FATFโs efforts to accelerate worldwide implementation of its travel rule, which mandates the sharing of information on cryptocurrency fund transfers betwixt financial institutions. Japan had not implemented the travel rule at the time.
Japanโs move to implement the rule is seen as a bid to align with worldwide standards supported by the G-7, of which Japan asย ofย now holds presidency.
Japanโs cryptocurrency industry has been wrestling with the travel rule since 2021 when Japanโs Financial Services Agency (FSA) requested virtual investment services providers to implement it. In April 2022, Japanโs Virtual Currency Exchange Association (JVCEA) introduced self-regulatory regulations thisย isย why. In October aย yearย ago, Japanโs Government approved a cabinet decision to amend existing laws to curb money laundering using cryptocurrency, in line with FATF guidelines.
Sandali Handagama.
