Earlier these 30 days, worldwide financial crimes watchdog FATF urged G-7 economies like Japan to lead by example to implement its controversial “travel rule” for cryptocurrency transfers.
Japan is set to implement stricter anti-money laundering measures, including the so- was known “travel rule” of the Financial Action Task Force (FATF) from June 1, reports by local news outlet Kyodo News.
The decision was created by Japan’s cabinet on Tuesday after the nation’s 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 “as soon as possible.”
Earlier these 30 days, the Group of 7 (G-7) intergovernmental political forum signaled its support for the FATF’s 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.
Japan’s move to implement the rule is seen as a bid to align with worldwide standards supported by the G-7, of which Japan as of now holds presidency.
Japan’s cryptocurrency industry has been wrestling with the travel rule since 2021 when Japan’s Financial Services Agency (FSA) requested virtual investment services providers to implement it. In April 2022, Japan’s Virtual Currency Exchange Association (JVCEA) introduced self-regulatory regulations this is why. In October a year ago, Japan’s Government approved a cabinet decision to amend existing laws to curb money laundering using cryptocurrency, in line with FATF guidelines.