Japan’s Financial Services Agency Urges Strengthened Monitoring of Crypto Transfers
Japan’s Financial Services Agency (FSA) has called on financial institutions to enhance their monitoring of “unlawful” transfers to cryptocurrency exchange providers. The FSA’s encouragement is based on analysis by the country’s National Police Agency, which shows that most damages resulting from fraudulent money transfers involve cryptocurrencies.
Preventing Identity Theft and Money Laundering
The FSA specifically advised financial institutions to halt transfers to crypto-asset exchange service providers if the sender’s name differs from the account name. While this measure aims to combat identity theft and money laundering, there are concerns that it could also affect peer-to-peer transfers between bank account holders and individuals with crypto exchange accounts.
Seeking Clarification
The Block has reached out to the FSA for further comment and clarification on these recommendations.
A Balancing Act
Although the FSA’s recommendations may not appear entirely favorable towards cryptocurrencies, the Japanese government recently approved a tax regime revision that exempts corporations from paying taxes on unrealized crypto gains if they hold the assets for a longer period.
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