Japan’s FSA made an announcement back on Wednesday that it will start adopting the FATF travel rule which includes a set of regulations that require virtual asset service providers in order to share transaction data for senders and recipients so let’s find out more in our latest cryptocurrency news.
Japan made a few steps towards adopting Anti-money laundering regulations that were developed by the Financial Action Task Force according to the reports. Japan’s FSA announced that it will adopt the FATF travel rule by April 2022 as noted:
“It is required to introduce and implement the travel rule regulations in each country.”
The FSA requested the Japanese Virtual Currency Exchange Association which is a self-regulatory crypto organization to prepare for the implementation of the rule:
“From the perspective of ensuring the proper and reliable execution of the crypto asset exchange business, we will examine the accurate implementation of the travel rule in terms of technology and operation. We would like the JVCEA to establish a necessary system, so please inform the members of the association.”
The FATF introduced the travel rule in 2019 providing plenty of measures to prevent crypto from being used for money laundering and terrorist financing. Japan has been a member of the FATF since 1990 and was among the most receptive jurisdictions to the travel rule directing alongside Singapore and South Korea. The news came after the FATF released an update to the original travel rule for the public consult a month ago.
As previously reported, Japanese investors are not keen on crypto because of the lack of regulation as the head of the Coincheck Japanese crypto exchange said, complaining about the frameworks that help to foster crypto investors. In an interview with IT Media Satoshi Hasuo who is the Representative Director and President of Coincheck, said that there’s a “chance that the entire Japanese community will lose out on investment opportunities” while the counterparts in the West are boosting their crypto investments.
Coincheck is now the only exchange in the country that offers OTC transactions for bigger customers and Hasuo even said that these factors like American regulators which allow banks to take charge of the crypto custody, helped to sway investors to crypto. In Japan, however, banks are yet to receive permits to offer such services.