Japanese crypto exchanges may soon be forced to share customer information
The Japanese government will potentially institute a change in its money transfer rules to include crypto exchanges that need to share information about crypto customers and transactions.
The Japanese government is considering adding a new rule in its attempt to regulate the crypto market. Officials discussed a “bundling bill” at a cabinet meeting on October 16, the plan was to combine six to prevent money laundering in the crypto market.
Among the laws are the prevention of the transfer of criminal proceeds and the Foreign Exchange Act. This will require crypto exchanges to provide information about the sender and receivers of a transaction. Furthermore, it also wants stock exchanges to create a system where it has a list of those entities that have been sanctioned, which can help freeze assets.
The change focuses on transactions where the funds have been moved out of the platform, which will help track transactions. Those found guilty of participating in illegal activities may face criminal charges. Should the change be adopted, the rules are expected to enter into force in May 2023.
Japanese police say the Lazarus Group is behind many thefts
The Japanese government has also revealed that North Korea’s Lazarus group was behind years of crypto hacks in Japan. They said phishing was one of the most common attack methods.
Officials issued the statement to raise awareness among the public. The group is also believed to be targeting Japanese businesses, and the National Policy Agency warned users against opening email attachments carelessly.
Japan is working on several regulatory changes
Japan, like most other nations, is keen to exert more control over the crypto market. The Norwegian Financial Supervisory Authority has time and again made statements about this. Officials are also reviewing corporate tax rules for crypto companies starting in 2023, following lobbying by crypto groups that say the tax rules are harsh.
The country passed a landmark law related to stablecoins after the crash of the Terra ecosystem. In the meantime, it is working on its own CBDC, following the approach of Sweden and not China.
But it is also concerned with encouraging innovation and development in the space. The government has announced an interest in web3 to boost the economy. This will include a social integration of web3, metaverse and NFTs.
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