The government of Japan is set to cause a change in their remittance rules that will let cryptocurrency exchanges in the country share customer data for each crypto transaction. According to multiple reports, the Japanese government wants to regulate the crypto market. Hence, the new rule.
The rule is the outcome of some government officials’ meeting on October 16, which discussed the “bundling bill.” The new laws include the Prevention of Transfer of Criminal Proceeds and the Foreign Exchange Act. This will enable crypto exchanges in Japan to give info on the sender and receivers of any crypto transactions in the country. The rule will also require crypto exchanges to have a structure where the government can access the data of sanctioned entities in case of asset freezing.
More importantly, the new rule will help trace transactions that took place outside crypto platforms, thus, reducing the rate of crypto crimes and frauds. Any account found guilty of fraud, or illicit activities could get punitive actions. The rules are expected to get implemented in May 2023 if the policymakers approve the bill.
Meanwhile, through its police department, the Japanese government has announced that Lazarus Group, a North Korea-sponsored hacker group, was behind many crypto hacks and thefts in the country. According to the report, the group mainly attacks its victims via phishing links.
The announcement was made to create more awareness among the public to reduce the number of unsuspecting victims. The Japanese National Policy Agency also warned citizens to be careful when opening email attachments or links because that’s the group’s primary mode of operation.
More Crypto Regulation For Japan’s Crypto Players
Like other countries, the Japanese government is ready to have more regulations for the cryptocurrency industry. The country’s Financial Services Agency has been making announcements concerning the issue. Some officials are also working on corporate tax rules for crypto firms which will become effective by 2023. The new tax rule is a response to some companies’ complaints regarding the harsh nature of current tax rules.
Japan has recently released a law that regulates stablecoins after the crash of the Terra ecosystem. The country is working on creating its own central bank digital currency (CBDC) using the approach from Sweden and not China. However, it is also interested in making people more involved in cryptocurrency development and innovation.
This is exemplified by the government’s interest in utilizing the Web3 industry to boost its economy. The Web3 sector is rapidly growing, and many countries are already showing interest in the space. Some of the top companies in the world are exploring the Metaverse and NFT space.
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