THELOGICALINDIAN - Ahead of abutting months G20 acme host Japan looks to bind money bed-making regulations specificallytargeting Bitcoin and cryptocurrency exchanges
The Financial Action Task Force (FATF) is additionally due to audit Japan’s anti-money bed-making administration in the Autumn.
International Spotlight Prompts Japanese Action
According to media outlet Nikkei, the Japanese Financial Services Agency (FSA) is atrocious for a acceptable analysis from the FATF. Japan accustomed the everyman accessible appraisement for Know Your Customer (KYC) procedures during the aftermost FATF analysis in 2008. Although, of course, Bitcoin was little added than an abstraction at this point.
In the achievement of redemption, Japan is dispatch up its on-site inspections of all banking institutions, admitting Nikkei suggests a focus on cryptocurrency exchanges.
The Japan-hosted G20 acme is additionally acceptable to altercate all-embracing regulations for agenda currency, and potentially ICOs. The hosts absolutely don’t appetite to arise abaft the ambit on implementing policies.
Japan’s Usual Hands-Off Approach To Bitcoin Regulation
Japan was the aboriginal country to acquaint allotment for crypto-exchanges in April 2017, but has commonly been adequately hands-off. While strengthening guidelines afterward the 2018 Coincheck hack, the FSA has declared that it does not intend to ‘excessively regulate‘.
Instead, it seems blessed to let the industry regulate itself, stating:
The FSA is not abashed to footfall in area all-important though, introducing bills to regulate ICOs beforehand this year.
G20 And FATF Looking In The Wrong Direction?
At aftermost year’s G20 acme in Buenos Aires, nations absitively that cryptocurrency adjustment should follow FATF standards for anti-money laundering. Following this FATF alleged for alike stricter regulation of Virtual Asset Service Providers (VASP).
But is this focus on cryptocurrency absolutely the best benign way to action money laundering?
The Japanese Yen afresh overtook the dollar as the most acclimated authorization currency for bitcoin trading. However, cryptocurrency is still not the apparatus of best in the all-inclusive majority of money bed-making cases.
According to Japanese police, admitting crypto-linked cases activity up 900% in 2018, this still comprised alone 1.7% of absolute investigations.
A massive 98.3% of money bed-making cases in Japan had annihilation to do with cryptocurrency at all.
Will Japan’s new anti-money laudnering action be effective? Share your thoughts below!
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