Japan was a part of the FATF since 1990.
Japan has made another step toward embracing cryptocurrency Anti-Money Laundering regulations developed by the Financial Action Task Force, Cointelegraph Japan reports.
The Japanese Financial Services Agency declared Wednesday it will embrace the FATF’s traveling principle — a pair of regulations requiring virtual advantage providers to discuss trade data for senders and receivers — by April 2022. “It is required to present and implement the traveling principle regulations in each country,” that the FSA noted.
The FSA requested the Japanese Virtual Currency Exchange Association, a Regional self-regulatory crypto organization, to prepare for the execution of the travel rule:
“From the perspective of ensuring the proper and reliable execution of the crypto asset market business, we will examine the accurate implementation of the travel principle in terms of technology and operation. We would like the JVCEA to establish a essential system, therefore please inform the members of this institution.”
As mentioned previously by Cointelegraph, the FATF introduced the traveling principle from 2019, which provides a number of measures to prevent cryptocurrencies from being used for money laundering and terrorist financing.
A member of the FATF since 1990, Japan was one of the most receptive jurisdictions into the traveling rule directive alongside other Asian countries like South Korea and Singapore.
The news comes soon after the FATF published an upgrade to the original travel principle for public consultation in February 2021.