April 1, 2021 | AtoZ Markets – The Japan Financial Services Agency (FSA) will implement the FATF anti-money laundering and counter-terrorist financing guidelines for local cryptocurrency companies, according to the announcement on the regulator's website.
The agency has asked community representatives to prepare for tightening regulation. The changes will take effect by April 2022 and will require virtual service providers to provide transaction data.
“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 FSA noted.
Japan has been a member of the Financial Action Task Force (FATF) since 1990, and was among the most receptive jurisdictions to the travel rule directive alongside other Asian countries like Singapore and South Korea.
Recall that one of the key provisions of the FATF recommendations proposed in June 2019 concerns the obligation of cryptocurrency service operators to transfer information about clients to each other when they make money transfers between exchanges, including about cryptocurrency transactions.
Later, Executive Secretary David Lewis said the industry was just beginning to adapt to the requirements that many countries had already incorporated into their legislation.
As a reminder, in February 2021, the FATF announced an update of the regulation rules. In the draft document, the group referred to the decentralized finance and NFT sector.
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