The Japanese government could issue a new rule that would force the sharing of transaction information, to prevent money laundering.
The Japanese government will potentially dictate a change in its remittance rules, to include crypto exchanges that have to share information about crypto transactions and customers.
Also, it is considering adding a new rule in its attempt to regulate the crypto market. Officials discussed a “grouping bill” at a cabinet meeting on Oct. 16. The plan is to combine six bills so that there is no room for money laundering in the crypto market.
Among the laws is the Prevention of Transfer of Proceeds of Crime and the Foreign Exchange Law. This would require crypto exchanges to provide information about the sender and recipients of a transaction.
In addition, it also wants exchanges to create a system where there is a list of sanctioned entities, which could help in asset freezing.
The change focuses on transactions where funds have been moved off the platform, which will help track transactions. Those found guilty of engaging in illicit activities could face punitive action. If the change is approved, the rules are expected to take effect in May 2023.
Japanese Police Say Lazarus Group Is Behind Robberies
The Japanese government has also revealed that North Korea’s Lazarus group was behind years of crypto hacks in Japan. They said that phishing was one of the most common hack methods.
According to information disclosed a few days ago, the National Police Agency, the Financial Services Agency, and the National Center for Incident Preparedness and Cybersecurity Strategy issued a warning in a document published on Saturday.
Based on such document, the North Korean hacker group uses tactics such as sending an email to employees of a crypto asset company, posing as a senior official of the company, and speaking to them through social networks, with the aim of accessing the company’s network and steal cryptocurrency assets.
Officials warn users not to open email attachments unless proper precautions are taken. In addition, it is essential to protect the secret keys to access confidential data outside the Internet and to reflect before opening the documents attached to an email.
The North Korean group is believed to have been involved in the 2017 WannaCry ransomware attack. In April 2022, the US Federal Bureau of Investigation indicated that the group was involved in a case in which that 78 billion yen worth of crypto assets were stolen.
Japan Works on Multiple Regulatory Changes
Like most other nations, Japan is interested in exerting more control over the crypto market. The Financial Services Agency has, time and again, made statements to that effect.
Officials are also reviewing corporate tax rules for crypto companies from 2023, following lobbying from crypto groups who say the tax rules are harsh.
The country passed a landmark law related to stablecoins after the fall of the Terra ecosystem. In the meantime, it is working on its own CBDC, following Sweden’s approach and not China’s.
However, it is also interested in fostering innovation and development in space. The government has announced its interest in Web 3.0 to boost the economy. This would include a social integration of Web 3.0, metaverse, and NFT.
By Audy Castaneda
