Japan’s National Police Agency (NPA) state situations of suspected money laundering apparently associated with cryptocurrency increased by 900 % in 2018 when comparing to the year that is previous. But, this nevertheless comprises just 1.7 % of all of the cash laundering investigations.
Cryptocurrency Cash Laundering Up Tenfold in Japan
According to The Japan days, the NPA states it recorded 7*********************************************) that is of suspected cryptocurrency money laundering. This figure represents a tenfold increase from the 669 cases reported between and December 2017.( april*********)
Back in early December 2018, the NPA circulated a study saying that so-called situations of cryptocurrency cash laundering for the entire year endured at very nearly 6,000. The period accounted for was between January 2018 and October 2018.( at the time*********)
Since Q2 2017, regulators have actually needed cryptocurrency exchanges in Japan to report cases of suspected unlawful currency that is virtual. This move was part of a host that is whole of geared towards fighting illicit activities completed via electronic currencies.
The NPA says lots of the suspicious deals included multiple reports with different bio-data information but utilising the photo that is same. Other cases involved accounts using IPs that are foreign though information on the reports reveal detailing details situated in Japan.
According to the NPA’s numbers, the rise in crypto-related cash laundering is indicative of the rise that is general illegal financial transactions across the board in 2018. It is said by the NPA recorded a lot more than 417,000 situations of so-called cash laundering, a growth of over 17,000 from 2017.
Also, the portion of crypto-related cash laundering into the reckoning that is general additionally increased. In 2018, 1.70 % of cash laundering had been from cryptocurrency deals in comparison to 0.16 % in 2017.
Robust KYC/AML/CFT Rules towards the Rescue
In August 2018, reports emerged that the NPA had been set to commit a lot more than $300,000 to build up a monitoring computer software for cryptocurrency deal. The NPA intends to implement this device as an easy way of fighting the increase of cryptocurrency theft along with other transactions that are illegal
As reported by Bitcoinist in2019, the Financial Action Task Force (FATF) regulations on cryptocurrency will come into effect by Q3 2019 january. These regulations which center around KYC/AML protocols will apply to the G20, of which Japan is a known user.
Experts think such standards that are international hinder the ability for criminals to launder money via cryptocurrencies. Meanwhile, the country’s Financial Services Agency (FSA) continues to implement stricter standards that are regulatory cryptocurrency exchanges situated in Japan.
Do you imagine the introduction and enforcement of KYC/AML laws will control cash laundering? Tell us your thoughts below!
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