Regulators from around the world have been working on crypto-specific regulations. Earlier today, the International Organization of Securities Commissions put forth an 18-point plan addressing activities involving Crypto Asset Service Providers [CASPs] in various stages. This includes offering, admission, to trading, ongoing trading, settlement, market surveillance, custody, as well as marketing and distribution.
Japan is also individually looking to amplify crypto rules. According to recent reports from Kyodo News and The Mainichi, Japan’s Cabinet has decided to enforce stricter anti-money laundering measures from June 1. This is being done to trace transactions involving crypto. In turn, this will bring its legal framework “in line” with global standards, according to the reports.
Also Read: Standard Chartered’s Crypto Custody Arm Raises $36 Million: Japan’s SBI Participates
Crypto ‘travel rule’ to be imposed in Japan
Watchdogs have reportedly been increasingly monitoring crypto assets that can be used to launder money. In fact, the “travel rule” is also all set to be imposed in Japan. Confirming the same, the reports noted,
“A key feature of the new framework is the enforcement of the so-called travel rule to better keep track of criminal proceeds.”
Specifically, the Financial Action Task Force’s “travel rule” stated that all crypto companies have to screen, record and communicate the information of both senders and recipients of crypto transactions that exceed a certain amount. Without providing additional information, the reports brought to light that the targeted crypto assets include stablecoins. That being said, if violators fail to adhere to the corrective orders issued by authorities, they will face “criminal punishment.”
Even with regulators eying the space, companies in Japan continue to participate and invest in other related businesses. Recently, Standard Chartered’s crypto asset custodian, Zodia Custody raised $36 million via funding. Japan’s SBI Holdings led the latest round. In fact, SBI Holdings is now the firm’s second largest shareholder.
Parallelly, the SBI Group is also aiming to bolster its Web3 business. The FinServ company is looking to welcome institutional clients that could use its Web3 offerings and crypto services.
Also Read: SBI Japan Looking To Use Ripple To Bolster Its Web3 Business