Japan’s Financial Services Agency (FSA) has announced that it will implement the Financial Action Task Force (FATF) “travel rule” for the nation’s crypto industry to tackle money laundering.
The Japanese regulator announced Wednesday the FATF rule requiring virtual asset service providers to share transaction data of senders and recipients will be adopted in the country by April 2022.
The travel rule was created to prevent cryptocurrencies from being used for money laundering and terrorist financing.
The FSA requested the Japan Virtual and Crypto Assets Exchange Association (JVCEA) advise its members to prepare for this implementation.
South Korea’s Financial Services Commission brought anti-money laundering safeguards into force on March 25 to get in line with the FATF’s rules.
This led to the South Korean arm of crypto exchange OKEx to decide to cease operations, citing the difficulty in navigating the new regulatory hurdles.