National Police of Japan plans to start using special software to track history of cryptocurrency transactions. For this purpose, the department's budget in 2019 can be increased by $315 thousand (35 million yen).
The police takes this step as a response to the growing use of virtual currencies for illegal purposes.
According to local media, this software will be able to access open sources to obtain necessary data for investigations of thefts and abuses, as well as monitor which operators of crypto-exchanges were involved in them.
WHY IS IT IMPORTANT?
- Japan's financial regulators want the crypto industry in the country to develop under conditions of adequate regulation.
- Offices want to strike a balance between consumer protection and technical innovation for this purpose. In addition, the authorities decided to tighten the requirements for new crypto-exchanges.