Starting next June 1, virtual asset service providers (VASPs) in Japan will begin complying with the FATF's so-called "travel rule," which involves monitoring crypto transactions in order to prevent money laundering.
The aim of the initiative is reportedly to align Japan's legal framework with the international organization's standards.
The travel rule requires institutions to transfer customer information to an exchange or receiving institution when customers conduct cryptocurrency transactions exceeding $3,000.
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According to the law, the data must include the name and address of the sender and recipient, as well as account information.
The Parliament's decision is in line with the G7's desire to accelerate the implementation of standards of relevant international organizations, including the Travel Rule.
FATF President T. Raja Kumar has said:
"G7 countries should lead by example and regulate the crypto sector so that no safe havens exist for illicit crypto transactions."