Japan is to pass a new cryptocurrency law. There have been many incidents of criminal activity, and therefore the new law is meant to protect crypto users from scams and the like. The new Japanese law will allow the seize of crypto assets that have been through illegal activity.
The country’s Justice Ministry sent out a report. The Justice Ministry intends to revise the law governing crypto seizures in instances involving criminal activity. There will be a strong focus on crime-related cryptocurrency activity with the new law.
Short of a few days, ago, the Japanese parliament came out with a law banning nonbanking firms from issuing stabelcoins. They believe this step can provide more security for consumers and minimize system risks. The only groups that can participate in stable coin development are trust firms, banks with a license, and agents registered with money transfers.
According to new sources, a few steps will result in the proposed bill. A meeting between the Japanese Justice Ministry and the Legislative Council would be the first step. The next would be discussions on how officials may recover criminals’ private keys.
If the idea gets approval, the legislature will revise the Act on Organized Crime Punishment and Control of Proceeds of Crime (1999). As a result, both courts and law enforcement would have the legal right to collect crime-related cryptocurrency. These include money laundering profits and others.
In addition, the legislation specifies some of the types of assets that officials may confiscate. There are monetary claims, physical property, and movable assets such as cars, supplies, tools, machinery, etc. Because the existing law focuses on the seizure of funds/assets from organized crime, the Japanese government does not explicitly outline anything for unlawfully obtained cryptocurrency. There is fear that criminals may be able to continue their illegal activities through their unseized digital asset holdings.
There will be no more delay with the legislation revision if all of the relevant data are in the correct order. The government would sign off on the new law, followed by the Japanese parliament.
For more news updates, visit our homepage now and see our latest news article. Want to learn more about trading? Visit our education page now and learn for FREE!
What is the Meta Verse?(Opens in a new browser tab)