The Japanese government has approved the implementation of the Travel Rule, a regulatory requirement designed by the Financial Action Task Force (FATF) to prevent criminal and terrorist misuse of virtual asset transactions. However, domestic exchanges are experiencing difficulties with compliance, leading to crypto withdrawal issues. The cabinet of ministers has signed off on an amendment to the Act on Prevention of Transfer of Criminal Proceeds, which will come into effect on June 1. Non-compliant Japanese crypto firms will be issued with corrective orders, and those who do not comply will be subject to criminal penalties. Despite attempts by most Japanese exchanges to adopt Travel Rule-compliant policies ahead of June, several of the nation's top exchanges are experiencing serious problems with their compliance solutions, causing confusion when it comes to sharing the required data.
All Comments