Japan Enforces “Travel Rule” For Crypto Exchanges
To improve transparency and combat money laundering and terrorist financing, the travel rule requires cryptocurrency exchanges and other virtual asset service providers to collect and share customer information during transactions.
Japan’s cabinet intends to put the new measures into effect on June 1. The new regulations also require cryptocurrency exchanges to collect names, addresses, and other personally identifiable information at each stage of a transaction. It has also been expanded to include providers of virtual asset services.
Japan’s recent decision to implement the travel rule is consistent with the G-7’s global standards. As the current presidency holder of the G-7, Japan’s move can be seen as a step to conform with international norms and demonstrate its commitment to combating money laundering and promoting financial transparency in the crypto industry.
(With inputs from Shikha Singh)
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