Japan may become the latest big economy to alter its laws to collect unlawfully obtained cryptocurrency after approving a groundbreaking bill to regulate stablecoins. According to a local Japanese newspaper, the country’s Ministry of Justice is mulling a proposal to seize illegally acquired crypto assets to combat cybercrime. According to the research, the present law on organized crime penalties does not encompass the treatment of unlawfully acquired crypto assets. This might ultimately become a way for criminals to get around anti-money laundering/counter-terrorist financing (AML/CFT) regulations. However, the ministry is thought to be consulting the Legislative Council this month to draft a framework that would enable the seizure of crypto assets. Virtual assets will be treated similarly to real estate, movables, and monetary claims in exchange.
Japan is Establishing itself as a Pro-Regulation Economy
Last week, Japan became the first major nation to approve legislation to protect investors from the risks of stablecoins. Following the collapse of the Terra stablecoin, the Japanese Parliament declared stablecoins to be digital money, giving them legal standing. Furthermore, Japan’s Financial Services Agency is anticipated to publish new laws for stablecoin issuers shortly.
As a result, in addition to tightening crypto regulations, the Asian government is also welcoming business in the area. Meanwhile, Nomura Holdings, one of Japan’s largest brokerages, has begun to offer Bitcoin futures. FTX, a global crypto exchange, has recently moved into Japan, predicting a potential market size of about $1 trillion in cryptocurrency trading in Japan. Sumitomo Mitsui Trust Holdings (SuMi), based in Japan, established a partnership with Japanese crypto exchange Bitbank in March to manage digital assets for its clients, bringing banks into the crypto race.