After passing a landmark bill to regulate stablecoins, Japan could become another major economy to review its laws to seize illegally obtained cryptocurrencies.
A local Japanese newspaper indicated that the country’s Ministry of Justice is considering a proposal to confiscate illegally acquired crypto assets to put an end to organized crime in the virtual domain.
The report noted that the current law on the punishment of organized crime does not include the treatment of illegally acquired crypto assets. Which could essentially become a loophole for criminals to circumvent anti-money laundering/countering the financing of terrorism (AML/CFT) guidelines.
That said, the ministry is reported to be consulting the Legislative Council this month to come up with a framework that could allow for the seizure of crypto assets. Which, in return, will treat virtual assets as real estate, personal property, and monetary rights.
Japan emerges as a regulation-friendly economy
Last week, Japan became the first major economy to pass a Investor Protection Bill when it comes to stablecoin risks. In the back of the Land stable coin collapse, the Japanese parliament recognized stablecoins as digital money to give them legal status.
In addition, the Japan Financial Services Agency is also expected to introduce new regulations for stablecoin issuers soon.
Therefore, along with the tightening of crypto regulations, the Asian country is also open for business in the sector. For example, Japan’s Financial Services Agency and Ministry of Finance have warned of heavy sanctions on cryptocurrency exchanges that tried to circumvent global sanctions imposed on Russia at the start of the war with Ukraine.
Meanwhile, one of Japan’s largest brokerage houses, Nomura Holdingshas been offering Bitcoin derivatives in the country. Global crypto exchange FTX has also recently expanded into Japan as it estimates the potential market size of nearly $1 trillion in Japanese cryptocurrency trading. front.
In March, Japan-based Sumitomo Mitsui Trust Holdings (SuMi) had also announced a collaboration with Japanese crypto exchange Bitbank to manage their clients’ digital assets, making banks part of the crypto race. Reuters it also noted last year that a consortium of around 70 Japanese companies is planning a yen-based cryptocurrency launch this year.
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