Japan to Strengthen Anti-Money Laundering Regulations

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On May 22, the China Blockchain Technology and Application Innovation Platform was launched in Nanjing City, the administrative center of Jiangsu Province in China. The platform is made up of founding members who represent various mainland Chinese academic institutions and blockchain-related businesses. The platform’s goal is to pool the resources of Chinese businesses and academic institutions, advancing research projects in areas connected to the metaverse. Shanghai, a city in Nanjing’s south, is actively pursuing its metaverse ambitions and hopes that by 2025, its metaverse sector would generate annual revenues of $49.6 billion (350 billion yuan). Former deputy minister of the Ministry of Science and Technology Wu Zhong-ze emphasized the significance of increasing the usage of the metaverse in a variety of fields, including entertainment, business, healthcare, and education.

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According to local news source Kyodo News, Japan will begin enforcing stronger anti-money laundering regulations on June 1st, including the so-called “travel rule” of the Financial Action Task Force (FATF). After the nation’s anti-money laundering measures were deemed insufficient by the international financial crimes watchdog FATF, Japan’s cabinet made the decision on Tuesday. The FATF’s efforts to hasten the global implementation of its travel rule, which requires the exchange of information about crypto money transfers between financial institutions, have received backing from the Group of Seven (G-7) multinational political body. The travel regulation has been a source of controversy for the Japanese crypto business since 2021, when the Financial Services Agency (FSA) asked providers of virtual asset services to put it into effect. According to FATF recommendations, Japan’s government passed a cabinet resolution in October of last year to change current legislation to prevent money laundering using cryptocurrencies.

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