On June 6th, a local newspaper in Japan reported that the Ministry of Justice of Japan is considering adopting a law to seize illegally obtained crypto assets in order to put an end to criminal organisations in the virtual world. After adopting a breakthrough law to control stablecoins on June 3rd, Japan may become the latest big economy to alter its laws to confiscate illegally acquired Digital Assets.
Framework for seizing crypto assets
According to the report, the present law on the prosecution of organized crime doesn’t really deal with the issue of unlawfully obtained crypto assets. This might ultimately become a way for criminals to avoid Anti-Money Laundering/Combating Terrorism Financing (AML/CFT) regulations.
The ministry is said to be consulting the Legislative Council this month to develop a framework for seizing crypto assets. In exchange, virtual assets will be treated similarly to real property, movables, and financial claims.
Japan approved law to seize digital assets
Last week, Japan becomes the first major nation to approve law to safeguard investors from the hazards of stablecoins. Due to the collapse of the Terra stablecoin, the Japanese Parliament acknowledged stablecoins as virtual currency, granting them legal validity.
Furthermore, Japan’s Financial Services Agency is anticipated to release new laws for stablecoin issuers soon.
FTX has entered Japan
In addition to strengthening crypto regulations, the Asian country is also interested towards doing business in the sector. Financial Services Agency of Japan and Ministry of Finance had cautioned of stiff penalties for cryptocurrency exchanges that attempted to avoid worldwide sanctions imposed on Russia at the beginning of the war with Ukraine.
Nomura Holdings, amongst the largest brokerages in Japan, has begun providing Bitcoin derivatives in the nation. Worldwide cryptocurrency exchange FTX has entered Japan, predicting a potential market size of about $1 trillion in Japanese cryptocurrency trading.
Sumitomo Mitsui Trust Holdings (SuMi), located in Japan, revealed a relationship with Japanese crypto exchange Bitbank in March to handle digital assets for its users, bringing banks into the crypto race. According to Reuters, a group of about 70 Japanese companies intends to open a yen-based cryptocurrency this year.
