According to news on May 23, the Japanese cabinet plans to implement the Travel Rules from June 1 to combat money laundering and other criminal activities.
The rule requires that financial institutions handling crypto asset transfers must pass on customer information to the next institution, which should include the names and addresses of the sender and receiver; target crypto assets include stablecoins or cryptos pegged to currencies such as the U.S. dollar or commodities. Currency; violators face criminal penalties if they do not comply with correction orders from the authorities.
While Japan is one of the few countries with stricter encryption legislation, crypto crimes are still prevalent.
According to Coincub’s 2022 Crypto Crime Annual Report, Japan ranks sixth in terms of crypto crime losses, with losses exceeding $1.2 billion.