Japan may pass new crypto regulations to seize stolen digital assets
Japan is reportedly considering another revision of an asset seizure law. The new regulation can include stipulation for seizure of stolen digital assets. According to a Japanese Newpaper, Ministry of Justice is considering a proposal to confiscate stolen digital assets. The move is to put a stop to organized crimes in the virtual assets ecosystem.
The Ministry of Justice is in talks with the Legislative Council to draw a framework to include handling of illegally acquired crypto. The current law does not include virtual assets. This could become a loophole for criminals to get around Anti-money Laundering/Combating the Financing of Terrorism (AML/CFT) Guidelines. As the current law does not specify procedure concerning crypto assets, there is huge concern that criminals will continue illegal behavior with unseized digital assets.
According to the reports, in the new framework, digital assets would be treated same as physical property, movable assets and monetary claims. It will also clarify out important details such as how security officers can obtain Private Key’s to seize stolen digital assets.
Once the details are ironed out, this amendment would be approved by the cabinet and then presented to the parliament.
Japan’s Crypto Regulations
This law amendment reports came just on the heels of Japan’s landmark Stablecoin Bill. The bill clarifies stablecoin as legal tender linked to Yen or other currency. It puts a ban on stablecoin issuance by non-banking institutions. Only licensed banks, registered money transfer agents and local trust companies can issue or develop stablecoins.
Japan is the first economy to pass a bill for investor protection in virtual assets sector. The country has been tightening crypto rules to give a better and growing economic digital assets’ ecosystem. The regulations are attracting big businesses towards crypto space in Japan. Mitsubishi UFJ Trust and Banking Corp. has already announced its plan to issue its own stablecoin, Progmat Coin.
Sumitomo Mitsui Trust Holdings (SuMi) had also announced a collaboration with Japanese crypto exchange Bitbank to manage digital assets for its clients. FTX is also expanding in the country to cover the crypto trading front. The potential crypto trading market size of Japan is estimated to be about $1 Trillion.
