Japan Tightens Controls: Banks Urged to Monitor Crypto Transfers
The Financial Services Agency (FSA) of Japan has put forward fresh proposals aimed at enhancing safeguards for users against unlawful transactions within crypto exchange platforms.
This recommendation, communicated to Japanese banks on February 14, underscores the importance for banks to take proactive measures to shield users from the risks associated with unauthorized money transfers involving crypto-assets.
To address this concern, the regulator, in conjunction with the National Police Agency (NPA), has outlined two primary suggestions for financial institutions. Firstly, they propose the suspension of transfers to crypto exchanges in cases where the sender’s name does not match the account holder’s.
Secondly, they advocate for increased vigilance in monitoring suspicious transactions occurring on crypto platforms. The NPA highlights the effectiveness of transaction monitoring as a means to reduce risks and underscores the necessity of developing rules and patterns for analyzing transaction behaviors.
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The FSA emphasizes that implementing these measures will contribute to mitigating the ongoing threat of specialized fraud cases, particularly those related to Internet banking.
This initiative is in line with Japan’s history of maintaining stringent regulations concerning cryptocurrencies. Notably, in December of last year, the Japanese government introduced tax reforms aimed at discontinuing the taxation of unrealized gains on digital assets held by corporations.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
