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Extant laws may not expressly permit law enforcement agencies to seize or do much with stolen crypto assets. However, Japan is set to change all that.
Building on last week’s momentum, after successfully passing a first-of-its-kind stablecoin regulation, Japan is reportedly considering floating a new bill. The Justice Ministry of Japan is said to be backing the bill. And as it were, the bill will look to seize all forms of crypto assets that have been acquired illegally.
Expectedly though, there is serious work to be done, and this might involve amending the 1999 Act on Punishment of Organized Crimes and Control of Proceeds of Crime. Only then would prosecutors be able to take full control of crypto assets recovered from criminal elements.
Ministry of Justice to Consult Legislative Council
Meanwhile, a local media report suggests that the Ministry of Justice first has to consult with the Legislative Council on the issue of this new law. And after meeting up, the two departments will then jointly, put forward a workable framework, latest by June end.
Extant laws do not expressly permit law enforcement agencies to seize or do much with stolen crypto assets. And that has always been a major issue in Japan’s quest to be rid of criminal activity. This is because, essentially, criminals know that once their illegally-made funds get to them, there is hardly any retrieval that can happen. Therefore, this reality has continued to embolden their criminal ways for far too long. However, Japan is now set to change all that with the new bill, which will see virtual assets as real property, and treat them as such.
Unending Crypto Regulations in Japan
Interestingly, Japan is gradually turning out to be an all-around regulated economy. Following the infamous Terra crash, Japan became the first major economy to issue stablecoin regulations that sought investor protection.
There is also another upcoming stablecoin regulation as well, but this time, by Japan’s Financial Services Agency FSA. Nonetheless, on a broader look, Japan is generally looking to tighten all loose ends as far as crypto is concerned. However, this might be direct a result of its increasing involvement in the sector, even as a nation.
Japan has recently been dealing heavily in crypto, therefore, bringing more regulations is understandably in the country’s best interest.
For instance, top crypto exchange FTX recently expanded into Japan, citing the country’s vast $1 trillion crypto market size as what attracted the firm. Also recall, that Reuters reported about a consortium of about 70 Japanese firms in 2021. That report claimed that the firms are planning to launch a yen-based cryptocurrency sometime this year.