Some of the top Japan-based cryptocurrency exchanges have now announced their compliance with FATF Travel Rules.
The move came as Japanese authorities looked for ways to prevent Russia from evading sanctions amid its ongoing war with Ukraine. At a recent parliament session, prime minister Fumio Kishida called to revise the country’s Foreign Exchange and Foreign Trade Act to rectify a crypto loophole.
On the same day, the Japan Virtual Currency Exchange Association (JVCEA) announced that it is considering the request made by the Financial Services Agency and the Ministry of Finance that require crypto exchanges to observe FATF guidelines
Major exchanges, including Coincheck, GMO, SBi VC Trade, and BitFlyer have all announced compliance with the travel rules. Under this, the exchanges would need to gather the names and account numbers of both senders and recipients.
FATF or the Financial Action Task Force is an intergovernmental organization developed to combat the illicit use of finance, such as terror financing and money laundering.
The association established a set of guidelines, called Travel Rules, that requires businesses to collect and share the personal data of participants in a transaction. While the rules were initially applied to traditional financial institutions like banks, the regulatory body later extended the scope of guidelines to cryptocurrency platforms as well.