New Japanese law could allow confiscation of stolen crypto

0

The Japanese Ministry of Justice is reportedly considering revising a law on confiscation of organized crime-related assets to include a provision that crypto can be confiscated in such cases.

Should the reports turn out to be true, a possible revision of the Organized Crime Punishment and Control of Proceeds of Crime Act (1999) would allow law enforcement officials and courts to seize control of crypto assets used for criminal activities such as money laundering be used .

Corresponding reports by local media such as Yomiuri Shimbun on June 4, the Justice Ministry must first hold talks with the Legislative Council on the issue before proceeding. However, it also needs to iron out important details, e.g. B. How officers can proceed to get a criminal’s private keys.

The talks with the Legislative Council could go ahead according to Jiji Press as soon as next month.

As the specific law focusing on the seizure of organized crime funds/assets does not explicitly outline any procedure in relation to illegally acquired cryptocurrencies, there is a concern that criminals might be able to commit illegal behavior via their non-seized digital assets to continue.

As it stands, the law only outlines that the types of assets that can be seized are physical property, monetary claims, and moveable assets such as machinery, vehicles, tools, and supplies, with crypto not falling under any of these categories.

Related: Half of Asia’s wealthy investors have crypto in their portfolio: report

Once the finer points are settled, the legislative amendment would need to be approved by Cabinet and then Parliament and, given the nature of such a proposal, should not face much opposition.

The report comes just days after Japan’s parliament passed legislation banning non-bank issuance of stablecoins in a bid to reduce systemic risk and improve consumer protections.

According to the bill, only licensed banks, registered money transfer agents, and local trust companies will be allowed to develop and issue stablecoins.

Share.

Comments are closed.