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Japan Issues Joint Multi-Agency Warning on Crypto Money Laundering in Real Estate
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Four of Japan's most powerful regulatory and law enforcement bodies have issued a joint guidance request warning that cryptocurrency poses a significant money laundering risk in property transactions. The request, published on Tuesday by the Ministry of Land, Infrastructure, Transport and Tourism, the Financial Services Agency, the National Police Agency, and the Ministry of Finance, was addressed directly to major real estate and crypto industry associations including the Japan Cryptocurrency Business Association and several national real estate federations. The document states that crypto assets, which can be transferred instantly across national borders, are considered to carry high money laundering risk when used as a payment method in real estate deals.
The guidance brings bank-style Anti-Money Laundering expectations into crypto property transactions for the first time at this level of regulatory coordination. Real estate agents are instructed to conduct customer due diligence on any crypto-involved transaction under Japan's Act on Prevention of Transfer of Criminal Proceeds, file suspicious transaction reports with regulators, and notify police when criminal activity is suspected. The request also warned that converting crypto to fiat currency on behalf of clients may constitute crypto asset exchange business under the Payment Services Act, an activity that requires registration and carries legal risk if conducted without it. Crypto exchanges were separately asked to flag cases where customers receive property sale proceeds in crypto and then attempt unusually large transactions inconsistent with their known financial background.
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Japan: you can have crypto. also Japan: here are 14 new reporting requirements. welcome to regulated finance.
