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Japan's Ministry of Justice considers illegal seizure of cryptocurrencies
Japan's Ministry of Justice is considering amending the law on asset forfeiture involving criminal organizations and introducing regulations on illegal seizure of cryptocurrencies.
The amendment to the Criminal Sanctions and Proceeds Control Act (1999) allows law enforcement officials and courts to control crypto assets used in criminal activities such as money laundering.
According to local newspaper Yomiuri Shimbun, the Japanese Ministry of Justice will consult with the Legislative Council to come up with a framework that allows the seizure of illegal cryptocurrency assets.
According to Jiji Press, these negotiations could be conducted as soon as next month before being officially introduced into regulation.
There are currently no official regulations by law enforcement agencies on the confiscation of illegal cryptocurrencies from organized crime. The current law only provides for the type of property that can be seized as physical property, money claims and moving assets such as machinery, vehicles, tools and supplies,… this does not include the handling of illegal crypto assets.
This can become loopholes so that criminals can continue to engage in illegal behavior through the holding of untested digital assets. The authorities will quickly proceed to amend the law to pass the council and will then be signed by parliament.
Japan tightens regulations on cryptocurrencies
The proposal comes just days after Japan's parliament passed a bill banning the issuance of stablecoins by non-banks to mitigate systemic risks and provide better consumer protection solutions.
Under the bill, only licensed banks, registered money transfer agents, and local trust companies could develop and issue stablecoins.
Japan's Financial Services Agency and Ministry of Finance have also warned of heavy penalties for cryptocurrency exchanges trying to circumvent global sanctions imposed on Russia at the start of the war with Ukraine.
