Japanese Credit Agencies to Help Regulators Stop Cryptocurrency Crimes

Mon, 06/25/2018 - 14:20
Darryn Pollock
Japan’s continued efforts on crypto crack down see them eyeing credit evaluations to halt criminals
Japanese Credit Agencies to Help Regulators Stop Cryptocurrency Crimes
Cover image via U.Today

Japan’s crackdown on illicit cryptocurrency usage has seen them now branch out to major credit agencies who will assist in evaluating cryptocurrency users to prevent the use of these digital assets in laundering money generated from illicit operations.

Since the hack of exchange Coincheck, in January this year, Japan has been much harsher and stricter with its cryptocurrency laws and rules, especially pertaining to exchanges and the use of cryptocurrencies for money laundering.

Suspicious individuals

Credit agencies, information security research firms, and Japan Credit Information Service will cooperate with the government to investigate suspicious cryptocurrency trading accounts and individuals that trade unusually large amounts of digital assets.

Apparently, a lot of this stepping up of overview of cryptocurrency has to do with reports that the Yakuza is involved in using cryptocurrency in order to launder millions of dollars.

Moreso, the authorities have also said that individuals that are suspected to be connected to terrorist organizations and criminal organizations based on their social media presence and credit scores will also be a target of scrutiny.

Yizumi Nobuhiko, the chairman of Japan Credit Information Service, has said according to NHK:

“By providing the personal information of suspicious individuals including credit scores and financial data, the government hopes to protect investors and improve the security of the cryptocurrency industry.”

Japan leading the way on clearing out

Japan is one country that has seen the world’s two biggest cryptocurrency hacks, that of Mt. Gox, and Coincheck. As such, it is starting to feel the regulatory backlash as the government, the FSA, and the rest of the regulatory bodies start to impose strict rules to control the space.

Most recently, the FSA has announced that six more cryptocurrency businesses need to improve their businesses and get them inline with the legal framework or face the consequences of possibly being closed down.

About the author

Darryn Pollock is an award winning  journalist from Durban, South Africa. He picked up Vodacom’s Regional Sports Journalist Award in 2017 while expanding his Blockchain and cryptocurrency reach.  He is a contributor to Forbes, Cointelegraph, Binary District, and of course, U.Today. Darryn’s belief is that Blockchain technology will be the driving force of the next technological wave and it is the obligation of journalists and writers to tell its emerging story with integrity and pride.