Japan calls for stronger monitoring of P2P trading

It is reported that fraud losses related to illicit money transfers are mostly related to digital assets

14.02.2024 - 16:08

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What’s new? Japan’s Financial Services Agency (FSA) has called on the country’s financial institutions to further enhance user protection by strengthening the monitoring of “unlawful” transfers to crypto exchange providers. The statement comes in reference to an analysis by the country’s National Police Agency, which found that fraud losses related to illegal remittances are mostly related to digital assets.

FSA statement

What else is known? Specifically, the FSA suggested that financial institutions should stop transfers “to crypto asset exchange service providers if the sender’s name is different from the account name.” If Japanese banks reject transactions from one person’s bank account to another person’s crypto wallet, it could seriously undermine the P2P marketplace, The Block noted.

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Earlier this month, South Korea proposed to tighten regulation of digital asset exchanges, in particular, to implement FATF rules to block suspicious crypto transactions during pre-trial investigations.

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