Japan To Impose Strict Credit Evaluation To Fight Off Criminal Transactions

Jun 25, 2018 at 22:02

The Japanese government is working on implementing a stricter identity checks over big transactions done in the cryptocurrency exchange market to prevent the use of digital currencies in illicit activities such as money laundering.

Japan’s credit agencies composed of Japan Credit Information Service, credit bureaus and data security research companies have teamed up to probe shady trading accounts and individuals who trade cryptocurrencies in large amounts in the next few weeks.

This stemmed from recent reports that the Yakuza, the biggest criminal syndicate in Japan, have been using cryptocurrencies to launder millions of dollars.

The identity evaluation will cover people linked to terrorist and criminal groups by looking into their social networking existence and credit scores are also goal of evaluation, as well as reports from crypto exchanges.

“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 Credit Information Service’s chairman Yizumi Nobuhiko told NHK.

To protect sensitive financial and personal information, the four credit agencies will only look into suspicious individuals who have enough evidence from fiscal authorities of their relation to illegal activities.