Japan’s Dubious Crypto Trading Reporting Grew Eight Times That of 2017

Dec 07, 2018 at 20:29

The National Police Agency (NPA) of Japan said reports of suspicious trading transactions in the January to October period exceeded full-year 2017’s by eight-fold.

In a report by local news outlet Jiji Press, the ten-month period saw 5,944 reports submitted by crypto exchanges which included cases such as money laundering and tax evasion.

This is against the 699 cases reported last year.

The NPA attributed this jump to a shift in behavior in crypto trade reporting, whereas exchanges and other crypto associations take the task more seriously than ever.

This change was observed even before April when a new crypto trading reporting system was implemented.

The new policy mandated crypto operators to identify customers and report all suspicious digital currency transactions as detected, to the police.

“It’s already been some time since the reporting system began, and it has been embraced by the industry through guidance from the Financial Services Agency,” said an unidentified NPA official quoted in a report by The Mainichi.

The establishment of the policy was triggered by reports of skyrocketing amounts of money being stolen by fraudulent crypto platforms.

Earlier news reports have it that the first half of this year already saw 60 billion yen worth of crypto stolen, significantly higher than the 660 million yen reportedly robbed from cryptocurrency exchanges and individual wallets for the entire 2017.

The requirement was also part of Japan’s broader effort of joining the global clampdown on asset laundering and illegal financial activities.