Japanese Government Reportedly Set To Freez Stolen Crypto – Assets By Passing New Law
June 08 2022 - 4:00AM
NEWSBTC
The decentralized nature of crypto assets ensures that transactions
and activities involving the assets have no third parties
interference. This has remained a leveraging feature that
decentralized finance uses against its centralized counterpart.
Yet, most criminal activities relating to cryptocurrency are
scaling through based on its decentralized characteristics. One of
such prevalent crimes is money laundering. Such loopholes have
prompted some jurisdictions to propose laws for crypto and its
related activities. The action is to control some of the excesses
within the crypto industry and protect citizens investing in
cryptocurrencies. Some of the laws center on stolen assets and
illegal activities with them. Related Reading
| Bitcoin Market Cap Shed Over $120-B Last Month – How Much
More Can It Lose? Among the cryptocurrency laws is the new one from
Japan that could seize crypto assets obtained illegally. According
to the report, the country’s Justice Ministry plans on revising the
law on crypto seizures for organized crime-related cases. There’ll
be a forceful take-off of any crime-related cryptocurrency with the
amended law. A few days ago, the Japanese parliament passed a bill
banning non-banking firms from stablecoin issuance. Their motive
was to maintain and enhance consumers’ protection by cutting down
potential system risks. Also, the bill listed the authorized groups
that could participate in stable development or issuance. These
include local trust firms, licensed banks, and registered agents on
money transfers. Japanese Law Seizes Illegally Obtained Crypto
Assets New reports from local media outlet Yomiuri Shimbun stated
some processes that could birth the proposed law. The initial step
would be a meeting between the Justice Ministry and the Legislative
Council. Another included agenda would be discussions officials
could retrieve the private keys of criminals. With the acceptance
of the proposal, the legislature would revise the Act on Punishment
of Organized Crimes and Control of Proceeds of Crime (1999). Hence,
both courts and law enforcement officials would have legal backing
to seize crime-related cryptocurrencies. These include proceeds
from money laundering and others. According to Jiji Press, there’s
an expectation that the discussion with the Legislative Council
could commence by next month. The law concentrates on confiscating
virtual assets from organized crime. However, it creates no
detailed explanation of the procedures for cryptocurrencies
acquired illegally. This poses the concern about continuous
criminal indulgence in illegal practices using their free assets
holdings. If all the necessary details are kept in the right order,
there’ll be no further delay with the law amendment. The cabinet
would approve it, followed by the parliament’s signing off. With
such moves and the proposal’s nature, the implementation would have
no resistance. Related Reading | Polygon (MATIC)
Price Falls Short Of Reaching Full Potential Despite Recent
Developments Also, the law has listed some of the categories of
assets that the officials could seize. However, it’s still
confusing to find that cryptocurrency doesn’t match any type. The
list includes monetary claims, physical property, and mobile assets
like vehicles, supplies, tools, machinery, etc. Featured image from
Pexels, chart from TradingView.com
Polygon (COIN:MATICUSD)
Historical Stock Chart
From Apr 2024 to May 2024
Polygon (COIN:MATICUSD)
Historical Stock Chart
From May 2023 to May 2024