If the reports are true and as evident as they seem, a modification to the Act on Control of Proceeds of Crime (1999) and Punishment of Organized Crimes would empower law officers and courts to resume their command over crypto assets utilized in criminal activity, for example, money laundering.
As per reports from a local media outlet, Yomiuri Shimbun on June 4, the Justice Ministry will first have to participate in talks with the Legislative Council on the issue, before continuing forward. While it will likewise have to resolve jumping over significant hurdles, for example, how officers can approach getting a criminal’s private key.
Current law only zeroes in on the seizure of funds/assets from coordinated crimes and does not have any methodology concerning unlawfully gained cryptocurrencies. Hence, there is a worry that criminals might have the option to proceed with their illicit ways by using crypto.
The way things are right now, the law just layouts that the kind of assets that can be seized are actual property, monetary claims, and versatile assets like vehicles, machinery, supplies, and tools, with crypto falling under none of those classifications.
Jiji press claims that the talks with the legislative Council could go ahead as soon as next month. The report surfaced soon after Japan’s parliament passed a bill to ban stablecoin issuance by unauthorised entities. The bill is a part of Japan’s push to provide greater investor protection and reduce systematic risk.
Once the final draft is ready, the amendment to the law would be first approved by the cabinet and then signed off by parliament. The bill is not expected to receive much resistance, given its consumer protection aspect.