The Japanese government has announced plans to combat privacy cryptocurrencies such as Dash, Zcash and Monero to prevent these cryptocurrencies from being used for money laundering through major credit agencies that evaluate coin users.

How to verify holders of cryptocurrency?

The Japanese government will cooperate with credit agencies and companies dedicated to research, information security, and credit information service to check all suspicious accounts and specifically who is trading these cryptocurrencies in large quantities.

The Japanese government’s decision comes as part of its plan to strictly supervise the digital currency market and closely monitor large transactions to combat money laundering and various criminal activities.

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The Japanese government also added that individuals suspected of criminal or terrorist operations would be the first target for scrutiny, and that various agencies would monitor any account trading huge amounts of private cryptocurrencies.

Mr. Yizumi Nobuhiko – Head of Credit Information Department in Japan – stated: “By providing the personal information of each suspicious transaction as well as their financial statements and credit scores, the Japanese government hopes to improve the security of the crypto sector and protect investors.”

It was also mentioned that personal information will be protected and no sensitive financial data will be provided unless there is a reasonable degree of suspicion that gangs or individuals are involved in a money laundering or criminal process using digital currencies.

Japan is still working on creating controls for the digital and cryptocurrency market

The Japanese government is working continuously to impose controls to regulate the digital and cryptocurrency market, perhaps the last of which is the Japanese government’s order for a number of Cryptocurrency trading platforms To amend the anti-money laundering system and “know your customer” procedures for the platform’s clients.

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This move came after the Financial Supervisory Authority of Japan discovered a number of flaws in the anti-money laundering systems of the bitFlyer platform, which are not sufficient to prevent money laundering.

To meet the government’s demand, a number of Japanese trading platforms, including bitFlyer, have stopped registering new users with the aim of reforming the current internal system.

As is well known, the imposition of new laws to regulate the market may reflect negatively in the short term, but it would develop the digital currency industry in the long term and instill confidence in investors and major companies.