The decentralized nature of crypto assets ensures that transactions and activities involving the assets are free from third-party interference. This has continued to be a leverage feature that decentralized finance uses against its centralized counterpart.
However, most of the criminal activities related to cryptocurrencies are escalating based on its decentralized features. One of those predominant crimes is money laundering.
Such loopholes have led some jurisdictions to propose laws for cryptocurrencies and their related activities. The action is to rein in some of the excesses within the crypto industry and protect citizens who invest in cryptocurrencies. Some of the laws focus on stolen assets and illegal activities with them.
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Among the cryptocurrency laws is the new one from Japan that could seize illegally obtained crypto assets. According to the report, the country’s Ministry of Justice plans to review the law on crypto seizures for cases related to organized crime. There will be a forceful takeoff of any crime-related cryptocurrency with the amended law.
A few days ago, the Japanese parliament passed a bill that prohibits non-bank companies from issuing stablecoins. Their motive was to maintain and improve consumer protection by reducing the potential risks of the system.
In addition, the bill listed the authorized groups that could participate in stable development or issuance. These include local trust firms, licensed banks and registered money transfer agents.
Japanese Law Seizes Illegally Obtained Crypto Assets
New reports from the local media outlet Yomiuri Shimbun indicated some processes that could lead to the proposed law. The initial step would be a meeting between the Ministry of Justice and the Legislative Council. Another agenda included would be discussions that officials could recover private keys from criminals.
With the acceptance of the proposal, the legislature would review the Law on Punishment of Organized Crime and Control of the Proceeds of Crime (1999). Thus, both courts and law enforcement officials would have legal backing to seize crime-related cryptocurrencies. These include the proceeds of money laundering and others.
According to Jiji Press, there is an expectation that the discussion with the Legislative Council could start next month. The law focuses on confiscating virtual assets from organized crime.
However, it does not create a detailed explanation of the procedures for illegally acquired cryptocurrencies. This raises concerns about continued criminal indulgence in illegal practices using your free assets.
If all the necessary details are kept in the correct order, there will be no more delays with the amendment of the law. The cabinet would approve it, followed by the parliament’s signature. With such moves and the nature of the proposal, the implementation would not be resisted.
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Additionally, the law has listed some of the categories of property that officials could seize. However, it is still confusing to find that the cryptocurrency does not match any type. The list includes monetary claims, physical property, and moving assets such as vehicles, supplies, tools, machinery, etc.
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