Japan Notes Unusual Rise In ‘Shady’ Transactions In Local Exchanges


The national police in Japan have identified over 5,944 cases of “shady” or suspicious dealings at the country’s crypto agencies between the period of January and October of this year. The agency suspects that these could be cases of tax evasion or even money laundering.

In 2017, the number of crypto crimes according to press notes was 699 cases. However, in just under 10 months it appears that the number of crimes has increased by over 8 times. The sudden rise in crime numbers has pushed the police on red alert and they are pushing ahead with a watchful eye over transactions in these types of exchanges.

New regulations launched in April

In the initial months of 2018, crypto crimes were reportedly at 660 million yen but there was a notable jump to 60 billion yen towards the close of the year. This has been an alarming increase which and there have been new laws implemented to help customers overcome these issues.

According to officials, “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.”

The April-launched rules required that every cryptocurrency exchange had to report any type of transaction to the government in order to ensure that the clampdown on laundering assets as well as illegal financial activities would be optimized.

Thus, in line with these requirements, the regulator needs have been met by these exchanges and have been sending their reports on any types of suspicious activities

In October, the Financial Services Agency had 16 operators registered with it and further 3 applications pending before it.

The National Public Safety Commission had reported that the transfer of criminal proceedings would focus on suspicious activity with regard to cryptocurrency transactions and its abuse. The investigations were focused on any of that category of transactions which appeared to be in a rushed manner or included unusual amounts of money at any point of time of the transaction.

The other issues under which they regard accounts as suspicious include – the repeated use of a photo by many users and registering them in different names, as well as the date of birth. Possession of multiple trading accounts, which are all handled at the same IP address or a single IP address and the login to these accounts are via the overseas accounts but have Japanese addresses. Many times such suspicious accounts are registered with phone numbers which are no longer in use.