Crypto assets are decentralized, which means that no third party interference is possible in transactions or activities related to the assets. This is a key leveraging characteristic that decentralized finance employs against its counterpart centralized.
Most criminal activity involving cryptocurrency stems from its decentralized nature. Money laundering is one such common crime.
Some jurisdictions propose legislation for crypto and the related activities because of these loopholes. It is intended to curtail some of the abuses that occur in the crypto sector and provide protection for citizens who are investing in cryptocurrency. One of these laws deals with stolen assets or illegal activities that are associated with them.
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The new Japanese cryptocurrency law could allow for the seizure of illegally obtained crypto assets. 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.
Japan’s parliament has passed legislation banning banks from issuing stablecoins. Their motive was to maintain and enhance consumers’ protection by cutting down potential system risks.
Additionally, the bill stated the authorizations for groups to participate in stabile development or issuing. This includes local trust companies, licensed banks and registered agents for money transfers.
Japanese law seizes illegally obtained crypto assets
Yomiuri Shimbun has reported that the process of drafting the law could be accelerated. First, a meeting of the Justice Ministry with the Legislative Council would be necessary. A second agenda item would include discussions about how officials can retrieve criminals’ private keys.
The legislature will revise 1999’s Act on Punishment and Control of Organized Crimes after accepting the proposal. Both courts and law enforcement personnel would now have the legal support to seize cryptocurrency-related crimes. This includes proceeds of money laundering, and other.
According to Jiji Press, there’s an expectation that the discussion with the Legislative Council could commence by next month. This law focuses on the confiscation of virtual assets belonging to organized crime.
The document does not give a detailed description of how cryptocurrencies are acquired illegally. This raises the question of criminal indulgence in continuing illegal practices with their assets.
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.
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A list of asset types that officials can seize has been included in the law. However, it’s still confusing to find that cryptocurrency doesn’t match any type. It includes physical property, monetary claims and mobile assets, such as vehicles, supplies, equipment, machinery, and so on.
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