The decentralized nature of crypto assets ensures that transactions and activities related to assets will not have third party interference. This has remained the amplification function that decentralized finance uses over its centralized counterpart.
However, most of the criminal activities associated with cryptocurrencies are scaling due to its decentralized characteristics. One such common crime is money laundering.
Such loopholes have prompted some jurisdictions to propose laws for cryptocurrencies and related activities. The action aims to control some of the excesses in the crypto industry and protect citizens who invest in cryptocurrencies. Some laws deal with stolen assets and illegal activities with them.
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Among the laws on cryptocurrencies, there is a new one from Japan that can confiscate crypto assets obtained illegally. According to the report, the country’s Ministry of Justice plans to revise the law on the seizure of cryptocurrency for organized crime cases. After the amendments to the law, there will be a powerful rise in any cryptocurrency associated with crime.
A few days ago, the Japanese parliament passed a law banning non-bank firms from issuing stablecoins. Their motive was to maintain and enhance consumer protection by reducing potential systemic risks.
The bill also lists authorized groups that can participate in stable development or release. These include local trust firms, licensed banks, and registered money transfer agents.
Japanese Law Seizes Illegally Obtained Crypto Assets
New reports from local media, Yomiuri Shimbun named some of the processes that could lead to the proposed law being passed. The first step will be a meeting between the Ministry of Justice and the Legislative Council. Another item on the agenda will be a discussion on how officials can obtain criminals’ private keys.
Following the adoption of this proposal, the Legislature will amend the Organized Crime and Proceeds of Crime Control Act (1999). Consequently, both courts and law enforcement officials will have the legal backing to seize crime-related cryptocurrencies. These include proceeds from money laundering and others.
According to Jiji Press, it is expected that discussions with the Legislative Council could begin next month. The law focuses on the confiscation of virtual assets from organized crime.
However, it does not provide a detailed explanation of the procedures for cryptocurrencies obtained illegally. This raises concerns about the ongoing criminal condoning of illegal activities using their free assets.
As long as all the necessary details are stored in the correct order, there will be no further delay in amending the law. The Cabinet will approve it and then sign it by Parliament. With such moves and the nature of the proposal, the implementation would not meet resistance.
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The law also lists certain categories of assets that officials can seize. However, it is still confusing that the cryptocurrency does not fit into any type. The list includes monetary claims, physical property, and mobile assets such as vehicles, supplies, tools, machines, etc.
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