Japan’s Watchdog Wants a Strict Control Over Crypto Transfers

The Financial Services Agency of Japan is urging financial institutions in the country to increase their vigilance in monitoring potential illegal transfers to crypto exchange providers.

This recommendation comes after a study by the National Police Agency revealed that a significant amount of money is being transferred using cryptocurrency in cases of specialized fraud.

The FSA is advising financial institutions to strengthen their user protection measures based on the risks, such as closely monitoring transfers to crypto exchange services and halting transfers if the sender’s name does not match the account name.

While this may be an attempt to prevent identity theft and money laundering, there are concerns that it could also impact peer-to-peer transfers, such as a person transferring funds to another individual’s crypto exchange account.