Japan Tightens Crypto Rules for Property Deal Payments

TLDR Japan has warned that unregistered crypto use in property deals may breach existing financial laws. Authorities have ordered real estate agents to apply customer due diligence in crypto-based transactions. Regulators require firms to file suspicious transaction reports and alert police when needed. The government said converting crypto into fiat for clients may require formal registration. Exchanges must monitor large crypto transfers linked to property sales and report unusual activity. Japan has ordered tighter checks on crypto payments in property transactions and warned of legal breaches. Authorities said unregistered crypto handling in real estate may violate existing financial laws. The directive targets agents, exchanges, and intermediaries involved in digital asset transfers. Japan Extends AML Rules to Crypto Property Payments Japan’s Ministry of Land, Infrastructure, Transport and Tourism issued a joint request with financial regulators. The Financial Services Agency, the National Police Agency, and the Ministry of Finance joined the notice. They sent the document to real estate federations and the Japan Cryptocurrency Business Association. Authorities said crypto transfers move instantly across borders and increase money laundering risk. They wrote, “Crypto assets are considered to pose a high risk” in property payments. Therefore, regulators ordered agents to apply customer due diligence in such transactions. Real estate firms must now follow standards under the Act on Prevention of Transfer of Criminal Proceeds. Agents must verify identities and monitor transaction sources before closing deals. They must also file suspicious transaction reports and inform police of potential criminal activity. The agencies warned that intermediaries converting crypto to fiat may need registration. They said such activity could qualify as a “crypto asset exchange business” under the Payment Services Act. Firms operating without registration may face enforcement ac...