A new Japanese law that will ensure that illegal crypto holdings get confiscated is currently undergoing consideration in Japan. According to reports, the country’s justice department has floated a proposal that will ensure that the assets are seized in instances of investigations. Should the reports hold water, then authorities and regulators would be able to seize assets under the 1999 proceeds of crime.
The Justice Department is working on the new Japanese law
According to several reports, the Justice Department has announced that it will conduct an in-house consultation before taking any step. Some of the parties involved in the consultation include the legislative arm of the government. There are also concerns about how regulators would be able to obtain private keys needed to access criminal wallets. This and many other issues will be discussed during the consultation, which is scheduled to occur soon.
The report places the time frame of the meeting around the end of this month. The previous Japanese law failed o address what regulators would do to the illegal holdings. However, there are fears that criminals might continue with their malicious operations using the assets. Under the current Japanese law, regulators can only seize cash, properties, and mobile assets such as supplies. However, crypto is not one of the items highlighted as a movable asset.
Japan plans stablecoin law
Should the law get a pass after an in-house vote, the department would make moves to drum up other needed details. And if the required details are sorted, the Japanese law would be moved up to the Cabinet before being passed to the parliament for a final sign-off. Reports have noted that the process of the new Japanese law will not face any challenge seeing as it is a widely accepted proposal.
This latest proposal is coming off the back of a new law that will see stablecoins not issued by the country’s central bank banned. According to reports, the parliament is looking for ways to ensure that their systems are safe and investor funds are protected. Rumors are that the law was in response to the massive mishap that befell Terra in the last few weeks. Should the new Japanese law be passed, only registered financial entities will be given the go-ahead to create stablecoins.