NEW LAW BY JAPAN WOULD ALLOW CAPTURING OF STOLEN CRYPTO
The Japanese Ministry of Justice is reportedly considering a review of organized crime related property laws to include the principle that crypto can be regulated in such cases.
If the reports are found to be true, a possible review of the Organized Criminal Procedure and Criminal Procedure Control Act (1999) will enable law enforcement and court officials to control crypto assets used in criminal activities such as money laundering. .
According to reports from local media outlets such as the Yomiuri Shimbun on June 4, the Department of Justice will first need to consult with the Judiciary before proceeding. Although it will also need to release important information such as how the police can get the criminal keys private.
Negotiations with the Legislature could resume soon next month, according to Jiji Press.
Since a specific law focusing on money laundering / organized crime does not explicitly specify any illegal secrecy procedures, there is concern that criminals may continue to engage in illegal activities with their unused digital assets.
As it stands, the law only states that the type of assets that can be seized on tangible assets, financial claims, and movable assets such as machinery, vehicles, tools, and equipment, and crypto falls under those categories.
Once good details have been put in place, an amendment to this law will need to be approved by cabinet and signed by parliament, and it will not face much opposition considering the nature of this proposal.
The report comes just days after Japan's parliament passed a bill to ban the issuance of stablecoin by non-banking institutions as part of a campaign to reduce system risk and provide greater consumer protection.
Under the bill, only licensed banks, registered transfer agents, and trusted local companies can develop and issue stablecoins.