Four Japanese government agencies have warned against the AML risks posed by crypto in real estate transactions, instructing industry bodies to enforce stricter compliance.
Japan’s financial, law enforcement and real estate regulators have issued a joint guidance request warning that crypto assets pose money laundering risk in property transactions.
The request, published on Tuesday, was issued by the Ministry of Land, Infrastructure, Transport and Tourism, the Financial Services Agency, the National Police Agency and the Ministry of Finance. It was addressed to major real estate and crypto industry bodies, including the Japan Cryptocurrency Business Association and several national real estate federations.
“Crypto assets, which have the nature of being transferred instantly across national borders, are considered to pose a high risk of being used as a payment method in real estate transactions for the purpose of money laundering,” the request states.
