Japanese Police Notice Sharp Increase in Shady Crypto Trade Reporting



Last Updated: December 7, 2018 at 12:28 PM EST
Japanese Police Crypto Trade Reporting

Japan’s National Police Agency has disclosed a report stating that from January up until October 2018, reports of suspicious cryptocurrency business deals were made to them by crypto exchanges and they recorded 5,944 of such speculation. It is believed that these business deals involved tax evasion and money laundering.

The current figures reported this year is more than eight times the figures from last year which was 699 cases. The NPA has commended these reports because they see it as a sign of seriousness on the part of operators who are carrying out their reporting duties properly.

The Japan Times reported that from April to December 2017, cases of shady cryptocurrency transactions numbering 699 were registered. Within the first six months of this year, 60 billion yen has been stolen from individual wallets as well as cryptocurrency exchanges and that is a massive increase from the 660 million yen theft that was recorded last year. In response to these worrisome findings, crypto operators have been necessitated by a new law that was that was put into effect in April to know their customers and also to disclose all cryptocurrency transactions discovered to be suspicious to the police.

Obedience to Directives

An NPA official has been quoted in The Mainichi, a Japanese national newspaper, saying that the reason why more reports of shady activities have been recorded is that crypto exchange platforms have increased their cooperation with the police.

Here is how he put it:

“It’s already been some time since the reporting system began, and it has been embraced by the industry through guidance from the Financial Services Agency.”

Cryptocurrency exchanges were required by a regulatory regime initiated by the Japanese government to disclose any transaction detected to be suspicious, as the government of Japan was making efforts to join the worldwide restriction movement on money laundering and other forms of illegal activities in the financial sector. From that day forward, the law enforcement agencies, as well as regulators, have added reports from exchanges about suspicious crypto transactions into their investigations.

A report disclosed that the Financial Services Agency had, by October 1, certified 16 agencies and there is an ongoing screening process for the registration of three more operators.

The National Public Safety Commission provided a report on Thursday concerning the conveyance of criminal earnings and stressed about the vulnerability of cryptocurrency transactions to corrupt practices. In all the investigations carries out by the NPA into shady crypto business deals, the following were found: the same photograph used by different people with various dates of birth and names, one IP addressed used to open many trading accounts, overseas accounts operating with addresses in Japan, the registration of mobile phone numbers that are no longer in use. Money laundering is not the only activity these transactions are guilty of, reports have it that child pornography and illegal drugs are also included.