Suspicious Users Will be Investigated
Credit agencies, information security research firms, and Japan Credit Information Service will cooperate with the government to investigate suspicious cryptocurrency trading accounts and individuals that trade unusually large amounts of digital assets beginning in a few weeks.
The decision of local authorities to strictly oversee the local cryptocurrency exchange market and closely monitor large transactions was triggered by a series of reports that have come out in the past few months that have claimed the Yakuza, the biggest criminal syndicate in the country, is using cryptocurrencies to launder hundreds of millions of dollars regularly.
More to that, the Japanese authorities have also said that individuals that are suspected to be connected to terrorist organizations and criminal organizations based on their social media presence and credit scores will also be target of scrutiny, and accounts on cryptocurrency exchanges owned by suspicious individuals will be extensively evaluated by four credit agencies as well as local financial authorities.
Yizumi Nobuhiko, the chairman of Japan Credit Information Service, has said according to NHK:
“By providing the personal information of suspicious individuals including credit scores and financial data, the government hopes to protect investors and improve the security of the cryptocurrency industry.”
However, to prevent the leak of personal information, the four credit agencies will not provide sensitive financial and personal data unless local financial authorities have reasonable basis to suspect certain individuals and entities to be involved in a money laundering scheme or a crime syndicate…