Japan crypto exchanges hit with tougher money laundering curbs

New rules require identification for transfers, but loopholes remain

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Japan's new rules aim to put checkpoints at the on and offramps of exchanges for virtual currencies like Bitcoin. © Reuters

KEITA SEKIGUCHI, Nikkei fintech editor

TOKYO -- New Japanese cryptocurrency rules that require the sharing of customer information between exchange operators have taken effect in an effort to crack down on money laundering.

The self-regulatory Japan Virtual Currency Exchange Association last Thursday introduced the so-called travel rules, which require one exchange to provide names, addresses and other customer information to another when cryptocurrency is transferred.

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