Japan warns of crypto money laundering risk in real estate deals

Japanese financial, judicial, and real estate authorities have issued joint guidance on the potential misuse of cryptocurrency for money laundering. The guidance noted that because cryptocurrencies can be transferred instantly across borders, they could be used as a payment method in real estate transactions for illicit purposes. According to the joint guidance, real estate agents are required under Japan's Act on Prevention of Transfer of Criminal Proceeds to conduct customer verification procedures and report suspicious transactions to the authorities. They must also notify the police if there are signs of criminal involvement. The measure aims to apply anti-money laundering (AML) standards equivalent to those in the traditional banking sector to real estate transactions involving cryptocurrency.