According to reports, Japan’s Justice Ministry is considering revising an asset seizure statute connected to organized crime to include a provision allowing crypto to be hijacked in such cases.
If the rumors are confirmed, a possible modification of the Act on Organized Crimes and the Control of Proceeds of Crime (1999) will allow law enforcement authorities and judges to seize crypto assets used in illegal activities such as money laundering.
According to statements from news stations like the Yomiuri Shimbun on June 4, the Justice Ministry will need to first engage in discussions with the Legislative Council before moving forward.
Japan’s new seizure law might include crypto
According to the Jiji Press, talks with the legislative Council could begin as early as next month.
Due to the fact that the specific law focused on the seizure of funds/assets from organized crime does not explicitly outline any procedure regarding illegally acquired cryptocurrencies, there is concern that criminals may be able to continue their illicit behavior through their unseized digital asset holdings.
Physical property, monetary claims, and mobile assets such as machinery, cars, tools, and supplies are the only assets that can be confiscated under current legislation, with crypto falling under none of those categories.
The adjustment to the law would next need to be authorized by the cabinet and then endorsed by parliament, and given the nature of such a proposal, it is unlikely to face much opposition.
The study comes just days after Japan’s government passed a bill prohibiting non-banking entities from issuing stablecoins in an effort to reduce system risk and improve consumer safety.
Only licensed banks, registered money transfer agents, and local trust firms are permitted to produce and issue stablecoins under the bill.