Japan to allow confiscation of stolen cryptocurrency

Japan’s Ministry of Justice is considering amending the Stolen Asset Seizure Act to include provisions for cryptocurrency seizure.

According to local media reports, legalizing the seizure of cryptocurrencies will allow law enforcement agencies and courts to control and confiscate assets used in criminal activities, such as money laundering. The government is concerned that as long as there is no legal procedure for cryptocurrency seizure, criminals will continue to operate illegally through their digital assets.

The Ministry of Justice and the Legislative Council will start negotiations on this issue next month. Once all the details are finalized, the amendment to the law must be approved by the Cabinet of Ministers and the Parliament.

It is interesting that the legalization of cryptocurrency seizure was discussed after the adoption of the draft law on the regulation of stablecoin turnover. Only licensed banks, registered payment operators, and trust companies in Japan are authorized to issue stablecoins.