Japan’s Financial Services Agency (FSA) has encouraged the country’s financial institutions to step up monitoring of “illegal” transfers to cryptocurrency exchange providers.
An analysis by Japan’s National Police Agency concluded that damage caused by specialized fraud related to illegal money transfers is mainly transferred using cryptocurrencies. Based on this analysis, the FSA “encourages financial institutions to further strengthen user protection based on risk, such as the status of transfers to cryptoasset exchange service providers.”
Specifically, the FSA advises financial institutions to stop “transfers to crypto asset exchange service providers” if the sender’s name is different from the account name. While this may be intended to combat cases of identity theft and money laundering, some believe the wording could prevent certain peer-to-peer transfers, such as a bank account holder making a payment to another person’s cryptocurrency trading account. (The Block)