Japanese media report: Cryptocurrency accounted for only 0.16% of money laundering reports in 2017

According to Nikkei Asian Review, cryptocurrency trading cases involving suspected money laundering in Japan in 2017 accounted for only a small portion of the total number for the whole year.

The report cited data from Japan’s National Police Agency showing that from April to December 2017, cryptocurrency exchanges reported 669 suspicious activities they suspected could be money laundering.

Citing data from the National Police Agency, Nikkei reported that in 2017, banks reported 347,000 cases, of which 15,400 were from credit card companies and 13,300 were from credit unions. The total number of money laundering reports for the whole of 2017 was only 400,000.

The reporting period for cryptocurrencies began in April 2017, and new legislation requires cryptocurrency exchange operators to improve transparency and comply with anti-money laundering regulations. The figures suggest that international governments will continue to claim that money laundering is a major battleground that requires increased regulation.

Many of the 669 cases likely involved "suspicious transactions that were frequently repeated over a short period of time," and the Nikkei said the number of bad actors involved in the practice needed to be further reduced.

Japan continues to keep a close eye on its fledgling FX sector. In January 2018, exchanges stepped up their reporting obligations following the $530 million hack of Japan’s Coincheck exchange, with Finance Minister Taro Aso confirming that regulators were conducting impartial inspections of exchanges.

Meanwhile, in Australia earlier this week, Cointelegram reported that cryptocurrency “scams” ​​had prompted 1,200 complaints to consumer watchdog the Australian Competition & Consumer Commission last year.