Japan Warns Crypto Transactions May Pose Risk to Real Estate

The Japanese government has taken steps to mitigate potential risks associated with real estate transactions involving cryptocurrencies.

A joint guidance notice was issued by several government agencies, including the Ministry of Land, Infrastructure, Transport and Tourism and the Financial Services Agency. The notice warns that the speed of processing and settling cross-border payments in cryptocurrencies poses a significant risk of money laundering.

Real estate agents are being asked to take additional precautions when dealing with property transactions involving crypto, including conducting due diligence and filing regulatory reports on suspicious transactions.