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By the time there were no such laws that could give authority to regulators to proceed for seizing the stolen crypto, but a new Japanese Law might do so
Reports are that the Justice Ministry of Japan is considering revising an existing law for asset seizure related to organized crimes. Interestingly this law revision was also suspected to include a provision for crypto to be taken under legal possession under similar instances. Following this, if the reports are correct anyway, then there are possibilities of a potential revision within the Act on Punishment against Organized Crimes and Control of Proceeds of Crime, 1991.
These amendments would enable both law enforcement officials and authorities such as courts to take control over those crypto assets that were used in illicit activity like money laundering. On June 4th, several local media outlets reported that the Justice Ministry will initially need to get involved in conversations with the Legislative Council over the specific issue before moving forward.
During the talks the conversation will also be required to revolve several important details such as how investigating officers can get crucial information like private keys of criminals, etc. As per the press reports, the talks with the legislative council is expected to go as early as next month.
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As there is no specific law solely focused on seizing the funds or assets belonging to organized crime that does not clearly outline any process that concerns such cryptocurrencies that are acquired illegally. It becomes important to seize those assets from such criminals given that they can use those funds and continue to perform their illicit activities.
Now as it stands clearly that the law outlines that the category of assets that are considered to be seized are physical property, moveable assets and monetary claims including machinery, tools, vehicles and supplies along with crypto that fall under none of the mentioned categories.
The amendment for the law after setting up the finer details would be required to be approved first by the cabinet and the parliament. Given the nature of the proposal, there are almost no possibilities to face any resistance.
Such reports of amendments in a law came after a short while when the parliament of Japan had passed a bill to put a ban on stablecoin issuance by any non-banking institution. The proposal came in the wake of Terra (LUNA) network crash and to push a reduce system risk to provide safeguard to investors.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
