After several instances of cryptocurrency-based crime and a stark increase in the use of cryptocurrencies as a money-laundering tool, Japan’s National Police Agency (NPA) revealed it would launch a crypto-tracking software to trace digital currency transactions in the country.
According to the country’s public broadcasting organization NHK, the special software is a wholly-funded effort from the NPA to prevent propagation of as an illicit financial vehicle.
Historically, Japan has been liberal in regard to cryptocurrencies and was the first major economy to recognize Bitcoin as a legal tender in April 2017. However, the onslaught of criminal activities and hacks–the $500 million dollar NEM hack occurred in Japan–is causing the country to introduce stricter rules for the volatile asset class.
