Japan’s regulators have warned that using crypto in property transactions may breach financial laws, citing elevated money laundering risks tied to cross-border transfers.
The guidance, issued by the Financial Services Agency and other government bodies, extends stricter anti-money laundering requirements to real estate agents handling crypto-linked deals.
“Crypto assets, which have the nature of being transferred instantly across national borders, are considered to pose a high risk of being used as a payment method in real estate transactions for the purpose of money laundering,”
The agencies stated.
Under the new framework, property agents must conduct customer due diligence and file suspicious transaction reports, aligning their responsibilities with bank-level compliance standards.
Authorities also warned that intermediaries converting crypto into fiat for property transactions may be classified as crypto asset exchange businesses, requiring formal registration under Japanese law.
Additional reporting obligations apply to large cross-border crypto transfers, including mandatory disclosures for transactions exceeding 30 million yen (around $180,000).
The move comes as Japan expands blockchain adoption in financial markets, balancing innovation with tighter oversight to prevent illicit activity.