Japan’s financial and enforcement authorities have issued a coordinated warning that using unregistered cryptocurrencies in property transactions may breach anti-money laundering laws. On April 28, 2026, Japan’s Ministry of Land, Infrastructure, Transport and Tourism, the Financial Services Agency (FSA), the National Police Agency, and the Ministry of Finance sent a joint request to industry groups, including the Japan Cryptocurrency Business Association and major real estate federations.
The agencies stated that “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.” They warned that crypto can be rapidly moved across borders, making property payments vulnerable to illicit activity.
Under the new guidance, real estate agents must apply customer due diligence in any transaction involving cryptocurrency, aligning their obligations with Japan’s Act on Prevention of Transfer of Criminal Proceeds. Agents are required to file suspicious transaction reports with regulators and alert police when potential criminal activity is identified, extending typical bank-level anti-money laundering checks into property deals.
The authorities also warned that intermediaries converting digital assets into fiat currency on behalf of clients could be classified as engaging in a “crypto asset exchange business” under Japan’s Payment Services Act, requiring formal registration. Trading platforms were asked to monitor cases where individuals receive crypto proceeds from property sales and then attempt large transfers inconsistent with their financial profiles.
Separately, under Japan’s Foreign Exchange and Foreign Trade Act, anyone receiving crypto valued above 30 million yen (approximately $180,000) from overseas must file a payment report with authorities.
This regulatory push follows earlier amendments to Japan’s Financial Instruments and Exchange Act, which now classify digital assets as financial instruments. The updated law introduces rules prohibiting insider trading, requires annual disclosures from issuers, and tightens penalties for operating unregistered exchanges.
Despite increased scrutiny, Japan continues to advance blockchain integration. The Japan Securities Clearing Corporation began testing whether Japanese Government Bonds could function as digital collateral on blockchain systems, and Bank of Japan Governor Kazuo Ueda stated at FIN/SUM 2026 that blockchain has entered its implementation phase, with applications in settlement, payments, and cross-border finance becoming increasingly active.
