meta_id 3301862

On July 7, 2026, the Financial Services Agency (FSA) finalized a partial amendment to the designation of countries and regions under Articles 17-2 and 17-3 of the Order for Enforcement of the Act on Prevention of Transfer of Criminal Proceeds following public consultation. Japan has imposed notification obligations, commonly referred to as the "travel rule," on cryptoasset exchange service providers and electronic payment instrument exchange service providers (collectively referred to as "VASPs") to submit information on originators and beneficiaries when transferring cryptoassets and electronic payment instruments, including stablecoins. This requirement enables authorities to track transaction routes across these digital assets. However, the effectiveness of the travel rule depends on equivalent regulatory requirements existing in counterparty jurisdictions. To address this, Japan has limited the scope of the travel rule to transfers to foreign VASPs located in jurisdictions that have implemented regulations equivalent to Japan's travel rule requirements. In response to the implementation status of travel rules across different jurisdictions, the FSA has added five jurisdictions to the scope of the travel rule requirements. This expansion reflects growing global alignment on cryptoasset and stablecoin regulation, ensuring that Japanese VASPs can conduct cross-border transfers with greater confidence that beneficiary information will be properly tracked and reported in receiving jurisdictions. The finalized amendment takes effect on August 3, 2026. Financial institutions and VASPs subject to these requirements should ensure compliance with the expanded designation framework by this date. Further information on Japan's travel rule requirements is available through the FSA's official channels.