Approximately 5,944 suspicious transactions were reported by cryptocurrency exchanges in Japan in the first 10 months of 2018.
A report from Jiji Press on Thursday reveals that the country’s National Police Agency (NPA) released that data, which showed that the cases were filed from January to October of 2018.
Notably, the number is 788 percent greater than the last reported figure of 669 cases which was reported for the period of April to December 2017.
According to the police agency, such cases abruptly increased the Financial Services Agency (FSA) in Japan passed a bill in April 2017 which brought crypto exchanges under anti-money laundering (AML) and know-your-customer (KYC) regulations.
“It’s already been some time since the reporting system began, and it has been embraced by the industry through guidance from the Financial Services Agency,” an NPA official was cited as stating in The Japan Times.
The suspension in the figure of reports increased after the current rule was put down to exchanges getting used to the latest reporting system.
In a bid to crack down on cases that use cryptocurrency as a means to enhance financial activities that are illegal, the FSA law authorized that suspected transactions must be reported by exchanges.
Despite the sharp increase, it’s important to note that of the total number of reported suspicious transactions, crypto transactions only made up 1.7 percent.
The Japan Times revealed that according to the NPA, 346,139 reports of suspected money laundering and other illegal financial actions in the same 10-month period was filed. Majority of which involved banks and other financial bodies, the NPA said.