The Justice Ministry of Japan is considering a revision of an asset seizure law relating to organized crime to include a clause that crypto can be seized in such instances.
If the reports are accurate, a potential revision of the Act on Punishment of Organized Crimes and Control of Proceeds of Crime would allow law enforcement officers and courts to take control of crypto assets used in criminal activity such as money laundering.
The Justice Ministry will first need to engage in talks with the Legislative Council on the issue before proceeding forward. While it will also need to point out important details such as how officers can go about obtaining a criminal’s private keys.
As the specific law focused on the seizure of funds/assets from organized crime does not explicitly outline any procedure concerning illegally acquired cryptocurrencies, there is a concern that criminals may be able to continue unlawful behaviour via their unseized digital asset holdings.
The law only outlines that the type of assets that can be seized are physical property, monetary claims, and movable assets such as machinery, vehicles, tools, and supplies, with crypto falling under none of those categories.
