Japan’s cryptocurrency exchanges reported 5,944 suspicious transactions in the first 10 months of 2018, according to the nation’s National Police Agency.
Jiji Press reported the 2018 figure is a sizable increase compared with the 669 suspicious cases reported between April and December 2017.
Why the jump? It might have had something to do with the law enacted in April 2017 that extended anti-money laundering (AML) and know-your-customer (KYC) rules to crypto exchanges in the wake of the Mt. Gox hack and subsequent failure. The law mandates exchanges must report suspected transactions in an effort to crack down on criminals who use cryptocurrency to facilitate illegal financial activities.