Japan Expands Crypto Travel Rule Network

As we move further into 2026, countries across the globe are continuing to strengthen their crypto and blockchain regulations. Whilst many are developing regulations and working towards international standards, such as those set by the Financial Action Task Force (FATF), not all are progressing at the same speeds. Some countries, such as Japan, are ahead of the curve, and are strict about who they allow crypto transactions with in order to ensure safety and security in the crypto ecosystem.

Until recently, Japan limited crypto transactions with VASPs to 58 jurisdictions that it viewed as having appropriate or commensurate regulations to its own: Albania, Austria, Bahamas, Bahrain, Belgium, Bermuda, British Virgin Islands, Bulgaria, Canada, Cayman Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hong Kong SAR, Hungary, India, Indonesia, Ireland, Isle of Man, Israel, Italy, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Mauritius, Namibia (Only applies to cryptoassets), Netherlands, Nigeria, Philippines, Poland, Portugal, Republic of Korea, Republic of South Africa, Republic of Türkiye, Romania, Serbia, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, and Venezuela. 

This month, Japan's Financial Services Agency (FSA) has announced that it is widening its crypto Travel Rule coverage, revealing an amendment that will cover 5 additional jurisdictions: Anguilla, Botswana, Commonwealth of Dominica, Cuba, and Oman. This is the first update to Japan’s Travel Rule guideline jurisdictions in over a year, and signals that its strict standards for anti-fraud measures and cross-border transaction traceability requirements are now being met by an increasing number of countries.

Japan's latest amendment reflects a broader global trend of jurisdictions aligning with Financial Action Task Force (FATF) standards and growing adoption of the Travel Rule. Since June 2023, Japan's rules have required an originator VASP to notify the beneficiary VASP of identifying information at the time of transfer, including names, customer identification numbers, and blockchain data. With Japan’s focus on security and accountability in this, the list of places approved for crypto transactions can function as a snapshot of which jurisdictions are serious about crypto use, and its expansion can highlight the growing adoption of effective regulations. 

This is good news for crypto - showcasing its growing legitimacy and potential for increasing adoption into mainstream finance - but as more countries adopt similar frameworks, the compliance demands for exchanges, wallets, stablecoin issuers and more will only continue to grow. Companies that are slow to innovate or adopt robust compliance measures will quickly find themselves struggling to operate across borders. This is even more of an issue for smaller or newer businesses and startups who may not have the expertise or finances for traditional identity verification solutions. 

With the regulatory landscape constantly shifting and growing, navigating cross-border compliance can be a challenge. Fortunately, Blockpass provides a safe, effective and user-controlled identity verification system that aligns perfectly with these growing global requirements. Blockpass’ solutions are designed to facilitate regulatory compliance in the most simple and efficient way without sacrificing security, particularly for SMEs and startups that may lack an in-house compliance team or suitable technical resources. With Blockpass, companies can verify and onboard investors, suppliers, employees or customers in moments, providing KYC and KYB in one platform. 

With the continual development of compliance, regulatory controls on crypto are only getting stronger and the importance of identity verification and effective solutions more vital, especially as traditional financial frameworks merge with the digital asset space. This presents an opportunity for those that can seize it, and with Blockpass’ assistance, anyone can try.