Japan tells real estate and crypto sectors to tighten AML checks on property deals

Japan’s Ministry of Land, Financial Services Agency, National Police Agency and Ministry of Finance issued joint guidance on Apr 28, 2026, warning that crypto use in real-estate deals poses AML risks and asking industry bodies to enforce bank-style due diligence, suspicious-activity reporting and police notifications. The request cautions that converting crypto to fiat on clients’ behalf may amount to unregistered exchange activity under the Payment Services Act, and reiterates a requirement to report incoming crypto payments over ¥30 million (~$180,000). Coupled with Japan’s recent reclassification of crypto as financial instruments, the move increases compliance burden and legal risk — a mixed market signal: greater regulatory clarity but tighter restrictions that could curb some crypto-related property activity.