Japan MLIT issues warning on crypto asset use in real estate transactions
- Adam German
- 3 hours ago
- 2 min read
On April 28th, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), alongside the Financial Services Agency, National Police Agency, and Ministry of Finance, issued a joint request to major industry associations and crypto-related bodies, calling for stricter compliance measures across the sector.
Authorities warned that real estate transactions in Japan - given their high asset value - are particularly vulnerable to misuse for money laundering. Domestic and international criminal groups may attempt to use property deals to convert illicit proceeds, with crypto assets presenting a heightened risk due to their ability to move instantly across borders.
Photo by Kanchanara on Unsplash
This combination of high-value assets and fast, cross-border settlement mechanisms increases the risk that crypto assets could be used to facilitate money laundering through real estate transactions.
In response, the ministries called for stricter compliance across the industry. Even in cases where licensed real estate agencies act as the seller and accept crypto assets as payment, firms are urged to use domestically registered crypto asset exchange providers when converting those assets into fiat currency.
The guidance also emphasizes the need for rigorous identity verification at the time of transaction, alongside the obligation to report any suspicious activity related to money laundering to the relevant authorities.
By focusing on exchange usage and transaction monitoring, regulators are signaling that control over the conversion and settlement process will be a key point of oversight.
The ministries also reinforced reporting requirements tied to cross-border investors. As of April 1st, 2026, non-residents - including Japanese nationals residing overseas as well as foreign individuals and entities - who acquire real estate or related rights are required to submit a “Report on Acquisition of Real Estate or Related Rights in Japan.”
The ministries called for these obligations to be properly understood and consistently implemented across the industry.
While crypto-based real estate transactions remain a relatively small segment of the market, the coordinated request signals a more proactive regulatory stance. As the use of crypto assets in high-value transactions evolves, further scrutiny and enforcement measures are likely to follow.
Further Reading:
Original Japanese Language Request with All Ministries Listed
Source:
R.E. Port News (Japanese Only)
