Hitachi Confirms Practicality of Cryptocurrency AML Demonstration, New Service Launching in October
Confirmation of Practicality in Cryptocurrency AML Demonstration
Hitachi Ltd. announced on the 30th that it has conducted a demonstration experiment in collaboration with 17 companies, including financial institutions and cryptocurrency-related businesses, to verify the practicality of anti-money laundering (AML) measures in digital asset transactions involving cryptocurrencies, stablecoins, and NFTs. Based on these results, Hitachi will begin providing an AML monitoring service for digital asset transactions starting in October 2026.
This demonstration tested a system for sharing information on suspicious transactions and high-risk wallets among businesses to facilitate initial responses, as well as a mechanism to monitor the circulation of tokens such as stablecoins to assess risks based on the flow of funds. This project was supported by the Financial Services Agency's "FinTech Demonstration Experiment Hub" and was conducted from March to May 2026.
Contents of the AML Monitoring Service
Money laundering refers to the act of concealing the origins of funds obtained through criminal activities. While cryptocurrencies and stablecoins facilitate cross-border remittances, they are difficult to trace, raising concerns about their potential misuse for money laundering, as highlighted by regulatory authorities in various countries.
The new service consists of three functions: "Post-Transaction Monitoring" for ongoing surveillance after transactions, "Online Instant Assessment" for evaluating the risk of counterpart wallets before transactions, and "Token Monitoring" for tracking the circulation status of issued tokens.
In addition to known sanctions and crime-related lists and blockchain analysis, the service aims to complement risks that are difficult for individual businesses to grasp by combining AI and machine learning for similarity analysis of transaction behaviors.
Hitachi has already conducted the first round of demonstration experiments with 12 companies from February to April 2025, and this is the second phase of that initiative. Moving forward, Hitachi plans to work with relevant parties to develop the concept of an "AML Joint Center" that integrates risk information across the industry, involving financial institutions and cryptocurrency businesses.
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