Japan Gets the G7 Approval To Create Its SWIFT-like Cryptocurrency Payments Network

  • Japan to spearhead the creation of a new, global cryptocurrency payments network, similar to the SWIFT, monitorer by FATF
  • The plan is part of the effort to fight money laundering

Japan has usually been one step ahead in dealing with cryptocurrencies. Bitcoin has been a legal form of payment in the county since 2017 and then it began issuing licenses to the exchanges.

Now, per the latest reports Japan is to spearhead the creation of a new, international cryptocurrency payments network, similar to the SWIFT.

The Society for Worldwide Interbank Financial Telecommunication or SWIFT is the international payments messaging system used by over 11,000 banks in over 200 countries all over the globe to send money around the world.

FATF to Monitor Japan's Crypto Payments Network

Citing an anonymous source, Reuters reported that Japan is leading a global push for this network, which is part of its effort to fight money laundering.

A team related to the intergovernmental organization, Financial Action Task Force (FATF) will monitor the development of the project and Japan will be cooperating with other countries as well.

However, it won’t be launched anytime soon, rather is expected to take place in the next few years.

Currently, there isn’t much known about the project as no clarity of how exactly the cryptocurrency network would work.

Already Approved By The G7 in June

This plan to establish a new network proposed by Japan’s Ministry of Finance and the Financial Services Agency (FSA) has been approved in June by the FATF, a G7 initiated organization that promotes regulatory, legal and operational measures aimed at money laundering on a global scale.

Last month, the FATF revealed its plans to strengthen control over crypto exchanges to prevent digital currencies from being used in money laundering.

Moreover, the Japanes House of Representatives officially approved a new bill to amend the laws governing crypto regulation. These revised acts, including specific AML measures focused on privacy coins, will come into force in April 2020.

Studying The Impact of Libra & How To Regulate It

Anti-money laundering (AML) has been regulators’ primary concern as recently seen with Facebook’s launch of its stablecoin in Libra. From governments, central banks, to regulators, they have “serious concerns” that Libra could be misused by money launderers and terrorist financiers.

Ahead of the G7 finance ministers meeting in France this week, Japan set up a national liaison conference involving the FSA, the Bank of Japan, and the Ministry of Finance to investigate the impact of Libra on monetary policy and financial stability.

France, however, had already created a G7 taskforce to examine how central banks can regulate Facebook’s stablecoin and other cryptocurrencies.

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