Japan Might Create ‘SWIFT Like’ Blockchain For Cryptocurrency Transactions

The Japanese government is planning to create an international network for cryptocurrency transactions, similar to the one used by Society for Worldwide Interbank Financial Telecommunication (SWIFT).News portal, FXStreet, reported that the Japanese government believes that this framework will help to fight money laundering issues, according to the source who is familiar with the matter. The source further stated that the country wishes to bring the network into operation within the next few years and the government is seeking to cooperate with other countries.The source added that the Financial Action Task Force (FATF) approved the plan for a new network proposed by the Japanese Ministry of Finance and the Financial Services Agency (FSA). At this time, however, it is unclear how the network will be run.This is certainly an interesting development. Earlier this year, when the G20 summit was held in Japan, the country put forward international regulations pertaining to cryptocurrencies and anti-money laundering (AML) laws.Cryptocurrencies and their regulations have been a part of G20 conversations for a while. Last year, Crypto-News India had reported that the nations had decided that it would be better to classify them as assets, as opposed to securities or currency, when G20 summit was held in Argentina.At the time, an official statement had said, “We acknowledge that technological innovation, including that underlying crypto-assets, has the potential to improve the efficiency and inclusiveness of the financial system and the economy more broadly. Cryptoassets do, however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing. Crypto-assets lack the key attributes of sovereign currencies. At some point they could have financial stability implications. We commit to implement the FATF standards as they apply to crypto-assets, look forward to the FATF review of those standards, and call on the FATF to advance global implementation. We call on international standard-setting bodies (SSBs) to continue their monitoring of crypto-assets and their risks, according to their mandates, and assess multilateral responses as needed.”Liked what you read? Join us on Telegram