Japan’s Cryptocurrency-Based SWIFT Alternative Approved by G7

A Reuters report published on July 18 featuring an anonymous source claimed that Japan is pushing a new, global cryptocurrency payments network that would be similar to SWIFT as a means to combat money laundering more effectively.

While the source remains anonymous, it claims that Tokyo hopes to have the network up and launched within the next few years. 

The Plans seems to be proposed initially by Japan’s Ministry of Finance and the Financial Services Agency (FSA) as per the report.

The FSA or Financial Action Task Force is a G7-initiated intergovernmental organization that promotes legal, regulatory and operational measures to fight money laundering in all parts of the world and they have approved this network.

According to Reuters, Anti Money Laundering compliance has loomed large in regulators, banks and also the government following the scrutiny of Facebook’s upcoming stablecoin, Libra. 

 Japan had set up a national liaison conference ahead of the meeting of G7 finance ministers involving the FSA, The Bank of Japan and the Ministry of Finance aimed towards investigating the impact of Libra on existing policies and the economy in general. 

The war against money laundering

France had been collaborating with Japan in creating a G7 taskforce that will examine how central banks can regulate cryptocurrencies including Facebook’s Libra.

In June, the FATF revealed its plans control over crypto exchanges to stop digital currencies from being used in money laundering and other illegal crimes.

The Japanese House of Representatives has now officially approved a new bill to amend national laws that watch over the regulation of cryptocurrencies. The revised acts will come into action by April 2020 which include specific Anti Money Laundering measures focused on these digital assets.

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