A Reuters report today reveals that Japan will lead the development of a global payment network for cryptocurrencies similar to the SWIFT banking network.
An anonymous source familiar with the matter claims that the project was approved last month by the Financial Action Task Force (FATF) and is part of an effort to combat money laundering with cryptocurrencies.
The FATF is an intergovernmental organization established in 1989 to develop regulatory and operational measures to fight money laundering, terrorist financing, and other related threats to the integrity of the international financial system.
A committee related to the FATF will monitor the development of the network while Japan will collaborate with other nations to see that the project is completed within the next few years.
Although the source did not reveal how the imminent crypto payment network would work, he did say that Japan’s Ministry of Finance and the Financial Services Agency (FSA) regulator are the brains behind the initiatives. However, both regulators refused to comment on the matter when Reuters reached out to them.
After the Mt Gox 2014 hack, one of the biggest exchange hacks in the history of cryptocurrency, Japan has become very proactive in terms of regulating crypto exchanges.
In May, the Financial Services Agency examined the exchanges in the country to ensure strict compliance with Anti-money-laundering (AML) rules ahead of the G20 summit held last month.
With its recent cryptocurrency bill, Japan hopes to welcome as many as 110 cryptocurrency exchanges in the coming months. The country believes its new regulation will attract more trading platforms to the region.