A Japanese government lead effort to bring a SWIFT-like network to cryptocurrencies is on the way. (Image via Altcoin Buzz)

Cryptocurrency: Japan to Lead the Development of SWIFT-Like Network

Kinanty Nadia Putri
Politics & Economic
Economic
Jul 19, 2019
2741
Japan is one of the most progressive countries in the world when it comes to adopting digital currency. Although the country itself is still struggling to set up a proper regulation for the crypto industry, Japan’s government is motivated to combat money laundering related to crypto by leading a global push to develop an international network for the crypto payments.

The plan which is initially proposed by Japan's Ministry of Finance and its national regulator Financial Services Agency has been approved by the G-7 in June. Japan will also cooperate with other countries.

A person who is familiar with the plan told on Thursday that the network will be similar to SWIFT used by banks. SWIFT is an interbank messaging network used around the world to send sensitive financial transaction details.

In the process, Financial Action Task Force—a G-7 initiated intergovernmental body that promotes legal, regulatory, and operational measures to fight global money laundering—will monitor the project development.

However, it is still unclear how the cryptocurrency network would work due to the decentralized nature of public blockchain.

In 2017, Japan legalized cryptocurrency as a legal payment method in the country and has created a licensing scheme for the exchanges. But the industry is still at risk of hacking activities. Just as last week a Tokyo-based cryptocurrency exchange lost its digital money worth of US$32 million in an apparent hack.

Source: https://www.reuters.com/article/japan-cryptocurrency/japan-to-lead-development-of-swift-network-for-cryptocurrency-source-idUSL4N24I1CU

Japan , Asia , Internet , Tech , SWIFT , Cryptocurrency , Digital , G-7 , FATF , Economic , Business