Japan wants to create SWIFT for cryptocurrencies

The Japanese government wants to create an international network for cryptocurrency transfers similar to SWIFT that is currently used by banks. The authorities believe that this framework will help to fight money laundering issues, Reuters reports citing a person familiar with the plan.

Tokyo aims to have the network in place in the next few years, the person said, declining to be identified because the information has not been made public.

Japan wants to bring the network into operation within the next few years. The government is seeking to cooperate with other countries. Also, it is proposed to have a dedicated team related to the inter-governmental Financial Action Task Force (FATF) that will monitor the development of the network.

The source also mentioned that FATF approved the plan for a new network proposed by the Japanese  Ministry of Finance and the Financial Services Agency (FSA). However, it is still unclear how a new network will function.

It is worth noting that Japan has been at the vanguard of the new industry development in an attempt to stimulate economic growth by attracting fintech and cryptocurrency-related companies in the country. Japan was the first country in the world to propose cryptocurrency regulation in 2017.

Read also: Cryptocurrencies make their way to the top of the G7 agenda.