Japan Has FATF Green Light to Create 'SWIFT Network' for Crypto: Report

Japan is said to be leading the creation of an international cryptocurrency payments network similar to banking network SWIFT.

Jul 18, 2019 at 8:30 a.m. UTC
Updated Sep 13, 2021 at 11:12 a.m. UTC

Japan is said to be leading the creation of an international cryptocurrency payments network similar to banking network SWIFT.

A report from Reuters on Thursday cites a source familiar with the effort as saying that the network is aimed to combat money laundering and was approved last month by the Financial Action Task Force (FATF).

A team from the international money laundering task force would monitor development of the project, which will be conducted alongside other nations, the source said.

The network is an initiative from Japan's Ministry of Finance and the Financial Services Agency (FSA) watchdog. Reuters said both agencies would not comment when contacted.

Japan had been more closely scrutinizing crypto exchanges as the host of a June meeting by the G20 group of nations, and also launched a working group to discuss regulatory issues around Facebook's Libra cryptocurrency prior to the G7 meeting last week.

The nation has suffered a number of notable hacks of crypto exchanges, including two of the world's biggest and most shocking: Mt. Gox and Coincheck.

Largely as a result of the Gox breach, Japan has been one of thee most proactive countries when it comes to regulation of cryptos. In 2017, it created a licensing scheme for exchanges and amended its financial rules to allow bitcoin as a legal payment method.

image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Morgan Stanley Warns NFTs Next to Watch After UST Collapse, Bukele Announces Mega Banks Meeting in El Salvador

The most valuable crypto stories for Monday, May 16, 2022.

The most valuable crypto stories for Monday, May 16, 2022.

2
First Mover Asia: Metaverse ETFs Are Underperforming Gaming ETFs; Cryptos Return to the Red

Public interest continues to grow about the metaverse, but not as much in metaverse ETFs. Does crypto belong in everything?

Public interest continues to grow about the metaverse, but not as much in metaverse ETFs. Does crypto belong in everything?

3
Coinbase Expands Features, Allowing Some App Users to Access Ethereum-Based Dapps

The move will let Coinbase users purchase NFTs, trade on decentralized exchanges and borrow and lend on various DeFi platforms.

The move will let Coinbase users purchase NFTs, trade on decentralized exchanges and borrow and lend on various DeFi platforms.

4
S&P Global Ratings Forms DeFi Group to Build Out Crypto Framework

The credit rating giant named Charles "Chuck" Mounts as chief DeFi officer to lead the unit.

The credit rating giant named Charles "Chuck" Mounts as chief DeFi officer to lead the unit.