Believe it or not, regulators have been too concerned about the inclusion of cryptocurrency into the financial world. Japan is reportedly hitting a new deal by planning to develop SWIFT like network for crypto payment.
SWIFT Network for Cryptocurrency Market
According to the report, gathered from Reuters – Japan’s Govt is heading to combat the money laundering new network similar to SWIFT. But this network will be dedicated for crypto payments, a person familiar with the plan reported on July 18, 2019.
For those who don’t know, SWIFT is the oldest network used for the cross-border payment system, primarily used by banks. Since past few years, Ripple has been emerged as a private market player and as a direct threat to SWIFT by launching its various blockchain products to help banks and financial companies with money transfer around the world. In particular, Ripple with blockchain technology reduces the cost and the transaction time, which set it as the best choice over SWIFT for many global fintech players.
However, the date of launch or other development details are still out of sight. But it is quickly remarked that Govt is aiming to have this network in place in the next few years. More on this, Country’s anti-govt Financial Action Task Force (FATF) will have a team dedicated to monitoring this, including its development. Moreover, it is also stated that Japan will incorporate with other countries for the matter for SWIFT like network for crypto payment.
The report also highlights that back in June, FATF also approved the proposed plan of Japan for establishing the new network. During the FATF meeting, this network plan was introduced by the country’s Ministry of Finance and the Financial Services Agency (FSA).
Japan and Crypto
While the United State is still scrutinizing the consequences of Libra to sovereign currency, US Dollar and other money laundering issues Libra can create, Japan is already stepping ahead with something new and innovative in the crypto world.
Japan is a country that put itself in the forefront of the trending technologies – so far, the country has taken various initiatives to tighten the crypto industry and meantime, promoting the innovation. During 2017, Japan passed a law, defining Bitcoin as a legal method of payment and recognized crypto trading platforms under AML and KYC rules.
As for now, no information on this matter is public yet, and as report states, FATF has already approved this plan, Japan may announce it anytime soon. Stay tuned with Tronweekly to get this update.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.