G7 approves Japanese cryptocurrency based swift alternative payment system

July 18, 2019, | AtoZ MarketsDifferent media resources citing an anonymous source, have recently reported, that Japan’s government plans to lead a SWIFT-like global cryptocurrency payment system project.

Global cryptocurrency payment system as part of the anti-money laundering policy

As per media reports, the Japanese authority has taken this initiative to resolve issues related to money laundering.

According to the source, the government of the Country of the Rising Sun believes the global cryptocurrency payment system could help to combat money laundering more effectively.

It is worth to mention, that in May 2019, the Japanese Financial Services Agency started checking the anti-money laundering pertinent policies as for local crypto exchanges, prior to the inspection campaign the Financial Action Task Force (FATF) intends to start in this upcoming fall. 

Earlier, the Japanese authorities appealed to the G20 leaders to begin implementing strategies for registering, licensing and monitoring crypto exchanges and developed a regulatory manual about digital assets that covers a number of crypto-related topics.

Also in the spring of 2019, the House of Representatives of Japan officially approved the new draft law on amending national laws regulating the crypto industry.

More revised acts, which include specific anti-money laundering measures aimed at privacy coins, will come into force in April 2020.

More details on the new Japanese global cryptocurrency payment system

The information about the upcoming SWIFT-like global cryptocurrency payment system is quite poor. The anonymous source has revealed Tokyo hopes to have the network established within the next few years.

Moreover, according to the report, plans for the network were initially proposed by Japan’s Ministry of Finance and the Financial Services Agency (FSA). The local media also reported that the proposed global cryptocurrency payment system will be overseen by the Financial Action Task Force.

This intergovernmental organization was created on the initiative of G7, which promotes legal, regulatory and operational measures aimed at combating money laundering on a global scale.

The news about the imminent launch of the controversial Facebook Libra stablecoin also did not bypass the attention of Japanese authorities.

In the run-up to the G7 finance ministers meeting in France this week, Japan organized a national conference on relations involving the Bank of Japan, the Ministry of Finance and the FSA, whose task is to examine the influence of Facebook Libra on monetary policy and stability of the financial market.

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