Japan developing a SWIFT-like network for crypto payments – Report

Yogita Khatri
Interbank messaging giant SWIFT has settled a cross-border payment, from Australia into Singapore, in just 13 seconds in a global trial.The post SWIFT settles cross-border payment in 13 seconds in a global trial appeared first on The Block.

The Japanese government is reportedly leading the development of a SWIFT-like network for cryptocurrency payments to combat money laundering.

“A person familiar with the plan,” told Reuters on Thursday that the development will be monitored by the inter-governmental body, the Financial Action Task Force (FATF), and that the government aims to launch the network in the next few years.

FATF reportedly approved the plan for setting up the network in June, which was proposed by Japan’s Ministry of Finance and the country’s financial regulator, the Financial Services Agency (FSA).

SWIFT is a messaging system used by banks for money transfers around the world. It is unclear at the moment how the cryptocurrency network would work, per the report.

Japan has taken several initiatives to tighten up the cryptocurrency industry. Back in 2017, the country passed a law that recognized bitcoin as a legal method of payment, as well as brought cryptocurrency exchanges under anti-money laundering (AML)/know-your-customer (KYC) rules.