Japan has made another forward step towards pushing for the mass adoption of crypto. A report unveiled that the country’s government is working to create a SWIFT-like system. This project aims to manage crypto payments. Also, it aims to fight money laundering in the country. This news comes as most governments continue struggling to find suitable measures to regulate the crypto sector.
According to the report, an anonymous source familiar with the government’s plan leaked this information. The individual opted to remain unknown as Japan has not made this news public yet. The source also claimed that Tokyo seeks to implement this network in a few years.
On top of this, the informant noted that a team associated with the Financial Action Task Force (FATF) would monitor this initiative. Reportedly, Japan is set to team up with other countries in this bullish move.
The source noted that,
FATF in June approved the plan for establishing the new network, which was proposed by Japan’s Ministry of Finance and the Financial Services Agency (FSA) regulator,
Lack of Regulation Set to Hinder the Implementation of this Network
Banks use the SWIFT network to send funds securely across the globe. While the source noted that this crypto network resembles SWIFT, it is still not clear how it would work. This is because the nascent sector still lacks regulatory oversight.
Also, it is not clear whether this new crypto network would face any hurdles from crypto adopters. For a long time now, this sector has remained widely unregulated and wildly volatile. Due to this, financial watchdogs and central banks have steered clear of the space.
When reached for comment, both the FSA and the Ministry of Finance kept a tight lip, failing to disclose any information regarding this project.
To date, Japan is the only country across the globe to introduce crypto regulations at a national level. As a result, its citizens have been using BTC as a legal form of payment since 2017. In so doing, Japan hopes that it will spur economic growth.
While Japan has already enacted policies that regulate crypto exchanges in the country, it is still battling the risks associated with the crypto sector. According to a report, Remixpoint the parent firm of Japan-based Bitpoint exchange lost $32 million to a hack on July 12. Prior to this, Coincheck another Japanese crypto exchange lost $723 million worth of NEM.
Do you think Japan’s plan to introduce an international crypto payments network has the potential to make the crypto sector mainstream? Let us know in the comments below.