Anonymous sources from Tokyo confirmed on July 18 for a Reuters report that the Japanese government is planning to launch a new global payment crypto network that would function similarly to SWIFT. The main goal is to replace SWIFT, and it got the G7 approval. Such a Japanese idea comes after a series of decisions made to gain a more comprehensive campaign against money laundering, as well as the upcoming regulation of the cryptocurrency, which will widely include ALM acts, planned for the next spring.
G7 working group approves the global payment cryptocurrency network
Allegedly, this plan was proposed first by the Ministry of Finance and its regulatory body, the Financial Services Agency, FSA. The same source asserts that the Japanese government will establish the network in the next few years, but that plans are kept in strict confidentiality.
An innovative financial solution and the idea of creating this kind of network got the approvement from the Working Group on Financial Activities – an intergovernmental organization working under the G7 oversight. This entity has the task to promote legal, regulatory, and operational measures — all to strengthen the fight against money laundering, globally.
Furthermore, the need for compliance with anti-money laundering (AML) appeared in the control of regulators, central banks, and governments, after Facebook announced plans to launch its own stablecoin Libra.
G7 annual meeting of the Minister of Finance
This week is reserved for the annual meeting of finance ministers of the G7 in France. Japan has established a national liaison conference – which includes the Bank of Japan, the Ministry of Finance, and the organization tasked with investigating the impact of Balance on Monetary Policy and Financial Stability FSA.
Money laundering, crypto industry, and G7
France has secured Japan in creating a G7 working group. The group will examine the influence of central banks in regulating the cryptocurrencies such as Facebook’s Libra.
Last month, FATF revealed plans to strengthen control over crypto-exchanges to prevent the use of cryptocurrencies in money laundering and other forms of financial criminal acts.
Before the adoption of the G7 decision and new measures to combat money laundering, the House of Representatives of Japan officially approved a new law on amendments to the national laws regulating the crypt in the following spring. The subjects of these legal acts refer to special AML measures aimed at privacy coins. The bill will come into force in April 2020.