Japan to lead development of an international cryptocurrency payment network

According to a Reuters report, Japan’s government is leading a global push to set up an international network for cryptocurrency payments, similar to the SWIFT network used by banks, in an effort to fight money laundering, a person familiar with the plan said on Thursday. Tokyo aims to have the network in place in the next few years, the person said, declining to be identified because the information has not been made public.

A team related to the inter-governmental Financial Action Task Force (FATF) will monitor its development and Japan will cooperate with other countries, the source said.

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, according to the person.

Both the FSA and the Ministry of Finance declined to comment. Tokyo has pushed to ensure the security of virtual currencies, hoping to leverage the fintech industry to stimulate economic growth. Japan became the first country in the world to regulate cryptocurrency exchanges at a national level, in 2017.