As cryptocurrencies are being developed and regulated by countries around the world, the issue of Anti Money Laundering (AML) compliance has become a priority for regulators, government units, and central banks, combined with Facebook’s announcement that will see the introduction of Libra, the social network’s own stablecoin.
Ahead of the G7 finance ministers meeting in France in July, Japan had set up a national liaison conference with the participation of the Bank of Japan, the Ministry of Finance and the Financial Services Agency (FSA) to discuss the implications of Libra on monetary policy and financial stability.
To combat money laundering, Japan has become one of the first nations in the world to devise a solution to the problem with the proposal of a cryptocurrency network similar to the SWIFT network currently in use.
Meanwhile, sources familiar with the matter revealed to Reuters that the proposed crypto network has been approved for oversight by the G7-initiated unit, the Financial Action Task Force, which aims to promote legal, regulatory and operational measures to fight money laundering worldwide. Additionally, the Japanese government expects to develop this network to be ready for use within the next few years.
The crypto payments network was reportedly developed by Japan’s Ministry of Finance and its national regulator, the Financial Services Agency.
Earlier this year, the Japanese House of Representatives approved a new bill to amend laws regarding cryptocurrency regulation. The amended acts included AML measures for privacy coins, which are scheduled to be implemented in April 2020.
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