A report from Reuters on Thursday quotes a source familiar with the effort to say that the network is aimed at combating money laundering and was approved last month by the Financial Action Task Force (FATF).
A team from the international money laundering task force would monitor the development of the project, which will be conducted alongside other nations, the source said. network is an initiative from Japan's Ministry of Finance and the Financial Services Agency (FSA) watchdog.
Japan was more closely scrutinizing crypto exchanges as host of a June meeting by the G20 group of nations, and also launched a working group to discuss regulatory issues around Facebook's Libra cryptocurrency before to the G7 meeting last week
The nation has suffered a number of notable hacks of crypto exchanges, including two of the world's largest and most shocking exchanges: Mt. Gox and Coincheck
As a result of the Gox breach, Japan has been one of the most proactive countries when it comes to regulation of cryptos.
Japan walk sign image via Shutterstock