Can you tell us about JPYC’s business operations?
Noritake Okabe (hereinafter, Okabe): At JPYC, our mission is to tackle societal challenges through the issuance of stablecoins. Currently, we offer JPYC Prepaid, a prepaid-type stablecoin. However, we are planning to issue JPYC as an electronic payment method in the future. Additionally, we are working on establishing an exchange platform that will allow users to trade JPYC with other stablecoins such as USDC, creating a more convenient and robust ecosystem.
JPYC has launched a joint initiative with 13 digital asset-related businesses to enhance the effectiveness and collaboration of anti-money laundering (AML) measures. Can you share more details about this initiative and what JPYC hopes to achieve?
Okabe: Until now, each company has been implementing AML measures independently. However, our goal is to create a framework that standardizes and shares information across the industry, enabling more efficient and effective countermeasures. When companies operate individually, critical information becomes fragmented, making it difficult to combat fraudulent activities. That’s why industry-wide collaboration is crucial.
One of the key objectives of this initiative is cost reduction. When a transaction is flagged as potentially linked to money laundering, companies must take action to prevent it. However, handling these cases individually can be extremely costly. By sharing information and consolidating efforts, we can implement more effective AML measures while reducing operational costs.
Another major objective is strengthening collaboration with other industries. For instance, if a fraudulent transaction occurs in the banking sector, banks currently block it on their end. However, it is also essential to share this information with the crypto industry so that financial crimes can be prevented across both sectors. Managing these interactions separately with each exchange is inefficient, so centralizing information-sharing channels and building an integrated collaboration framework is necessary.
Furthermore, since stablecoins are particularly vulnerable to money laundering, JPYC has been involved in this initiative from its early stages to mitigate risks and enhance security.