Sandbox Authorizes Crypto Asset Payment System Crypto Garage

The Japanese Cabinet Office’s Regulatory Sandbox, which temporarily halts regulations and implements new technologies and business models in society, has recognized a new crypto asset payment system development project by Crypto Garage, Inc., it announced on January 18. Crypto Garage is the third company to be authorized, following major electronics manufacturer Panasonic Corporation with a project aiming to realize IoT and an online diagnostics project by MICIN, INC.

Crypto Garage is a joint venture between Digital Garage, Inc., a major Japanese Internet-related company, and The Tokyo Tanshi Co., Ltd., a Japanese short-term investment company. The project will utilize a technology called atomic swap that allows exchanges to simultaneously deliver crypto assets and pay in legal tender while building a payment platform that eradicates credit risk.

The payment platform uses a technology called side chain (a distributed ledger technology in which only designated participants are permitted to take part and authorization speeds are fast). By simultaneously exchanging bitcoins and tokens backed by legal tender it builds a transaction platform that enables immediate bitcoin transactions between crypto asset exchanges.

The Cabinet Office announced the project will be limited to the 3-5 companies that have already registered as crypto asset exchanges, have minimal impact on the market with the imposition of transaction restrictions, not be carried out for profit and be limited to one year, having decided that the exchange of cryptocurrencies could not be regarded as “doing business.”

*This article was written by Fisco