Japan has become the latest country to establish a fintech cooperation framework with Singapore. The Lion City has recently put pen to paper with the U.K., South Korea and Abu Dhabi among others.
The Monetary Authority of Singapore (MAS) and the Financial Services Agency (FSA) of Japan announced the establishment of a Co-operation Framework to enhance fintech linkages between both countries.
The framework will enable MAS and FSA to refer fintech companies in their countries to each other’s markets. It also outlines how the referred companies can initiate discussions with the regulatory bodies in the respective jurisdictions and receive advice on their regulatory frameworks, such as required licences.
This will help to reduce regulatory uncertainty and barriers to market. In addition, the Framework also sets out how the regulators plan to share and use information on financial services innovation in their respective markets.
Japanese Banks and Blockchain
«Technology and innovation remain key enablers of financial sector growth in Singapore and Japan. The setting up of the framework is a great opportunity for the FinTech ecosystems in Singapore and Japan, and enhances the already strong financial and economic cooperation between the two countries,» said Sopnendu Mohanty, Chief Fintech Officer, MAS.
In Singapore lat year IBM and Bank of Tokyo-Mitsubishi UFJ (BTMU) announced a prototype of smart contracts on a blockchain to improve the efficiency and accountability of service level agreements in multi-party business interactions.
At the time the bank said it planned to begin using it to manage contracts within their business in fiscal year 2017.
