The countries have announced a new partnership that is expected to promote further development of the fintech ecosystem in Japan and Singapore.
The Financial Services Agency (FSA) in Japan has teamed up with the Monetary Authority of Singapore (MAS) to form a cooperation framework that will improve fintech links between two countries. The partnership will let MAS and the FSA to refer fintech companies in their countries to each other.
Under the deal, the fintech firms can work together with the regulatory bodies in the respective jurisdictions and receive advice on their regulation, such as required licenses. Besides, the framework will help to eliminate regulatory uncertainty and reduce barriers to entry each other’s markets.
“Technology and innovation remain key enablers of financial sector growth in Singapore and Japan,” said Sopnendu Mohanty, Chief FinTech Officer at MAS. “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.”
Also, the framework will outline how the regulatory bodies will exchange and use information on innovations in their respective financial markets.
Shunsuke Shirakawa, the Vice Commissioner for International Affairs at FSA, commented: “We are delighted to establish this Co-operation Framework with MAS, which is actively promoting FinTech based on its Smart Financial Centre Vision. We believe that this Framework strengthens the relationship between FSA and MAS and promotes innovation in our respective markets.”
The announcement comes just a few days after MAS signed a similar agreement with Dubai. The agency partnered with the Abu Dhabi Global Market (ADGM) to foster fintech innovations and entrepreneurs in both countries. According to the agreement, the authorities will work together to explore the potential of such technologies as the distributed ledger technology, blockchain, big data and mobile payments.
The government of Singapore recognizes the importance of developing financial innovation and has positioned itself as a fintech hub in the region. It has already signed a number of fintech agreements with other neighboring states, including South Korea and the government of Andhra Pradesh in India.
In an effort to encourage fintech startups, the Monetary Authority of Singapore (MAS) last year released several application programming interfaces (APIs) to make its data available for developers. By revealing its datasets, the authority enabled developers to create a wide range of apps, including public transportation information and a heatmap of Singapore’s taxis.
This June, the government is to hold a ‘Blockchain for Finance’ conference that will cover blockchain applications, their use in finance, regulation, technology challenges, and other topics. The event will feature speakers from London Stock Exchange Group, Mizuho, China Construction Bank, BNY Mellon, Japan Exchange Group, R3, Manulife, and others.