Two important Asian regulatory bodies, the Monetary Authority of Singapore (MAS) and the Financial Services Agency of Japan (FSA), have announced the establishment of a co-operation framework to enhance fintech links between the countries.
The framework enables the two regulators to refer fintech companies from their countries to each other’s markets. It also outlines how the referred companies can initiate discussions with the regulatory bodies in their respective jurisdictions and receive advice on their regulatory frameworks, such as required licences. The MAS and FSA say that this will help to reduce legal uncertainty and other barriers to entry in the markets. In addition, the agreement also spells out out how the regulators plan to share and use information on financial services innovation in their respective jurisdictions.
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Sopnendu Mohanty, Chief FinTech Officer, MAS, commented: “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.”
Shunsuke Shirakawa, the Vice Commissioner for International Affairs, FSA, added: “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.”