Japan and Australia come together under new fintech framework
Japan has been announced as the latest in a slew of ASIC's fintech cooperation agreements.
The Australian Securities and Investments Commission (ASIC) has added another notch to its fintech belt and announced a framework for cooperation with the Japan Financial Services Agency (JFSA). The framework will promote innovation in financial services in both countries as well as recognise the global nature of innovation in finance.
ASIC has made several Cooperation Agreements in the past year, the most recent being with Hong Kong's Securities and Futures Commission in June. ASIC's previous agreements are with the United Kingdom's Financial Conduct Authority in March 2016; the Monetary Authority of Singapore in June; the Capital Markets Authority of Kenya in October; the Ontario Securities Commission in November; and Indonesia's Otoritas Jasa Keuangan in April.
According to ASIC, with the Japanese economy being the third largest in the world, the new framework will open an important market for Australian fintechs.
"Japan has been a world leader in technology for a long time. As we move into a new era of financial regulation, we look forward to sharing experiences and insights with our colleagues at the JFSA," said ASIC commissioner John Price.
Some measures the JFSA was "actively involved" in to stimulate Japan's fintech sector include establishing a legal framework for virtual currency and open APIs and modifying the legal system to make it easier for financial groups to invest in finance-related IT groups.
Similar to other Cooperation Frameworks, this Framework will enable ASIC and the JFSA to refer innovative businesses to each other for support and advice as well as provide a way to share information between the two countries.
A formal "Exchange of Letters" ceremony took place today in Tokyo to seal the framework.