A FRAMEWORK to encourage greater fintech links between Japan and Singapore has been established.
The Financial Services Agency of Japan (JFSA) and the Monetary Authority of Singapore (MAS) announced on March 13 they had signed an agreement.
According to the framework, the two countries can refer fintech firms in their respective countries to each other.
The firms can also initiate discussions with the regulatory bodies in the respective jurisdictions for advice on regulation such as required licences.
It is hoped this will help reduce regulatory barriers and burdens for companies entering either market.
MAS chief fintech officer Sopnendu Mohanty said: “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.”
MAS also recently signed a cooperation agreement with Abu Dhabi Global Market to help fintech entrepreneurs and support innovation in financial services in Singapore and Abu Dhabi.
FSA vice-commissioner for international affairs Shunsuke Shirakawa said: “We are delighted to establish this Cooperation Framework with MAS, which is actively promoting fintech based on its Smart Financial Centre Vision.
“We believe this framework strengthens the relationship between FSA and MAS and promotes innovation in our respective markets.”
— Fintech Singapore (@FintechSIN) February 21, 2017
Japan has also sought similar agreements with other countries. The JFSA and the UK’s Financial Conduct Authority also exchanged letters on a cooperation framework to support fintech companies.
The JFSA has also announced it is looking to work closer on banking supervision with the Central Bank of the Islamic Republic of Iran, with whom it also exchanged letters of co-operation.