Japan and the UK to work together in supporting fintech

The two markets will institute a cooperation framework to back continued innovation in their financial sectors

Japan and the UK to work together in supporting fintech

Insurance News

By Gabriel Olano

The Japan Financial Services Agency (JFSA) and the UK’s Financial Conduct Authority (FCA) have exchanged letters on the creation of a cooperation framework to support fintech firms’ innovation efforts.
The exchange of letters between the two countries’ regulators will provide a referral system for tech-oriented businesses seeking to enter each other’s markets. This system will help reduce regulatory uncertainty and time to market. Additionally, this will allow easier exchange of information between the two sectors, reduce barriers to entry, and encourage innovation.

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With this agreement, Japanese fintech firms will find it easier to engage financial businesses globally, and it will also attract companies from the UK to enter the Japanese market and help stimulate the economy.
Shunsuke Shirakawa, vice commissioner for international affairs at the JFSA, said: “We are delighted to establish this cooperation framework with the FCA. This is our first case in creating a pro-fintech co-operation framework with any other country.
“The UK is one of the world-leading fintech countries, generating £6.6 billion in revenue. We believe that this Exchange of Letters strengthens the relationship between the JFSA and the FCA and promotes innovation in our respective markets.”

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