EU payment services rules spur new regulation in Japan

Author: Brian Yap | Published: 17 Feb 2017

Japan has made it a top priority to step up its regulation of third-party payment service providers (PSPs), as the country lags behind the EU in its supervision of intermediary businesses.

The world’s third-largest economy launched a raft of initiatives aimed at boosting the presence of fintech in its financial and capital market sectors in the past year, with the official recognition of bitcoin as a legitimate currency two weeks ago a regulatory highlight.

However, the country’s financial services agency (FSA) is concerned about the emergence new categories of intermediary service providers in the payment space - account information service providers (AISPs) and the payment initiation service providers (PISPs) – which are covered in the EU’s recently revised payment services directive (PSD2).

"Because of PSD2, the FSA is set to incorporate new regulations governing intermediary businesses," said Yuri Suzuki, senior partner at Atsumi & Sakai in Tokyo. She added...