Japan fintech: a wholesale rethink

Author: | Published: 8 Aug 2019

Yuri Suzuki of Atsumi & Sakai looks at the Japanese government’s Growth Strategy and how it might reformulate financial regulations to foster fintech development in financial services

Japan's current financial regulations are in essence based on business categories such as banking, which is carried out by banks that are regulated by the Banking Act, and fund transfer services, managed by providers regulated by the Payment Services Act. The recent development of fintech has revealed that such category-based regulations could pose as an obstacle to the flexible provision of services and the market entry of newcomers. The Japanese government's Growth Strategy, published on June 21 2019, indicates that the government intends to reconsider and reform the overall regulatory framework in financial services. In particular, the government is planning a prompt reform to the laws and regulations governing payment services.

Payments While the share of cashless transactions (the share of private final...