Click here to read all the chapters from IFLR’s Asia Fintech Special Focus.
The digital finance and virtual assets markets are growing rapidly, but many countries have yet to catch up when it comes to regulating transactions. IFLR’s correspondents report on how legal authorities are managing the rapidly shifting landscape in Japan, Singapore, and South Korea.
Our authors from City-Yuwa Partners write about Japan’s introduction of regulations concerning electronic payment instructions. The Financial System Council intends to amend the Payment Services Act (PSA) in line with the increasing digitisation of finance in Japan, and to combat issues associated with the rising use of stablecoins, such as the risk of money laundering. The amendments are scheduled to come into force in the first half of 2023 at the earliest.
Also in this issue, Duane Morris & Selvam analyses the rules around non-fungible tokens (NFTs) in Singapore, and suggest how established practices and model contracts could address uncertainty and reduce disputes. As NFTs grow in popularity, the relatively unregulated market in which they operate is a cause of concern for lawmakers. IFLR’s correspondents expect to see an increase in regulatory scrutiny in this area, as well as the development of established practices in the market that will create certainty for investors.
Finally, our correspondents from King & Chang write about South Korea’s approach to regulating technologies such as distributed ledger technology (DLT), blockchain, and smart contracts. At this time, South Korea does not have any laws or regulations specifically targeted at these areas, and so the existing regulatory framework has been applied. However, the South Korean government, elected in May 2022, has expressed an intention to enact a Framework Act on Digital Assets which would create a space for the virtual asset market to grow responsibly.
Click here to read all the chapters from IFLR’s Asia Fintech Special Focus.
