Japan’s Financial Services Agency announced that it will offer a framework for fintech firms to test new technologies, services and innovations in order to identify legal complications and risks standing in the way of industry's growth, Nikkei reported.
The government will establish fintech testing ‘hub’ that will serve as a laboratory for deregulation, which is expected to launch soon this summer.
Under the framework, the fintech startups will have the opportunity to cover emerging technologies such as blockchain as well as potential problems like money laundering, the report added. Then tests are expected to last for six months to two years and will offer insights for commercializing fintech services.
FSA Japan is partnering with Japanese Bankers Association and will serve as a liaison between financial institutions, banks and fintech companies. FSA is already offering advice to startups. By establishing fintech ‘hub’, it is seeking the need to play a bigger part in coordinating testing of new services.
Earlier this year, FSA Japan permitted Japan Exchange Group (JPX) to use fintech such as blockchain as a trading platform since, it could make trading more efficient.
