The Monetary Authority of Singapore (MAS) said on Monday it has collaborated with its Japanese counterpart, the Financial Services Agency (FSA), to establish a joint framework to enhance fintech linkages between the two countries. The move aims to reduce regulatory uncertainty and barriers to entry in the market.
The collaboration will enable the two authorities to refer fintech companies in their countries to each other’s markets. Such companies can initiate discussions with the regulatory bodies in the respective jurisdictions and receive advice on their regulatory frameworks, such as required licenses. Moreover, the framework sets out how the regulators plan to share and use information on financial services innovation in their respective markets.
“Technology and innovation remain key enablers of financial sector growth in Singapore and Japan,” said Sopnendu Mohanty, CFTO at MAS. “The setting up of the framework is a great opportunity for the FinTech ecosystems in Singapore and Japan, and enhances the already strong financial and economic cooperation between the two countries,” he noted.
The MAS is its central banks and financial authority body of Singapore. It recently over took the regulation of cryptocurrency exchanges and the over-the-counter (OTC) derivatives market in Singapore.