Fintech—Japan—Q&A guide

The following TMT practice note provides comprehensive and up to date legal information covering:

  • Fintech—Japan—Q&A guide
  • 1. What is the general state of fintech innovation in your jurisdiction?
  • 2. Do government bodies or regulators provide any support specific to financial innovation? If so, what are the key benefits of such support?
  • 3. Which bodies regulate the provision of fintech products and services?
  • 4. Which activities trigger a licensing requirement in your jurisdiction?
  • 5. Is consumer lending regulated in your jurisdiction?
  • 6. Are there restrictions on trading loans in the secondary market in your jurisdiction?
  • 7. Describe the regulatory regime for collective investment schemes and whether fintech companies providing alternative finance products or services would fall within its scope.
  • 8. Are managers of alternative investment funds regulated?
  • 9. Describe any specific regulation of peer-to-peer or marketplace lending in your jurisdiction.
  • More...

Fintech—Japan—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to fintech in Japan published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2020).

Authors: Anderson Mōri & Tomotsune—Akihito Miyake; Ken Kawai; Tomoyuki Tanaka; Asako Matsuo

1. What is the general state of fintech innovation in your jurisdiction?

In Japan, fintech innovation has been quite active in almost every area of finance. In particular cryptocurrency-based businesses, cashless payment or mobile payment services, financial account aggregation services, robo-advisers and crowdfunding are well known to the public.

In 2018 and 2019, an increasing number of companies entered into or expanded their businesses in the mobile payment market, and several companies have launched QR code payment services. As a result, this market sector has become highly competitive.

In 2020, security tokens, or digital securities, have become a focus. Because of amendments to the relevant laws and regulations, a number of financial institutions are entering into this new market.

Additionally, on 6 March 2020, the Financial Services Agency submitted a bill to the Diet for:

  1. the establishment of a financial services intermediary business that is capable of intermediating the cross-sectoral financial services of banking, securities and insurance under a single license; and

  2. the classification of funds transfer services into three categories, based on staggered maximum limits on remittance amounts.

The bill was passed by the Diet on 5

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