Singapore’s MAS and Japan’s FSA will recommend startups to one another’s market and help them comply with regulatory guidelines
The Monetary Authority of Singapore (MAS) and Japan’s Financial Services Agency (FSA) announced a partnership yesterday with the goal of facilitating fintech cooperation between the two nations.
Named ‘Co-operation Framework’, the goal of the tie-up is to remove regulatory uncertainty between the two countries’ fintech ecosystems.
The details of the Framework will allow MAS and FSA to recommend startups to one another’s other’s markets. For fintech startups in Singapore, this agreement could help make Japan an intriguing spot for regional expansion.
The agreement will also allow startups to receive advice about licensing and regulations from the home country’s oversight agency.
Finally, the Framework outlines how the MAS and FSA will share information moving forward.
“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,” said the MAS Chief FinTech Officer Sopnendu Mohanty in a statement.
Smart Financial Centre Vision
Shunsuke Shirakawa, the FSA Vice Commissioner for International Affairs brought up the fact that the deal fits into Singapore’s Smart Financial Centre Vision.
The Smart Finance Centre Vision is an initiative from MAS to bring the finance industry under the Singaporean government’s ‘Smart Nation’ umbrella. The idea is to use technology to increase efficiency, help improve risk management and create new opportunities in the finance sector.
This is where the ‘Sandbox‘ policy has roots — a plan across the government that loosens regulations for startups to help facilitate experimentation.
Other changes that have come out of the Smart Financial Centre Vision is the opening of banking via APIs, the launch of the Financial Sector Technology & Innovation support scheme and the deliberate plan to bringing fintech talent into Singapore.
“We are delighted to establish this Co-operation Framework with MAS, which is actively promoting FinTech based on its Smart Financial Centre Vision. We believe that this Framework strengthens the relationship between FSA and MAS and promotes innovation in our respective markets,” said Shirakawa.
This week’s Co-operation Framework fits into this vision by lowering barriers to entry within the fintech industry.
The FSA is a Japanese regulatory body that overseas banks, securities and exchanges and the insurance sector. The MAS is Singapore’s central bank.
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