Japan to unveil fintech testing hub for start-ups » Banking Technology

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The Financial Services Agency of Japan (JFSA) is setting up a hub for fintech start-ups to test new services, according to Nikkei.

The hub will help “identify legal complications and risks standing in the way of industry’s growth” and is seen as a precursor to a regulatory sandbox. Nikkei says the sandbox could be in place this summer.

There aren’t a lot of details, but the tests are expected to cover blockchain.

The plan is for JFSA to work with the Japanese Bankers Association, with the former acting as a liaison between fintech ventures and financial institutions.

The tests are expected to last six months to two years and provide insights for commercialising fintech services.

Federation space

Away from hubs, JFSA is rather keen on partnerships.

Last month, JFSA and Australian Securities and Investments Commission (ASIC) said they will work together to promote innovation in financial services in Japan and Australia.

In addition, JFSA has also signed co-operation deals with Singapore and the UK.