Japan: Financial Sector Assessment Program-Technical Note on Regulation and Supervision of Fintech

This technical note reviews the functioning and effectiveness of the regulation, supervision, and systemic risk monitoring of fintech in Japan. It focuses on the institutional arrangements for fintech monitoring, as well as the approach that the Japanese authorities have taken to review the regulatory perimeter around fintech-related issues, noting regulatory amendments on digital payments, banking, and crypto assets most notably. On crypto assets, the note reviews the regulatory framework in Japan, and the approach of the Financial Services Agency (FSA) to licensing and supervision of crypto exchanges. The note sets out a series of recommendations to further strengthen the domestic regulatory, supervisory, and risk monitoring frameworks.