Tag: FSA

1
Japanese Regulator Holds the First Meeting of the New Study Group on Virtual Currency Exchanges
2
Japan Aims to Facilitate Banking Institutions to Invest in Bank-Related FinTech Companies

Japanese Regulator Holds the First Meeting of the New Study Group on Virtual Currency Exchanges

By Yuki Sako

As a response to the fallout resulting from the hacking of Japanese cryptocurrency exchange Coincheck Inc., which resulted in $530 million worth of digital currencies being stolen, on April 10, 2018, the Financial Services Agency of Japan (FSA) hosted the first meeting of the Study Group on Virtual Currency Exchange Service Providers (Study Group).

By way of background, beginning April 2017, Japan required virtual currency exchange service providers (Virtual Currency Exchange(s)) to be registered with the Japanese authority.  Registered Virtual Currency Exchanges are subject to certain operational requirements and conduct regulations such as verification of customers’ identities and customer disclosure.

Read More

Japan Aims to Facilitate Banking Institutions to Invest in Bank-Related FinTech Companies

By Yuki Sako

On March 4, 2016, the Cabinet of Japan approved and submitted to the Diet an amendment bill to the Banking Act of Japan that would enable banks and bank holding companies to acquire more than the permitted holding of nonbank interests (5% (banks) or 15% (bank holding companies)) of certain nonbank companies whose businesses involve innovative technologies that can be applied in banking business.  Under the amendment bill, banking institutions are, with approval of the Financial Services of Agency of Japan (FSA), permitted to acquire and hold a controlling interest in various FinTech companies that would provide innovative technologies to advance banks’ operations or benefit bank customers.  When proposing the amendment bill, the FSA explained that the amendment bill aims to facilitate banking institutions to invest in bank-related innovative technologies, IT technologies in particular.

The amendment bill is expected to pass the Diet during the current Diet session and to come into force within 1 year after the promulgation.

Text of the amendment bill can be found here (only in Japanese).

Copyright © 2019, K&L Gates LLP. All Rights Reserved.