SINGAPORE (March 13): The financial regulatory bodies of Singapore and Japan have reached an agreement to enhance FinTech linkages between the two countries.

The Monetary Authority of Singapore (MAS) and Japan’s Financial Services Agency (FSA) announced the establishment of the FinTech Co-operation Framework in a joint press statement on Monday.

The agreement not only enables the entities to refer FinTech companies in their countries to each other’s markets, but also outlines how the referred companies can initiate discussions with the regulatory bodies in the respective jurisdictions and receive advice on their regulatory frameworks, such as required licences.

This will help to reduce regulatory uncertainty and barriers to market, stated the MAS and FSA.

In addition, the framework also sets out how the regulators plan to share and use information on financial services innovation in their respective markets.

“Technology and innovation remain key enablers of financial sector growth in Singapore and Japan,” said Sopnendu Mohanty, chief FinTech officer at MAS.

“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.”