The UK’s City regulator will work with Japan on fintech startup collaboration
The City watchdog is searching beyond Europe for fintech ties after Brexit and has its sights set on Japan for its latest bridge.
The Financial Conduct Authority and it counterpart in Japan, the Financial Services Agency of Japan (JFSA), will work together on promoting fintech innovation and collaboration.
But the agreement also means that UK fintechs wanting to set up in Japan, and vice versa, will be fast tracked and supported though the regulatory process.
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It follows similar connections with Hong Kong, China, South Korea, Singapore and Australia.
“We are committed to encouraging innovation that has the potential to be of benefit to consumers using financial services here in the UK," said strategy and competition chief at the regulator. Christopher Wollard.
"Today’s exchange of letters with the JFSA will help break down barriers to entry both in Japan and in the UK for firms with interesting new business services and products."
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The UK's favourable regulatory environment for fintech startups has been credited with helping make the country the best fintech hub in Europe. Building so-called fintech bridges with other countries was set out by UKTI, the government's trade and investment body, and the Treasury as part of the multi-billion pound industry's post-Brexit action plan.