The ‘independence day’ of payments law? Fintech’s impact on financial regulation in Japan

Akira Tokutsu

Research output: Chapter in Book/Report/Conference proceedingChapter


Fintech has been a buzzword in Japan since 2015. The fintech business model in Japan is similar as in other countries: crowdfunding, cryptocurrency, blockchain, AI, Big Data, and cashless payments. What has been the largest impact of fintech in Japan? At first glance, fintech seems to require a change in the financial regulation framework, but this is not the case. In Japan, traditional financial regulation is piecemeal or trident, with a separate legislative framework for banking, insurance, and securities. This framework is not unreasonable because it is designed to respond to different risks. Of course, some other new financial businesses appeared before fintech, and regulation responded to the new risk. Fintech is not a completely new business but just the unbundling of current financial businesses. Especially, payment became more independent from banking today, thanks to the fintech movement. Therefore, regulation just for payment is required more clearly. Currently, the FSA is planning to create a new category of regulation for it. It seems fintech requires a change in the basic framework of financial law. But both in practice and in theory, a pure payment service has attracted attention before fintech. Therefore, fintech, or any other technological innovation, does not require a complete change of regulation but a clarification of current law.

Original languageEnglish
Title of host publicationPerspectives in Law, Business and Innovation
Number of pages24
Publication statusPublished - 2020
Externally publishedYes

Publication series

NamePerspectives in Law, Business and Innovation
ISSN (Print)2520-1875
ISSN (Electronic)2520-1883


  • Banking
  • Financial regulation
  • Fintech
  • Japan
  • Payment

ASJC Scopus subject areas

  • Law
  • Management of Technology and Innovation


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