The Monetary Authority of Singapore (MAS) and the Financial Services Agency (FSA) of Japan have set up a Co-operation Framework to strengthen FinTech linkages between both countries.

As per the terms of the agreement, the MAS and FSA will refer FinTech companies in their jurisdictions to each other’s markets.

The framework outlines how such firms can start discussions with the watchdogs in the respective jurisdictions and can obtain advice on their regulatory frameworks, such as required licences.

The collaboration is expected to help eliminate regulatory uncertainty and barriers to market.

Furthermore, the framework also indicates how the regulators will share and use information on financial services innovation in their respective markets.

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

“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.”

FSA vice commissioner for international affairs Shunsuke Shirakawa said: “We believe that this Framework strengthens the relationship between FSA and MAS and promotes innovation in our respective markets.”