THELOGICALINDIAN - Japanese regulations accept belted banks abilities to advance in fintech startups including Bitcoin and blockchain companies However that is about to change Japans better banks are now reportedlylooking to cascade hundreds of millions of dollars into fintech including blockchain companies
Also read: Japan Risks Falling Behind Amid Blockchain Talent Shortage
Japan’s Banking Law Removes Funding Limits
The abiding Japanese Banking Act prohibits bounded banks 
from captivation added than 5 percent buying of any Japanese company. Certain added finance-related businesses are absolved — the buying absolute rises to 15 percent for coffer captivation companies.
This aphorism put Japanese banks at a disadvantage because they could not advance in fintech companies, including bitcoin and blockchain startups.
In May, however, a Banking Law afterlight easing this aphorism passed the National Diet. This rule change allows banks to avoid the 5 percent absolute on stakes in non-financial companies — if they’re developing information technology to enhance banking services.
According to the Financial Times, the law change means:
From Regulating to Nurturing
“The banking admiral which acclimated to adapt the industry charge now breeding the industry,” said Deputy Prime Minister and Minister of Finance, Taro Aso.
“We are authoritative efforts appear this end. We haven’t done abundant but with this new action we accept abundantly afflicted our cerebration in abutting the issues,” he added.
Bank of Japan’s FinTech Centre head, Naoyuki Iwashita, explained the acumen abaft this change.
He said: “Japanese institutions are anxious that a Google Bank or Facebook Bank will beat Japan.” Japan is blame this fintech accomplishment to anticipate Silicon Valley from bloodthirsty the country’s cyberbanking sector, as it did the adaptable buzz industry.
Out With Old IT Systems, In With Blockchain?
According to Mizuho Financial Group CEO, Yasuhiro Sato,
Japanese regulators capital to bottle old but accurate IT systems.
But, he told the FinSum conference, organized by the Financial Services Agency (FSA) and Nikkei that they “are now alteration their thoughts on that.”
He added commented that the cyberbanking law will change “in adjustment to access added abstruse advances from alfresco participants.”
How abundant do you anticipate these Japanese banks will advance in bitcoin companies? Let us apperceive in the animadversion area below.
Images address of Shutterstock, Bank of Japan, Mizuho, Japan Cabinet.
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