This technical note reviews the functioning and effectiveness of the regulation, supervision,
and systemic risk monitoring of fintech in Japan. It focuses on the institutional arrangements for
fintech monitoring, as well as the approach that the Japanese authorities have taken to review the
regulatory perimeter around fintech-related issues, noting regulatory amendments on digital
payments, banking, and crypto assets most notably. On crypto assets, the note reviews the
regulatory framework in Japan, and the approach of the Financial Services Agency (FSA) to licensing
and supervision of crypto exchanges. The note sets out a series of recommendations to further
strengthen the domestic regulatory, supervisory, and risk monitoring frameworks.