Tag: Japan

Ripple making a splash in Japan

Ripple, in conjuction with a consortium of 61 Japanese banks, will debut an app this fall in Japan that settles payments instantly. SBI Net Sumishin Bank, Suruga Bank and Resona Bank will test the new app first. If the test is successful, the app will be rolled out to the rest of the banks in the consortium. (CNBC)

Money Tap is the name of the new app.

Ripple said that the app would make it easier for banks to settle round-the-clock domestic payments in Japan. Consumers will require a bank account, phone number or a QR barcode to use the app, Ripple said. (CNBC)

Be smart: There’s a reason this launch is happening in Japan. Japan is adopting one of the most progressive approaches to blockchain technology and fintech. Japan is counting on fintech to be a major driver of its economy in the future and provides regulatory friendly environment to launch blockchain solutions.

 

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Japanese regulators looking into Coincheck

Losing $530 million in a newly regulated business is the fastest way to get the government looking into your affairs. So it’s no surprise that Japan’s Financial Services Agency (FSA) has decided to investigate Coincheck after hackers stole $530 million from the cryptocurrency exchange last week. Coincheck already has announced it will return 90 percent of the money. But the company has provided no timetable. (CNBC)

The key facts

The FSA said it ordered Coincheck to submit a report on the hack and measures for preventing a recurrence by Feb. 13, and that it will, if necessary, conduct on-site inspections of other cryptocurrency exchanges. The regulator also said it has yet to confirm whether Coincheck had sufficient funds for the reimbursement. (CNBC)

The smart take: Japan began regulating cryptocurrency exchanges last year and believes fintech will be a boon to the nation’s economy. How the government and Coincheck handle this crisis is a major test for both the industry and regulators. Neither can afford a misstep.

If the company doesn’t handle the crisis well, it invites more regulatory oversight and intervention into exchanges. If the FSA responds with a heavy hand, it could choke the industry. If the FSA responds too leniently, it could undermine public confidence.

Most regulated industries suffer through growing pains — especially as regulators and entrepreneurs work together to find the right balance between regulation and innovation. This situation is no different.

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