Japan wants to reduce the supervision of financial technology start-up companies, the move will be detrimental to the United States

nCommentary: Japan has been very active in promoting the development of innovative technology. At present, the Japanese prime minister has said the government plans to reduce the supervision of financial technology start-up companies to ensure that the new test can be carried out in a more relaxed environment, so that real progress. This behavior is conducive to attracting more innovative and innovative start-ups in Japan, so the United States is now more stringent regulatory system may inhibit innovation.n
nTranslated by: Inan
Japan’s efforts to attract innovative financial technology start-up companies may bring trouble to the United States.n
On Wednesday, Japanese Prime Minister Shinzo Abe said on the New York Stock Exchange that the Japanese government is pushing forward a plan to reduce the regulation of some financial technology startups, thereby stimulating the development of emerging technologies and driving its growth in Japan.n
Abe said:n
n”It is unpredictable for people to want to carry out the world ‘s first trial, such as the use of financial services to achieve new financial services, which test will be in conflict with which regulation.n
nAs a result, Abe is striving for a regulatory sandbox program that will allow financial technology companies and start-ups that want to automate or digitize financial services, and do not need to comply with existing regulation.n
Abe said:n
n”We will make a sandbox, some participants can be free for a period of time to test the new business, do not need to comply with the existing requirements.”n
nInaki Berenguer, chief executive officer of New York-based finance company CoverWallet, told Business Insider that Japan plans to launch a sandbox that will help create an environment where entrepreneurs have more room to innovate.n
Berenguer said that while people think that such an environment should be more in Silicon Valley, but those who want to achieve breakthroughs in the US financial industry companies often need to follow the same supervision as other counterparts.n
This often means requiring lawyers to ensure compliance, and this cost may force entrepreneurs to postpone their investment in their products and teams. Which makes some start-ups dilemma. Supporters of venture capital are less likely to fund entrepreneurs in the absence of products, but it is even harder to develop products with less funding and legal advice. Berenguer said that this makes financial technology difficult to penetrate the entire technology industry.n
He said:n
n”That inhibits innovation.”n
Singapore and the UK sandboxn
Berenguer pointed out that some companies are seeking a more friendly environment in Singapore and the UK, where the sandbox project has been around for some time. Berenguer said: “In this environment, these ideas can bring the employment opportunities and wealth can become a reality.”n
Frederic Nze, founder and CEO of Oakam, a UK-based start-up agency, told Business Insider:n
n”Japan’s accession has provided an alternative for financial technology companies.”n
nJapan’s sandboxing plan could put more pressure on the US financial technology industry. Mark Brnovich, chief prosecutor of Arizona in the United States, has long advocated a regulatory reform of financial services, according to which financial technology companies in the United States received only 33% of the total expenditure on global financial technology venture capital.n
Brnovich wrote:n
n”There may be many reasons for this unsatisfactory performance, but our competitors around the world will certainly take advantage of their regulatory advantages to gain a leading position in financial technology.”n

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