Month: April 2025

5/19 FINTECH LATVIA: A homeplace for global Fintech Business

EVENTS

5/19 FINTECH LATVIA: A homeplace for global Fintech Business

The Investment and Development Agency of Latvia, accompanied by Latvian Minister of Economics, Viktors Valainis, and the Director of the Investment and Development Agency of Latvia, Ieva Jāgere, will hold an event in Tokyo at FINOLAB, a leading fintech center in Japan, on May 19 (Monday).

The event will feature the Latvian Minister and accompanying delegates from the Latvian fintech industry, including representatives from “FINTECH LATVIA,” the Latvian Blockchain Association, and various fintech-related organizations in Latvia.

Latvia: A Nordic Country Leading Social Transformation through Public-Private Collaboration

Latvia, a small country with a population of 1.9 million located in the center of the Nordic and Baltic countries, has been promoting advanced social transformation through public-private collaboration. This includes initiatives like establishing the world’s first startup law, advancing digital and data-driven social change led by the government, and effectively leveraging private sector initiatives as public services. Latvia has been at the forefront of developing infrastructure for 5G technology in Europe, driving digital transformation (DX), and leading international cooperation frameworks.

Latvia: A Key Destination for Global Business Services (GBS) Essential for Startup Scale-ups

The capital city of Riga has historically played an important role as a hub for global trade and culture, dating back to the Hanseatic League and the Imperial Era. In recent years, its significance has increased due to globalization, particularly in the area of Global Business Services (GBS), which provides a one-stop framework for services such as language support, legal, tax, HR, and customer services across the region. Latvia has become a key destination for startups, particularly in Europe and EU-adjacent countries, offering low-cost, high-quality services essential for businesses to comply with local regulations and secure talent.

Latvia: A Pioneer in the Introduction of the MiCA License for the Crypto Asset Market in the EU

Latvia was one of the first EU member states to introduce the MiCA (Markets in Crypto-Assets) license for crypto asset operations. The cost of obtaining and maintaining this license is among the lowest in the EU. Many major fintech companies have recognized the high value of establishing operations in Latvia to benefit from the MiCA license and are relocating or establishing offices in the country. Additionally, the Latvian Central Bank provides a regulatory sandbox that allows emerging companies and project teams to cooperate with the bank and develop new business models and services before entering the financial market or expanding their operations in the EU.

During this event, we will introduce the MiCA regulation, Latvian government incentives for fintech companies, and offer opportunities for networking between Latvian and Japanese companies. We look forward to your participation.

Apply for tickets


◆Schedule ：2025/5/19（Monday）18:00-20:30

◆Venue ：FINOLAB Event Space
　 　　　　　Otemachi Bldg 4F, Otemachi 1-6-1 , Chiyoda, Tokyo, 100-0004　Japan

◆Participation Fee：Free

◆Agenda

17:45-18:00 Reception
18:00-18:20 FINOLAB: Welcome and Introduction of the Business
18:20-18:25 Greeting from the Investment and Development Agency of Latvia
18:25-18:40 FINTECH LATVIA: Introduction to the Latvian Fintech Industry and Business Opportunities
18:40-18:55 LATVIA BLOCKCHAIN ASSOCIATION: Presentation of Business and Support Activities
18:55-19:15 Pitch Session from Latvian Fintech and IT Companies
19:15-20:30 Networking

＊The main language will be English, but simultaneous translation will be available for the networking session in both Japanese and English.

＊Light refreshments will be provided during the networking session.

Participating Latvian Companies/Organizations

・FINTECH LATVIA https://fintechlatvia.eu　

フィンテックラトビア協会は、ラトビアのフィンテック分野で活躍する⾰新的な⾦融サービスプロバイダーを結集しています。本協会の⽬的は、フィンテック業界における⾦融サービス提供者を結集し、その利益を国内および国際的な舞台で代表し、実現することを保証するとともに、ラトビア⾦融セクターの持続可能な発展と成⻑を促進することにあります。 本協会の使命は、フィンテック企業やノンバンクのサービス提供者がもたらす成⻑の可能性を尊重しながら、消費者と市場監督機関双⽅から⾼く評価される、信頼性、責任感、そして⻑期的な視点に基づいた業界慣 ⾏を確⽴することです。

・The Latvian Blockchain Association https://lbaa.io

ラトビアブロックチェーン協会（LBAA）は、ブロックチェーンの導⼊、イノベーション、そして連携を推進することにより、ラトビアを欧州連合における主要なWeb3ハブとして確⽴するために積極的に活動する⾮営利団体です。製品/サービス： LBAAは、欧州連合におけるMiCAライセンス取得に関する相談⽀援を提供しており、ブロックチェーン関連企業にとって友好的な規制環境を整備するため、政府機関との関係を育成する上で重要な役割を担っています。

・Latvian IT Cluster https://www.itbaltic.com

ラトビア ITクラスターは、ラトビア国内の 80を超える活発かつ⾰新的なIT企業を連携させ、各社の事業拡⼤とコミュニティ全体の成⻑を⽀援するとともに、地域欧州デジタルイノベーションハブとしての専⾨知識と地位を活⽤して、ラトビアにおけるデジタルトランスフォーメーションを推進する組織です。

製品/サービス：

– ラトビアにおけITおよびDX分野での、公共部⾨、⺠間部⾨、学術部⾨間のエコシステム構築。
– 企業および組織向けのDXサービス。
– 広範なネットワークを活かし、ラトビア企業の欧州連合域内および域外への輸出を⽀援いたします。また、国際的な会議や貿易ミッションへ の参加を⽀援します IT、デジタルトランスフォーメーション、そしてイノベーションの分野において、ヨーロッパ全域で展開可能な⼤規模プロジェクトを実⾏します。
– ニーズに合わせたミナーやワーキンググループを通じて、メンバーの専⾨能⼒を向上させます。

・JEFF https://www.jeff-app.com

JEFF社は主に、伝統的な⾦融データに関して人工カバー率が低い、⼤規模で急速に成⻑している新興市場に焦点を当てています。JEFFは、消費者のデジタル上での活動履歴に焦点を当て、データサイエンスとAIを活⽤することで、⾦融商品やサービスの申し込みが最終的に取引成⽴に⾄る確率を⾼め、⾦融包容を推進します。これにより、消費者と銀⾏、貸付業者とフィンテック企業間の最適なマッチングを実現します。東南アジアの市場において、800万⼈以上のクライアントにサービスを提供してきた確かな実績を踏まえ、より広い地域への展開を⽬指しています。

・IDT Media https://magebit.com

IDT Media社のブランドであるMagebitは、eコマースに特化したフルサービスのエージェンシーです。Magebitは、3つの⼤陸にわたる150名以上の⾃社専⾨家チームにより、お客様のオンラインストアを全く新しい⾼みへと引き上げる準備ができています。主な製品・サービス：オンラインショップの開発、メンテナンス、サポート。

・Copy Brain https://copybrain.app

Copy Brainは、ソーシャルメディアコンテン ツのローカライズを⾃動化するAIエージェントです。様々な⾔語やプラットフォームに対応し、翻訳、吹き替え、コンテンツの調整を効率的に⾏います。このAIエージェントは、コンテンツの⾃動収集、声質の再現、50以上の⾔語への吹き替え機能に加え、プラットフォームのアルゴリズム（Instagram, TikTok, YouTubeなど）に最適化された動画作成を⽀援し、⾃然で質の⾼いローカライズを実現します。コンテンツクーリエイター、企業、代理店は、⼿動翻訳と吹き替えなしでグローバルな視聴者にリーチでき、コストを削減し、リーチを最⼤化できます。

主な製品&サービス：

– 魅⼒的なSNSコンテンツのアイデア⽣成
– AI駆動型コンテンツ⽣成ツール
– スクリーンショットによるソーシャルメディアプロフィールの分析

イベント内容・プログラムは都合により一部変更させていただくことがございます。 予めご了承ください。

Apply for tickets

※Regarding Photos and Videos
This event may include photo and video recording, which may be published on media websites and platforms such as YouTube. If you are concerned about your face or voice being published online, please inform the staff on the day of the event. If no such request is made, it will be assumed that you consent to the publication online. We appreciate your cooperation.

※Handling of Personal Information
Registration information will be managed according to the Privacy Policy(プライバシー ポリシー) of Peatix Japan Inc. Additionally, this information may be provided to FINOLAB, which operates FINOLAB. The Privacy Policy of FINOLAB Inc. can be found here.

※Event Information Notice
Participants who register for this event may receive information regarding future events held by FINOLAB or events organized by FINOLAB, sent to the email address provided during registration. If no objection is made, it will be considered that you have consented to receiving these notifications. Thank you for your cooperation.

[Summary] Scandals Continuing in Financial Institutions: Strengthening Internal Crime Prevention

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FINOLAB COLUMN

[Summary] Scandals Continuing in Financial Institutions: Strengthening Internal Crime Prevention

（Original article in Japanese was published for FinTech Journal on Mar. 13, 2025）
https://www.sbbit.jp/article/fj/159244

Financial institutions rely on trust, yet cases of embezzlement, fraudulent loans, and insider trading continue to emerge. Despite various preventive measures, compliance alone is not enough to stop internal misconduct. This article explores the root causes of internal crimes and the necessary steps for financial institutions to strengthen prevention.

Noticeable Scandals and Their Impact

Recent cases, such as embezzlement from safety deposit boxes by veteran employees, highlight severe reputational risks for financial institutions. Scandals not only erode customer trust but also impact financial firms’ appeal in employment rankings. Although banks allocate resources to address misconduct, their effectiveness remains questionable.

How Financial Institutions Respond to Internal Crimes

Japan’s Financial Services Agency (FSA) mandates banks to report misconduct within 30 days, but ineffective internal controls can allow fraud to go undetected. Many institutions publicly disclose scandals, with a typical protocol, including apologies, commitments for cooperating with law enforcement, incident details, accountability measures, and preventive steps.

Common Elements in Fraud Prevention Strategies

A review of multiple cases shows three key areas of preventive measures:

  • Strengthening Corporate Governance – Establishing independent audit committees, enhancing board expertise in legal and financial crimes, and improving whistleblower systems.
  • Enhancing Risk Management & Internal Controls – Creating independent risk departments, conducting frequent internal audits, and implementing regular compliance checks.
  • Cultivating a Compliance Culture – Enforcing ethical standards, mandatory compliance training, and revising incentive structures to promote long-term sustainability.

Why a Shift from Stereotype Notion Is Needed

Even with strict governance, internal crimes persist. Institutions assume employees are trustworthy, yet fraud cases indicate that some individuals will inevitably exploit the system. The focus should shift to early detection and rapid response, ensuring misconduct is addressed swiftly to minimize damage.

Internal Fraud Detection based on Evil Human Nature

Given the limitations of manual audits, financial institutions are turning to AI-powered fraud detection to maintain fair oversight:

  • Fraud Detection Systems – AI analyzes employee transaction patterns in real time, flagging unusual activities.
  • Employee Activity Monitoring – AI detects suspicious log activity and alerts management.
  • Access Control Management – Restricts unnecessary data access and prevents external data leaks.

AI-Powered Initiatives in Japan

  • Mitsubishi UFJ Bank introduced AI-driven AML (Anti-Money Laundering) checks.
  • Mizuho Financial Group’s Blue Lab developed “AiHawk Filter”, an AI audit system detecting fraud risks in emails and documents.

The Reality: Fraud Can’t Be Eliminated, Only Minimized

Despite various preventive measures announced by financial institutions, internal fraud cannot be entirely eradicated. The most practical approach is to detect fraud early and minimize losses. Moving forward, financial institutions must reduce reliance on manual monitoring and accelerate technology-driven fraud prevention efforts.

[Summary] Amendment to the Payment Services Act (2025) – Summary of Key Points | FinTech Topics #114

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FinTech Topics

[Summary] Amendment to the Payment Services Act (2025) – Summary of Key Points | FinTech Topics #114

（Original Video in Japanese was published on the FINOLAB CHANNEL on Mar. 25, 2025）

Evolution of the Payment Services Act

Before diving into the details of the latest amendment, let’s take a quick look at the evolution of the Payment Services Act since its enactment in 2009:

  • 2009: A new category called “funds transfer business” was introduced, allowing non-banking entities to engage in remittance services.
  • 2016: With the rise of Bitcoin and other virtual currencies, a registration system for cryptocurrency exchanges was introduced.
  • 2019: The term “virtual currency” was changed to “crypto assets,” and regulations on exchanges were tightened. To protect users’ assets, offline (cold storage) management became mandatory.
  • 2022: Regulations were introduced to accommodate stablecoins as a payment method. The transfer limit for funds transfer businesses was raised, and a three-tier licensing system (Type 1, Type 2, and Type 3) was established.

These amendments reflect the industry’s response to technological advancements and emerging use cases.

Key Points of the 2025 Payment Services Act Amendment

The main aspects of the amendment, which was approved by the Cabinet in March 2025, include the following:

1. Introduction of Domestic Asset Retention Orders for Crypto Asset Exchanges

Previously, there was concern that crypto asset exchanges handling spot transactions could transfer their assets overseas. The amendment allows the government to issue asset retention orders to prevent such outflows.

2. Flexible Management Requirements for Trust-Based Stablecoin Reserves

Previously, stablecoin issuers were required to hold reserves in full as demand deposits. The amendment allows issuers to hold up to 50% of their reserves in low-risk assets such as government bonds or redeemable term deposits. This change is expected to enhance the international competitiveness of stablecoins issued in Japan.

Although no registration was permitted  for stablecnin operator after the new regulation in 2022, SBI VC Trade, part of the SBI Group, has become the first company in Japan to register for handling stablecoins. It plans to offer USDC, issued by Circle.

3. Establishment of a Brokerage Category for Crypto Asset Transactions

Until now, entities engaging only in mediating crypto asset transactions were required to register as full-fledged exchanges, creating high entry barriers. The amendment introduces a new brokerage category, allowing intermediaries to operate under a separate, more appropriate regulatory framework. This change aligns with financial regulations in other sectors and is expected to promote new service providers.

4. Regulation of Cross-Border Payment Collection Services

Recent regulatory changes now impose rules on cross-border payment collection services, which were previously unregulated. While these services do not require a funds transfer business license under the current framework, some have been misused for illegal activities such as online gambling and investment fraud. To address these risks, new regulations have been introduced.

  • The new rules aim to crack down on unregistered operators involved in illegal fund transfers. For services with higher risks, additional regulations will enhance consumer protection and strengthen anti-money laundering (AML) measures.
  • Cross-border payment collection services that do not directly facilitate product or service transactions will now be subject to funds transfer regulations. However, low-risk services—such as platforms directly involved in transactions or escrow services—may be exempt if they are already regulated under other laws.

Some industry groups, including the Japan Association of New Economy, have raised concerns that excessive regulation could harm digital payment services. They urge policymakers to ensure that the new rules are focused on actual risks and do not disrupt existing ecosystems like e-payments and point-based settlements. As the final details of these regulations take shape, it will be important to monitor their impact on businesses and innovation.

5. Faster Refund Process for Users in the Event of a Funds Transfer Business Failure

Previously, even when funds transfer businesses secured user assets through bank guarantees or trusts, refunds were processed through a government-led procedure, taking at least 170 days. The recent amendment introduces direct refund options, allowing banks and trust companies to return funds to users without going through the traditional process. This change enhances consumer protection and ensures faster access to funds in the event of a business failure, improving the overall efficiency of financial services.

Future Outlook

The 2025 amendment is expected to:

  • Reduce the burden on stablecoin issuers, promoting stablecoin adoption in Japan.
  • Lower barriers to entry for crypto asset intermediaries, expanding financial business opportunities.
  • Introduce new regulations for cross-border collection services, with ongoing discussions on implementation details.

As the regulatory framework continues to evolve, stakeholders will be closely watching the government’s next steps, including specific regulations under ministerial ordinances.