As the Singapore Fintech Festival (SFF) 2025 highlights the “technology blueprint for the next decade of finance,” Japan is using the moment to project a renewed vision for Tokyo as a global centre of innovation. Executive director of FinCity.Tokyo, Tokio Morita, outlined how Japan’s regulatory reforms, venture capital mobilisation and public-private networks are creating opportunities for global fintechs to build a second home in Tokyo. Speaking on the sidelines of SFF, he detailed how Japan’s repositioning is tied closely to emerging collaboration with Singapore and ASEAN, and why Tokyo is now “a very right place to scale up” for fintechs looking to enter the region. Tokyo and SFF 2025 Morita described Tokyo’s participation at SFF as an effort to “connect with the global players, global fintech players and global investors to promote the Tokyo market”. He explained that FinCity.Tokyo’s role is anchored on three pillars: promotion, policy recommendation and nurturing emerging players. Promotion, he clarified, is not limited to broadcasting information, but “listening to global players… how they see the Tokyo market, what are the impediments, what would be the requirements”. The organisation uses this feedback to formulate policy recommendations for regulators and the national government on financial regulation and tax issues. It also identifies and supports emerging market asset managers, including in areas such as deep tech venture capital and new asset classes such as carbon credits. These functions underpin Tokyo’s SFF agenda, which aims to position the city as an accessible, innovation-ready market for global entrants. Morita also stressed the strength of Tokyo’s ecosystem networks. He highlighted personal experience as an ex-regulator and former vice minister for international affairs at Japan’s Financial Services Agency, noting that this background allows FinCity.Tokyo to maintain “good connection with regulators globally, including the Monetary Authority of Singapore (MAS), the Hong Kong Monetary Authority (HKMA), the United States Securities and Exchange Commission (SEC) and even the European Union (EU) and United Kingdom (UK) regulators” . With the Tokyo Metropolitan Government as a core sponsor and more than 50 institutional members, the organisation acts as a bridge linking innovators, regulators and investors. The approach reflects a model of complementarity rather than competition with Singapore. Morita repeatedly emphasised respect for Singapore’s fintech leadership and described Japan as a market with “stable policy making and regulations” and a “huge mother market” that can support scale-up for Singapore-based innovators. Japan’s fintech growth and policy direction Morita acknowledged that Japan is “a little bit behind” in fintech adoption, but stressed that the country is “rather advanced” in several key areas. He noted that Japan’s experience after its own banking crisis three decades ago led it to introduce competition through online banking and new entrants long before similar global reforms. Japan also became the first jurisdiction to formally regulate crypto-asset transactions, laying groundwork that later influenced frameworks such as Europe’s Markets in Crypto-Assets Regulation (MiCA). A more favourable macro environment is also changing investor behaviour. Japan’s economy, Morita pointed out, is “finally actually moving”, with rising inflation, rising interest rates and the Nikkei index “more than 50,000 now”. The new administration has identified AI, digital and green transformation as strategic investment priorities, signalling long-term policy tailwinds for the fintech sector. Morita also emphasised Japan’s stability as a regulatory environment. He said that despite criticism that Japan is “rather slow” on stablecoin regulation, the government’s approach is “very stable” and reflects its view that trust, credibility and customer protection underpin long-term market growth. Building a second home in Tokyo FinCity.Tokyo supports foreign fintechs by addressing the challenges most commonly cited by global entrants. According to Morita, these include “language problems” and Japan’s “business culture based on relationship”. FinCity.Tokyo works with Japan Financial Services Agency (FSA)to create a “one stop office in English” so that licensing and regulatory processes can be completed “smoothly and seamlessly in English”. The organisation also collaborates with the Tokyo Metropolitan Government to provide guidance on issues such as office location, medical and education considerations, and access to financial support schemes. On the commercial front, FinCity.Tokyo helps foreign entrants with “business marketing”, identifying potential customers and facilitating introductions that accelerate market entry. The Attraction U initiative expands these efforts by proactively identifying potential demand, undertaking business matching and coordinating stakeholder engagement whenever new challenges arise. Morita emphasised that if new entrants flag difficulties, FinCity.Tokyo “can connect the right stakeholders at the right time” to resolve issues efficiently. Partnerships with ecosystem organisations such as FINOLAB and Invest Tokyo deepen this support. Morita explained that regular dialogue with these partners helps identify attractive market areas for foreign innovators, emerging challenges and the appropriate institutions to address them, enabling Tokyo to build a “sound ecosystem” that accelerates expansion. Sandbox collaboration and regulatory evolution Morita reiterated that Japan was the first country to introduce regulations for crypto-asset transactions, though the initial framework was designed when crypto was still expected to function primarily as a payments instrument. With the asset class now used more widely for investment, the FSA is “reviewing the regulations so that [they] match between reality and regulations”. The regulator is also clarifying rules to enable the smoother introduction of stablecoins, with three Japanese megabanks planning to issue yen-denominated stablecoins backed by strong government support. This builds on Japan’s earlier experience with major crypto-exchange failures, which led regulators to place greater emphasis on customer protection and operational safeguards. Morita suggested that although this created a perception of slower progress, it enhances long-term resilience. He added that traditional institutions are increasingly interested in tokenised assets and real-world asset digitalisation. Japan’s wealthy population—combined with strong domestic interest in art, real estate and alternative assets—creates demand for tokenisation that fintechs can serve. As he put it, “there would be an ample opportunity in Tokyo” for ventures operating in digital assets and Web3-enabled investment products. Capital flows, cross-border collaboration and ASEAN connectivity Japan remains ASEAN’s third-largest foreign investor, and Morita highlighted that both the government and financial institutions are being encouraged to provide more risk capital to startups as part of national growth strategy. He added that Japan is “very open to global investors” and that Japanese investors are also increasing allocations to foreign innovators, citing SoftBank as an example of a major player investing heavily across ASEAN. Morita noted that Japanese financial institutions and technology companies are actively exploring cross-border digital-asset initiatives, including stablecoin projects aligned with evolving global standards. He also pointed to Japanese strengths in gaming, digital content and digital assets as a basis for collaborative Web3 opportunities with ASEAN. Growth in embedded finance, green transformation and carbon credit markets further strengthen the case for ASEAN–Japan cooperation. Morita argued that for carbon markets to scale in Asia, “interoperability among the Asian regions should be the key” and expressed hope for an ecosystem that links Singapore, Hong Kong and Tokyo to advance green finance collectively. Talent, universities and ecosystem development Morita said Tokyo’s fintech community is expanding rapidly, supported by large-scale government initiatives that channel resources into university research and technology commercialisation. He cited the “JPY 10 trillion ($65.2 billion) university fund” created to help advanced technologies transition from academia to industry, noting that such support is accelerating growth across the ecosystem. He also pointed to regulatory reforms that loosen work-permit requirements to attract more foreign talent and emphasised the role of industry associations, incubators and universities in shaping Tokyo’s fintech environment. The result, he said, is a market with rising demand and significant momentum, with industry size projected to surpass trillions of yen by 2030. A balanced outlook for Tokyo’s next decade Morita was careful to temper ambition with pragmatism. While acknowledging discussions about Tokyo becoming a top global financial hub, he stressed that the objective is not to compete in rankings but to “disseminate the information that the Japanese market has huge potential” and that industry and corporates are “finally moving ahead” with more public-private investment. He concluded that Tokyo offers foreign fintechs a large market, stable regulation and strong demand, supported by a public-private coalition committed to helping global entrants succeed. His message to founders was direct: “Please come to Tokyo to scale up and be successful… Tokyo would help you”.
