Japan’s second largest bank will sign an agreement with SBI Holdings to offer digital banking services on smartphones.
According to an April 27 article in the Nikkei newspaper Sumitomo Mitsui Financial Group (SMFG) and Scotiabank Inverlat have taken the first steps towards a multi-million dollar deal, which is expected to close later this weekbefore Japan starts its golden week.
In June, SMFG will acquire a 20% stake in the SBI subsidiary NeoMobile Securities.worth several billion yen. Later this year, Scotiabank Inverlat will accept an investment from SMFG to create a new fund. Billions of dollars invest in companies related to digital technology. The new fund will examine investment areas such as fintech, blockchain and 5G.
Tighten the cable ties with the ripple
SBI is a company with an affinity for XRP cryptocurrency. Chief Executive Officer (CEO) Yoshitaka Kitao is a member of the Ripple Board of Directors. In addition to its well-known friendship with plaintiff Craig Wright from Satoshi, the company has even considered paying dividends on XRP tokens to shareholders.
SBI mining chip, another subsidiary of the Japanese financial giant, The company started manufacturing cryptocurrency mining devices in 2019.
New rules for digital assets in Japan
Although the partnership between SMFG and SBI shows greater interest in digital currencies for both companies, Cryptocurrency exchanges and digital assets in Japan will soon face new regulatory challenges.
Laws passed by the Japanese House of Representatives last year in relation to the Payment Services Act and the Exchange and Financial Instruments Act They will take effect on Friday, May 1st. The two laws are changes to existing laws regulating cryptocurrencies in Japan.