Financial Services Agency's "FinTech Sandbox" Supported Project: Public Announcement of Demonstration Experiment Results – Verification of New Identity Verification Method Using Digital Certificates
The DID/VC Co-creation Consortium, organized by Mitsubishi UFJ Trust and Banking Corporation, has announced the results of its demonstration experiment for a new identity verification method using digital certificates (VC). This project, supported by the Financial Services Agency's "FinTech Sandbox," aimed to enhance security and convenience in identity verification based on the Act on Prevention of Transfer of Criminal Proceeds, showing potential for reducing customer burden.
📋 Article Processing Timeline
- 📰 Published: April 1, 2026 at 03:00
- 🔍 Collected: April 1, 2026 at 01:00
- 🤖 AI Analyzed: April 22, 2026 at 06:21 (509h 20m after Collected)
Mitsubishi UFJ Trust and Banking Corporation (President and CEO: Hiroshi Kubota, hereinafter "Mitsubishi UFJ Trust and Banking") has announced the summary of the results of a demonstration experiment, which was supported as the 9th project*¹ of the Financial Services Agency's "FinTech Sandbox." This experiment, conducted by the "Identity Verification Subcommittee" (established in June 2024) of the DID/VC Co-creation Consortium (Decentralized Identifier / Verifiable Credential Co-creation Consortium, with 50 member companies as of end of March 2026*², hereinafter "DVCC"), explored a scheme for identity verification based on the Act on Prevention of Transfer of Criminal Proceeds (hereinafter, "Anti-Money Laundering Act") using digital certificates (Verifiable Credential, hereinafter "VC").
**1. Overview and Results of the Demonstration Experiment**
**(1) Overview of the Demonstration Experiment**
This demonstration experiment aimed to verify the feasibility and effectiveness of a "new identity verification method" that seeks to achieve both improved security and convenience by utilizing the results of identity verification conducted by financial institutions under the Anti-Money Laundering Act as VCs that users can manage and present on their smartphones.
The experiment considered the following two schemes:
① Utilizing a VC containing the results of identity verification by a financial institution, combined with a VC recording information read from the IC chip of identity verification documents such as My Number Card, as a method stipulated in Article 6, Paragraph 1, Item 1 (g) of the Ordinance for Enforcement of the Anti-Money Laundering Act (as of March 2025) (hereinafter, "Former (g) Method"). (Initial Scheme)
② Utilizing an x.509 certificate issued by a certified business operator under Article 4, Paragraph 1 of the Electronic Signature Act, delivered in VC format, as a method stipulated in Article 6, Paragraph 1, Item 1 (wa) of the Ordinance for Enforcement of the Anti-Money Laundering Act (as of March 2026) (hereinafter, "(wa) Method"). (Final Scheme)
**(2) Results of the Demonstration Experiment**
This demonstration experiment showed the possibility of a "new identity verification method" that reduces the burden on customers during identity verification.
On the other hand, regarding the initial scheme ①, the relevant government agencies responded that it could not be used as the Former (g) Method because it could not guarantee the real existence of the user at the time of VC presentation.
Regarding the final scheme ②, the relevant government agencies responded that it could be used as the (wa) Method, provided that financial institutions implement risk mitigation measures.
For details of the implementation results, please refer to the attached report below:
"DID/VC Co-creation Consortium [Financial Services Agency FinTech Sandbox Results Report]"
https://www.tr.mufg.jp/houjin/dvcc/pdf/houkokusho.pdf
**2. Future Challenges for the Social Implementation of VC**
Going forward, we will organize detailed issues such as clarifying the division of responsibilities among business operators, business models, and appropriate cost values that verifiers can bear based on cost-effectiveness, as well as incentive designs, to explore various VC use cases not limited to identity verification purposes, and to realize and popularize the scheme in society.
**3. Future Developments**
DVCC will continue to work with relevant government agencies and private industry organizations to verify the legality and safety of new technologies, and to promote the exploration of VC use cases and the realization and social dissemination of the scheme.
*1: **About the Financial Services Agency FinTech Sandbox**
In the "Future Investment Strategy 2017" (Cabinet Decision in June 2017), a policy was indicated to take measures to facilitate FinTech-related demonstration experiments from the perspective of accelerating challenges towards innovation utilizing FinTech. Based on this, as a measure to facilitate FinTech-related demonstration experiments, FinTech companies and financial institutions are encouraged to conduct unprecedented demonstration experiments.
**1. Overview and Results of the Demonstration Experiment**
**(1) Overview of the Demonstration Experiment**
This demonstration experiment aimed to verify the feasibility and effectiveness of a "new identity verification method" that seeks to achieve both improved security and convenience by utilizing the results of identity verification conducted by financial institutions under the Anti-Money Laundering Act as VCs that users can manage and present on their smartphones.
The experiment considered the following two schemes:
① Utilizing a VC containing the results of identity verification by a financial institution, combined with a VC recording information read from the IC chip of identity verification documents such as My Number Card, as a method stipulated in Article 6, Paragraph 1, Item 1 (g) of the Ordinance for Enforcement of the Anti-Money Laundering Act (as of March 2025) (hereinafter, "Former (g) Method"). (Initial Scheme)
② Utilizing an x.509 certificate issued by a certified business operator under Article 4, Paragraph 1 of the Electronic Signature Act, delivered in VC format, as a method stipulated in Article 6, Paragraph 1, Item 1 (wa) of the Ordinance for Enforcement of the Anti-Money Laundering Act (as of March 2026) (hereinafter, "(wa) Method"). (Final Scheme)
**(2) Results of the Demonstration Experiment**
This demonstration experiment showed the possibility of a "new identity verification method" that reduces the burden on customers during identity verification.
On the other hand, regarding the initial scheme ①, the relevant government agencies responded that it could not be used as the Former (g) Method because it could not guarantee the real existence of the user at the time of VC presentation.
Regarding the final scheme ②, the relevant government agencies responded that it could be used as the (wa) Method, provided that financial institutions implement risk mitigation measures.
For details of the implementation results, please refer to the attached report below:
"DID/VC Co-creation Consortium [Financial Services Agency FinTech Sandbox Results Report]"
https://www.tr.mufg.jp/houjin/dvcc/pdf/houkokusho.pdf
**2. Future Challenges for the Social Implementation of VC**
Going forward, we will organize detailed issues such as clarifying the division of responsibilities among business operators, business models, and appropriate cost values that verifiers can bear based on cost-effectiveness, as well as incentive designs, to explore various VC use cases not limited to identity verification purposes, and to realize and popularize the scheme in society.
**3. Future Developments**
DVCC will continue to work with relevant government agencies and private industry organizations to verify the legality and safety of new technologies, and to promote the exploration of VC use cases and the realization and social dissemination of the scheme.
*1: **About the Financial Services Agency FinTech Sandbox**
In the "Future Investment Strategy 2017" (Cabinet Decision in June 2017), a policy was indicated to take measures to facilitate FinTech-related demonstration experiments from the perspective of accelerating challenges towards innovation utilizing FinTech. Based on this, as a measure to facilitate FinTech-related demonstration experiments, FinTech companies and financial institutions are encouraged to conduct unprecedented demonstration experiments.