Financial Services Agency Announces Results of Proof of Concept for "FinTech Proof of Concept Hub" Supported Projects
VESS Labs announces results of identity verification proof of concept using DID/VC supported by the Financial Services Agency.
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- 📰 Published: April 1, 2026 at 01:20
March 31, 2026
VESS Labs Inc.
VESS Labs Inc. is pleased to announce the completion of a proof of concept for a scheme to conduct identity verification based on the Act on Prevention of Transfer of Criminal Proceeds (hereinafter referred to as the "Proceeds Transfer Act") using Verifiable Credentials (VCs). This project was supported by the Financial Services Agency's "FinTech Proof of Concept Hub" as Project No. 9*¹. The scheme was developed within the "Identity Verification Subcommittee" (established in June 2024) of the DID/VC Co-creation Consortium (Decentralized Identifier / Verifiable Credential Co-creation Consortium, 50 member companies* as of the end of March 2026, hereinafter referred to as DVCC), hosted by Mitsubishi UFJ Trust and Banking Corporation (President: Hiroshi Kubota, hereinafter referred to as "Mitsubishi UFJ Trust Bank"). We are now releasing a summary of the results.
1. Overview and Results of the Proof of Concept
(1) Overview of the Proof of Concept
This proof of concept aimed to verify the feasibility and effectiveness of a "new identity verification method" that enhances security and convenience by utilizing VCs that allow users to manage and present identity verification results conducted by financial institutions based on the Proceeds Transfer Act on their smartphones.
Two schemes were examined in this proof of concept:
① Utilizing VCs containing the results of identity verification by financial institutions, combined with VCs recording information from the IC chip of identity verification documents such as My Number Cards, as a method defined in Article 6, Paragraph 1, Item 1 (g) of the Enforcement Regulations of the Proceeds Transfer Act (as of March 2025) (hereinafter referred to as the "Old (g) Method"). (Initial Scheme)
② Receiving and transferring x.509 certificates issued by a certified business under Article 4, Paragraph 1 of the Electronic Signatures Act in VC format, to be used as a method defined in Article 6, Paragraph 1, Item 1 (w) of the Enforcement Regulations of the Proceeds Transfer Act (as of March 2026) (hereinafter referred to as the "New (w) Method"). (Final Scheme)
(2) Results of the Proof of Concept
This proof of concept demonstrated the potential of a "new identity verification method" that reduces the burden on customers during identity verification.
However, we received a response from relevant ministries and agencies stating that the initial scheme (①) cannot be used as the Old (g) Method because it cannot guarantee the user's existence at the time of VC presentation.
Regarding the final scheme (②), we received a response from relevant ministries and agencies stating that it can be used as the New (w) Method, provided that financial institutions implement risk mitigation measures.
For detailed results of the implementation, please refer to the attached report:
"DID/VC Co-creation Consortium [Financial Services Agency FinTech Proof of Concept Hub Results Report]"
https://www.tr.mufg.jp/houjin/dvcc/pdf/houkokusho.pdf
2. Future Challenges for Social Implementation of VCs
Moving forward, we will address detailed issues for the realization and widespread adoption of schemes and various VC use cases beyond identity verification. This includes clarifying the division of responsibilities among businesses, developing business models, and designing incentives such as determining appropriate costs that verifiers can bear based on cost-effectiveness.
3. Future Developments
DVCC will continue to collaborate with relevant ministries and agencies, private industry organizations, and others to confirm the legality and safety of new technologies, and to work towards the realization and widespread adoption of VC use cases and schemes.
End
*1: About the Financial Services Agency's FinTech Proof of Concept Hub
In the "Investment for the Future Strategy 2017" (decided by the Cabinet in June 2017), the Financial Services Agency announced its policy to take measures to facilitate proof of concept experiments for FinTech, with the aim of accelerating challenges for innovation utilizing FinTech. Based on this, the FinTech Proof of Concept Hub was established by the Financial Services Agency to provide support that helps to overcome the hesitations and concerns often faced by FinTech companies and financial institutions when attempting unprecedented proof of concept experiments.
Through individual experiments, a dedicated team within the Agency provides ongoing support for issues that FinTech companies and financial institutions wish to resolve through their experiments, such as compliance and supervisory risks, and practical challenges related to legal interpretations that may arise when providing services to general users.
"Regarding the Establishment of the FinTech Proof of Concept Hub"
https://www.fsa.go.jp/news/29/sonota/20170921/20170921.html
"Decision to Adopt "Re-use of Transaction Verification Results Utilizing Digital Certificates" as a Supported Project by the Financial Services Agency's "FinTech Proof of Concept Hub""
https://www.tr.mufg.jp/ippan/release/pdf_mutb/241223_1.pdf
Participating Companies in the Proof of Concept (in Japanese syllabary order, titles omitted)
Proof of concept experiments were conducted primarily by participating companies in the "Identity Verification Subcommittee" and the "Rule Development Subcommittee (Identity Verification WG)" among DVCC member companies.
DVCC Steering Committee
1. Mitsubishi UFJ Trust and Banking Corporation
DVCC Secretariat
2. NTT DATA Corporation (Participated in both subcommittees below)
3. VESS Labs Inc. (Participated in the Rule Development Subcommittee)
Business Co-creation Subcommittee
(Identity Verification Subcommittee)
4. Orient Corporation
5. The San-in Godo Bank, Ltd.
6. Shizuoka Bank, Ltd.
7. The Joyo Bank, Ltd.
8. Seven Bank, Ltd.
9. Daiwa Securities Co., Ltd.
10. The Chiba Bank, Ltd.
11. TOPPAN Edge Inc.
12. Japan Housing Loan, Inc.
13. Nippon Life Insurance Company
14. Fukuoka Financial Group, Inc.
15. The Hokuriku Bank, Ltd.
16. Mitsubishi UFJ Financial Group, Inc.
17. Mizuho Financial Group, Inc.
18. Mitsubishi UFJ Financial Group, Inc.
19. The Bank of Yokohama, Ltd.
20. Resona Holdings, Inc.
21. Lawson Bank, Inc.
Rule Development Subcommittee
(Identity Verification WG)
22. ITOCHU Techno-Solutions Corporation
23. Keychain LLC
24. xID Corporation
25. Global Legal Entity Identifier Foundation
26. Dai Nippon Printing Co., Ltd.
27. Digital Platformer Inc.
28. DataGateway Pte. Ltd.
29. TOPPAN Digital Inc.
30. TRUSTDOCK Inc.
31. NEC Corporation
32. Panasonic Connect Co., Ltd.
33. Hitachi, Ltd.
34. BIPROGY Corporation
35. FUJITSU LIMITED
36. Company Name Withheld
Legal Counsel
37. Anderson Mori Tomotsune LPC
External Experts
38. NAT Consulting (Representative: Natsuhiko Sakimur)
【Overview of VESS Labs Inc.】
Company Name: VESS Labs Inc.
Location: Regus Shibuya Koen Dori Center, 1-23-14 Jinnan, Shibuya-ku, Tokyo
Representative: Kintaro Fujimori, Representative Director
VESS Labs operates a platform that supports the issuance and sharing of "trusted proofs" using Decentralized Identifiers (DID) and Verifiable Credentials (VC), with the mission to "create a society where everyone owns a digital identity and can create new value through trust."
We offer "VESS Credential," which allows verification and issuance of digital certificates for corporations and municipalities,
"VESS Wallet" for individual users to securely hold and present certificates,
and "VESS AIdentity," an Identity Layer for AI agents.
For inquiries about VESS products and businesses utilizing decentralized identity, please feel free to contact us via the inquiry link on our website below.
FAQ
What was the purpose of this proof of concept?
The purpose was to verify the feasibility and effectiveness of a new identity verification method based on the Act on Prevention of Transfer of Criminal Proceeds, by utilizing identity verification results conducted by financial institutions as Verifiable Credentials (VCs). This aimed to achieve both enhanced security and convenience.
What schemes were examined in the proof of concept?
Two main schemes were examined: the initial scheme, which combined identity verification results from financial institutions with IC chip information from identity verification documents for use as the Old (g) Method; and the final scheme, which involved transferring x.509 certificates issued by a certified business in VC format for use as the New (w) Method.
What were the findings of the proof of concept?
The potential for a new identity verification method that reduces the burden on customers was demonstrated. However, the initial scheme was deemed unusable as the Old (g) Method because it could not guarantee the user's existence at the time of presentation. The final scheme was deemed usable as the New (w) Method, provided that financial institutions implement risk mitigation measures.
What are the future challenges for the social implementation of VCs?
It is necessary to address detailed issues such as exploring various VC use cases beyond identity verification, clarifying the division of responsibilities among businesses, and designing incentives based on business models and cost-effectiveness.
What is the Financial Services Agency's "FinTech Proof of Concept Hub"?
It is a measure established by the Financial Services Agency to facilitate FinTech proof of concept experiments and accelerate innovation utilizing FinTech. A dedicated team within the Agency provides ongoing support to overcome hesitations and concerns faced by companies undertaking unprecedented proof of concept experiments.