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At this workshop, we welcomed leading experts in advanced digital regulation from the United Kingdom and Canada—including Professor Christopher Hodges of the University of Oxford, Chair of the UK Regulatory Horizons Council—as well as distinguished experts from Japan. The discussion focused on specific regulatory challenges arising from the advancement of digital technologies, including digital regulatory reform, regulatory sandboxes, digital platform regulation, AI governance, risk management for autonomous vehicles, and Data Free Flow with Trust (DFFT).

During the roundtable discussion, Japanese and British experts with deep knowledge of regulatory reform engaged in lively dialogue on topics such as regulatory frameworks, methodologies, and practical challenges in implementation. Key discussion points are summarized below.

1．REGULATION：Evolution in Models and Practice／Outcome-Based Collaboration（Professor Christopher Hodges, Emeritus Professor at the University of Oxford）

The session began with a presentation by Professor Christopher Hodges, Emeritus Professor at the University of Oxford. At the outset of his presentation, Professor Hodges introduced the activities and achievements of the Regulatory Horizons Council (RHC), of which he serves as Chair. The RHC is an independent advisory body that provides recommendations to the UK government on regulatory reform necessary for the safe and timely introduction of innovative science and technology. The Council takes a broad perspective on regulatory landscapes surrounding emerging technologies and, through discussions with relevant stakeholders, explores regulatory approaches that will enable the UK to maximize the benefits of technological innovation. Past topics on which the RHC has advised include fusion energy, medical devices, AI in medical devices, drones, quantum technologies, and neurotechnology.

Next, Professor Hodges outlined two contrasting regulatory approaches: the traditional legal enforcement and deterrence-based model and an alternative model grounded in behavioral science. He introduced a number of case studies to illustrate the features of each. Among these, he concluded that the model he believes to be most effective is Outcome-Based Collaborative Regulation (OBCR), which is derived from behavioral science.

The OBCR model is a regulatory framework that seeks to engage all stakeholders in a trust-based, collaborative process oriented toward agreed-upon common goals and outcomes. Key tools for implementation include the establishment of stakeholder councils, the formulation of codes of conduct, and the monitoring of outcomes and performance.

According to Professor Hodges, the OBCR model is already being applied in regulatory systems for aviation safety, advertising standards, and food safety frameworks.

2．OBCR：Status and Learnings from Ongoing Initiatives（Mr. Srikanth Mangalam, Founder and President of the Public Risk Management (PRISM) Institute）

Next, Mr. Srikanth Mangalam, Founder and President of the Public Risk Management (PRISM) Institute, delivered a presentation titled “OBCR: Status and Learnings from Ongoing Initiatives.”

In his presentation, Mr. Mangalam introduced a practical implementation framework for the OBCR model, as presented earlier by Professor Hodges, organized into seven distinct steps. He also shared real-world case studies where the OBCR model had been applied, drawing from initiatives in which both Professor Hodges and Mr. Mangalam were directly involved.

3．On the Sandbox System (Mr. Hirohiko Nakahara, Deputy Director-General, Cabinet Secretariat)

Following that, Mr. Hirohiko Nakahara, Deputy Director-General of the Cabinet Secretariat, delivered a presentation on the regulatory sandbox system, a framework he has been deeply involved in developing and operating.

The regulatory sandbox system was established to address the gap between existing regulations and emerging technologies. Specifically, it enables businesses seeking to implement innovative technologies or new business models—often not envisioned by current regulations—to conduct pilot projects in a controlled environment. Under this system, participating businesses submit applications, and upon approval by the relevant regulatory authorities, are permitted to carry out regulated trials (demonstrations). The data and insights obtained from these trials are then used as a basis for potential regulatory reforms, facilitating the real-world implementation of innovation.

According to Mr. Nakahara, over 100 projects have utilized the system to date. Examples include services that combine FinTech and blockchain technology (e.g., by Crypto Garage Inc.) and services that integrate FinTech and privacy-preserving technologies (e.g., by Caulis Inc. and Kansai Electric Power Co.).

4．Operationalization of DFFT (Ms. Maiko Meguro, Director, Digital Agency)

Next, Ms. Maiko Meguro, Director at the Digital Agency, delivered a presentation on international data governance initiatives in which she has been actively involved.

Ms. Meguro played a key role in the promotion of the Data Free Flow with Trust (DFFT) concept, which was adopted at the G20 Osaka Summit as a guiding principle for advancing international cooperation on cross-border data flows. The concept emphasizes that "trust" must be at the core of any framework that enables the global movement of data.

She has also contributed to the design and implementation of concrete mechanisms for promoting international data governance. In her presentation, Ms. Meguro introduced ongoing efforts to incorporate the perspectives of diverse stakeholders and to reflect those perspectives in the formation of international consensus, highlighting the importance of institutional design in achieving inclusive and effective global data governance.

5．Digitalization of Regulation in Japan (Takafumi Ochiai, Partner at Atsumi & Sakai / Head, Policy Research Institute)

Next, Mr. Takafumi Ochiai, Partner at Atsumi & Sakai and Director of the Prototype Policy Research Institute, delivered a presentation titled “Digitalization of Regulation in Japan.”

In his presentation, Mr. Ochiai introduced a wide range of topics, including practical examples of regulatory reform initiatives utilizing digital technologies—such as those related to Fintech and autonomous driving technologies—in which he has personally been involved as an expert and committee member. He also discussed key concepts and methodologies related to regulatory reform, such as agile governance, as well as regulatory reform tools like the National Strategic Special Zones, and various support frameworks for startups.

6．The Proposals from the SWG on the Legal Framework for ADS (Professor Tatsuhiko Inatani, Graduate School of Law, Kyoto University)

Finally, Professor Tatsuhiko Inatani of Kyoto University delivered a concise presentation on the concept of agile governance and its application in the context of legal and institutional design for automated driving systems (ADS).

In his remarks, Professor Inatani emphasized that, in order to effectively implement agile governance in Japan, it is essential to establish a foundation for evidence-based policymaking and to develop a regulatory framework that includes sanction mechanisms designed to provide appropriate incentives for all stakeholders.

7．QA Session／Discussion

Based on the presentations by each of the participants, a lively Q&A session and discussion followed. Key topics raised during the discussion included the following:

1. The effectiveness and outcomes achieved through regulatory reform utilizing digital technologies

2. The division of roles between central and local governments, and effective approaches to implementing digital technology regulations

8．Closing Remarks

To conclude the roundtable discussion, Professor Hiroki Habuka, Specially Appointed Professor at the Graduate School of Law, Kyoto University, and Mr. Srikanth Mangalam each delivered brief closing remarks, bringing the session to a close.

End.