ICYMI
- Are you ready for the EU's Financial Data Access Regulation?
- Insight alert: Australian Productivity Commission proposes text & data mining exception to copyright infringement for AI training
UK
FCA warns consumers about fraudsters impersonating the regulator
The FCA has issued a warning to consumers about fraudsters impersonating the regulator. The FCA received almost 5,000 scam reports in H1 2025; almost two-thirds of reports came from people aged 56 years or above and 480 victims were duped into sending money to the fraudster.
Scam methods reported to the FCA include fraudsters claiming that the FCA has recovered funds from a crypto wallet that was opened illegally in the individual's name. [27 Aug 2025] #Crypto #DigitalAsset
Europe
EBA: Q&As – PSD2
The European Banking Authority (EBA) has published questions and answers (Q&As) in relation to the Payment Services Directive (PSD2) which cover:
- obstacles faced by payment initiation service providers (PISPs) in accessing payment status information under PSD2;
- proxy matrices; and
- knowledge element of the 'strong customer authentication' (SCA). [29 Aug 2025] #Payments
Australia
ASIC launches consultation on modernising trading systems rules to keep pace with technology and AI
ASIC has launched a consultation on proposed changes to modernise market integrity rules (MIRs) governing market participants' trading systems and automated trading. ASIC explains that the proposals aim to:
- keep pace with developments in technology, including AI;
- streamline and reduce complexity by applying consistent rules to any trading systems used by participants, irrespective of how orders are generated or submitted; and
- harmonise trading system rules and safeguards across the securities and futures markets and align ASIC's rules framework with the International Organisation of Securities Commission (IOSCO) principles and international best practice on algorithmic trading.
ASIC's proposed rule changes would extend the principles-based rules for trading systems to participants' development, testing, use and monitoring of their trading algorithms and require 'kill switches' to enable immediate suspension of aberrant trading algorithm activity.
ASIC also proposes to repeal some obsolete rules and reduce complexity as part of its focus on streamlining the MIRs, including repealing the automated order processing annual notification to ASIC requirement. To further ease regulatory burden, ASIC will provide a conditional class no-action position from this requirement to securities participants for annual notifications due from November 2025.
Feedback on the proposals is requested by 22 October 2025. [27 Aug 2025] #AI #Algos
Hong Kong
SFC publishes quarterly report for April to June 2025
The SFC has published its quarterly report, summarising its work and key developments from April to June 2025. The report includes the chapter Leading financial market transformation through technology and ESG, which highlights:
- The SFC launched a joint consultation with the FSTB in June 2025 to introduce regulatory regimes for virtual asset (VA) dealing and custodian service providers.
- As at 30 June 2025, the SFC had licensed 11 VA trading platforms (VATPs) and was reviewing 10 VATP licence applications. It provided guidance in April 2025 to licensed VATPs on their provision of staking services to SFC-authorised funds with VA exposure on their engagement in staking. Subsequently, it permitted two licensed VATPs to provide staking services, and became the first in Asia Pacific to allow staking for VA spot exchange traded funds through licensed VATPs. [27 Aug 2025] #DigitalAsset
HKMA issues circular regarding rebranded e-banking security initiative, sharing good practices and highlighting upcoming initiatives
The HKMA has issued a circular regarding its initiative 'E-Banking Security ABCD', which has been re-branded from 'E-Banking Security ABC' (see our previous update). The new 'D' stands for 'Deepfake detection', whereas the existing 'A', 'B' and 'C' stand for 'Authenticate In-App', 'Bye to unused functions', and 'Cancel suspicious payments' respectively.
As part of its efforts to strengthen the Hong Kong banking sector's capability to combat deepfake-related modus operandi, especially those targeting the identity verification solutions deployed by banks, the HKMA has launched a number of initiatives, including the Generative Artificial Intelligence (GenA.I.) Sandbox in collaboration with the Hong Kong Cyberport Management Company Limited in August 2024 (see our previous update), an Anti-Digital Fraud Workshop with the Hong Kong Police Force (Police), Digital Policy Office and the Hong Kong Association of Banks in November 2024, and a new GenA.I. Collaboratory series (including a tailored cross-sectoral engagement session in July 2025 on deepfake prevention).
Authorised institutions (AIs) have actively participated in these initiatives, and taken onboard the insights and learnings shared. The HKMA's regular engagement with AIs showed that those that adopted relevant solutions and good practices (as summarised in the Annex to the circular) improved their capability to detect sophisticated, real-time deepfake attacks by more than 95% in number. The identified fraud and scam cases have been shared by AIs with the Police, and facilitated law enforcement investigations and enabled early identification of emerging deepfake-related tactics before further proliferation.
As the first initiative under measure 'D', the HKMA expects AIs to review the relevance of the above good practices to their institution and take appropriate action to enhance their deepfake detection capabilities.
Looking ahead, the HKMA will continue to roll out new initiatives under measure 'D':
- The HKMA will keep the good practices under regular review, and will provide practical utilities to enhance AIs' anti-deepfake capabilities.
- The second GenA.I. Sandbox cohort, themed 'A.I. versus A.I.', is open for application until 31 August 2025. Insights from this cohort will be shared in future GenA.I. Collaboratory sessions and/or in the form of further practical guidance, as appropriate.
- Leveraging on the memorandum of understanding signed between the HKMA and the School of Business and Management of the Hong Kong University of Science and Technology in May 2025, efforts will be made to deliver resources that support growth in the industry's anti-deepfake capabilities (more details to be announced). [25 August 2025] #Payments #AI #Deepfake
Philippines
BSP and NBC hold bi-lateral meeting, reaffirm mutual commitment
The Bangko Sentral ng Pilipinas (BSP) has announced that it concluded a high-level bilateral meeting with the National Bank of Cambodia (NBC) on 18 August 2025 in Bohol, Philippines.
The two institutions exchanged insights on key developments and challenges in the financial sector, including cross-border payment initiatives, AI, and strategies for combating financial fraud. The BSP and NBC also reaffirmed their mutual commitment to cooperation and innovation. [27 Aug 2025] #Payments #AI
US
CFTC DMO issues advisory on FBOT registration framework
The Division of Market Oversight of the Commodity Futures Trading Commission (CFTC) has issued an advisory regarding the foreign board of trade (FBOT) registration framework for non-U.S. entities legally organized and operating outside the U.S. that seek to provide persons physically located in the U.S. with direct market access to their trading platforms. The CFTC's FBOT registration framework applies to all markets, regardless of asset class, and includes both traditional and digital asset markets. The advisory seeks to provide clarity with regard to the framework's application. [28 Aug 2025] #DigitalAsset
CFTC Acting Chair announces next crypto sprint initiative and invites feedback on President's Working Group report recommendations
CFTC Acting Chair Caroline D. Pham has announced that the CFTC will begin its next crypto sprint initiative for implementation of the recommendations in the President's Working Group on Digital Asset Markets report. Chair Pham explained that she had commenced engagement with stakeholders on other report recommendations for the CFTC.
Feedback and suggestions on the recommendations for the CFTC in the report are invited by October 20, 2025. [21 Aug 2025] #Crypto #DigitalAsset
CFPB: Personal Financial Data Rights reconsideration
The Consumer Financial Protection Bureau (CFPB) has announced an advance notice of proposed rulemaking regarding Personal Financial Data Rights. The CFPB is seeking comments and data to inform its consideration of four issues related to implementation of p 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). These are:
- who can serve as a "representative" making a request on behalf of the consumer;
- the assessment of fees to defray the costs incurred by a "covered person" in responding to a customer driven request;
- the threat and cost-benefit pictures for data security associated with p 1033 compliance; and
- the threat picture for data privacy associated with p 1033 compliance.
Feedback is requested by October 21, 2025. [22 Aug 2025] #Data
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