ICYMI
Are you ready for the EU's Financial Data Access Regulation?
As the basis for Open Finance in the EU moves along the legislative pathway, we assess what implementation may require. Our FiDA Checklist provides a helpful introduction to FiDA and summarises the provisions as set out in recent drafts.
High Court finds 'retrieval duty' arguable against sending bank in an APP fraud context
The decision suggests a basis for APP fraud victims to bring claims against their own banks, provided the alleged breach of duty is rooted in the sending bank's failure to take adequate steps after being alerted to fraud.
Global
FSB speech: Enhancing EU supervision – challenges and opportunities
The Financial Stability Board (FSB) has published a speech by its Deputy Secretary General Martin Moloney at the Eurofi Financial Forum 2025. Mr Moloney emphasised that effective supervision is essential for financial stability, especially in complex regulatory environments like the EU. He argued that supervision should target the supervision of the culture of a firm and that the goal of supervision should be to promote effective management by the firm of the risks it faces.
Mr Moloney illustrated the challenges of EU supervision by focusing on cyber resilience and cryptoassets. He warned that fragmented oversight and inconsistent implementation across Member States could undermine the effectiveness of the Digital Operational Resilience Act (DORA) and the Markets in Cryptoassets Regulation (MiCAR). He therefore pointed out that 'ensuring robust supervisory oversight of complex, globally active entities requires a unified approach that transcends national boundaries, leveraging shared expertise and fostering consistent standards'. [19 Sep 2025] #Cyber #MiCAR #DORA #OpRes
UK
FCA CBA Panel issues advice on proposed application of Handbook rules to crypto activities
The FCA Cost Benefit Analysis (CBA) Panel has published its response to Consultation Paper 25/25 – Application of FCA Handbook for Regulated Cryptoasset Activities (CP25/25). Among other recommendations, the Panel advises the FCA to:
- present more clearly the economic case for applying conduct regulation to cryptoasset activities, explaining in particular how it relates to: HM Treasury's draft statutory instrument and its impact assessment; the existing base of CBA supporting conduct regulation for traditional financial services; and the principle of ensuring a level regulatory playing-field between traditional financial and cryptoasset services;
- focus its analysis on how the pergent features of cryptoasset markets will affect the impact of the proposed regime; and
- sharpen its analysis of proposed regulatory disparities between traditional and cryptoasset, providers, both onshore and offshore, on the market and wider economy. [19 Sep 2025] #Crypto #DigitalAsset
FCA speech on supporting growth in innovation and technology
The FCA has published the speech delivered by its Chief Data, Information and Intelligence Officer, Jessica Rusu, at the Future of Fintech 2025 conference. Ms Rusu highlighted key regulatory initiatives aimed at supporting innovation and growth, including new crypto regulations to enhance resilience and consumer protection and the launch of AI Live Testing and a Supercharged Sandbox to help firms. She also spoke about the newly launched scale-up unit whose aim will be to enhance engagement with fast-growing and innovative regulated firms. A scale-up summit will be held later in September 2025 to explore how the FCA can work alongside industry and the Government to support fintech growth in the UK.
In addition, Ms Rusu presented the Smart Data Accelerator, describing it as a catalyst to accelerate the development and implementation of Open Finance and broader Smart Data initiatives in the UK. The initiative will provide a safe space where firms, industry, policymakers, and international partners can come together to test, learn, and build the evidence that will shape the future framework. She noted that the FCA is working with the Information Commissioner's Office (ICO) to address any cross-regulatory issues which may arise as the project progresses. [18 Sep 2025] #AI #Crypto #DigitalAsset #SmartData #OpenFinance
FCA consults on application of Handbook to regulated crypto activities
The FCA has published Consultation Paper 25/25 – Application of FCA Handbook for Regulated Cryptoasset Activities (CP25/25). CP25/25 incorporates a discussion p (in chapters six and seven) and specific proposals (in chapters one to five).
Chapters one to five cover the application of the following to crypto firms:
- the High Level Standards and supervision;
- Senior Management Arrangements, Systems and Controls (SYSC);
- guidance on operational resilience; and
- business standards.
Chapters six and seven discuss the application of the Consumer Duty, access to the Financial Ombudsman Service (FOS), the Conduct of Business Sourcebook (COBS) and the Product Intervention and Product Governance Sourcebook (PROD).
CP25/25 follows HM Treasury's April 2025 draft legislation to bring certain crypto activities under the FCA's remit. Activities that the FCA will regulate once the final statutory instrument (SI) is made include: issuing qualifying stablecoins; safeguarding qualifying cryptoassets and specified investment cryptoassets; operating a qualifying cryptoasset trading platform (CATP); intermediation; and staking.
Responses to chapters six and seven of CP25/25 are requested by 15 October 2025; responses to chapters one through five are requested by 12 November 2025. [17 Sep 2025] #Crypto #DigitalAsset
Europe
EIOPA Chair discusses AI supervision
The European Insurance and Occupational Pensions Authority (EIOPA) has published a speech by its Chair Petra Hielkema at the Regulation and Supervision (PROGRES) Conference 2025. Ms Hielkema spoke about both the advantages of AI and the areas where careful supervision and caution are necessary, such as data privacy, security and algorithmic bias. She also discussed the AI Act's risk-based framework, describing its four risk levels for AI systems: unacceptable risks, high risk, limited risks and minimal or no risks.
Additionally, Ms Hielkema directed supervisors to the EIOPA opinion on AI governance and risk management and the International Association of Insurance Supervisors (IAIS) application paper on the supervision of AI for clarity on how to interpret the provisions set out in existing insurance-sector legislation in the context of AI. [17 Sep 2025] #AI
OJ: MiCAR Regulations – ART issuer authorisation
The following Regulations have been published in the OJ:
- Commission Delegated Regulation (EU) 2025/1125 supplementing the Markets in Cryptoassets Regulation (MiCAR) with regard to regulatory technical standards (RTS) specifying the information in an application for authorisation to offer asset-referenced tokens (ARTs) to the public or to seek their admission to trading; and
- Commission Implementing Regulation (EU) 2025/1126 laying down implementing technical standards (ITS) for the application of MiCAR with regard to the establishment of standard forms, templates and procedures for the information to be included in the application for authorisation to offer ARTs to the public and to seek their admission to trading.
The Regulations will enter into force on the twentieth day following their publication in the OJ. [15 Sep 2025] #Crypto #DigitalAsset #MiCAR
Australia
ASIC supports innovation through exemptions for distributors of Australian stablecoin
ASIC has announced that it has granted class relief for intermediaries engaging in the secondary distribution of a stablecoin issued by an Australian financial services (AFS) licensed issuer. As and when more issuers of eligible stablecoins obtain an AFS licence, ASIC will consider extending the above relief to intermediaries distributing those stablecoins.
The first-of-its-kind relief exempts intermediaries from the requirement to hold separate AFS, Australian market, or clearing and settlement facility licences when providing services related to stablecoins issued by an AFS licensee. Intermediaries benefiting from this relief must make the exempt stablecoin's product disclosure statement available to their clients (where an issuer has prepared a Product Disclosure Statement).
The relief instrument – ASIC Corporations (Stablecoin Distribution Exemption) Instrument 2025-631 – will take effect once registered on the Federal Registration of Legislation. ASIC's explanatory statement is also available. [18 Sep 2025] #Stablecoin #DigitalAsset
Hong Kong
Hong Kong Chief Executive sets out initiatives to deepen reforms and expedite development of new growth areas in 2025 Policy Address
The Chief Executive of Hong Kong, Mr John Lee, has delivered his 2025 Policy Address (main address and supplement) to set out initiatives to deepen reforms and expedite development of new growth areas. The SFC and the Insurance Authority, among others, have welcomed the initiatives.
Among the areas relevant to fintech are:
- Measures to further develop the Greater Bay Area (GBA) include enhancing cross-boundary credit referencing and Payment Connect, working with GBA exchanges to develop commodity trading, carbon trading and other businesses, and promoting digital finance and integration of technology and finance between Shenzhen and Hong Kong.
- The HKMA will advance Project Ensemble to promote tokenised deposits and assets and regularise tokenised bond issuance. The SFC is studying the possibility of offering a wider range of digital asset products and services to professional investors with the prerequisite of sufficient investor protection in place, and plans to build a line of defence against risks associated with digital assets in Hong Kong. [17 Sep 2025] #Tokenisation #DigitalAsset
Singapore
MAS: Singapore FinTech Festival 2025
The Monetary Authority of Singapore (MAS) has announced that the Singapore FinTech Festival 2025 will be held from 12–14 November 2025 at the Singapore EXPO, convening over a thousand global leaders in finance, technology and policy to discuss how AI, tokenisation, and quantum computing can be harnessed to promote a secure and efficient global financial system. [18 Sep 2025] #Fintech #AI #QuantumComputing #Tokenisation
India
RBI: Master direction on regulation of payment aggregators
The Reserve Bank of India (RBI) has published a master direction on the regulation of payment aggregators (PAs). The RBI had previously consulted on a proposed framework for regulating PAs that handle proximity / face-to-face payments. The consultation also proposed certain changes to the extant directions to PAs.
This master direction includes guidance on:
- the rationalisation of the definition of various categories of PAs;
- the authorisation process;
- the process for carrying out due diligence of merchants by PAs; and
- permissible operations in escrow accounts. [15 Sep 2025] #Payments
US
SEC approves generic listing standards for exchange-traded products that hold spot commodities, including digital assets
The Securities and Exchange Commission (SEC) has approved proposed rule changes by three national securities exchanges to adopt generic listing standards for exchange-traded products that hold spot commodities, including digital assets. As a result, the exchanges may list and trade Commodity-Based Trust Shares that meet the requirements of the approved generic listing standards without first submitting a proposed rule change to the Commission pursuant to p 19(b) of the Exchange Act. [17 Sep 2025] #DigitalAsset
NY DFS extends blockchain analytics guidance to NY state banking organizations
The New York State Department of Financial Services (NY DFS) has issued new guidance on the use of blockchain analytics tools for banking institutions contemplating or already conducting virtual currency-related activities. The announcement notes that as banking institutions experience increasing interest in, and exposure to, virtual currency activities, blockchain analytics tools may enhance compliance programs and prevent illegal activities. The announcement builds upon previously released industry guidance to New York State-regulated virtual currency entities. [17 Sep 2025] #Crypto #DigitalAsset #Blockchain
FINRA announces launch of crypto and blockchain education program
FINRA has announced the launch of its new crypto and blockchain education program for member firms and their employees. The program will include self-paced e-learning courses, as well as a separate in-person applied learning course offered in partnership with Georgetown University's McDonough School of Business.
A podcast about the program has also been released. [16 Sep 2025] #Crypto #DigitalAsset #Blockchain
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