ICYMI
- China Releases Final Measures on Cybersecurity Incident Reporting
- Transparency requirements re training data and compliance with copyright law come into force in EU
UK
HM Treasury: Inaugural UK-Australia Joint Financial Regulatory Forum
HM Treasury has published a policy paper on the inaugural UK-Australia Joint Financial Regulatory Forum that took place on 24 September 2025. In line with the commitments in the UK-Australia Free Trade Agreement, signed in 2021, the parties discussed priority areas including regulatory reform, pensions regulation and digital assets. The Forum was followed by an industry-led UK-Australia business roundtable on 25 September with participation from industry representatives from both countries. [25 Sep 2025] #DigitalAsset
FCA speech: Tackling financial crime to strengthen markets
The FCA has published a speech by its Joint Executive Director of Enforcement and Market Oversight, Therese Chambers, at the Association for Financial Markets in Europe's (AFME's) European Compliance and Legal Conference 2025. Among other topics, the speech highlighted the FCA's ongoing support for innovation – through initiatives such as the AI Lab, Tech Sprints and the Digital Securities Sandbox – as well as the importance of international cooperation. [23 Sep 2025] #AI #DigitalSandbox
FCA: Smart Data Accelerator
The FCA has published information on the Smart Data Accelerator, an initiative aimed at advancing open finance and smart data for businesses in the UK. The page provides guidance on the four Accelerator pillars – use case testing, policy testing, international and cross-sector testing, and data and tech infrastructure – and how firms can take part in the initiative. [22 Sep 2025] #SmartData
BoE sets out policy on expanding mandatory ISO 20022 enhanced data in CHAPS from 2027
The BoE has published a policy statement outlining its position on expanding the mandatory ISO 20022 enhanced data requirements for the Clearing House Automated Payment System (CHAPS) from November 2027.
Following feedback on its 2024 consultation, the BoE has decided to expand mandatory requirements for Purpose Codes to all CHAPS payments. These requirements will continue to be mandated through the CHAPS rulebook for payment initiation channels within CHAPS direct participants' (DPs') control.
The BoE also stated that is enhancing the way it engages with the industry to develop guidance for consistent usage of Purpose Codes. This will include guidance on the selection of appropriate Purpose Codes and other enhanced data, as well as on implementation best practice on incorporating enhanced data within CHAPS payment journeys.
The BoE will not however expand mandatory enhanced data requirements to payment initiation channels outside CHAPS DPs' control in 2027. Nevertheless, the BoE expects that more volume will move into the control of CHAPS DPs as more payment systems migrate to ISO 20022. [22 Sep 2025] #Payments
FMSB report: FEMR legacy and the future of financial markets
To mark the tenth anniversary of the Fair and Effective Markets Review (FEMR), the Financial Markets Standards Board (FMSB) has published a paper on how changes in market participation, execution, new asset classes and geography are reshaping financial markets and associated conduct risks. The key thematic shifts identified in the paper include:
- trade execution - electronification, the rise of platforms, data as a market enabler, and the early adoption of AI; and
- new asset frontiers - expansion of the fixed income, currencies and commodities (FICC) markets, emergence of digital assets, and blurred lines between institutional and retail markets.
Looking ahead, many of the trends that have developed over the last decade are expected to continue and, in some instances, accelerate over the next decade. [22 Sep 2025] #AI #DigitalAsset
HM Treasury: Transatlantic Taskforce for Markets of the Future
HM Treasury has announced the decision of the Chancellor of the Exchequer and the US Treasury Secretary to establish a Transatlantic Taskforce for Markets of the Future aimed at enhancing collaboration on capital markets, digital assets and other innovative financial activities. The purpose of the Taskforce is to explore:
- options for short-to-medium term collaboration on digital assets whilst legislation and regulatory regimes are still developing, as well as options for long-term collaboration and additional opportunities for wholesale digital markets innovation; and
- options to improve links between the capital markets to enhance the growth and competitiveness of both UK and US markets, focusing on reducing burdens for UK and US firms raising capital cross-border.
The Taskforce will report back to both finance ministries within 180 days via the UK – US Financial Regulatory Working Group. [22 Sep 2025] #DigitalAsset
Europe
ECB presents findings from digital euro innovation platform
The European Central Bank (ECB) has published a report on the outcome of the first iteration of the digital euro innovation platform – an initiative launched by the ECB in October 2024 for collaboration and experimentation with digital euro project stakeholders. Participants joined one or both of two workstreams: 'visionaries' and 'pioneers'. The visionaries focused on gathering innovative ideas and exploring the long-term potential of the digital euro, while the pioneers concentrated on technical experimentation.
The report describes the innovations and applications that the digital euro platform could enable, including conditional payments and integrated electronic receipts. It also found that the digital euro could improve inclusion and accessibility, for example with tailored wallets for children to help them learn how to spend and save responsibly from a young age.
The ideas explored as part of the innovation platform initiative are still at the experimental stage. The Eurosystem will continue engaging with stakeholders with the aim of ensuring that the digital euro's design meets the needs of future users and the market. [26 Sep 2025] #DigitalEuro #CBDC
EBA speech: Impact of regulation on innovation and competition in payments market
The EBA has published a speech by its Executive Director François-Louis Michaud at the Payments Tomorrow Conference. Mr Michaud spoke about how EU regulation has been a driving force behind innovation and competition in the payments market, particularly the second Payment Services Directive (PSD2). He discussed the progress achieved, the remaining challenges, and the recent and forthcoming legislative changes which will shape the next phase of the EU payments market. He discussed the Instant Payments Regulation (IPR), effective since April 2025, as well as the upcoming PSD3 and the Payment Services Regulation (PSR).
Key elements of the proposed legislation include:
- strengthening payment security;
- improving the functioning of open banking;
- addressing de-risking of payment institutions by banks; and
- enhancing enforcement and consistency.
Mr Michaud also discussed the role of the EBA in ensuring that the objectives of the legislation are delivered. He confirmed that the EBA is finalising a memorandum of understanding (MoU) with the ECB, national competent authorities (NCAs) under PSD2, and national central banks. The MoU will establish a framework for coordination between these different authorities, with a view to contributing to the competition-enhancing objective of the IPR that allows non-bank payment service providers (PSPs) to access payment systems. Furthermore, the EBA plans to publish a joint report with the ECB on payment fraud later in 2025. The report may inform potential future policy initiatives. [25 Sep 2025] #Payments #PSD
Hong Kong
HKIMR releases report on long-term investing in digital economy and highlights key areas for fostering robust and competitive long-term investing landscape
The Hong Kong Institute for Monetary and Financial Research (HKIMR) has released an applied research report titled "Long-term Investing in Hong Kong: Developments and Opportunities in a Digital Economy".
The report builds upon the HKIMR's prior research on demographic changes and long-term asset markets and provides a comprehensive and updated analysis of Hong Kong's long-term investing landscape and opportunities within the context of an evolving digital economy, based on two surveys. Among other things, the report notes that:
- 67% of the surveyed market participants saw the crucial need to increase the supply of decumulation product options to accommodate their customers' demand for long-term financial planning.
- 72% of surveyed residents reported using digital financial services in the past year, and about 70% of the surveyed market participants reported they are currently adopting or plan to adopt mobile and web platforms to distribute long-term financial products.
Drawing on international experiences and the insights gathered from the surveys and interviews, the report highlights four key areas that are important to foster a robust and competitive long-term investing landscape in Hong Kong. These include:
- Encouraging product development – Promoting innovative products, establishing partnerships to optimise products and services, and encouraging the participation of international reinsurance;
- Enhancing distribution channels – Further enhancing information disclosure, considering the development of an independent financial advisory model, and expanding product distribution to meet diverse demands;
- Promoting marketing and financial education – Strengthening decumulation needs and planning awareness, increasing efforts to promote long-term products, and developing targeted financial education and investment tools; and
- Facilitating technology adoption – Enhancing scalability and reducing costs, establishing clear regulatory guidelines and policy certainty, and continuing support for regulatory sandboxes. [22 Sep 2025] #DigitalEconomy
HKMA Executive Director shares thoughts on holistic approach to protecting integrity of banking system from fraud amid continued digitalisation
The HKMA has published a keynote speech by Mr Raymond Chan, Executive Director (Enforcement and AML) of the HKMA, at the International Symposium on Digital Fraud Prevention and Detection, where he shared his thoughts on a more holistic approach to protecting the integrity of the banking system from fraud amid continued digitalisation.
Mr Chan noted that the HKMA has made significant progress in delivering various key commitments aimed at early detection and intervention, and that there are positive signs from these measures. Nonetheless, the HKMA fully appreciates that the number of deception cases is still rising and it will continue to work closely with the Police and the banks to further strengthen the banking sector's ability to detect and prevent fraud:
- As a follow-up to its December 2024 circular requiring banks to put in place a dynamic fraud monitoring system (see our previous update), the HKMA has started a round of thematic reviews to test how effectively these measures have been implemented and to ensure that they are delivering the maximum possible value. The HKMA also monitors the effectiveness of these measures by analysing the supervisory data it collects and has established regular communication with the banks to quickly share trends and good practices.
- Throughout the next two years, the HKMA will work with a consultant to further support the use of AI by the banking industry and help banks accelerate deployment across various use cases, in particular to enhance the early identification of risks to improve outcomes of intervention.
- The Legislative Council passed amendments to the Banking Ordinance in June 2025 to allow banks to share information on personal accounts where there are indications that the accounts, customers or transactions may be involved in money laundering or other financial crimes (see our previous update). The HKMA is working with the Police and the banking sector on preparations, including systems and safeguards, with a view to rolling out the new mechanism to monitor suspicious activity later this year. [18 Sep 2025] #Digitalisation #AI
Singapore
MAS launches initiatives to promote responsible online financial content
MAS has published new guidelines on standards of conduct for digital advertising activities to establish expectations for financial institutions on responsible and professional digital advertising practices. The guidelines establish safeguards that firms are expected to adopt to manage risks associated with digital advertising. They apply to all financial institutions and their appointed third parties, including online content creators. Key safeguards include managing the challenges and limitations of digital media, ensuring clear disclosures, as well as setting appropriate policies and procedures to monitor digital advertising activities. The guidelines are effective from 25 March 2026.
Additionally, MAS has issued a guide for content creators on responsible financial content creation. It covers key considerations when creating content, such as when a licence from MAS may be required, steps to take before promoting an entity's products or services, and the disclosure of compensation received.
MAS will also issue advisory letters to five content creators who may have provided financial advice without a licence. The authority warned that persons who continue to provide financial advice without a licence will face enforcement action. [25 Sep 2025] #DigitalAdvertising
MAS: Response to PQ on impact of US GENIUS Act on Singapore's competitiveness for regulated digital assets
MAS has published its response to a Parliamentary question (PQ) on the impact of the US Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act on Singapore's competitiveness as a global hub for regulated digital assets. It was also raised whether MAS plans to pursue recognition from the US for Singapore's stablecoin regulatory framework as an equivalent regime under the GENIUS Act.
MAS highlighted that regulatory frameworks for stablecoins in both the US and Europe remain in their early stages of development. The authority is following these developments closely and will consider appropriate regulatory cooperation aimed at ensuring safe and secure cross-border use of regulated stablecoins. MAS also confirmed that it is working on legislative amendments to formalise the stablecoins regulatory framework, which was published in 2023, and will issue a consultation later in 2025. [24 Sep 2025] #DigitalAsset #Stablecoin
Thailand
SECT launches TouristDigiPay, business operator applications start 25 September 2025
The Securities and Exchange Commission Thailand (SECT) has launched the TouristDigiPay sandbox, a pilot project for converting digital assets into Thai Baht for foreign tourists' payments of goods and services within Thailand. The application window to participate in the project is open from 25 September to 26 December 2025. Services are expected to commence in Q4 2025. [25 Sep 2025] #Payments #DigiPay
India
RBI: Authentication mechanisms for digital payment transactions
The Reserve Bank of India (RBI) has issued directions outlining the overarching principles to be adhered to by all participants in the payment chain when implementing forms of authentication for digital payment transactions. While these directions are applicable only to domestic transactions, they also incorporate necessary instructions for specific cross-border card transactions. [25 Sep 2025] #Payments
RBI speech: AI's role in India's financial future
The RBI has published a speech by its Deputy Governor M. Rajeshwar Rao on the potential of AI in reshaping India's financial landscape. He spoke about the measures taken by RBI to increase the flow of credit but noted that gaps in access to formal credit remain. He therefore posited that driving the next credit revolution will require harnessing new technologies. In this regard, Mr Rao identified a number of potential use cases for AI usage across various areas of the credit lifecycle, including credit inclusion, document management, and customer support and grievance redress.
The speech further highlighted the risks and ethical challenges associated with the adoption of AI, such as concerns over data privacy, cybersecurity vulnerabilities, and the potential for generative AI to be misused. [22 Sep 2025] #AI #Cybersecurity
IFSCA consults on fintech sandbox framework
IFSCA has published a consultation paper on proposals to introduce a fintech sandbox framework aimed at facilitating the continued growth of fintech innovations at IFSCs from Indian and foreign jurisdictions by providing innovative facilitators like regulatory/innovation sandbox for fintech activities spanning banking, capital market, insurance and funds. Responses are requested by 10 October 2025. [19 Sep 2025] #Fintech
Philippines
BSP to close digital bank application window by December 2025
The Bangko Sentral ng Pilipinas (BSP) has announced that it will stop accepting new applications for digital bank licenses from 1 December 2025. The closure of the application window follows the Monetary Board's approval of a moratorium on digital bank licensing on 18 September 2025. The moratorium will remain in place until further notice. Interested applicants have until 30 November 2025 to submit their complete applications. [24 Sep 2025] #DigitalBanking
US
NY Fed Liberty Street Economics – articles on tokenized investment funds
The Federal Reserve Bank of New York (NY Fed) has published new articles in its Liberty Street Economics series. An initial article examines the emergence of tokenized investment funds and their use cases, while a subsequent piece considers the financial stability implications of tokenized investment funds.
Liberty Street Economics is a series which features insight and analysis from NY Fed economists; the views expressed are those of the authors, and do not necessarily reflect those of the NY Fed or the wider Federal Reserve System. [24 Sep 2025] #Tokenisation
CFTC Acting Chair launches tokenized collateral and stablecoins initiative
CFTC Acting Chair Caroline D. Pham has announced an initiative on the use of tokenized collateral including stablecoins in derivatives markets. The launch follows on from the CFTC's Crypto CEO Forum in February and is part of the agency's crypto sprint which focuses on delivery of the recommendations made in the President's Working Group on Digital Asset Markets report. It also progresses work undertaken by the CFTC's Global Markets Advisory Committee (GMAC) which recommended expanding the use of non-cash collateral through distributed ledger technology (DLT).
The CFTC is inviting feedback and suggestions on the use of tokenized collateral including stablecoins in derivatives markets by October 20, 2025. Subject areas on which input is sought include the CFTC's GMAC 2024 recommendation, potential amendments to CFTC regulations in connection with the President's Working Group report recommendations regarding collateral management (pages 52-53), and related matters. [23 Sep 2025] #Tokenisation #Stablecoin #Crypto #DigitalAsset
U.S. and UK establish taskforce to support capital markets and digital assets collaboration
Treasury Secretary Scott Bessent and UK Chancellor Rachel Reeves have announced the formation of a Transatlantic Taskforce for Markets of the Future which will report into both Treasuries through the UK-U.S. Financial Regulatory Working Group.
The taskforce is charged with exploring:
- the "options for short-to-medium term collaboration on digital assets while legislation and regulatory regimes are still developing, as well as options for long-term collaboration and additional opportunities for wholesale digital markets innovation"; and
- the "options to improve links between [respective] capital markets to enhance the growth and competitiveness of both UK and U.S. markets, focusing on reducing burdens for UK and U.S. firms raising capital cross-border."
The taskforce is to report within 180 days. [22 Sep 2025] #DigitalAsset
Treasury seeks comments on GENIUS Act implementation
The Treasury has issued an Advance Notice of Proposed Rulemaking regarding its implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The notice invites comments, including providing data and other information, that may be useful for Treasury to consider.
Comments are requested by October 20, 2025. [19 Sep 2025] #Stablecoin #DigitalAsset
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