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23 October 2025

FinTech Global FS Regulatory Round-up - W/e 17 October 2025

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In this edition we round up FinTech-related financial services regulatory developments for the week ending 17 October 2025.
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In this edition we round up FinTech-related financial services regulatory developments for the week ending 17 October 2025.

ICYMI

Global

BIS Innovation Hub: Project Symbiosis - AI and big data technologies for supply chain sustainability disclosure

The Bank for International Settlements (BIS) Innovation Hub has published a report on the outcomes of Project Symbiosis, a collaboration between its Hong Kong Centre and the Hong Kong Monetary Authority (HKMA). This project used cutting-edge technology to develop new ways for companies to track and disclose the environmental impact of their activities and those of their suppliers.

Project Symbiosis showed that AI and related technology approaches can help improve the speed, breadth and quality of data collection, and generate intelligent environmental impact results that are flexible with respect to a wide range of data availability scenarios. It can also highlight financeable emission reduction opportunities.

The lessons learnt from project, when applied in the context Scope 3 reporting, are of broader significance, illustrating how AI and related technologies may be applied in a range of contexts such as risk assessment, supply chain management, and reporting automation as its rapid evolution continues. [17 Oct 2025] #AI

FSB/IOSCO: Assessment of cryptoasset regulatory framework implementation

The Financial Stability Board (FSB) has published a paper on its global regulatory framework for cryptoasset activities. The report outlines the progress made in implementing the FSB recommendations for cryptoasset activities, cryptoasset service providers and stablecoins. It focuses on data reporting and the disclosures frameworks that are in place, as well as financial stability risk monitoring approaches across jurisdictions. The paper also describes the tools, progress and challenges related to cross-border cooperation and coordination.

The findings indicate that jurisdictions have made progress in regulating cryptoasset activities and, to a lesser extent, global stablecoin arrangements. However, the review also reveals significant gaps and inconsistencies that could pose risks to financial stability and to the development of a resilient digital asset ecosystem.

The review calls on the FSB and its member jurisdictions to prioritise work in this area and to do more to reach full and consistent implementation. Specifically, it puts forward some recommendations to address outstanding issues in terms of implementation progress, comprehensiveness and consistency, and cross-border cooperation and coordination.

The International Organisation of Securities Commissions (IOSCO) has also published a thematic review on the implementation of its recommendations for crypto and digital asset markets, focusing on investor protection and market integrity. A joint FSB/IOSCO information note provides an overview of the scope and the findings of the FSB and IOSCO's complementary reports. [16 Oct 2025] #Crypto #DigitalAsset

FSB Chair writes to G20 on cooperation and reform implementation

The FSB has published a letter from its Chair Andrew Bailey to G20 Finance Ministers and Central Bank Governors ahead of their meeting on 15‑16 October. The Chair underscored the importance of multilateral cooperation and reform implementation in the current environment of elevated risks and uncertainty.

The letter also introduces other reports that the FSB is delivering to the G20, namely:

UK

FCA reports findings of multi-firm review of combating romance fraud

The FCA has published its findings from its multi-firm review of how firms detect and prevent romance fraud, and the measures they take to protect their customers against it. The FCA highlighted that there has been a 9% increase in romance fraud in FY 2024/25, with 85% of cases starting online. The regulator found examples of banks going to significant lengths to protect those at risk of romance fraud, but also uncovered missed opportunities to prevent these scams, which cost victims £106m last year.

The key findings of the review were:

  • intervention and prevention are made difficult for firms because victims may be 'under the spell' of the fraudster and reluctant to accept they are being defrauded;
  • despite examples of good practice, there were many examples of firms missing opportunities to identify seemingly suspicious transactions;
  • a key area for improvement is staff training to be alert to red flags and critically probe customer explanations; and
  • while many firms are providing a high level of support, sometimes exceeding the FCA's expectations, through compassionate and tailored engagement, this was not consistent across all firms.

The FCA has set out measures banks and other payment firms can take to protect their customers. These include better detection and monitoring systems, staff training, early identification of signs of vulnerability, and compassionate aftercare.

The regulator also saw positive examples from firms, including one which made 11 calls over a 6-week period to support a victim, demonstrating a commitment to breaking the fraudster's hold and restoring customer confidence. [17 Oct 2025] #Payments

FSCP responds to FCA consultation on application of Handbook rules to crypto firms

The FSCP has published its response to the FCA consultation on the application of existing FCA Handbook rules to firms conducting regulated cryptoasset activities. The FSCP provided a number of comments and recommendations in respect of specific areas outlined in the consultation: Consumer duty; FOS; stablecoins and marketing restrictions; distance communications and promotions; appropriateness testing; cancellation rights; conduct of business (COBS); and product governance (PROD). [17 Oct 2025] #Crypto #DigitalAsset #Stablecoin

BoE speech on promoting responsible innovation in financial services

The Bank of England (BoE) has published a speech by its Deputy Governor for Financial Stability, Sarah Breeden, at DC Fintech Week 2025. Ms Breeden discussed the significant steps the BoE is taking with the objective of enabling responsible innovation in finance during this period of technological change. In this regard, she highlighted the BoE report which outlines its approach to delivering the environment necessary to ensure that responsible innovation flourishes, and sets out the work the BoE has done, and will do, across AI, distributed ledger technology (DLT) and quantum computing.

Ms Breeden also spoke about the BoE's forthcoming consultation on its stablecoin regime to deliver their greater use in 'real world' payments, and the importance of active engagement with and by industry to drive the innovation we seek. [15 Oct 2025] #AI #DLT #Payments #Stablecoin

DRCF launches thematic innovation hub and calls for views on agentic AI and regulatory changes

The Digital Regulation Cooperation Forum (DRCF) has announced the launch of a thematic innovation hub, representing the next phase in its mission to make regulation more accessible, transparent and practical for innovators across the digital economy.

The hub will act as a cross-cutting initiative, enabling businesses to benefit from joined-up regulatory insight on emerging technologies. The first theme will focus on agentic AI – AI systems capable of autonomous decision-making and initiating actions without direct human prompts.

As part of this new focus, the DRCF is inviting views on the regulatory challenges and opportunities linked to the adoption of agentic AI. Responses are requested by 6 November 2025.

Alongside the launch, the DRCF has published a blog post and an insights paper which set out key outcomes from the AI & Digital Hub pilot. [15 Oct 2025] #AI

FCA consults on progressing fund tokenisation

The FCA has published Consultation Paper 25/28 – Progressing Fund Tokenisation (CP25/28). Proposals covered in CP25/28 include:

  • guidance for operating a tokenised fund under the Blueprint model;
  • introducing an optional new model for direct dealing in conventional and tokenised authorised funds;
  • a roadmap to advance fund tokenisation and address key barriers; and
  • a discussion on future tokenisation models that use distributed ledger technology (DLT) to provide tokenised portfolio management at retail scale and how regulation may need to change to be fit for the future.

CP25/28 applies to:

  • undertakings for collective investment in transferable securities (UCITS) management companies;
  • UK alternative investment fund managers (AIFMs) managing authorised funds; and
  • depositaries of authorised funds.

Responses to chapters 2 to 4 of CP25/28 are requested by 21 November 2025. Responses to chapter 5 on future tokenisation models are requested by 12 December 2025. The FCA aims to publish a policy statement with final regulatory requirements in the first half of 2026. [14 Oct 2025] #Tokenisation #DLT

FCA announces partnership to accelerate delivery of open finance

The FCA has announced a new partnership and the initiation of two TechSprints in preparation for the open finance roadmap and strategy launch. In making its announcement, the regulator referred back to its letter of 16 January 2025 to the Prime Minister in which the FCA committed to using its powers to develop open finance, potentially prioritising small and medium-sized enterprise (SME) lending.

In September 2025, the FCA launched its Smart Data Accelerator, an extension of its sandbox that enables testing real uses of open finance in practice. The regulator will now collaborate with Raidiam to use its testing environment. This will allow firms participating in the Smart Data Accelerator to simulate and test data sharing.

The FCA will be running two sprints between 17 November 2025 and 12 February 2026 on mortgages and finance for SMEs. Registration for both sprints closes 2 November 2025. [13 Oct 2025] #OpenFinance #SmartData

Europe

ESMA: New MiCAR Q&As

The European Securities and Markets Authority (ESMA) has updated the following questions and answers (Q&As) in respect of the Markets in Cryptoassets (MiCAR):

ESA: Work programme 2026

The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) has published its 2026 work programme. The work programme aims to strengthen the financial system's digital operational resilience, ensure the continued protection of consumers, and identify risks that could undermine financial stability.

The joint work plan includes ensuring the effective operation of the oversight framework for critical third-party ICT providers under the Digital Operational Resilience Act (DORA). [16 Oct 2025] #DORA #OpRes

EBA reports on supervisory convergence in 2024

  • The EBA has published its annual report on convergence of supervisory practices for 2024. Among other matters, the report covers digital finance. The EBA reports that it prioritised preparations for the implementation of the EU's MiCAR, focusing on the supervision of asset reference token (ART) and e-money token (EMT) issuers. It also developed an EU-wide supervisory handbook and coordinated workshops to ensure convergence in supervisory approaches from the outset. [15 Oct 2025] #MiCAR #Crypto #DigitalAsset

Australia

APRA Deputy Chair Margaret Cole addresses the FSC Innovation in Retirement conference

Deputy Chair of APRA, Margaret Coke spoke at the FSC Innovation in Retirement conference regarding APRA's priorities for superannuation. Among other key messages, Ms Coke highlighted that the impending increase in members entering retirement requires superannuation trustees to manage the associated cyber, investment, liquidity and other risks. To combat rising cyber risks and other, APRA is focusing on regulated entities implementing information controls and APRA's operational risk management standard CPS 230. Additionally, it was noted that 'increased overseas deployment heightens, among other things, currency risk and increased investment in unlisted assets raises questions about the management of liquidity risk and fair valuation'. [16 Oct 2025] #Cyber

AUSTRAC: Powers proposed to tackle high risk products services and channels

Minister for Home Affairs, Tony Burke, has proposed a power for the AUSTRAC CEO to restrict or prohibit high-risk products, services or delivery channels. This proposal is made amidst increasing money laundering and scam risks associated with crypto ATMs. [16 Oct 2025] #Crypto #DigitalAsset

Hong Kong

SFC to host AML/CFT webinar sessions on 17 and 18 November 2025

The SFC has issued a circular to inform licensed corporations, licensed virtual asset service providers and associated entities that it will host two webinar sessions (Cantonese and English) on anti-money laundering and counter-financing of terrorism (AML/CFT) on 17 and 18 November 2025 respectively.

The objectives of the webinar are to:

  • Provide an overview of the current scam landscape in Hong Kong and related illicit funds flow through securities firms and virtual asset trading platforms;
  • Provide an update on major regulatory developments;
  • Share supervisory observations relating to AML/CFT;
  • Present money laundering typologies and feedback on the suspicious transaction reporting of the securities sector; and
  • Introduce the new Suspicious Transaction Report and Management System 2 (STREAMS 2) developed by the Joint Financial Intelligence Unit.

The Appendix to the circular sets out the rundown and speakers of the webinar sessions.

Firms are encouraged to nominate relevant management or supervisory personnel and compliance officers to attend (maximum of two representatives per firm) via the SFC's enrolment form. Places will first be allocated to the first nominee in each of the enrolment forms on a first come first served basis. Any remaining places will be allocated to the second nominee on the same basis. [17 Oct 2025] #DigitalAsset #AML/CFT

CGFin holds fifth meeting discussing latest developments in fintech sector

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, has chaired the fifth meeting of the Coordination Group on Implementation of Fintech Initiatives (CGFin) and conducted exchanges with representatives from the financial regulators, fintech sector and academia on the latest developments of fintech in Hong Kong.

  • The Government exchanged views with the participants on various fintech areas, including promoting the development of a digital asset ecosystem while balancing investor protection and risk management, and the significant potential of green fintech in driving the development of sustainable finance.
  • The HKMA reported the latest developments of the wholesale central bank digital currency Project Ensemble and the Generative Artificial Intelligence Sandbox initiative.

It was also noted that the Hong Kong FinTech Week 2025, themed 'Curating the New Fintech Era', will be held from 3-7 November 2025 in conjunction with the StartmeupHK Festival, with the main conference taking place on 3-4 November 2025. [16 Oct 2025] #Fintech #DigitalAsset #CBDC #AI

HKMA and Cyberport announce second cohort of GenA.I. Sandbox to enable secure and reliable implementation of A.I.

The HKMA and the Hong Kong Cyberport Management Company Limited (Cyberport) have announced the second cohort of the Generative Artificial Intelligence (GenA.I.) Sandbox. Building on the foundation of the first cohort (see our previous update), this coming cohort demonstrates a significant industry shift from experimenting with A.I.'s capability to enabling its secure and reliable implementation.

A total of 27 use cases (see examples here) from 20 banks and 14 technology partners have been selected from over 60 proposals received. The submissions were prioritised based on innovation, technical complexity and potential value to the industry. Participants will gradually onboard to the designated platform by Cyberport's Artificial Intelligence Supercomputing Centre in late 2025, with trials commencing in early 2026.

A defining theme of this cohort is the proactive approach to A.I. governance, with use cases pioneering 'A.I. vs. A.I.' strategies, such as leveraging A.I. to conduct automated quality checks on A.I.-generated outputs, improving accuracy and consistency at a scalable level. The sandbox will also serve as a testing ground for advanced defence mechanisms against deepfake-related fraud.

The HKMA will continue to share good practices and promote the responsible adoption of A.I. within the financial sector. [15 Oct 2025] #AI #Deepfake

Singapore

MAS launches initiative to extend settlement capabilities

The Monetary Authority of Singapore (MAS) has announced the launch of a new initiative – BLOOM (borderless, liquid, open, online, multi-currency) – to extend settlement capabilities offered by financial institutions.

Through BLOOM, MAS will collaborate with the financial industry to enable settlement in tokenised bank liabilities and well-regulated stablecoins, whilst managing risks in the digital settlement asset landscape through standardised approaches.

BLOOM members will work together to address challenges and opportunities of common interest to the industry. Initial focus areas include: distribution and clearing of settlement assets; programmable controls to enhance and automate compliance checks; and agentic payments for seamless and automated transactions. [16 Oct 2025] #Tokenisation #Stablecoin #DigitalAsset

MAS: Response to PQ on stablecoins impact and public education efforts

MAS has published the response to a PQ on public education efforts regarding the risks, costs and benefits of using stablecoins, and the potential impact of the widespread adoption of Singapore dollar-backed stablecoins on Singapore's monetary policy and currency stability.

In its reply, MAS confirmed that the national financial education programme MoneySense will educate consumers on how stablecoins operate, the risks associated with these products and how to differentiate between unregulated stablecoins and regulated stablecoins. The authority also pointed out that it is preparing legislation for a stablecoins regulatory framework.

MAS' current assessment is that the growing use of SGD-backed stablecoins is unlikely to affect currency stability or the conduct of monetary policy. [15 Oct 2025] #Stablecoin #DigitalAsset

MAS responds to PQ on PayNow transaction surcharges

MAS has published the response to a PQ on whether any exemptions apply in respect of the rules prohibiting merchants from imposing surcharges for PayNow transactions. In response, MAS confirmed that Association of Banks in Singapore (ABS) rules prohibit merchants from imposing a surcharge on customers making payments via PayNow. [14 Oct 2025] #Payments

MAS responds to PQ on regulatory sandbox statistics

MAS has published the response to a PQ on statistics related to entities taking part in its regulatory sandboxes since 2016. The response covers: the number of firms that have joined each of the three sandbox categories; the median processing time for applications; the number of entities that obtained a relevant licence after graduation; and how many have ceased operations in Singapore at the end of September 2025.

MAS confirmed that the median processing time for sandbox applications, from submission to outcome notification, is around three months. [14 Oct 2025] #RegulatorySandbox

US

SEC Crypto Task Force meeting postponed

The SEC has updated its website to advise that the Crypto Task Force roundtable on financial surveillance and privacy which was due to take place on October 17 has been postponed. The roundtable will be rescheduled. [15 Oct 2025] #Crypto #DigitalAsset

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