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UK
FCA speech on balancing innovation and human expertise in financial markets
The FCA has published a speech by its Director of Market Oversight Dominic Holland at XLoD Global London 2025. Mr Holland spoke about the opportunities which AI and advanced analytics presented for financial markets. However, he emphasised the importance of human expertise and judgement.
Illustrating the importance of the FCA keeping pace with technology, Mr Holland shared that Market Oversight annually receives:
- over 8 billion Markets in Financial Instruments Directive (MiFID) transaction reports per year;
- 400 million order book messages per day;
- 53 million UK European Market Infrastructure Regulation (EMIR) derivative reports; and
- over 1 billion UK Securities Financing Transactions Regulation (SFTR) reports on securities financing transactions
Mr Holland also noted that the FCA will be publishing its Consultation Paper (CP) on improving the UK transaction reporting regime soon. [14 Nov 2025] #AI
FCSP response to CP25/25 Application of the FCA Handbook for regulated cryptoasset activities
The Financial Services Consumer Panel (FCSP) has published its response to FCA CP25/25. The FSCP supports the overall direction of the FCA's proposals but emphasises the need for tailored, enforceable rules that reflect the unique risks and dynamics of the cryptoasset market. [14 Nov 2025
TThe Financial Services Consumer Panel (FCSP) has published its response to FCA CP25/25. The FSCP supports the overall direction of the FCA's proposals but emphasises the need for tailored, enforceable rules that reflect the unique risks and dynamics of the cryptoasset market. [14 Nov 2025] #Crypto #DigitalAsset
TSC oral evidence: AI in financial services
The Treasury Select Committee (TSC) has published the transcript of its oral evidence session with members of the FCA, the Bank of England (BoE), and the Financial Policy Committee (FPC), regarding AI in financial services.
The TSC heard from: Jessica Rusu, Chief Data, Information and Intelligence Officer, FCA; David Geale, Executive Director of Payments and Digital Finance, FCA; Tom Mutton, Director of Central Bank Digital Currency, BoE; and Jonathan Hall, External Member, FPC, BoE. [14 Nov 2025] #AI
BoE/MAS/BoT: Exploration of synchronised FX settlement across borders
The Bank of England (BoE), the Monetary Authority of Singapore (MAS), and the Bank of Thailand (BoT) have jointly announced a collaboration to explore technical and policy implications of settling foreign exchange (FX) transactions using synchronised settlement mechanisms. They will explore synchronisation's potential to support payment versus payment FX (FX PvP) settlement across jurisdictions.
Initially, the experiments will use simulated versions of Real Time Gross Settlement (RTGS) systems and Distributed Ledger Technology (DLT)-based settlement environments to test:
- interoperability between the systems of the participating central banks; and
- complex, multilateral use cases involving different types of settlement infrastructure. [13 Nov 2025] #DLT #Payments
FCA announces partnership with MAS to drive growth and AI innovation
The FCA has announced, at the Singapore Fintech Festival, its new partnership with the Monetary Authority of Singapore (MAS) on AI innovation, enabling firms in the UK and Singapore to scale and operate across markets more effectively. A key focus for the partnership will be the joint testing of AI solutions, exchange of regulatory insights and collaborative events. [12 Nov 2025] #AI
IA/IMAS/FCA/MAS: Joint report on digital asset adoption
The Investment Association (IA) and the Investment Management Association of Singapore (IMAS), in collaboration with the FCA and MAS, have published a joint report on the adoption gap between technological innovation in digital assets and the practical requirements of investors across both jurisdictions. The report identifies five critical areas requiring attention: liquidity and secondary market access; custodial arrangements; operational changes to investor rights; consumer protections; and legal and regulatory considerations.
It also provides an operational readiness checklist for market participants looking to design and launch tokenised financial products. The checklist covers: product considerations; technical design; systems and controls; custody solutions; round-the-clock availability; fees and pricing; scalability; and testing protocols.
The report calls for industry-wide engagement to develop standardised approaches and interoperable technology solutions. It does not seek to address policy objectives nor recommend any specific solution or product. [12 Nov 2025] #DigitalAsset
BoE consults on regulating systemic stablecoins
The BoE has published a consultation paper (CP) that sets out the proposed regulatory regime for sterling-denominated systemic stablecoins. Key policy proposals include:
- permitting systemic stablecoin issuers to hold up to 60% of backing assets in short-term UK government debt and for the remaining the 40%, the BoE will provide issuers unremunerated accounts;
- for issuers considered systematic at launch, or transitioning from the FCA regime, these will initially be able to hold up to 95% of backing assets in short-term UK government debt;
- the potential for central bank liquidity arrangements to support systemic stablecoin issuers in times of stress; and
- temporary holding limits of £20,000 per coin for individuals and £10 million for businesses, with an exemptions regime for the largest businesses (these limits would not apply to stablecoins used for settling wholesale financial market transactions in the Digital Securities Sandbox).
The reasoning for the holding limits is explained in a financial stability paper published by the BoE alongside the CP
Responses are requested by 10 February 2026. The BoE will consider feedback before consulting on and then finalising Codes of Practice later in 2026. [10 Nov 2025] #DigitalAsset
Europe
ECON report: Impact of AI on the financial sector
The Committee on Economic and Monetary Affairs (ECON) has published a report on the use and impact of AI in the financial services sector and the regulatory landscape. It provides policy recommendations intended to enable the use of AI in financial services and to clarify regulatory overlaps. The report addresses aspects specific to the financial services sector and does not cover matters falling within the remit of other committees. [12 Nov 2025] #AI
Hong Kong
HKMA announces the EnsembleTX to support real-value transactions in tokenised deposits and digital assets
The HKMA has announced the launch of EnsembleTX, the commencement of the pilot phase of Project Ensemble. This is one of the initiatives announced as part of Fintech 2030 at the Hong Kong FinTech Week on 3 November 2025 (see our previous update).
EnsembleTX builds upon the successful outcomes of the Ensemble Sandbox experimentation, which since August 2024 has allowed industry pioneers to test comprehensive end-to-end use cases for settling digital asset transactions using experimental tokenised deposits.
In the new pilot phase, the HKMA, participating banks and other industry pioneers aim to enable faster, more transparent and efficient settlement of real-value tokenised transactions. The initial focus will be on empowering market participants to utilise tokenised deposits in tokenised money market fund transactions, and to manage liquidity and treasury needs in real time.
EnsembleTX will operate throughout 2026. Interbank settlement of tokenised deposit transactions will initially be facilitated via the HKD Real Time Gross Settlement system. The pilot environment will be progressively upgraded and enhanced to support settlement in tokenised Central Bank Money on a 24/7 basis.
The HKMA and the SFC, a key partner and member of the Ensemble Architecture Community, will continue to collaborate closely to advance the practical applications of tokenisation technology across a diverse set of asset classes, use cases, and sectors within the financial industry. [13 Nov 2025] #DigitalAsset #Tokenisation
Singapore
MAS and Deutsche Bundesbank sign MoU on tokenisation and cross-border settlement
The Monetary Authority of Singapore (MAS) has announced that it has signed a memorandum of understanding (MoU) with the Deutsche Bundesbank regarding collaboration on cross-border digital asset settlement. Under the MoU, MAS and the Deutsche Bundesbank agree to collaborate on technological and financial innovation by:
- fostering the development of new settlement solutions that reduce the costs and processing times of cross-border transfers between Singapore and Germany; and
- promoting common standards for cross-border payments, foreign exchange and securities flows involving tokenised assets in order to enhance interoperability between different digital asset platforms. [13 Nov 2025] #DigitalAsset #Payment #Tokenisation
MAS, BoE and BoT collaborate on synchronised FX settlement
MAS has announced its collaboration with the Bank of England (BoE) and the Bank of Thailand (BoT) to explore the technical and policy implications of settling foreign exchange (FX) transactions using synchronised settlement mechanisms.
The collaboration will test synchronised FX settlement across a diverse technical and institutional landscape. In the first instance, the experiments will leverage simulated versions of participating central banks' real time gross settlement (RTGS) systems and distributed ledger technology (DLT)-based settlement environments to test:
- interoperability between the systems of the participating central banks; and
- complex, multilateral use cases involving different types of settlement infrastructure. [13 Nov 2025] #DLT #Payment
MAS consults on AI risk management guidelines
MAS has published for consultation a set of proposed guidelines on AI risk management. The draft guidelines set out MAS' supervisory expectations on oversight of AI risk management in financial institutions, key AI risk management systems, policies and procedures, key AI life cycle controls, as well as capabilities and capacity needed for the use of AI.
The guidelines aim to establish a set of expectations that are generally applicable across the financial sector and may be applied in a proportionate manner, commensurate with the size and nature of financial institutions' activities, use of AI, and their risk profiles. Responses are requested by 31 January 2026. [13 Nov 2025] #AI
MAS speech on achieving open and interoperable networks in digital asset space
MAS has published a speech by its Deputy Managing Director (Markets & Development), Leong Sing Chiong, at the Layer One Summit. Mr Chiong spoke about digital asset initiatives over the past year and noted that progress has been mixed. He outlined two main points for scaling tokenisation in finance: trust is essential, and networks should be trusted, open and interoperable. Mr Chiong additionally emphasised the need for seamless networks and sound infrastructure within the digital financial ecosystem, and highlighted a number of MAS initiatives aimed at supporting those goals. [12 Nov 2025] #DigitalAsset #Tokenisation
MAS and FCA announce partnership on AI in finance
MAS and the FCA have announced a new strategic partnership on AI in finance between Singapore and the UK. The partnership is intended to enable AI-in-Finance solution providers in Singapore and AI innovators in the UK to scale and operate leading AI solutions across both markets more effectively.
MAS and FCA will jointly test AI solutions, share regulatory insights, discuss responsible AI and host events to highlight leading practices. The partnership will also build on key AI industry programmes – MAS PathFin.ai and FCA AI Spotlight – to facilitate cross sharing of solutions by participating firms as well as related programmes to strengthen AI collaboration between the two financial centres. [12 Nov 2025] #AI
MAS and OJK renew MoU on fintech collaboration
MAS has announced that it signed a memorandum of understanding (MoU) with the Otoritas Jasa Keuangan (OJK) to deepen cooperation in fintech. Building on the previous MoU signed in 2018, this agreement expands existing cooperation to further support innovation in the financial sector. Initiatives under the renewed MoU include:
- sharing of knowledge and best practices between MAS and the OJK;
- promoting cooperation between the relevant financial industries in both countries, including the active engagement of industry bodies;
- referring promising fintech firms to participate in each other's regulatory sandboxes; and
- facilitating the flow of information across borders when fintech firms conduct business within their licensed scope of activities, in accordance with applicable laws and regulations. [10 Nov 2025] #Fintech
Thailand
MAS, BoE and BoT collaborate on synchronised FX settlement
The Bank of Thailand (BoT) has announced its collaboration with the Bank of England (BoE) and the Monetary Authority of Singapore (MAS) to explore the technical and policy implications of settling foreign exchange (FX) transactions using synchronised settlement mechanisms.
The collaboration will test synchronised FX settlement across a diverse technical and institutional landscape. In the first instance, the experiments will leverage simulated versions of participating central banks' real time gross settlement (RTGS) systems and distributed ledger technology (DLT)-based settlement environments to test:
- interoperability between the systems of the participating central banks; and
- complex, multilateral use cases involving different types of settlement infrastructure. [13 Nov 2025] #DLT #Payment
US
SEC Chair Atkins on "Project Crypto"
The SEC has published the address delivered by its Chair Paul S. Atkins at the Federal Reserve Bank of Philadelphia.
Chair Atkins' address focused the SEC's approach to digital assets. He explained that he anticipated that the SEC would soon consider establishing a new "token taxonomy" which will be complementary to the legislation which Congress is considering that will codify the crypto market structure into statute. [12 Nov 2025] #DigitalAsset
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