FinTech Global FS Regulatory Round-Up - W/e 20 June 2025

ICYMI

• The FCA's direction of travel for UK financial services
• FSR Brief EP6: The Road to Crypto Regulation

Global

FATF updates Recommendation 16 – payment transparency, the travel rule

The FATF has updated its standards on Recommendation 16 which covers payment transparency. The changes to Recommendation 16, which is referred to as the 'travel rule' in the context of virtual assets, seek to ensure consistency of information required in payment messages to build a clearer picture of who is sending and receiving money, and to help eliminate fraud and error impacting customers. The amendments also aim to support the G20 roadmap of making cross-border payments faster, cheaper, more transparent and more inclusive.

An explanatory note on the revision of Recommendation 16 has also been published. The changes will come into effect by the end of 2030; FATF will produce guidance and continue to engage with the private sector to help industry prepare for the changes. [19 Jun 2025] #Payments

IOSCO announces themes for 9th annual World Investor Week

The International Organization of Securities Commissions (IOSCO) has announced the themes for its 9th annual World Investor Week, which will be held in October 2025. The principal themes include:

• technology and digital finance;
• AI; and
• fraud and scam prevention.

These themes align with IOSCO's Roadmap for Retail Investor Online Safety and will be complemented with discussions on cryptoassets and the basics of investing. [16 Jun 2025] #AI #Tech #DigitalFinance #Fraud #Crypto

UK

The Data (Use and Access) Act 2025

The Data (Use and Access) Act 2025 has received Royal Assent. The legislation makes provision for a variety of measures relating to the use of and access to customer and business data. [19 Jun 2025] #Data

PSR Report: Consumer Research 2024-2025 – perspectives on payments

The Payment Systems Regulator (PSR) has published its Consumer Research 2024-2025 report. The report presents the findings of qualitative and quantitative research into consumers' experiences and perceptions of payments. The key findings include:

• consumers' payment behaviours are guided by context and rooted in habit;
• different scenarios dictate what consumers' priorities are – ease of use is prioritised for lower-value payment types; protection and security are essential for higher-value payments; and for recurring payments, reliability is key;
• consumers use a range of payment types to meet their needs;
• contactless card payments remain the most frequently used payment type;
• contactless mobile wallet payments in-person continue to grow, but only 34% of consumers use them frequently; and
• consumers are largely satisfied with payment systems and the vast majority feel that payments are working well.

The PSR also highlighted the research finding that the majority of consumers are positive about the app fraud reimbursement policy and feel reassured this protection exists. [18 Jun 2025] #Payments

CMORG: Guidance on the transition to post-quantum cryptography

The Cross Market Operational Resilience Group (CMORG) has publishedguidance for the financial sector on transitioning towards quantum-safe cryptographic practices. The CMORG guidance reflects recent guidance from the UK's National Cyber Security Centre (NCSC), and aims to provide clarity on switching to post-quantum cryptography in line with the NCSC timeline for firms to:

• have plans in place by 2028;
• protect high-priority systems by 2031; and
• complete the transition by 2035.

The guidance explains:

• what quantum computing is and why it threatens current encryption;
• what post-quantum cryptography is and how to start adopting it;
• a step-by-step roadmap for how firms can prepare;
• the need to understand and work with technology vendors to make sure they are also quantum-ready; and
• the importance of coordination between firms, suppliers, and regulators. [18 Jun 2025] #Quantum

FCA Payments Strategy and Consumer Duty webinar

The FCA has announced that it will be hosting a webinar on 10 July 2025 about its payments portfolio strategy. The webinar is intended to help firms better understand how the strategy links to the National Payments Vision and to explain the FCA's views on how the Consumer Duty should be embedded. [16 Jun 2025] #Payments

Europe

ESMA: Q&A on shared order book model under MiCAR

The European Securities and Markets Authority (ESMA) has published a question and answer (Q&A) on the non-compliance of the shared order book model with the Markets in Cryptoassets Regulation (MiCAR). The Q&A addresses the model where two or more cryptoasset platforms merge their individual order books into a single, unified order book from which orders are matched. This is known as the shared order book model. ESMA clarifies that where such a model involves non-EU trading platforms, it breaches the authorisation requirements under MiCAR. [20 Jun 2025] #Crypto #MiCAR

EBA reviews standardised terminology in relation to payment accounts

The European Banking Authority (EBA) has published a report on the findings of its review of the standardised terms for the most common services related to payment accounts, as mandated by the Payment Accounts Directive (PAD). The standardised terms were issued by the EBA in 2018 to make it easier for consumers to compare payment accounts fees and offers, including on a cross-border basis.

The findings indicate that the current list of standardised terms remains suitable and does not require immediate changes. The EBA acknowledged that there would be potential benefit for the standardised terms to be amended to include instant credit transfers. However, it was of the opinion that the benefit brought by the change would be outweighed by the costs involved. [20 Jun 2025] #Payments

ECON-commissioned report considers stablecoins, CBDCs, and faster payments in the context of MiCAR and the US GENIUS Act

The European Parliament (EP) has published a study which was requested by the Economic and Monetary Affairs Committee (ECON) from the Economic Governance and EMU Scrutiny Unit. The study, Cryptomercantilism vs Monetary Sovereignty, considers MiCAR and safeguards for EU monetary sovereignty. At Chapter 4 of the report, the authors compare MiCAR to the U.S. GENIUS Act which has recently progressed from the Senate to the House of Representatives. The report's authors find that, 'under existing policies, USD stablecoins create severe risks for third countries, indirectly also affecting the EU'.

Chapter 6 of the report sets out the following policy recommendations and advice:

• EU regulators should avoid premature equivalence agreements on stablecoin regimes.
• The European Central Bank (ECB) should monitor the development of USD-pegged stablecoins in the EU and – if needed – limit their circulation.
• Retail and wholesale central bank digital currencies (CBDCs) and faster payment systems should be promoted as alternatives to stablecoins.
• The EU should promote the international role of the euro in the context of enhanced multilateral payment systems, and to this end, should develop the payments infrastructure in a way to guarantee the interoperability of CBDC and fast payment systems for cross-border payments. [19 Jun 2025] #Payments #Stablecoins #CBDC #MiCAR #GENIUSAct

Coreper approves Council's plans to modernise EU payment service framework

The Council has announced that plans to modernise the payment service framework in the EU have been approved by Member States' representatives (Coreper). Once agreed by the Council and the EP, the proposals will create a new Payment Services Regulation and will amend the existing Payment services Directive 2 (PSD2). The proposals include:

• implementing a comprehensive anti-fraud framework;
• mandating that payment service providers (PSPs) share fraud-related information between themselves;
• requiring PSPs t to put in place a system where IBAN numbers can be checked against a corresponding bank account name before transferring money;
• introducing greater transparency around ATM transactions;
• enhancing transparency around payment card scheme fees and rules; and
• enabling innovative payment initiation service providers and information services providers to more useful and more modern payment services.

The presidency of the Council will now commence negotiations with the EP. [18 Jun 2025] #Payments

OJ: RTS specifying TLPT performance under DORA

The Commission Delegated Regulation supplementing the Digital Operational Resilience Act (DORA) has been published in the OJ. The regulation contains RTS specifying:

• the criteria used for identifying financial entities required to perform threat-led penetration testing (TLPT);
• the requirements and standards governing the use of internal testers;
• the requirements in relation to the scope, testing methodology and approach for each phase of the testing, results, closure and remediation stages; and
• the type of supervisory and other relevant cooperation needed for the implementation of TLPT and for the facilitation of mutual recognition.

The Regulation shall enter into force on the twentieth day following that of its publication in the OJ. [18 Jun 2025] #DORA

Hong Kong

HKMA and PBoC jointly announce launch of Payment Connect on 22 June 2025

The HKMA and the People's Bank of China (PBoC) have jointly announced that the Payment Connect will be launched on 22 June 2025. Payment Connect refers to the linkage between the Mainland's Internet Banking Payment System and Hong Kong's Faster Payment System, which supports secure, efficient and convenient real-time cross-boundary payment for residents and institutions in both places. Instant small-value cross-boundary remittances can be made by inputting the recipient's mobile number or account number.

Six institutions from each of the Mainland and Hong Kong will participate in the Payment Connect and more institutions will join over time.

Under the framework of the Memorandum of Understanding on Cross-Boundary Linkage of Payment Systems between the Mainland and Hong Kong signed in August 2024 (see our previous update), the PBoC and the HKMA will establish an effective collaboration mechanism for the Payment Connect to ensure the related services are operated in an orderly manner and comply with the respective legal and regulatory requirements in the two places.

The China National Clearing Center and the Hong Kong Interbank Clearing Limited will coordinate with participating institutions to provide secure and efficient cross-boundary payment services to residents in both places, ensuring the smooth operation of the system and its transactions, while actively coordinating in resolving issues which may arise.

The HKMA's Chief Executive, Mr Eddie Yue, delivered remarks at a launch ceremony held in Beijing. [20 Jun 2025] #Payments

SFST signs Action Plan for Collaborative Development of Shanghai and Hong Kong International Financial Centres, discusses collaboration between Hong Kong, Shanghai and Mainland

The Secretary for Financial Services and the Treasury (SFST), Mr Christopher Hui, attended the 2025 Lujiazui Forum and related events in Shanghai on 18 and 19 June 2025, and spoke at sessions discussing the collaboration between Shanghai and Hong Kong. Mr Hui discussed various current and upcoming initiatives; from a fintech perspective, these included:

• the HKMA is engaging the industry to carry out initial exploration on wholesale central bank digital currencies; and

• Hong Kong anticipates closer collaboration with Shanghai in areas such as financial innovation to achieve synergy effects.

Mr Hui also signed the Action Plan for Collaborative Development of Shanghai and Hong Kong International Financial Centres, which covers a number of measures, including pressing ahead with the linkage of the Faster Payment System in Hong Kong with the Internet Banking Payment System on the Mainland. [19 Jun 2025] #Payments #CBDC

HKMA seeks comments on proposed revisions to return templates following consultation launched on draft rules for prudential treatment of cryptoasset exposures and miscellaneous updates

Further to the statutory consultation on the draft rules for implementing the Basel Committee's standard on the prudential treatment of banks' cryptoasset exposures and miscellaneous updates (see our previous updates in January and February 2025), the HKMA has issued letters to the Hong Kong Association of Banks (HKAB) and the DTC Association (DTCA) providing a set of revised return templates for comment by 11 July 2025.

The proposed revised return templates are attached to the letters to the HKAB and the DTCA and include the following:

• Liquidity Position (MA(BS)1E)
• Certificate of Compliance (MA(BS)1F)
• Capital Adequacy Ratio (MA(BS)3)
• Return on Market Risk and CVA Risk Capital Charge (MA(BS)3A)
• Return of Stable Funding Position of an Authorised Institution (MA(BS)26)
• Return of Leverage Ratio (MA(BS)27)
• Return of Large Exposures (MA(BS)28)

They are complemented by explanatory notes to reflect the reporting requirements for the returns applicable when the cryptoassets standard and miscellaneous amendments are implemented in Hong Kong. In areas where the layout of the return templates remain unchanged, only the explanatory notes or the revised completion instructions are provided to offer additional guidance. [13 Jun 2025] #Crypto

Singapore

MAS: Call for nominations for 2025 SFF FinTech Excellence Awards

The Monetary Authority of Singapore (MAS) and the Singapore FinTech Association (SFA) have issued a global call for nominations for the 2025 Singapore FinTech Festival (SFF) Excellence Awards. The awards recognise innovative fintech solutions by corporates and individuals which transform industry practices and the delivery of financial services, create new growth opportunities, and champion greater financial inclusion. The theme for the 2025 awards is innovative applications in AI.

The deadline for nominations is 25 July 2025. [16 Jun 2025] #AI

Malaysia

BNM: Sasana Symposium 2025

Bank Negara Malaysia (BNM) has published an overview of the Sasana Symposium 2025, which took place on 17 and 18 June 2025. With opening remarks by Governor Abdul Rasheed Ghaffour, the event brought together policymakers, industry leaders, academia and representatives from society with a view to taking collective action to advance structural reforms for Malaysia's long-term resilience.

Discussions centred around key economic and financial issues; from a fintech perspective, these included digital assets. A highlight of the event was the launch of the Digital Asset Innovation Hub. The hub is intended to stimulate financial innovation by providing a controlled environment for applicants to test new ideas and provide input to fine-tune regulatory and security frameworks. [17 Jun 2025] #DigitalAssets

India

RBI: ETP Directions 2025

The Reserve Bank of India (RBI) has published the Master Direction – Reserve Bank of India (Electronic Trading Platforms) Directions, 2025. The Directions cover:

• the eligibility criteria for authorisation as an electronic trading platform (ETP);
• granting and cancellation of authorisation;
• the operating framework;
• reporting requirements; and
• requirements for an ETP operator with regard to termination.

The Directions have immediate effect. [16 Jun 2025] #ETPs

Philippines

BSP, SECP, IC, and PDIC launch consumer empowerment and anti-scam campaign

The Financial Sector Forum (FSF) has launched the 2025 'Protect Your Money' information campaign to empower financial consumers and combat scams. The FSF's members – the Bangko Sentral ng Pilipinas (BSP), Insurance Commission (IC), Philippine Deposit Insurance Corporation (PDIC), and Securities and Exchange Commission Philippines (SECP) – each have a role in implementing the campaign.

The campaign will share essential financial insights across social media, text messages, radio, printed materials in high-traffic areas, and ATMs. It will feature practical guides for safe transactions, red flags for financial scams, and redress options. [18 Jun 2025] #Scams #Cyber

US

Treasury: FATF / MONEYVAL joint plenary conclusions – stocktake of global terrorist financing trends and risks, updated cross-border payment standards, reports on virtual assets

The Treasury has issued a press release following the conclusion of the Financial Action Task Force (FATF) joint plenary with the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL). Among other things, the FATF:

• endorsed its first update for major global terrorist financing trends and risks in a decade; this report included input from over 80 countries;
• endorsed a new report, which will be issued soon, on proliferation financing and sanctions evasion;
• updated its standard for domestic and cross-border payments (Recommendation 16) to recognize the role of non-bank financial institutions and facilitate transparency and efficiency – the FATF plans to issue guidance on implementation which will go into effect by 2030;
• agreed to publish two reports on virtual assets - one on the progress in implementation of the FATF standards for virtual assets and the other on good practices for supervising Recommendation 16 for virtual assets; and
• approved procedural changes to address the misapplication of the FATF standards that stifle the legitimate activities of non-profits organizations. [18 Jun 2025] #VirtualAssets

DoJ: Civil forfeiture complaint against $225m relating to cryptocurrency investment fraud money laundering

The Department of Justice (DoJ) has announced the filing of civil forfeiture complaint in the U.S. District Court for the District of Columbia against more than $225.3 million in cryptocurrency. According to the complaint, law enforcement used blockchain analysis and other investigative techniques to determine that the cryptocurrency is connected to the theft and laundering of funds from victims of cryptocurrency investment fraud schemes, commonly referred to as "cryptocurrency confidence scams."

The complaint alleges that the cryptocurrency addresses that held the over $225.3 million in cryptocurrency were part of a sophisticated blockchain-based money laundering network. The network allegedly executed hundreds of thousands of transactions and was used to disperse proceeds of cryptocurrency investment fraud across many cryptocurrency addresses and accounts on the blockchain to conceal the source of the illegally obtained funds. [18 Jun 2025] #Crypto #Fraud #AML

NYDFS: Joint investigation disrupts cryptocurrency scam

The New York Department of Financial Services has announced that a multi-agency long-term investigation has resulted in the disruption of a fraudulent cryptocurrency investment scam that targeted members of the Russian community in Brooklyn and across the country.

Court orders have led to the seizure of $140,000 worth of cryptocurrency, the freezing of approximately $300,000 worth of cryptocurrency, and the dismantling of a cluster of scam websites and registrar accounts. [18 Jun 2025] #Crypto #Fraud

Senate passes GENIUS Act

The Senate has passed the "Guiding and Establishing National Innovation for U.S. Stablecoins Act" – the GENIUS Act.

The legislation provides a regulatory framework for payment stablecoins; it addresses matters including:

• permitted issuers of payment stablecoins for use by U.S. persons;
• the appropriate federal or state regulator;
• backing reserves; and
• safekeeping services.

While the act clarifies that permitted payment stablecoins are not considered securities under securities law, permitted issuers are to be subject to the Bank Secrecy Act for anti-money laundering (AML) and related purposes.

The legislation now moves on to the House. [17 Jun 2025] #Stablecoins #GENIUSAct

Federal bank regulators ask for feedback on actions to mitigate payments fraud

The federal bank regulatory agencies – the Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and the Fed – have launched a request for information on potential actions to help mitigate payments fraud, with a particular focus on check fraud.

The agencies are asking for feedback on five potential areas for improvement and collaboration:

• External collaboration among the agencies, Federal Reserve Banks, and industry stakeholders;
• Consumer, business, and industry education about payments fraud;
• Regulation and supervision to mitigate payments fraud;
• Fraud data collection and information sharing; and
• Federal Reserve Banks' operator tools and services to reduce payments fraud.

Feedback is requested within 90 days after date of publication in the Federal Register.

Fed Vice Chair for Supervision, Michelle W. Bowman, issued a statement regarding the joint call for information. She highlighted the growth of check fraud in recent years and called for a "comprehensive strategy to develop and implement an effective coordinated approach." [16 Jun 2025] #Payments #Fraud

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