FinTech Global FS Regulatory Round-up - W/e 16 January 2026

In this edition we round up FinTech-related financial services regulatory developments for the week ending 16 January 2026.

ICYMI

• Still in motion – Revisiting our Global FSR Outlook 2025

Ahead of next year's report, we recap the major themes from our last edition

The 2025 edition of our annual flagship publication, Global FSR Outlook, took as its theme 'perpetual motion'. This seemed to aptly describe how the financial services community felt as we all looked out on the ever shifting geopolitical, technological and socio-economic landscape.

In nine carefully curated articles, authors from all corners of our global FSR practice collaborated to consider how the financial services sector could adapt to, and plan for, the complexities of this ever-changing environment. We covered AI, Quantum, an ageing population, the implications of the push for global competitiveness, non-bank financial intermediation, smart data and more. As 2025 draws to a close, our authors have regrouped to take stock of our predictions for 2025.

Global

G7 Cyber Expert Group roadmap on transitioning to post-quantum cryptography in the financial sector

The G7 Cyber Expert Group (CEG) has issued a public statement on 'advancing a coordinated roadmap for the transition to post-quantum cryptography in the financial sector'. The statement contains advice for financial entities, authorities and suppliers about transitioning to quantum-resilient technology. The CEG is co-chaired by the U.S. Department of the Treasury and the Bank of England (BoE). [13 Jan 2026] #Crypto #DigitalAsset #Quantum

UK

FCA writes to trade associations on Future Entity for open banking next steps

The FCA has published its December 2025 letter to trade associations which sets out the regulator's proposed next steps regarding the development of a Future Entity and calls on trade associations to 'represent their members and help drive a path forward'. Looking ahead, the FCA expects to see live transactions flowing through the VRP scheme in Q1 2026, and HM Treasury to introduce legislation under the Data (use and access) Act that will grant the regulator new powers to set open banking rules. The FCA plans to consult on new rules for the long-term regulatory framework.

The regulator also wants to see industry establish a body capable of becoming the Future Entity to serve as the primary standard setting body for application programming interfaces (APIs) in the UK. It encourages firms to unite around one proposal and welcomes feedback from interested market participants by 30 January 2026. To assist industry in coming to a view, the regulator will commission an independent consultant-led assessment of the proposals, or if industry is able to coalesce behind one proposal, an assessment of their supported proposal.

The FCA will convene a short programme of roundtables to provide firms with an opportunity to share updated views and new information. Further details will be shared in due course. [16 Jan 2026] #OpenBanking #FutureEntity

FCA: Stablecoin sprint March 2026

The FCA has published details regarding an upcoming stablecoin sprint planned for March 2026. The event will focus on: retail payments; cross-border payments; e-commerce and business-to-business (B2B) transactions; and remittance. Stakeholders interested in taking part in the sprint are requested to register for the event by 4 February 2026. The regulator will also hold a roundtable in May 2026 focusing on trade payments. [15 Jan 2026] #Stablecoin #DigitalAsset #Payments

PSR: High Court backs powers to cap cross-border card fees

The Payment System Regulator (PSR) has announced the High Court's decision to uphold its powers to regulate payment systems, following a legal challenge to its ability to cap cross-border interchange fees. The challenge was triggered as a result of the PSR's proposal to impose a cap on cross-border interchange fees. The PSR had found these fees to be unduly high, at the expense of UK businesses.

In October 2025, the PSR consulted on the methodology for assessing an appropriate cap for outbound multilateral interchange fees. The outcome of that consultation will inform the regulator's next steps. [15 Jan 2026] #Payments

FCA, PRA and BoE sign MoU with EU regulators on oversight of CTPs

The FCA, PRA and Bank of England (BoE) have signed a memorandum of understanding (MoU) with the European Supervisory Authorities (ESAs) on cooperation and oversight of critical third parties (CTPs) that fall under the UK's CTP regime.

The MoU establishes a framework for coordinating and sharing information on the oversight of CTPs under the UK regime and critical third party providers (CTPPs) under the EU's Digital Operational Resilience Act (DORA), including during incidents such as power outages or cyber-attacks.

The rules for the UK's CTP regime came into effect on 1 January 2025 and apply once a CTP is designated by HM Treasury. That designation process has begun, with the regulators working with HM Treasury throughout. [14 Jan 2026] #Cyber #DORA

HM Treasury writes to TSC regarding draft Financial Services and Markets Act 2000 (Cryptoasset) Regulations 2025

The Treasury Select Committee (TSC) has published a letter from the Economic Secretary about the draft Financial Services and Markets Act 2000 (Cryptoasset) Regulations 2025. The letter sets out the policy background to the draft statutory instrument (SI) and summarises the legislation's key features:

• new authorisation regime for cryptoassets;
• bespoke regime for qualifying stablecoins issued in the UK;
• exemption for digital versions of traditional assets from most aspects of the regime;
• new cryptoasset admission and disclosure regime; and
• new cryptoasset market abuse regime.

The SI will apply from 25 October 2027. [13 Jan 2026] #Crypto #Stablecoin #DigitalAsset

TheCityUK/IRSG: AI in financial services – emerging global norms

TheCityUK and the International Regulatory Strategy Group (IRSG) have published a report on the emerging landscape of global guidelines and norms on AI adoption in financial services. The paper describes the different approaches being taken by relevant jurisdictions and makes recommendations for how international standard setters can support national bodies to learn from each other and, where possible, align approaches.

Key findings include:

• Most jurisdictions draw on Organisation for Economic Co-operation and Development (OECD)/G20/G7 principles, but operationalisation includes prescriptive rulebooks, outcomes‑focused supervision, and voluntary guidance.
• AI is a general purpose technology which can magnify risks, but it does not introduce wholly new financial‑sector risks.
• Given AI's rapid evolution, rigid international rulebooks may become obsolete. It may be more pragmatic to pursue interoperability, aligned taxonomies, and compatible supervisory tools.
• Data localisation and extra‑territorial measures can create fragmentation that restricts innovation; this can be addressed by cooperation across borders and proportionate oversight. [12 Jan 2026] #AI

Europe

EIOPA: Strategy towards 2030

The European Insurance and Occupational Pensions Authority (EIOPA) has announced its new strategy which sets out key areas of focus for the coming years. Looking ahead to 2030, EIOPA's top priorities will be to strengthen the single market, improve society's resilience to risks, and enhance regulatory and supervisory effectiveness.

The objectives related to greater resilience focus on strengthening risk assessment capabilities, improving both the availability of data on and awareness of critical protection gaps – including in pensions, natural catastrophes and cyber threats – as well as enhancing cross-sectoral collaboration.

Enhancements to the regulatory and supervisory frameworks will be driven by effective technical advice and regulatory simplification, the leveraging of SupTech and other digital innovations, and the promotion of standardised infrastructures that treat data as a strategic asset. [15 Jan 2026] #SupTech #Cyber

ESAs and UK regulators sign MoU on oversight of CTPs

The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) have announced the signing of a MoU with the FCA, BoE and the PRA to enhance cooperation and oversight of critical third parties (CTPs).

The MoU establishes a framework for coordinating and sharing information on the oversight of CTPs under the UK regime and critical third-party providers (CTPPs) under the EU's Digital Operational Resilience Act (DORA), including during incidents such as power outages or cyber-attacks. The MoU aims at enhancing third party risk management and contributing to the overall operational resilience of the financial sector in the EU and UK through strong cross-border cooperation. [14 Jan 2025] #DORA #Cyber

ESMA: Digital strategy 2026-2028

ESMA has published its digital strategy for 2026-2028 and updated its 2023-2028 data strategy. The digital strategy includes a roadmap outlining the key actions, milestones, and expected outputs in 2026-2028. These will be incorporated into ESMA's work programmes, subject to available capacity, resources, and evolving legislative developments. There are four objectives in the digital strategy: building EU digital synergies; enhancing digital capabilities of ESMA and the European System of Financial Supervision (ESFS); bolstering operational efficiency; and establishing a secure and future-ready ecosystem.

The data strategy 2023–2028 has been updated to reflect the focus on burden reduction, the evolving technological landscape, and ESMA's desire for unlocking efficiency opportunities. While its key objectives remain the same, the key new actions include:

• flagship initiatives related to streamlining supervisory reporting, relating to transaction data and in the funds domain;
• expanding the capacity of the ESMA Data Platform to benefit national and European authorities;
• implementing next phases of the Markets in Cryptoassets Regulation (MiCAR) joint supervisory tool for crypto-market monitoring; and
• finalising the development of the European Single Access Point (ESAP).

ESMA plans to merge both strategies into a single approach by 2029. [13 Jan 2026] #Crypto #DigitalAsset #MiCAR #Data

US

Treasury: G7 Cyber Expert Group roadmap on transitioning to post-quantum cryptography in the financial sector

The U.S. Treasury has issued a release highlighting the public statement on "advancing a coordinated roadmap for the transition to post-quantum cryptography in the financial sector" by the G7 Cyber Expert Group (CEG). The statement contains advice for financial entities, authorities and suppliers about transitioning to quantum-resilient technology. The CEG is co-chaired by the U.S. Department of the Treasury and the Bank of England. [Jan 12, 2026] #Crypto #DigitalAsset #Quantum

CFTC Chair announces new innovation committee

Commodity Futures Trading Commission (CFTC) Chair Michael S. Selig has announced the launch of the Innovation Advisory Committee which replaces the former Technology Advisory Committee. Chair Selig commented that the Committee "will play a critical role in advising the Commission on the commercial, economic, and practical considerations of emerging products, platforms, and business models in the financial markets so that it can develop clear rules of the road for the Golden Age of American Financial Markets."

The Committee will be comprised of representatives from industry, regulatory bodies, technology providers, public interest groups, academia, and market infrastructure firms. Chair Selig intends to nominate members of the CEO Innovation Council charter members of the Committee; additionally, the CFTC is inviting nominations for Committee membership and proposals for topics to prioritize by January 31, 2026.

The Innovation Advisory Committee's charter has been published. [Jan 12, 2026] #Innovation

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