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In this edition we round up FinTech-related financial services regulatory developments for the week ending 6 March 2026.
ICYMI
- Cyber security: A month in retrospect (Australia) – February 2026
- Upper Tribunal observes that uploading confidential documents into open-source AI tools waives client confidentiality and legal privilege
Global
IOSCO announces call for applications for its first TechSprint on investor education in the age of AI
The International Organisation of Securities Commissions (IOSCO) has announced a call for applications for its first TechSprint, powered the FCA AI Lab, on investor education in the age of AI.
The selected teams will work on either or both of two problems statements, both focused on the impact of technology for retail investors:
- how to help retail investors identify and avoid AI-enabled fraud and scams; and
- how technology can be used to educate and empower retail investors to use AI as a learning tool about finance, while understanding AI-related risks across diverse regulatory and cultural contexts.
IOSCO published the full problem statements and description of the TechSprint, and a guide for participants.
The online portal will be open from 2 March to 30 April 2026. Projects will be showcased at a Demo Day on 8 October 2026 in Madrid. [2 Mar 2026] #AI #TechSprint
UK
FCA: Use of s.21 approvers by crypto firms
The FCA has published information for cryptoasset firms that are currently using the services of an authorised firm to approve their cryptoasset financial promotions. The FCA confirms that cryptoasset firms using a s.21 approver and applying for authorisation (or variation) during the application period (30 September 2026 to 28 February 2027) may continue to use the s.21 approver until the application is determined (including during any period in the saving provision).
Firms using a s.21 approver that do not apply during the application period may continue to use the s.21 approver until the new cryptoasset regime commences. The FCA highlights that firms that rely on a s.21 approver and do not apply for authorisation (or variation) before the new regime, must run-off their UK cryptoasset business before the new regime commences. [3 Mar 2026] #DigitalAsset #Crypto
FCA: Application period for cryptoasset permission to open in September
The FCA has published a direction specifying the relevant application period for an application for a relevant cryptoasset permission. The relevant application period will commence at 9:00am on 30 September 2026 and will end at 11:59pm on 28 February 2027. [2 Mar 2026] #DigitalAsset #Crypto
FCA: New regime for cryptoasset regulation - Responses to questions from firms
The FCA has published its responses to questions from firms in relation to the new regime for cryptoasset regulation. The publication follows the January 2026 webinar on authorisation under the new regime; it consists of 24 questions involving different topics such as international alignment; group structures and cross-border issues; applying prudential standards; Consumer Duty and vulnerable consumers; and insurance. [2 Mar 2026] #DigitalAsset #Crypto
FCA extends application deadline for AI Live Testing
The FCA has announced that it is extending the period for applications to the second AI Live Testing cohort to 17 March 2026. [2 Mar 2026] #AI
Australia
ASIC Chair delivers speech at the ASIFMA Annual Conference
ASIC Chair Joe Longo recently delivered a speech at the Annual Conference of the Asia Securities Industry & Financial Markets Association (ASIFMA), emphasising ASIC's desire to be 'backers, not blockers, of financial innovation'. His remarks focused on the rapid growth of technologies transforming financial markets, such as asset tokenisation and AI‑driven financial advice, and the regulatory settings needed to support these developments.
Mr Longo explained that these considerations have resulted in 'a review of the ASIC Innovation Hub' and an identification of priority areas where it intends to lead on managing the system‑wide changes brought by emerging technologies. Further, following industry feedback after a decade of regulatory sandboxes, Mr Longo noted ASIC's interest in finding tailored solutions to better support the transition from sandbox to licensing – a jump that 'very few sandbox participants have successfully made'.
Mr Longo referred to recent work from the Digital Finance Cooperative Research Centre identifying a $24 billion opportunity linked to modernising Australia's financial infrastructure through tokenisation. Discussing the Reserve Bank's Project Acacia – a project testing tokenised whole asset markets – Mr Longo emphasised the impact that growing technologies have on financial market infrastructure. It was remarked that the full extent of these opportunities can only be realised 'if the public and private sector work together" and if "regulatory and policy settings enable innovation'. ASIC has commenced several projects in support of this effort, including convening a roundtable of senior financial market experts and form a new advisory group to guide future regulatory models. [5 Mar 2026] #AI #Tokenisation
Hong Kong
Regulators launch GenAI Sandbox++ to foster AI innovation across financial services
The HKMA, the SFC, the Insurance Authority, and the Mandatory Provident Fund Schemes Authority, in partnership with the Hong Kong Cyberport Management Company Limited (Cyberport), have announced the launch of the Generative Artificial Intelligence (GenAI) Sandbox++ initiative, a expanded version of the 2024 GenAI Sandbox (see our previous update).
The regulators state the initiative has been widened to cover multiple financial sectors, including banking, securities and capital markets, asset and wealth management, insurance, mandatory provident funds (MPF) and stored value facilities. GenAI Sandbox++ continues to prioritise risk management, anti‑fraud, and customer experience, while advancing 'AI vs AI' strategies that use AI tools to manage the risks created by AI adoption.
Participating institutions will receive targeted supervisory guidance, technical support, and complimentary graphics processing unit access at Cyberport's AI Supercomputing Centre, enabling them to develop and pilot and refine AI use cases in a risk‑controlled environment.
The initiative aims to strengthen collaboration among regulators, financial institutions and technology firms to support responsible AI innovation and deeper cross‑sector and cross-boundary partnerships. It seeks to catalyse the development of sector‑specific and cross‑sector AI solutions – for example, AI‑driven insurance underwriting and claims processing, tools to support suitability and compliance assessments in investment product distribution, tools for MPF administration, and broader industry use cases such as intelligent customer chatbots and advanced fraud‑detection systems.
The regulators have issued a joint circular to encourage the industry to apply for participation in the GenAI Sandbox++, setting out details on the application process and assessment criteria in an annex. Applications are open until 30 June 2026. [5 Mar 2026] #AI
Insurance Authority issues circular regarding recent FATF statements
The Insurance Authority has issued a circular regarding recent statements made by the Financial Action Task Force (FATF). These include other outcomes of the FATF's recent plenary of 11-13 February 2026: the approvals of a paper on cyber-enabled fraud and two new reports (to be published in March 2026) that will help countries address emerging risks and support responsible innovation in finance, relating to offshore virtual asset service providers and to stablecoins and unhosted wallets. [3 Mar 2026] #DigitalAsset #Stablecoin #Cyber
HKMA signs MoU with Shanghai Data Bureau and NTICBC to deepen collaboration on digitised cargo trade and finance
The HKMA, the Shanghai Data Bureau, and the National Technology Innovation Center for Blockchain (NTICBC) have jointly signed a memorandum of understanding (MoU) to deepen collaboration between Hong Kong and Shanghai in digitised cargo trade and finance.
The collaboration leverages Hong Kong's unique role as a 'super connector' and 'super value-adder', with its connections to both Mainland China and the world, to support Shanghai's integration with the international data ecosystem through Hong Kong.
Under the MoU, the parties will jointly conduct research into digital technology and its applications, and promote the innovative application of the technology in areas such as cargo trade and finance. They will work together to examine the use of digital technology to develop a 'cross-border platform', through which:
- Cross-border financial cooperation and the use of electronic bills of lading (eBL) will be explored under Project Ensemble; and
- The facilitation of trade finance through cargo and trade data will be studied via connection with the Commercial Data Interchange and Cargox. [2 Mar 2026] #Digitisation
Thailand
SECT revises criteria for determining major shareholders of securities and digital asset business operators
The Securities and Exchange Commission Thailand (SECT) has announced revisions to the criteria for determining persons who qualify as major shareholders of securities and digital asset business operators requiring approval. The revised criteria are intended to ensure that the approval process also covers ultimate controlling persons.
SECT stated that business operators must review the status of their major shareholders and submit approval requests for any individuals who meet the new criteria within 180 days. [5 Mar 2026] #DigitalAsset
US
SEC Investor Advisory Committee on March 12
The SEC's Investor Advisory Committee will hold a public meeting at the SEC's headquarters in Washington, D.C. on March 12 to discuss public company disclosure reform, fund proxy voting, and a potential recommendation regarding the tokenization of equity securities.
The meeting will also be webcast on the SEC website. [Mar 5, 2026] #Tokenisation
SEC Chair addresses FSOC AI roundtable
The SEC has published the remarks delivered by Chair Paul Atkins at the Financial Stability Oversight Council (FSOC) AI Innovation Series Roundtable on Strategy and Governance Principles. Chair Atkins spoke to the SEC's efforts with the technology, remarking: "The main message that I want to leave with you today is that AI is more than an instrument of efficiency or convenience. It is a force that stands to enable investors to participate in the markets with greater confidence, businesses to allocate capital with sharper precision, and regulators to oversee those financial markets with deeper insight."
Chair Akins was expressing his own views as SEC Chair which do not necessarily reflect those of the SEC as an institution or of the other Commissioners. [Mar 4, 2026] #AI
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