FinTech Global FS Regulatory Round-up - W/e 13 March 2026

ICYMI

• Legal tech clarity starts here: Themes from Chief AI Officer panels in Australia
• House of Lords Committee endorses licensing-first approach to AI and copyright in anticipation of the Government's report - plus what the current jurisdiction gap in AI infringement means for enforcement

Global

FATF report: Understanding and mitigating risks of offshore VASPs

The Financial Action Task Force (FATF) has published a report which highlights how gaps in oversight of offshore virtual asset service providers (oVASPs) are exploited to facilitate large-scale fraud, money laundering and terrorism financing.

The paper analyses how oVASPs structure their activities to avoid or evade regulatory obligations and how illicit actors exploit the vulnerabilities. It also presents good practices to detect, license or register oVASPs, as well as to enforce sanctions for non-compliance with anti-money laundering (AML), countering the financing of terrorism (CFT) and counter-proliferation financing (CPF) obligations and roll-out mitigating measures. The report concludes with recommendations to mitigate risks. [13 Mar 2026] #DigitalAsset

FSB: New implementation phase to enhance cross-border payments

The Financial Stability Board (FSB) has published a report on the FSB Cross-border Payments Summit held on 12 March to take stock of efforts to make cross border payments cheaper, faster, more transparent and more accessible. Hosted by the Bank of England (BoE), the summit brought together senior policymakers and industry leaders to kick off a new implementation phase of the work.

Speaking as Chair of the FSB, BoE Governor Andrew Bailey catalogued both the advances achieved and the major challenges that still exist in relation to the G20 cross-border payments roadmap. He therefore stressed the importance of intensifying efforts to drive the implementation of guidance and recommendations as part of efforts to meet the G20 goals.

Mr Bailey advised that the public sector should focus on:

• jurisdiction action plans to support domestic implementation of international recommendations and guidance;
• regional action plans to reflect perse starting points and promote interoperability; and
• a review of FSB recommendations on data frameworks and bank and non-bank regulation and supervision, which will be implemented in early 2027.

The Institute of International Finance and Swift also outlined initiatives aimed at supporting progress towards the roadmap's goals. [12 Mar 2026] #Payments

BIS paper: Cross-border payment technologies – innovations and challenges

The BIS has published a paper which reviews research and policy work on domestic payments systems to identify and classify the main frictions that underly the current deficiencies in cross-border payment systems. To address such challenges, the paper identifies a number of key priorities: greater harmonisation of standards, especially for message transmission; more effective compliance regimes; and promotion of competition.

The views expressed in this publication are those of the authors and do not necessarily reflect the views of the BIS or its member central banks. [11 Mar 2026] #Payments

BCBS: GHOS discuss Basel 3 implementation, prudential standards for cryptoassets and G-SIBs

The Basel Committee on Banking Supervision (BCBS) has published a report on the Group of Central Bank Governors and Heads of Supervision (GHOS) meeting discussions that took place on 9 March 2026.

The GHOS took stock of the implementation status of the outstanding Basel III reforms; about 75% of member jurisdictions have now implemented, or will shortly implement, the standards, and the remaining jurisdictions have communicated their plans to do so. Members welcomed the progress and reaffirmed their expectation of full and consistent implementation by all member jurisdictions as soon as possible.

The GHOS also endorsed two sets of targeted reviews by the BCBS:

• a review of specific elements of the BCBS' prudential standard for banks' cryptoasset exposures in light of recent cryptoasset market developments; and
• a review of the governance and transparency of the assessment methodology for global systemically important banks (G-SIBs), in line with the process of ongoing monitoring and review of the G-SIB framework. [10 Mar 2026] #DigitalAsset #Crypto

UK

FSCP responds to FCA crypto consultations – application of Consumer Duty and Handbook

The Financial Services Consumer Panel (FSCP) has published its response to the FCA's proposed guidance on the application of the Consumer Duty to cryptoasset firms. The FSCP welcomes the proposal and highlights areas where the guidance can be strengthened to prevent foreseeable harm and support informed decision making.

The FSCP has also published its response to Consultation Paper 26/4 – Application of FCA Handbook for regulated cryptoasset activities – part 2 (CP24/6). The response emphasises several priority themes: the need for robust Consumer Duty application, clear conduct standards, and stronger safeguarding arrangements; the importance of redress mechanisms; and significant concerns about the risks posed by international firms operating through UK branches, particularly regarding legal personality, accountability, and cross-border insolvency. [12 Mar 2026] #DigitalAsset #Crypto

FCA speech: A joined-up approach to growth

The FCA has published a speech by David Geale, FCA Executive Director of Payments and Digital Finance and Managing Director of the Payment Systems Regulator (PSR), at the MoneyLIVE Summit 2026. Mr Geale discussed the consolidation of the PSR and the FCA and the importance of a joined-up regulatory model. He also emphasised striking the right balance in regulation to support competition, innovation and growth, and spoke about initiatives aimed at achieving these goals. In that regard, Mr Geale highlighted that the FCA and the PSR will publish this month a roadmap for Open Finance, setting out how the regulators are going to take the data sharing seen in Open Banking and apply it to more parts of consumers' financial lives. [10 Mar 2026] #OpenFinance #Payments

FCA: International FinTech Forum – pathways to innovation and growth

The FCA has announced that its International FinTech Forum will take place on 20 April 2026. The Forum will bring together international fintech and technology firms as well as investors to explore how regulation, innovation and growth work together to support a thriving, competitive market.

During the event, attendees will hear from senior FCA leaders and Government representatives, engage with the FCA innovation and authorisation teams, and receive practical guidance on navigating the UK regulatory environment.

FCA requests that registrations be submitted by 10 April. [9 Mar 2026] #FinTech

Europe

EC: Report on preparedness of EU financial sector

The EC has published a report which provides an overview of the current state of preparedness of the EU financial sector. The report highlights that preparedness has improved over the past few years through legislative measures and by creating governance structures at EU level that reflect the cross-border nature of the EU financial sector.

Looking ahead, the EC expects that the development of the Savings and Investments Union (SIU) and the introduction of the digital euro will enhance the overall resilience of the sector and further improve its level of preparedness. [10 Mar 2026] #DigitalEuro #CBDC

Australia

Treasury requests feedback on new regulatory framework for payment service providers

The Treasury is seeking feedback in relation to Tranche 1 of new draft legislation updating the regulatory framework for payment service providers.

The proposed suite of legislation comprises:

• Treasury Laws Amendment Bill 2026: Payments System Modernisation – the Bill amends the current regulatory framework for payment service providers by establishing a more comprehensive and modernised system that reflects the realities of contemporary payment services, capturing new financial products and services. It is also aimed at tailoring the AFS licensing regime to the perse functions of providers operating in Australia. Four reforms proposed within the Bill are:
  • the replacement of the purchased payment facility regime with AFS licensing requirements for stored value facility providers;
  • the introduction of a mandatory ePayments Code to set minimum consumer protection standards;
  • the introduction of new safeguards to ensure payment‑related money can be transferred or returned to its rightful owner; and
  • the establishment of a process for managing dormant funds held by major stored value facility providers.
• Payment Entities (Prudential Regulation) Bill 2026 – the Bill is aimed at addressing current uncertainty within the purchased payment facility sphere by expanding the reach of providers covered by the legislation and ensuring prudential obligations are proportionate to a provider's reality. The largest reform concerns the introduction of prudential requirements administered by the Australian Prudential Regulation Authority (APRA) for major stored value facility providers. A determination of a stored value facility provider's size is done in accordance with the thresholds prescribed in the Bill.
• Payment Entities Supervisory Levy Imposition Bill 2026 and Authorised Non-operating Holding Companies Supervisory Levy Imposition Amendment Bill 2026 – The Bills introduce a levy to be paid by entities which are regulated under the new Prudential Regulation Bill to ensure APRA can recover its supervisory costs.
• Treasury Laws Amendment (Payments System Modernisation) Regulations2026 – The proposed Regulations are aimed at supporting the reforms to payment service provider regulation facilitated by the Bills above. The Regulations will update legislative instruments to reflect new terminology and remove outdated references to concepts which are no longer commonplace in the industry. They also provide a tailored procedure for low‑risk payment products and services and certain exemptions for non‑cash payment facilities. Finally, the Regulations also provide for transitional measures to ensure that the updated framework does not cause significant disruption to the industry.

Comments on the framework are requested by 9 April 2026. [12 Mar 2026] #Payments

Hong Kong

HKMA issues circular requiring AIs to prepare strategic business plan to address technological developments within six months

The HKMA has issued a circular requiring authorised institutions (AIs) to proactively assess and adapt their long-term business models in response to accelerating digital transformation.

The HKMA has recently announced the Fintech Promotion Blueprint under 'Fintech 2030' to foster responsible innovation (see our previous update). It encourages the industry to move beyond simple adoption that layers technologies over existing processes, and explore how distributed ledger technology (DLT) and other transformational technologies can revamp banking services and redefine core business models for the future.

The HKMA expects AIs' boards of directors to oversee and endorse a formal strategic business plan to address the technological developments, within six months of the circular (ie by 9 September 2026). Plans should identify opportunities to adapt or transform product offerings, revenue models, customer engagement, risk management and operations, and may factor in how small‑scale real‑world trials can be conducted leveraging the HKMA's Supervisory Incubator for DLT (see our previous update) to validate the novel business models involved. A selection of AIs will be invited to submit their plans via HKMA's survey tool.

AIs intending to expand into new digital asset‑related activities should discuss their plans with the HKMA prior to launch.

The HKMA's Executive Director (Banking Supervision), Ms Carmen Chu, has commented that the strategic business plan will help banks understand how emerging technologies are impacting their business models, enabling them to make strategic responses to stay relevant, resilient and competitive. [9 Mar 2026] #DigitalAsset #DLT

Malaysia

BNM policy document: Technology requirements for payment services firms

Bank Negara Malaysia (BNM) has published a policy document that outlines new requirements for managing technology risks by payment services firms. The publication is designed to consolidate the technology requirements within the payment sector into a single policy document, primarily for the approved issuers of electronic money, registered merchant acquirers and money services businesses. [12 Mar 2026] #Payments

India

RBI: Draft amendment Directions on limiting customer liability in digital transactions

The RBI has published for feedback revised Directions on limiting liability of customers in unauthorised electronic banking transactions. The amendments are designed to: enhance the scope of existing instructions to cover other categories of fraudulent electronic banking transactions, reduce the time taken by banks to process complaints related to fraudulent electronic banking transactions, and introduce a compensation mechanism for small value fraudulent electronic banking transactions.

The proposed compensation mechanism will be in force for one year from the effective date of the Directions. Comments are requested by 6 April 2026. [6 Mar 2026] #Payments

US

SEC and CFTC sign MoU

The Securities and Exchange Commission (SEC) and the CFTC have signed a Memorandum of Understanding (MoU) which will "guide coordination and collaboration between the two agencies to support lawful innovation, uphold market integrity, and ensure investor and customer protection." The initiative's areas of focus include providing a fit-for-purpose regulatory framework for crypto assets and other emerging technologies. A factsheet accompanies the announcement. [Mar 11, 2026] #DigitalAsset #Crypto

CFTC Chair Selig addresses FIA event, sets out agenda for the CFTC

The CFTC has published the remarks of Chair Michael S. Selig at the FIA Global Clearing Markets Conference in Boca Raton, Florida. Chair Selig set out his agenda for the CFTC, remarking, "What I propose over the next several years is a focus on 'future-proofing' derivatives markets oversight via the minimum effective dose of principles-based regulation."

Takeaways from the address include:

• Working with the SEC, the CFTC Chair will "advance a clear crypto asset taxonomy," enabling market participants to understand which jurisdictions their products fall under.
• Chair Selig has "directed staff to provide guidance concerning the application of the CFTC's intermediary registration requirements to developers of non-custodial software systems, like digital wallets and [defi] applications."
• CFTC staff are considering "new rules which could clarify when leveraged, margined, or financed retail commodity transactions in crypto may be offered off-exchange under an 'actual delivery' exception."
• CFTC staff have also been directed to consider clarification on "the classification of true crypto-perpetuals." [Mar 9, 2026] #DigitalAsset #Crypto

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