FinTech Global FS Regulatory Round-up - w/e 3 July 2026

Global

ICMA: Updated SFTR reporting recommendations

The International Capital Market Association (ICMA) has published an updated version of its recommendations for reporting under the Securities Financing Transaction Regulation (SFTR). The latest version introduces four new questions and numerous further updates reflecting recent regulatory developments and ongoing discussions with reporting firms. 

The guide includes a number of important clarifications and addresses emerging topics, including reporting of repos involving digital assets. [30 Jun 2026]  #DigitalAsset

BIS: Annual economic report 2026

The Bank for International Settlements (BIS) has published its 2026 annual economic  report which examines how the global economy is faring. The report highlights four pressure points facing the global economy, including the sustainability of the AI investment boom. [29 Jun 2026]  #AI

UK

FCA research: Description of the UK cryptoasset market

The FCA has published a research paper on the structure and development of cryptoasset markets, both globally and in the UK. The paper provides an overview of how these markets operate, including the types of cryptoassets available, the roles of key market participants, and the ways in which retail and institutional consumers interact with these products. It also describes the economic characteristics of cryptoassets, including factors which impact their pricing, their use cases, and implications for consumers and the wider financial system.

Among the key findings, the paper notes that cryptoassets are currently primarily used as investment products rather than as a means of payment, with retail demand predominantly driven by expectations of financial return. [3 Jul 2026]  #Crypto #DigitalAsset

HM Treasury: PVDC publishes update on roles and responsibilities in future retail payments ecosystem

HM Treasury has published an update from the Payments Vision Delivery Committee (PVDC), setting out the proposed allocation of roles and responsibilities in the future retail payments ecosystem. The publication is intended to provide further context to the recent consultation by the Retail Payments Infrastructure Board (RPIB) on the design of the future retail payments infrastructure

The update covers issues such as how the commercial model for the infrastructure should work and how the new infrastructure can support consumer protection and the fight against financial crime.  

The PVDC is chaired by HM Treasury and brings together the FCA, the Payment Systems Regulator (PSR) and the Bank of England (BoE). [2 Jul 2026]  #Payments

FCA: Change in control for cryptoasset firms – beneficial owners

The FCA has published information for firms and individuals seeking to acquire an FCA-registered cryptoasset firm, particularly in relation to whether a beneficial owner exists in the proposed controller chain. Where a beneficial owner is present, the FCA will assess suitability based on the ‘fit and proper’ test under regulation 58A of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. Where there is no beneficial owner in the controller chain, the Financial Services and Markets Act 2000 (FSMA) thresholds and assessment criteria apply. [1 Jul 2026]  #Crypto #DigitalAsset

PSR: Independent report on APP reimbursement policy

The PSR has published the findings of an independent review by Frontier Economics of two key policies of the PSR on authorised push payment (APP) scams: the reimbursement requirement and the publication of APP fraud performance data. 

The review found that the policies, particularly the reimbursement requirement, have delivered short-term benefits that outweigh their costs, contributing to a significant reduction in APP fraud and stronger consumer protection. However, it also noted that outcomes still vary across payment service providers (PSPs), some fraud may have moved outside the scope of the reimbursement requirement, and the longer-term market effects remain uncertain.

To address inconsistent implementation, the PSR will consult before the end of 2026 on proposals to promote more consistent application of the policy. The PSR also confirmed that it will publish data at the end of the year identifying which platforms are used by fraudsters to target victims. [1 Jul 2026]  #Payments #APPFraud

FCA finalises UK cryptoasset regime

The FCA has published five policy statements  (PS26/9, PS26/10, PS26/11, PS26/12 and PS26/13)alongside related final guidance, setting out its regulatory regime for cryptoasset activities in the UK. The regime brings trading, custody, intermediation, stablecoin issuance, staking and related activities within the FCA's regulatory perimeter for the first time, setting rules for firms across the full range of regulated cryptoasset activities.

The regulator encourages firms to prepare now and use its pre-application support meetings, available from July 2026. Firms may apply for authorisation between 30 September 2026 and 28 February 2027, ahead of the new regime taking effect on 25 October 2027. All in-scope firms must meet financial resilience requirements including capital and stress testing. The FCA is also introducing new market integrity rules covering areas such as insider trading and market manipulation. 

The FCA will publish a further policy statement in September 2026 setting out how the regulatory perimeter applies to cryptoasset activities. Later in 2026, it will also consult on guidance for decentralised finance (DeFi) and operational resilience for firms using distributed ledger technology (DLT).

Alongside the policy statements, the FCA and the BoE have jointly published an approach paper setting out how they, and where relevant other authorities, will work together to regulate systemic stablecoin issuers in the UK. The document explains how responsibilities will be split between the authorities, and how UK stablecoin issuers may move from FCA supervision to joint regulation once recognised as systemic by HM Treasury.

Transition from FCA-only supervision to joint regulation is expected to take 12 to 36 months following HM Treasury’s recognition of systemic status. The regulators will consult later in 2026 on how FCA rules will apply when a stablecoin issuer is recognised as systemic by HM Treasury. [30 Jun 2026]  #Crypto #DigitalAsset #Stablecoin #DLT

DRCF launches two-phase call for input on consumers and AI risks

The Digital Regulation Cooperation Forum (DRCF) has published a two-phase call for input as part of its ‘Consumer interest and AI’ project, which aims to gather insights and research from stakeholders on consumer approaches to risks of generative and agentic AI.

Phase 1 seeks views from industry, academia, civil society and consumers on consumer attitudes to the risks of generative and agentic AI adoption, including questions on: risk tolerance; transparency and AI literacy; meaningful consent; quality of AI services; and accountability when AI causes harm. Phase 2, aimed primarily at academics and research-oriented respondents, seeks views on the tools, frameworks and regulatory mechanisms available to policymakers, regulators, industry and consumers to manage AI risks effectively.

Responses are due by 3 July 2026 for Phase 1, and by 2 September 2026 for Phase 2.

The DRCF was established in 2020; it brings together four UK regulators with responsibilities for digital regulation – the Competition and Markets Authority (CMA), the FCA, the Information Commissioner’s Office (ICO) and Ofcom. [30 Jun 2026]  #AI

Europe

AMLA issues advisory note on AML/CFT risks as MiCAR transitional period ends

AMLA has published an advisory note which sets out the anti-money laundering and countering the financing of terrorism (AML/CFT) risks arising from the end of the Markets in Cryptoassets Regulation (MiCAR) transitional period on 1 July 2026. After this date, firms must be authorised as MiCAR-compliant cryptoasset service providers (CASPs) in order to continue providing crypto services in the EU.   

The note also outlines mitigating measures the cryptoasset sector, AML/CFT supervisors and financial intelligence units (FIUs) can take to address the highlighted risks. [30 Jun 2026] #Crypto #DigitalAsset #MiCAR

EBA publishes 2025 supervisory convergence report

The EBA has published its 2025 report on supervisory convergence. The report covers the EBA's work across prudential supervision, resolution, consumer protection, digital finance, and (until end-2025) anti-money laundering and countering the financing of terrorism (AML/CFT), charting progress in aligning supervisory practices across EU Member States whilst identifying areas requiring further convergence.

Key 2025 developments include digital operational resilience under the Digital Operational Resilience Act (DORA) and rollout of the Markets in Cryptoassets Regulation (MiCAR).

In 2026, the EBA will continue to focus on Basel 3 reform implementation, DORA oversight, MiCAR supervision and resolution testing. [29 Jun 2026]  #Crypto #DigitalAsset #MiCAR #DORA

EC extends consultation on MiCAR review

The EC has announced that it has extended, by one month to 30 September 2026, the deadline for responses to consultations on the functioning of the EU’s cryptoasset regulatory framework, MiCAR. [29 Jun 2026]  #Crypto #DigitalAsset #MiCAR

Hong Kong

HKMA and CBRT exchange MoU on financial innovation cooperation

The HKMA and the Central Bank of the Republic of Türkiye (CBRT) have announced the exchange of a memorandum of understanding (MoU) to strengthen cooperation on financial innovation and strategic partnership.

The MoU establishes a formal framework for information sharing and potential collaboration on innovative projects, reflecting the two authorities’ shared objective of advancing fintech development in their respective markets.

The HKMA states that the MoU forms part of its broader efforts to expand international fintech partnerships and will provide a solid foundation for exchanging insights and expertise in financial innovation with the CBRT.  [30 Jun 2026]  #CBDC #Payments

FSTB and HKMA conclude first phase of review on DLT adoption in fixed income market and commence legislative review in second phase

The Financial Services and the Treasury Bureau (FSTB) and the HKMA have announced the conclusion of the first phase of a review on the further adoption of distributed ledger technology (DLT) in Hong Kong’s fixed income market.

The review found that Hong Kong’s existing legal and regulatory environment is sufficiently flexible to support tokenised bond issuances, as demonstrated by the Government’s three issuances and a growing number of corporate issuances.  To enhance legal certainty, the Companies Registry has issued FAQs confirming that a register of debenture holders maintained using DLT can be deemed as fulfilling the relevant record-keeping requirements under the Companies Ordinance.

In the second half of 2026, the FSTB and the HKMA will begin the next phase of the review, which will examine the legal enhancements for addressing issues in adopting DLT in the current processes of the fixed income market, as well as concepts involved in a more digitally native setting.  Areas under consideration include:

• Permitting electronic execution of issuance documents for tokenised bonds, such as recognising electronic signatures in the creation of trusts in connection with the issuance of tokenised bonds and funds; and
• Considering concepts such as possession and transfer in the context of tokenised fixed income instruments to provide issuers with the flexibility to select the most suitable form of issuance as technology advances.

The review was first announced in the 2025-26 Budget, while the FSTB’s Policy Statement 2.0 on the Development of Digital Assets in Hong Kong was published in June 2025 (see our previous update).  The 2026-27 Budget further sets out the directions of the review (see our previous update).  [29 Jun 2026]  #Tokenisation #DLT #DigitalAsset

Singapore

MAS invites applications for 2026 Global FinTech Hackcelerator

MAS has announced a call for applications for the 2026 Global FinTech Hackcelerator, inviting finfech firms and solution providers to submit proposals on how AI can be harnessed to address challenges including: integrating credit and fraud risk modelling in digital banking; reimagining of wealth management for a digitally native generation; and empowering small and medium enterprises (SMEs) to better assess, quantify and proactively manage their business risk exposure.

Interested parties are invited to submit their applications by 14 August 2026. [29 Jun 2026]  #Fintech #Hackcelerator

Malaysia

BNM invites applications to Financial Technology Regulatory Sandbox Green Lane cohort

Bank Negara Malaysia (BNM) has invited applications from financial institutions to participate in its Financial Technology Regulatory Sandbox Green Lane cohort. The Green Lane provides an accelerated pathway for eligible participants to test innovative solutions that face regulatory impediments through a one-off institutional assessment and simplified solution registration process.

Applications are primarily open to licensed financial institutions, including banks, development financial institutions, insurers and takaful operators, and money services businesses with strong risk management, compliance and governance capabilities.

Approved Green Lane participating institutions may subsequently utilise a simplified solution registration process before commencing testing for each new solution under the Green Lane.

Applications must be submitted between 1 July and 31 July 2026, together with the required supporting information, in accordance with the Sandbox application requirements.

For non-financial institutions, including fintech companies, participation in the Sandbox may be pursued either via the Standard Sandbox track, or collaboration with eligible financial institutions for Green Lane solutions. [1 Jul 2026]  #Fintech

BNM publishes policy document on IFTF

The BNM has published a policy document on Interoperable Fund Transfer Framework (IFTF). The IFTF seeks to ensure an efficient, seamless and cost competitive domestic and cross-border payment ecosystem in Malaysia. The effective date is 30 June 2026, except where otherwise stated explicitly in the policy document. [30 Jun 2026]  #Payments

Philippines

BSP: Potential applications for wCBDC

The Bangko Sentral ng Pilipinas (BSP) has identified the settlement of financial securities and large-value cross-border payments as potential applications for wholesale central bank digital currency (wCBDC). This was highlighted in the BSP’s Project Agila report, which aims to help the central bank and participating financial institutions (FIs) explore potential use cases of CBDCs. [30 Jun 2026]  #CBDC

US

CFTC Chair comments on Illinois blockchain transaction tax

The Commodity Futures Trading Commission (CFTC) has published an op-ed penned by its Chair, Michael S. Selig, for the Washington Times regarding a recently enacted Illinois law that imposes a 0.2% tax on crypto asset transfers by Illinois residents, regardless of whether the transaction generates a realised profit or economic gain. Chair Selig argues that the law treats economically identical transactions differently based solely on the technology used, creating an arbitrary distinction absent elsewhere in the United States.  [Jul 1, 2026]   #Crypto #DigitalAsset

Fed publishes initial findings from 2025 triennial payments study

The Federal Reserve (Fed) has published initial findings from the 2025 triennial payments study, covering noncash payment trends across 2024. Total noncash payments by consumers and businesses reached 236.6 billion in 2024, more than tripling since 2000.

Cards remained the most frequently used payment method by number, accounting for over three-quarters of all payments, with debit cards continuing to represent the majority of card transactions. However, credit card payments grew faster than debit card payments for the first time in almost a decade.

Automated clearing house (ACH) payments reached almost three-quarters of noncash payments by value for the first time. Check payments and ATM cash withdrawals continued to decline in both number and value.

The study is a triennial exercise, conducted since 2001 with annual supplements since 2017, and further detailed analysis will be published as it becomes available.  [Jul 1, 2026]  #Payments

SEC Chair sets out agenda for capital markets reform

In remarks delivered to the Economic Club of New York, SEC Chair Paul Atkins set out the agency’s agenda under the “ACT strategy”. Chair Atkins defined the strategy as, “…three interlocking aims: to Advance our frameworks into the modern era; to Clarify our jurisdictional lines; and to Transform our rulebook by returning it to first principles.”

Speaking about “advancing”, the SEC Chair focused on digital assets; he described a series of steps taken under "Project Crypto" to modernise SEC regulations and provide clarity to digital asset issuers as to whether a given asset constitutes a security.  [Jun 30, 2026]  #Crypto #DigitalAsset