FinTech Global FS Regulatory Round-up - w/e 21 August 2026

UK

The Insolvency Service takes action to shut down unauthorised crypto investment firm

The Insolvency Service has announced that it has taken action to shut down an unauthorised crypto investment firm. The firm promised returns up to 100%, but investors lost hundreds of thousands of pounds to the ‘Ponzi-style’ scheme. The Insolvency Service investigations found no evidence of genuine trading. The FCA has joined with the Insolvency Service  to warn investors to be vigilant about similar offers. [19 Aug 2026] #Crypto #DigitalAssets

FCA adds variation application guidance for e-money and payment institutions

The FCA has updated its Apply to vary your permissions, limitations or requirements page for electronic money and payment institutions. The update confirms that the FCA will usually decide complete applications within three months. For incomplete applications, the statutory deadline is 12 months, although the FCA aims to decide them within ten months. [17 Aug 2026] #Payments

Europe

ECB: Opportunity to feedback on the list of standards relevant for the offline digital euro

The European Central Bank (ECB) has launched a call for expression of interest to provide feedback on the list of standards relevant for the offline digital euro. The ECB, together with its selected technical vendors, is exploring the deployment of offline functionality to different types of secure hardware available in end users’ smartphones, specifically embedded Secure Elements (eSEs) and embedded SIMs (eSIMs).

The ECB is seeking to assess the relevance, maturity and level of industry support for the identified standards in the context of the offline digital euro. Therefore, it is inviting feedback from the following organisations specialising in this area:

• SE/eSIM issuers as original equipment manufacturers (OEMs);
• mobile network operators (MNOs)/mobile virtual network operators (MVNOs);
• SE/eSIM manufacturers; and
• standards development organisations (SDOs)

Participating organisations will receive the preliminary list of identified standards together with an accompanying questionnaire which will seek participants’ views on:

• the maturity of the standards and their future developments;
• the current and anticipated level of industry support; and
• any implementation constraints, dependencies or other factors that may aid or hinder deployment and broader market adoption.

Industry expertise in the area of secure hardware and related standards is particularly important for this exercise.

Interested participants are invited to submit the application form by 25 September 2026. [19 Aug 2026] #DigitalEuro #DigitalAssets

Australia

APRA publishes 2026-27 Corporate Plan

The Australian Prudential Regulation Authority (APRA) has published its 2026-27 Corporate Plan, setting out its strategic priorities for the next four years and its policy and supervision agenda for the next 12 to 18 months, focused on ensuring risk management practices across the financial system keep pace with a rapidly moving threat environment. Key supervision priorities include strengthening resilience to AI-enabled cyber threats and quantum computing risks, assessing concentrated reliance on common technology platforms, managing geopolitical risk, reviewing banks' lending practices, and requiring selected large superannuation trustees to commission independent reviews of their valuation governance practices.

Key policy priorities include consulting on a risk-sensitive capital framework for superannuation, finalising new governance requirements expected to take effect in 2028, jointly consulting with ASIC on changes to the Financial Accountability Regime, and developing a prudential framework for large stored value facility providers. APRA Chair John Lonsdale noted that the policy agenda aims to have a net neutral impact on regulatory burden.  [20 Aug 2026] #AI #Cyber #QuantumComputing

Hong Kong

SFC issues circular on mitigating risks in receiving deposits through simplified eDDA arrangements

The SFC has issued a circular to highlight the risks associated with the increasing use of simplified Electronic Direct Debit Authorisation (eDDA) arrangements by licensed corporations, licensed virtual asset service providers and associated entities (collectively, licensed firms), such as internet brokers and virtual asset trading platform operators, for receiving client deposits.

eDDA is a service under the Faster Payment System which enables a payer to pre-authorise a bank account held in the payer’s own name to be debited by direct debit payments initiated by the payee.  Licensed firms adopt simplified eDDA arrangements to enable clients to transfer funds from their own bank accounts (ie, same-name accounts) to their trading accounts through licensed firms’ mobile trading applications or trading websites, thereby facilitating a more efficient deposit process for trading or settlement purposes.

The risks associated with simplified eDDA arrangements include impersonation and unauthorised access risks, and indemnity and financial risks.  The SFC reminds licensed firms of their obligations to maintain proper internal control procedures and adequate financial and operational capabilities to protect their operations and clients from financial loss arising from fraud and other dishonest acts.

The SFC circular sets out measures for assessing and mitigating the risks associated with simplified eDDA arrangements to assist licensed firms in protecting their operations and clients from financial losses.  It also reminds licensed firms to disclose eDDA settings to clients, and remind clients to regularly review the bank accounts that are registered for eDDA deposits, closely monitor their bank account transactions for irregularities, and report any suspicious activities to their firms or banks or the police.

This circular focuses on simplified eDDA arrangements.  For details on the differences between standard eDDA and simplified eDDA, please refer to the website of the Hong Kong Interbank Clearing Limited.  [20 Aug 2026] #Payments #VirtualAssets #VASP #DigitalAssets

India

RBI Deputy Governor sets out principles for responsible AI adoption in Indian banking

The Reserve Bank of India (RBI) has published a speech by its Deputy Governor Shirish Chandra Murmu at the CNBC-TV18 Banking Transformation Summit. In the speech, the Deputy Governor set out five principles to guide responsible AI adoption in Indian banking: inclusion to enhance capability; adaptation to change; understanding the tools being used; enhanced safeguards and intelligent deployment for resilience; and explainability in decision-making. [19 Aug 2026] #AI

IFSCA consults on GPU and data centre equipment leasing as financial product

IFSCA has published a consultation on proposals to enable operating leases, including hybrid operating/financial leases, of graphics processing units (GPUs) and connected data centre equipment as a financial product. The proposal is aligned with the Government’s policy direction to ensure affordable and reliable access to computing resources as an enabler of India’s AI ecosystem.  Comments are requested by 28 August 2026. [18 Aug 2026] #AI

US

CFTC requests comment on compute futures relevant for AI – informing the ‘rules of the road’

The CFTC has issued a request for comment to better inform its understanding and oversight of derivatives markets in compute. This request covers: the size, liquidity, and other considerations with respect to compute cash markets; market oversight and manipulation concerns; customer protection; and perpetual compute futures.

CFTC Chair Michael S. Selig commented, “America cannot win the AI race without a robust derivatives market for compute.” He explained, “This request for comment is the first step toward establishing clear rules of the road for American compute markets.”

Comments are requested within 60 days of publication in the Federal Register.  [Aug 19, 2026] #AI

CFTC resolves enforcement actions against former Alameda CEO and FTX co-founder

The CFTC has announced the entry of supplemental consent orders by the U.S. District Court for the Southern District of New York against Caroline Ellison, former Alameda CEO, and Gary Wang, former Alameda and FTX co-founder, resolving the CFTC's enforcement actions arising from the collapse of FTX.

The orders impose a five-year trading ban and a 10-year registration ban on Ellison, and a five-year trading ban and an eight-year registration ban on Wang, running from the date of the initial consent orders in December 2022.

The CFTC is not seeking restitution, disgorgement, or civil monetary penalties, reflecting the material cooperation provided by both individuals in the CFTC’s investigations and parallel criminal proceedings in which they pleaded guilty to, amongst other charges, conspiracy to commit commodities fraud; both were jointly and severally liable for an $11.020bn forfeiture order in the criminal proceedings.  [Aug 19, 2026] #FTX #Crypto #DigitalAssets

OCC: Comptroller discusses digital assets and next steps on GENIUS Act

Comptroller of the Currency Jonathan V. Gould took part in a Fireside Chat at the Wyoming Blockchain Symposium in Jackson Hole. The Comptroller spoke about de novo chartering and digital assets, noting that of some 40 applications which had been received over the past 18 months, 23 involve some form of digital asset activity.  On the GENIUS Act, the Comptroller stated that the Office of the Comptroller of the Currency (OCC) intends to have its final rule out by November.  Looking ahead, he expressed positive views about the prospect of stablecoins and the OCC’s role in the regulatory and supervisory landscape for those instruments.

A video of the chat is available on the OCC’s YouTube page.  [Aug 19, 2026] #GENIUSAct #DigitalAssets

SEC proposes Regulation Crypto Assets framework for investment contracts

The SEC has published proposed rules titled "Regulation Crypto Assets," which are intended to provide a fit-for-purpose securities offering framework for certain investment contracts involving cryptoassets. The proposed framework builds on the SEC's March 2026 interpretive guidance on the application of federal securities laws to crypto. The proposals include two registration exemptions under the Securities Act of 1933:

• a one-time exemption permitting offerings of up to $5m over a four-year period; and
• a recurring exemption permitting offerings of up to $75m per 12-month period.

Each will require principles-based narrative disclosures (with the larger exemption also requiring financial statements and ongoing reporting). The rules also introduce a conditional safe harbour from the definition of "investment contract" as a "security" and would pre-empt state securities law registration and qualification requirements for qualifying offers, sales, and certain secondary market transactions. The proposals aim to bring capital formation onshore, reduce incentives for offshore issuance, and provide more consistent investor protections across US crypto markets.

Comments on the proposal are requested within 60 days of publication in the Federal Register.

A factsheet accompanies the press release and proposal.  [Aug 18, 2026] #Crypto #DigitalAssets

Treasury issues NPRM implementing the GENIUS Act framework for payment stablecoins

The Treasury has issued an NPRM on the implementation of section 3 of the GENIUS Act, which establishes a federal licensing framework for payment stablecoins. This builds on the Advance NPRM issued in September 2026.

From 18 January 2027, persons may not generally issue a payment stablecoin in the U.S. without an appropriate federal or state licence, and digital asset service providers may not offer or sell foreign-issued payment stablecoins unless the foreign issuer has the technological capability to comply with any lawful order and with applicable reciprocal arrangements between the U.S. and the issuer's home jurisdiction. From 18 July 2028, digital asset service providers may generally not offer or sell any payment stablecoins to persons in the U.S. unless those stablecoins are issued by a licensed issuer.

The NPRM sets out Treasury's proposed definitions of what it means to "issue," "offer," or "sell" a payment stablecoin in the U.S.

Comments are requested within 60 days of publication in the Federal Register. [Aug 17, 2026] #GENIUSAct #Stablecoins #DigitalAssets