FinTech Global FS Regulatory Round-up - w/e 26 June 2026

Global

FATF highlights the latest risks of terrorist financing through SMSPs

The Financial Action Task Force (FATF) has highlighted the latest risks of terrorist financing through social media, instant messaging applications and streaming platforms (SMSPs). The FATF has found that less than 30% of reporting jurisdictions are covering terrorist financing risks through SMSPs in their national risk assessments; the FATF deems it essential to step up efforts to identify and counter this evolving threat. The FATF has worked with stakeholders to develop recommendations to help countries combat the abuse. Key measures to address misuse of SMSPs, include:

• strengthening structured dialogue between public authorities and the private sector;
• enabling effective information sharing and deepen public-private partnerships;
• clarifying regulatory scope;
• strengthening risk understanding;
• enhancing inter-agency coordination;
• linking financial and digital intelligence;
• building operational capacity;
• developing targeted indicators; and
• increasing understanding of monetisation features.

While SMSPs do not currently fall under one of the sectors which are required to be subject to anti-money laundering/ counter-terrorist financing (AML/CFT) obligations under the FATF Standards, their progressive evolution to integrate or enable access to a range of financial services means that certain activities conducted through or facilitated by SMSPs may fall within the scope of sectors already regulated under the FATF Standards. [26 Jun 2026] #SocialMedia

FATF consults on guidance to increase payment transparency

The Financial Action Task Force (FATF) has launched a consultation on new guidance to support the implementation of strengthened FATF Standards on payment transparency when they come into effect. The revisions to FATF’s Recommendation16 increase the transparency of information that accompanies cross-border payments and require the introduction of tools to protect against fraud and error. All countries around the world are expected to be ready to implement the changes by the end of 2030.

Feedback is invited on a range of issues including whether the guidance provides sufficient clarity and support on:

• detecting and preventing misdirected payments, including by leveraging the three options for alignment checks foreseen in the revised Standard;
• implementation that supports financial inclusion, including in lower-capacity jurisdictions;
• how Recommendation16 applies to newer payment methods, such as digital wallets and mobile money; and
• implementing Recommendation16 and meeting data protection and privacy requirements together.

The full list of consultation questions is set out in the explanatory memorandum to the draft Guidance.

Responses are requested by 21 August 2026. [25 Jun 2026] #Payments

FSI: Implementation of global regulatory framework for cryptoassets and stablecoins

The Financial Stability Institute (FSI) has published a summary of the Financial Stability Board’s (FSB’s) thematic review of implementation of its high-level recommendations for cryptoasset activities and markets. The FSB found notable progress in regulating cryptoasset activities but reveals significant gaps and diverging approaches that pose risks to financial stability. Although some jurisdictions have implemented regulatory frameworks, few of those jurisdictions have frameworks that are fully aligned with the FSB recommendations.

Based on the findings described in the FSB's thematic review, there are eight recommendations addressed to jurisdictions as they develop their regulatory regimes, and to the FSB, standard-setting bodies (SSBs), and international organisations as they consider further work on the subject. [25 Jun 2026] #Crypto #Stablecoins

BIS releases special chapter on money and digital innovation

In advance of publishing its full Annual Economic Report on 28 June, the Bank for International Settlements (BIS) has released a chapter titled Anchoring trust in money: innovation beyond stablecoins. The chapter assesses evolving forms of financial architectures based on programmable platforms and different instruments that provide money-like functions.  The report says that current stablecoin designs fall short in terms of the key properties that ensure trust in money, in particular singleness, or the ability to redeem different forms of money exactly at par in exchange for central bank money. Circulation on public, permissionless blockchains and features of their design introduce challenges for resilience against financial crime and redeemability and interoperability across ledgers.

Key takeaways from the chapter, as highlighted by BIS, are:

• Digital innovation is transforming finance, potentially enabling greater competition and efficiency in payment systems and financial intermediation. However, it also brings new macro-financial challenges and raises the broader question of how to preserve trust in money in the digital age.
• Stablecoins display some of tokenisation’s potential to support faster and programmable payments, but current designs fall short on foundational properties of money and threaten financial integrity. Widespread adoption would raise further challenges that depend in part on the composition of stablecoin reserves and the scale of foreign demand.
• Advancing the future monetary system requires coordinated efforts by policymakers along two main dimensions: tackling weaknesses in current stablecoin arrangements to mitigate risks; and bringing the technological advances of tokenisation into the two-tier system to establish trusted forms of programmable money. [23 Jun 2026] #Stablecoins

UK

RPIB consults on the next generation UK payments infrastructure

The Retail Payments Infrastructure Board (RPIB) has launched a consultation on the future design of the UK's next-generation retail payments infrastructure. This will help inform the ‘blueprint’ for the future infrastructure, which is to be delivered by the new industry-led ‘Delivery Company’.

The consultation focuses on the different types of payments the new infrastructure should support. Alongside existing functionality, it would enable new payment methods such as account-to-account payments at the point of sale (as an additional option to card payments) and enhanced cross-border payments. The next-generation infrastructure will support the National Payments Vision and the Payments Vision Delivery Committee’s strategy to modernise UK retail payments.

Responses are requested by 11 September 2026. [25 Jun 2026] #Payments

DRCF: Call for input on digital verification and synthetic media/deepfakes

The Digital Regulation Cooperation Forum (DRCF) has issued a call for input on two topics, digital verification and synthetic media/deepfakes, that each have a bearing on authentication and trust. The DRCF is also inviting views on the key considerations for regulators in helping to ensure good outcomes in each of these areas.

As the aim is to gather information, the DRCF does not plan to provide advice or guidance in response to questions that may be raised in this call for input. It may engage further with respondents through webinars and/or roundtables.

Responses are requested by 14 August 2026. [25 Jun 2026] #DigitalVerification #SyntheticMedia #Deepfakes

FCA speech: Rethinking regulation for the age of AI

The FCA has published a speech by its CEO, Nikhil Rathi, delivered at Agents of Change - AI in UK Financial Services 2026. Highlights of the speech include:

• financial services will be central to making the UK a world-leading AI economy, by providing the capital, infrastructure, and trust needed for AI to scale across the wider economy;
• as AI evolves faster than traditional regulation, the FCA is re-thinking what it means to be an effective regulator, with greater emphasis on competition, collaboration and system-wide risk awareness; and
• as AI reshapes markets and increases interconnection, understanding how competition is evolving and where that may impact resilience will become more important than ever. [24 Jun 2026] #AI

DRCF explains how UK regulators are deploying GenAI

The Digital Regulation Cooperation Forum (DRCF) has published new insights from cross-regulator deep dive sessions with member regulators, revealing how UK regulators are adopting GenAI to strengthen regulatory effectiveness, while managing risks and protecting consumers. The publication covers findings in four priority areas:

• governance frameworks, including managing hallucination risks, bias, and ethical considerations;
• prompt engineering, which is providing clear, comprehensive, and targeted instructions to AI models to achieve specific results;
• use of AI for detection of consumer harms, including those related to online choice architecture and harmful design patterns; and
• frameworks for evaluating the performance and impact of AI solutions.

The DRCF 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. [24 Jun 2026] #AI

FCA publishes Regulatory Sandbox: climate scenarios cohort webpage

The FCA has published its Regulatory Sandbox: climate scenarios cohort webpage. In autumn 2026, the FCA will open a Sandbox cohort for testing innovative climate scenario tools or approaches. The planned climate scenarios cohort will be part of the Regulatory Sandbox. The FCA will be inviting firms and specialists to test innovative approaches, whether quantitative or narrative based.

The FCA expects to publish key dates and details on how to apply in autumn 2026. [23 Jun 2026] #RegulatorySandbox

FCA: Key points for Regulatory Sandbox application

The FCA has updated its Apply to the Regulatory Sandbox webpage to include a Key points for your application section and application process refresh. To maximise the chances of making a successful application, applicants are advised to ensure their case includes these points:

• application is of sufficient quality to assess effectively;
• proposition is within the FCA’s remit or aligned with its services;
• proposition is genuinely innovative;
• consumer benefits are clear and well evidenced;
• benefits to consumers outweigh potential risks;
• the regulatory perimeter or permissions are clearly understood;
• the need for support is clearly explained;
• the applicant has considered if its case is better suited to another route; and
• for Sandbox applications, the proposition is sufficiently developed or ready to test.

The FCA less likely to support applications which do not include these. [22 Jun 2026] #RegulatorySandbox

BoE publishes its PS and draft Code of Practice for systemic stablecoin issuers

The Bank of England (BoE) has published its policy statement (PS) for systemic stablecoin issuers.

The PS explains how the BoE has responded to feedback to the proposals set out in its CP: Proposed regulatory regime for sterling-denominated systemic stablecoins. The BoE has made targeted revisions to its proposals consulted on last year, including:

• Backing assets: The maximum share held in interest‑bearing assets (short-term UK government debt) has been increased from 60% to 70%, with the remainder in central bank deposits.
• Temporary issuance guardrails: The BoE will not introduce the temporary holding limits it consulted on in 2025, instead, a temporary issuance guardrail will apply to each systemic stablecoin, initially set at £40 billion.

The PS includes a consultation on a draft Code of Practice for sterling-denominated systemic stablecoin issuers. Feedback to this is requested by 22 September 2026. The BoE intends to finalise the Code of Practice by the end of 2026, which will allow stablecoins to operate in the UK from 2027.

Looking further ahead, the BoE will consult in 2027 on further materials, including:

• draft guidance on the Code of Practice;
• updates to the existing Recognised Payment Systems Code of Practice to reflect application to systemic stablecoin issuers;
• any further updates deemed necessary to policy and the draft Codes of Practice to reflect supplementary requirements the BoE may set in future for disclosures, reporting and record-keeping;
• consultation on proposed policy and draft Code of Practice on backing asset trust arrangements and distribution rules, and any provisions necessary, including to support the financial and operational continuity of a systemic stablecoin issuer when in the financial markets infrastructure special administration regime (FMI SAR), followed by a PS and final Code of Practice;
• a statement of policy on the supervisory powers in respect to systemic stablecoin issuers; and
• the application of the Principles for FMIs to systemic stablecoin issuers.

Additionally, the FCA and the BoE will release a Joint Regulatory Approach document. [22 Jun 2026] #Stablecoins

FSSC: Minister encourages firms to join Skills Compact for Financial Services

The Financial Services Skills Commission (FSSC) has published a press release reporting that Economic Secretary to the Treasury, Rachel Blake MP, has encouraged firms to sign the upcoming Skills Compact. During a meeting with leaders of the FSSC, the Minister heard from the FSSC about the need to close skills gaps by focussing on upskilling and reskilling people, building new routes into the sector, and promoting a culture of continuous learning. Also discussed were the two landmark projects that the FSSC is leading on behalf of HM Treasury; the development of the Skills Compact for Financial Services and research into the impact of AI and other disruptive technologies on the sector’s workforce. [22 Jun 2026] #AI

Europe

EBA consults on a draft methodology for setting fines under MiCAR

EBA has published a CP with a draft methodology for setting fines in its role as supervisor under Markets in Cryptoassets Regulation (MiCAR). The objective is to ensure that fines imposed on issuers of significant cryptoassets are consistent, proportionate and transparent, and effectively support compliance with the regulatory framework.

Responses are requested by 28 September 2026. The EBA will hold a virtual public hearing on 16 July. [26 Jun 2026] #Crypto #MiCAR

EP: Motion for a resolution on digital assets report

The Committee on Economic and Monetary Affairs (ECON) in the European Parliament (EP) has voted to forward its report on the impact of the emergence of digital assets on the financial services sector and what that means for the regulatory framework to the Council and European Commission (EC). Among other matters, the motion:

• calls on the ESAs and related EU authorities to ‘strengthen the supervisory dialogue on significant multi-function groups (MFGs)’ and ‘underlines the need to align the MiCAR policy framework for significant non-bank MFGs’;
• calls on supervisory authorities to develop sufficient technical expertise to understand and monitor the DLT-facilited market infrastructures which are emerging;
• expresses concern about the role that cryptoassets play in evading anti-money laundering and countering the financing of terrorism (AML/CFT);
• urges the EC to facilitate and encourage tokenisation across financial services; and
• expresses regret regarding the EU’s dependence on non-EU service providers for DLT infrastructure. [26 Jun 2026] #DigitalAssets

ECB: What separates firms that use AI intensively from firms that don’t?

The European Central Bank (ECB) has published a blog titled: What separates firms that use AI intensively from firms that don’t? This blog explores what sets intensive AI users apart and what firms need to deeply integrate AI into their production processes. It includes data from the ECB’s surveys of AI usage in the euro area. [25 Jun 2026] #AI

Chair of the ECB Supervisory Board responds to MEP on financial stability risks posed by advanced AI applications

The ECB Banking Supervision has published the response from the Chair of the Supervisory Board, Claudia Buch, to Fabio De Masi, Member of the European Parliament (MEP). Mr De Masi had asked about the financial stability risks posed by advanced AI applications. Ms Buch explained that risks related banks’ use of AI are a focus for ECB supervision, and outlined some of the work which the ECB has undertaken to ensure banks are managing AI-related risks, including cyber threats. [25 Jun 2026] #AI

EP: MiCAR versus the GENIUS Act

The European Parliament (EP) has published a briefing, by the Economic Governance and Economic and Monetary Union (EMU) Scrutiny Unit (EGOV), titled: MiCAR versus the GENIUS Act. The briefing builds on, but differs from, the study requested by the EP’s Committee on Economic and Monetary Affairs (ECON) Cryptomercantilism vs. Monetary Sovereignty: Dealing with the Challenge of US Stablecoins for the EU, which analysed US stablecoins mainly from the perspective of monetary sovereignty, digital dollarisation and the then-draft Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). The present briefing updates the comparison in light of the adopted GENIUS Act and focuses more specifically on the regulatory architecture of Markets in Cryptoassets Regulation (MiCAR) and the GENIUS Act, including scope, classification, supervision, anti-money laundering/ counter-terrorist financing (AML/CFT), systemic risk and regulatory coordination.

The opinions expressed in this publication are those of the author(s) only and should not be considered as representative of the EP's official position. [25 Jun 2026] #MiCAR #GENIUSAct

ESMA calls on unauthorised cryptoasset service providers to wind down orderly, while also safeguarding clients’ interests, as MiCAR transitional period ends

The European Securities and Markets Authority (ESMA) has issued a statement to clarify expectations for how unauthorised cryptoasset service providers (CASPs) must wind down activities while also protecting investors after the end of the transitional period under the Markets in Cryptoassets Regulation (MiCAR) on 1 July 2026. In particular, unauthorised CASPs must:

• Immediately stop onboarding new EU clients, refrain from opening new client relationships or accounts, and cease marketing activities and solicitation.
• Limit the provision of services to actions necessary to sell or transfer cryptoassets, reallocate assets, or close positions. Custody of clients’ cryptoassets can only continue for the period strictly necessary to complete an orderly exit.
• Communicate clearly, promptly and repeatedly with clients (retail and institutional) about the measures taken to safeguard their assets and the wind-down plans so that clients know the timeline to dispose of, transfer, reallocate or close their positions. CASPs’ communications should include a deadline by which any residual positions would be closed automatically and information about client protection requirements. [24 Jun 2026] #Crypto #MiCAR

EIOPA publishes June 2026 Financial Stability Report

The European Insurance and Occupational Pensions Authority (EIOPA) has published its June 2026 Financial Stability Report, which assesses the resilience of the European insurance and occupational pensions sectors in a challenging economic and financial environment characterised by moderate growth, heightened geopolitical uncertainty and evolving structural risks. In addition to reviewing key developments in the sectors, the report also includes deep dives into the implications of geopolitical developments, private markets, AI and financial interconnectedness. [24 Jun 2026] #AI

EPC updates Guidelines on cryptographic algorithms usage and key management

The European Payments Council (EPC) has issued its yearly update of the Guidelines on cryptographic algorithms usage and key management. The document provides guidance to the European payments industry in the field of cryptographic algorithms, security protocols, confidentiality and integrity protection and related key management practices.

Relevant developments in cryptography since the publication of the previous version of these guidelines in March 2025, have been reflected in the changes; specifically, the information and considerations on post-quantum cryptography computing received a significant update. [24 Jun 2026] #Cryptography

ECON adopts position on the single currency package, including establishment of the digital euro

The European Parliament (EP) has announced that the Economic and Monetary Affairs Committee (ECON) adopted its position on the single currency package, consisting of three files, including the establishment of the digital euro. The digital euro would be a new, electronic form of money issued by the European Central Bank (ECB) and would work online and offline. Online payments would be processed through an account-based system, while offline payments would work directly via local storage devices. The offline functionality would be equivalent to using physical cash, as losing the device would mean losing the offline money with no refund possible.

The negotiating mandates for the three texts will be announced at the start of the July plenary session. The final legislation will have to be negotiated with the Council of the EU before coming into force. [23 Jun 2026] #DigitalEuro #Payments

Australia

ASIC extends no-action position for digital asset businesses to 30 September 2026

ASIC has announced that it is extending its sector-wide no-action position to 30 September 2026, giving digital asset firms providing financial services an additional three months to apply for or vary an Australian Financial Services (AFS) licence.

ASIC is also expanding the scope of its no-action position to include digital asset businesses:

• operating under, or entering into, authorised representative arrangements with an AFS licence holder; and
• operating under, or entering into, intermediary authorisation arrangements with an AFS licence holder.  [25 Jun 2026] #DigitalAssets

Hong Kong

SFC publishes 2025-26 annual report

The SFC has published its 2025-26 annual report, providing an overview of its work in the financial year ending 31 March 2026 and outlining its strategic priorities for the future.

The SFC's top four priorities for 2024-26 are:

• Maintaining market resilience and mitigating harm to markets – This focuses on keeping markets resilient against global challenges and heightened risks to financial stability, involving managing systemic risks and enhancing HKEX oversight, counteracting suspicious activities and investment scams, combatting misconduct of all forms, enhancing local and cross-border enforcement collaboration, and expanding surveillance and investigatory toolkits.  
• Enhancing Hong Kong’s global competitiveness and appeal – This centres on upholding Hong Kong's status as a hub for raising funds as well as asset management, via strengthening the competitiveness of Hong Kong's listing framework, enhancing stock market liquidity and efficiency, developing fixed income and currency markets, deepening Mainland and international market connectivity (such as through the mutual market access schemes), reinforcing Hong Kong's position as an asset and wealth management hub, building an offshore RMB and risk management hub, reforming the over-the-counter derivatives regime, enhancing local market infrastructure, and leading in international standard-setting efforts and regional cooperation.
• Leading market transformation through technology and ESG – This priority reflects the SFC’s goal in embracing both technology and sustainable finance in order to future-proof Hong Kong's financial markets, via enhancing the digital asset regulatory framework, facilitating investment product tokenisation, advancing Hong Kong's role as a sustainable finance hub, adopting global sustainability disclosure standards, and contributing to voluntary carbon market development.
• Enhancing institutional resilience and operational efficiency – The SFC pursues its own resilience and operating efficiency through prudent financial control and effective resource deployment, driving operational efficiency with technology, and maintaining a competent workforce.

The annual report also highlights the SFC’s key initiatives taken to implement the above priorities.  [24 Jun 2026] #OperationalResilience #DigitalAssets

HKMA publishes report to support adoption of AI in fighting financial crime

The HKMA has issued a circular to share its report "Supporting AI Adoption in Fighting Financial Crime", which forms part of its continuing work to support and accelerate the use of artificial intelligence (AI) to enhance authorised institutions’ monitoring and mitigation of money laundering and terrorist financing risks.

The report analyses (amongst other things):

• The approaches authorised institutions of different sizes are taking to deploy AI, featuring use cases from the first workshop organised in November 2025 as well as follow-up technical support sessions, covering dynamic risk assessment, facial watch lists, and corporate mule detection.
• The rapid developments being made in deploying AI to strengthen the effectiveness and efficiency of anti-money laundering and counter-financing of terrorism (AML/CFT) systems, including the increasing number of authorised institutions that are adopting or exploring a holistic approach to suspicious activity monitoring as part of an end-to-end transformation of their AML/CFT operating model.

The report also notes the emergence of agentic AI, which sees a shift from AI as a productivity tool to being a strategic intelligence partner.  The HKMA held a second workshop, targeting use cases involving agentic AI, on 23 June 2026 at the Hong Kong University of Science and Technology.

The HKMA notes that authorised institutions with significant operations in Hong Kong have already submitted implementation plans to the HKMA.  These plans should be kept under review and updates on progress and new use cases being explored should be reported to the HKMA when called for.  [22 Jun 2026] #AI

India

RBI: Amendments to framework on limiting customer liability in digital transactions

The RBI has published a set of directions amending the existing instructions on limiting liability of customers in unauthorised electronic banking transactions. The changes are intended to broaden the framework to additional categories of fraudulent electronic banking transactions, shorten banks’ complaint-handling times, and introduce compensation for small-value fraudulent electronic banking transactions. The directions will take effect from 1 January 2027.  [24 Jun 2026] #Payments

RBI consultation: Guidance on regulatory principles for model risk management

The RBI has published a consultation on draft guidance concerning regulatory principles for model risk management, which provides broad regulatory expectations across the model lifecycle. The guidance is applicable to all models used by regulated entities, including third-party models and models employing AI and machine learning. Responses are requested by 24 July 2026. [24 Jun 2026] #AI

US

Treasury concludes AI Innovation Series

In a press release, the US Treasury reported that the Office of the Financial Stability Oversight Council (FSOC) and the AI Transformation Office (AITO) held the fourth and final roundtable of the AI Innovation Series on 19 May 2026.

The Treasury relates that the series convened a variety of financial institutions, technology firms, and regulators to discuss high-value AI use cases, practical approaches to scaling innovation, and regulatory impediments to adoption. Participants highlighted AI's potential to support financial stability, drive economic growth, enhance productivity, and combat increasingly sophisticated cyber-attacks, fraud, and financial crimes, while emphasising the need for governance and regulatory frameworks to evolve alongside rapid technological change. There were also calls for greater regulatory clarity and harmonisation and continued public-private engagement to support responsible innovation.

The series supports the Treasury's implementation of Executive Order 14179 on removing barriers to American leadership in AI. Insights from the roundtables will inform the Treasury's and the FSOC's ongoing efforts to ensure that regulatory policy encourages innovation, enhances financial stability, and maintains U.S. leadership globally. [June 24, 2026] #AI