FinTech Global FS Regulatory Round-up - w/e 9 May 2025

ICYMI

• UK cryptoassets regime: the draft rules have landed
• Hong Kong's SFC and HKMA advance virtual asset ecosystem with new staking services guidance for virtual asset trading platforms, banks and authorised virtual asset funds

Global

BISIH: 2025 Global TechSprint

The Bank for International Settlements Innovation Hub (BISIH) and South African Reserve Bank (SARB), under the G20 Presidency, have jointly launched the 2025 edition of the Global TechSprint competition with the theme 'trust and integrity in scalable and open finance'. The sixth edition of the G20 TechSprint invites developers from around the world to build innovative solutions for verifiable digital identity, consumer-consented credit data portability and fraud and cyber risk mitigation.

The last date to submit proposals is 20 June 2025; winners will be chosen in November 2025. [6 May 2025] #Data #OpenFinance

UK

FCA: David Geale appointed executive director for payments and digital finance

The FCA has announced that it has appointed David Geale as permanent Executive Director for Payments and Digital Finance, and Managing Director of the Payment Systems Regulator (PSR). In this role Mr Geale will be responsible for helping to deliver the National Payments Vision (NPV) and driving the FCA’s work on open banking and digital finance. Mr Geale has been acting as the Managing Director of the PSR since June 2024 and was previously Director of Retail Banking at the FCA. [8 May 2025] #Payments #OpenBanking

PSR revokes Specific Directions 3 and 3a

The Payment Systems Regulator (PSR) has decided to revoke Specific Directions 3 and 3a (competitive procurement of central infrastructure). Specific Direction 3 imposed requirements on the operator of the Faster Payments Scheme (FPS), in particular that contracts for central infrastructure services had to be competitively procured. SD3a varied those requirements. The revocations will take effect on 21 May 2025. [8 May 2025]  #Payments 

BoE speech: International payment rails – the value of a harmonised gauge

The Bank of England (BoE) has published a speech by its Deputy Governor for Financial Stability Sarah Breeden at the Point Zero Forum 2025. Ms Breeden spoke about how the digitalisation of money and assets is impacting BoE objectives and why the BoE is so focused on interoperability. She also discussed next steps for the UK stablecoin regime and emphasised the importance of working across borders. [6 May 2025] #CBDC #Stablecoins #Payments

Europe

ECB: Digital euro innovation platform

The European Central Bank (ECB) has announced that it has established an innovation platform to collaborate with European stakeholders in the context of the digital euro project. The innovation platform simulates the envisaged digital euro ecosystem, in which the ECB provides the technical support and infrastructure for European intermediaries to develop innovative digital payment features and services at the European level.

Participants include merchants, fintech companies, start-ups, banks and other payment service providers (PSPs). There are two workstreams – 'pioneers' (who will be will be exploring how to integrate the simulated digital euro interfaces with their platforms) and 'visionaries' (who will be conducting research into new digital euro use cases and how they could help address societal challenges, such as digital financial inclusion).

Findings from both workstreams will be published by the ECB in a report later in 2025. [6 May 2025] #DigitalEuro

Hong Kong

Pre-trial review fixed for prosecution of finfluencer for unlicensed advising on securities

The SFC has announced that the Eastern Magistrates’ Court has set down 24 July 2025 for a pre-trial review of the prosecution against Mr Chau Pak Yin (previously known as Chau Kin Hei), a financial influencer (finfluencer) after he pleaded not guilty to advising on securities without a licence under the Securities and Futures Ordinance.

The SFC alleged that between 16 April and 14 May 2021, Mr Chau carried on a business of advising on securities in Hong Kong (by hosting a chat group on Telegram) without an SFC licence and without reasonable excuse.  [8 May 2025] #Finfluencers

SFC senior executives visit Abu Dhabi and Dubai to promote collaboration on virtual assets

The SFC's Executive Director of Intermediaries, Dr Eric Yip, and Director of Intermediaries & Head of Fintech unit, Ms Elizabeth Wong, met with regulatory counterparts and the Web 3 industry in Abu Dhabi and Dubai of the United Arab Emirates (UAE) during the week commencing 28 April 2025 to exchange virtual asset-related insights and experiences.  The meetings align with the SFC's broader policy to deepen its overseas networks and explore collaborative cross-border opportunities.

The regulatory counterparts included senior executives of the Securities and Commodities Authority of the UAE, the Financial Services Regulatory Authority of the Abu Dhabi Global Market, the Dubai Financial Services Authority, and the Virtual Assets Regulatory Authority of Dubai.  The parties discussed evolving approaches to regulation of virtual assets and experience in supervising firms operating in the sector, in line with the SFC’s objective of promoting fit-for-purpose policymaking under the ASPIRe roadmap (see our previous update).

In meetings with the Web3 industry, leading stakeholders stressed the need for regulatory clarity and consistency to support the industry’s development, highlighting the importance of balanced regulation that supports growth and mitigates systemic vulnerabilities.  [6 May 2025] #VirtualAssets #Crypto

Malaysia

SCM consults on proposed framework for tokenised capital market products

The Securities Commission Malaysia (SCM) has published a consultation paper on a proposed framework for tokenised capital market products. The proposed framework seeks to enable the broader exploration of distributed ledger technology (DLT) in capital markets, particularly use cases that enable programmable assets, fractional ownership, improved transparency and efficiency in record keeping, while ensuring investors’ protection. Key areas for feedback include:

• additional obligations – including enhanced disclosure requirements, governance controls and record and registry requirements;
• technology risk management – compliance with the SCM’s Guidelines on Technology Risk Management; and
• additional requirements for licensed persons dealing in tokenised capital market products.

Responses are requested by 16 June 2025. [6 May 2025] #Tokenisation

US

OCC: Acting Comptroller outlines agency priorities

Acting Comptroller of the Currency Rodney E. Hood has addressed the Building Societies Annual Conference in Birmingham, England on the priorities of the Office of the Comptroller of the Currency (OCC).

In his remarks, Acting Comptroller Hood highlighted the OCC’s work to reduce regulatory burden, improve financial inclusion, support innovations in financial technology, and facilitate digital assets in the federal banking system. He also emphasized that banks and other financial institutions have a role in expanding economic opportunity, fostering trust, and building stronger, more inclusive communities. [8 May 2025] #DigitalAssets

OCC clarifies permissible bank activities related to crypto custody and execution

The OCC has published Interpretive Letter 1184 which clarifies permissible bank activities related to crypto custody and execution services.

The OCC confirms that that national banks and federal savings associations may buy and sell assets held in custody at the customer’s direction and are permitted to outsource to third parties bank-permissible crypto activities, including custody and execution services, subject to appropriate third-party risk management practices.

The OCC notes that, as with any activity, a bank must conduct these activities in a safe and sound manner and in compliance with applicable law.

This latest letter follows on from Interpretative letter 1183 issued in March 2025 which addressed certain crypto activities and rescinded a previous Interpretative Letter 1179 issued in November 2021.  [7 May 2025] #Crypto

SEC announces agenda and panellists for next crypto roundtable

The Securities and Exchange Commission’s (SEC's) Crypto Task Force has announced the agenda and panelists for its May 12 roundtable, “Tokenization — Moving Assets Onchain: Where TradFi and DeFi Meet.” The roundtable, which is part of a series, will be held at the SEC's headquarters in Washington, D.C. The event will be open to the public and webcast live on the SEC’s website.

In addition, the SEC also announced that the date for the Crypto Task Force’s roundtable, “DeFi and the American Spirit,” has been changed from June 6 to June 9. [5 May 2025] #Crypto #Tokenisation #TradFi #DeFi

OCC issues RFI on community bank digitalization

The OCC has issued a request for information (RFI) on the key challenges and barriers faced by community banks in the adoption and implementation of digital banking solutions. The RFI will help the OCC better understand the specific obstacles that community banks encounter in their efforts to modernize operations, enhance customer experience, and remain competitive in an increasingly digital financial services environment.

The RFI includes questions on:

• Planning for digitalization;
• Boards and governance;
• Due diligence and implementation;
• Digitalization costs and budget;
• Use of third parties;
• Competition and market trends;
• Use of AI and machine learning;
• Effect of applicable laws and regulations;
• Associated risks; and
• Data sharing. 

Responses to the RFI will be accepted for 45 days following publication in the Federal Register. [5 May 2025] #DigitalBanking #OpRes