FinTech Global FS Regulatory Round-up - W/e 1 May 2026

ICYMI

• New UK cryptoasset regime: HM Treasury proposes amendments to Cryptoasset Regulations
• Cyber Resilience Act: Commission clarifies “important” and “critical” product categories

Global

FSI brief: Digitalisation and innovation – opportunities and risks for financial health

The Financial Stability Institute (FSI) at the Bank of International Settlements (BIS) has published a brief which outlines opportunities created by digital technologies to improve financial health in five areas: payments; credit; savings and investment; insurance; and combating fraud and scams. It also considers risks arising from digital innovation including new avenues for fraud and scams, overindebtedness and ill-suited investment products. In addition, the paper sets out policy considerations for both measuring and enhancing financial health in light of recent digital innovations.

The views expressed in the publication are those of the authors and do not necessarily reflect the views of the BIS, its member central banks or the Basel-based standard-setting bodies. [29 Apr 2026] #Payments

UK

FCA publishes independent assessment report on future open banking standards-setting body

The FCA has published an independent assessment report prepared by KPMG on proposals to lead the establishment of a future open banking standards-setting body. This independent assessment was commissioned to support decision making at a time when industry is leading the development of arrangements for a standards-setting body capable of becoming the Future Entity (FE), subject to any future legislative framework. In the coming weeks, the FCA will publish an additional report, setting out considerations relevant to how the FE could be operationalised. [1 May 2026] #OpenBanking #OpenFinance

FCA sets out guidance to support innovation in fund tokenisation

The FCA has published Policy Statement 26/7: Progressing fund tokenisation (PS26/7), in which the regulator sets out guidance on how authorised fund managers can employ distributed ledger technology (DLT) within the current regulatory framework. This includes use of the industry-led Blueprint model for tokenised funds, and more advanced use-cases. PS26/7 also sets out:

• New rules to streamline fund dealing, through an optional Direct to Fund (D2F) model. This allows investors to transact directly with the fund itself, regardless of whether it is a traditional or tokenised structure.
• How fund tokenisation could develop over time as part of the FCA's roadmap for digital assets.

The FCA's new rules for direct dealing in authorised funds are optional; firms should decide when to adopt them for new or existing schemes.

The regulator has added Handbook guidance for fund managers wishing to keep the unitholder register on DLT, which firms should consider when launching a tokenised authorised fund.

The new rules and guidance take effect immediately. [30 Apr 2026] #Tokenisation #DLT

FCA: Cryptoasset firms can request pre-application meetings from 11 May 2026

The FCA has announced that from 11 May 2026, cryptoasset firms preparing for the new Financial Services and Markets Act 2000 (FSMA) regime will be able to request a pre-application meeting with the regulator. Pre-application meetings are free of charge and give firms the opportunity to discuss their plans with the FCA and ask questions before submitting an application for authorisation or variation of existing permissions. The pre-application meetings will take place from July 2026 but the regulator will schedule them as requests come in. The authorisation gateway will open on 30 September 2026 and the new regime will commence 25 October 2027.

The FCA has also published a webpage: What you need to do when preparing for the new cryptoasset regulatory regime. The FCA will continue to support firms who want to apply for cryptoasset authorisation. This support will include:

• data requests, to help the FCA understand the applicant's business and how it is organised;
• direct engagement with registered firms to understand their preparations for authorisation and help you understand FCA's expectations;
• the FCA will take information provided to it into account in the application process; and
• targeted support, such as the Pre-Application Support Service, to help businesses understand the authorisation process. [30 Apr 2026] #Crypto

Courts and Tribunals Judiciary: Chancellor of the High Court on AI

The Courts and Tribunals Judiciary has published a speech by Sir Colin Birss, Chancellor of the High Court, at a City of London Law Society event. In the speech, Sir Colin discusses: the Judicial Guidance on the use of AI; the secure AI systems that His Majesty's Courts and Tribunal Services (HCMTS) and the Ministry of Justice (MOJ) may use; and legal professional privilege and AI. [27 Apr 2026] #AI

Australia

APRA calls for a step-change in managing AI-related risks

APRA has published a letter to industry calling for a step-change in how banks, insurers and superannuation trustees manage and govern AI-related risks.

The letter sets out APRA’s findings from its targeted supervisory review in 2025. The review found that governance, risk management and assurance practices are not keeping pace with the rapid adoption of AI across the sector – and that gap is creating real prudential risk. Key concerns identified are:

• governance lagging adoption: entities are moving from internal experimentation to customer-facing AI applications without appropriately matured governance arrangements. Boards are particularly underprepared, with many lacking the technical literacy to effectively challenge management on AI-related risks and an over-reliance on vendor presentations rather than independent scrutiny;
• cybersecurity under strain: AI is expanding attack pathways and shortening attack cycles, while information security systems and patching timelines are struggling to keep up; and
• multi-faceted risk: AI risks can cut across operational resilience, cyber and information security, privacy, and procurement, but existing assurance frameworks are fragmented and not fit for purpose.

APRA confirmed it is not proposing to introduce additional requirements at this stage but expects significant improvement in how entities are closing the gap between the power of the technology they are deploying and their ability to monitor and control it. In particular, APRA expects boards to be AI-literate and oversee an AI strategy supported by effective monitoring and reporting. To this end, APRA has set out detailed observations and expectations for accountable executives in the letter. [30 Apr 2026] #AI

Hong Kong

HKMA and banking sector introduce new round of measures to support SMEs

The HKMA, together with the banking sector, has introduced a new round of support measures following a meeting of the Taskforce on SME Lending (Taskforce). In light of heightened global economic uncertainties, including significant fluctuations in international oil prices , the measures are intended to assist local small and medium-sized enterprises (SMEs) in accessing bank financing, strengthening business resilience, and accelerating upgrade and transformation. One area of focus is deepening the use of fintech and data to assist SMEs in obtaining bank financing. Included in the measures is that participating banks are committed to further leveraging fintech and data to optimise the SME loan approval process. All major banks with material trade finance business will actively participate in the Cargo^x Pilot Programme launched by the HKMA (see our previous update) to conduct credit risk assessments of SMEs more effectively.

Since 2024, the HKMA and the banking sector have launched three rounds of SME support measures to help SMEs across different industries address external uncertainties and economic transformation challenges. Most recently, sector-specific measures were introduced in April 2025 (see our previous update). [29 Apr 2026] #Digitalisation #Payments

SFC launches Rednote account to strengthen public outreach and education, particularly in relation to scams

The SFC has announced the launch of its official account on Rednote (also known as 'Xiaohongshu'), to share key updates on its regulatory work as well as timely investor alerts, reaching a broader demographic of investors of the Hong Kong market. It serves as a strategic addition complementing the SFC’s existing social media presence on other platforms, including LinkedIn, Facebook, WeChat, Instagram and YouTube.

This new channel will be an added tool to support the SFC’s existing multi-faceted investor education efforts, which are increasingly critical given the rising complexity and volume of investment scam complaints reported to the SFC. [29 Apr 2026] #SocialMedia

HKMA publishes presentation materials for upcoming briefing to LegCo Panel on Financial Affairs on 4 May 2026

The HKMA has published presentation materials for its upcoming briefing to the Legislative Council (LegCo) Panel on Financial Affairs on 4 May 2026. The developments covered include (among others):

• An enhanced bank-to-bank information-sharing platform for anti-money laundering (AML) and countering the financing of terrorism (CFT) covering all 28 retail banks is expected to be launched by June 2026 (slide 57). 
• The HKMA launched an industry consultation in late 2025 on the proposed approach for handling customer claims for losses arising from authorised payment scams, and is reviewing comments received from the Hong Kong Association of Banks. The HKMA will continue engaging the banking industry to develop a reasonable and balanced approach (slide 61).
• On 20 March 2026, the HKMA commenced an industry consultation on four circulars relating to intermediaries’ virtual asset (VA)-related activities, authorised institutions’ relevant stablecoin-related activities and provision of custodial services for digital assets, and offering of financing for VA dealing, shared order book, and client VA withdrawals.
• CMU OmniClear Limited has launched and planned for initiatives on various fronts, including post-trade equity servicing, studying a one-stop multi-asset class post-trade securities infrastructure to cover Mainland and Hong Kong equity and debt securities, building overseas linkages, launching a Digital Asset Platform this year to support the issuance and settlement of digital bonds (to be gradually expanded to other digital assets and linked with other tokenisation platforms in the region), and launching the CMU New Platform in 2027 (slide 69).
• Fintech 2030 will focus on data and payment, AI, resilience, and tokenisation, with a portfolio of over 40 initiatives (slide 70).
• The Ensemble^TX pilot environment will be progressively upgraded and enhanced to support settlement of tokenised deposits in tokenised central bank money on a 24/7 basis. The HKMA will continue to collaborate with the industry to advance the practical applications of tokenisation technology across a perse set of asset classes, use cases, and sectors within the financial industry (slide 70).
• The HKMA is advancing the implementation of the Project Cargo^X recommendations and roadmap published in January 2026 (slide 71).
• The HKMA is supporting digitalisation of B2B trade documents, with a legislative proposal expected later in 2026, and policy enhancements for corporate treasury centres expected in mid-2026 (slide 78).
• The HKMA has continued to develop the bond market with various initiatives, including a target to publish guidelines in the first half of 2026 to clarify that registers of debenture holders can be kept in the form of a distributed ledger (slide 80).
• The HKMA has granted two licences under the new Stablecoin Ordinance and will follow up on the licensees' progress on operational arrangements to ensure that they commence business orderly and in compliance with the rules (slide 85). [24 Apr 2026] #AML #CFT #Payments #VirtualAssets #DigitalAssets #Stablecoins #DigitalBonds #Tokenisation #AI #Data #Digitalisation #DLT

Philippines

SECP outlines direction for responsible digital lending

The SECP has published a speech by its Commissioner Javey Paul D. Francisco at the 44th National Credit Congress of the Credit Management Association of the Philippines. Commissioner Francisco emphasised that while digital transformation has expanded access to credit, it has also introduced structural risks that require a shift in regulatory approach. He stated that the SECP is therefore advancing a transition from reactive enforcement to a more preventive and system-level regulatory model through the proposed online lending platform (OLP) guidelines. The framework aims to establish structured market entry, strengthen platform-level oversight, embed conduct standards within operations, and enforce clear rules on data governance and consumer protection.

Looking ahead, Commissioner Francisco underscored the importance of governance in shaping the future of credit, especially as AI and data-driven systems become more deeply embedded in lending practices. [28 Apr 2026] #AI

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.