FinTech Global FS Regulatory Round-up - W/e 27 February 2026

In this edition we round up FinTech-related financial services regulatory developments for the week ending 27 February 2026.

ICYMI

• Cross Examining Cyber EP23: Cross Examining Professor Ciaran Martin – Part 2

Global

CPMI: Harmonised ISO 20022 data requirements for enhancing cross-border payments - updated report

The Committee on Payments and Market Infrastructure (CPMI) has published its updated report on Harmonised ISO 20022 data requirements for enhancing cross-border payments. The updated version of the report takes into account standardisation and regulatory developments since 2023, provides clarification where market participants had sought further guidance, and sets out the updated and expanded data model in a separate technical annex. [26 Feb 2026] #Payments

BCBS meeting: Recent market developments and targeted review of cryptoasset standard

The BCBS has published a summary of its virtual meeting held on 24 and 25 February 2026 to discuss a range of initiatives. Members discussed vulnerabilities in government bond-backed repo markets as well the progress of a targeted review of the prudential standard for banks' cryptoasset exposures. An update on the latter is expected be provided later in 2026. The BCBS also confirmed that that the next International Conference of Banking Supervisors (ICBS) will be hosted by Bank Indonesia and the Indonesian Financial Services Authority in Indonesia from 30 September to 1 October 2026. [26 Feb 2026] #Crypto #DigitalAsset

UK

PSR: Draft survey questionnaire on cross border interchange fees

The Payment Systems Regulator (PSR) has published a draft survey questionnaire for gathering data on UK merchants' costs for processing online payments from the European Economic Area (EEA) when using cards or alternative payment methods.

The PSR will use the results of the survey, together with other data, to undertake a merchant indifference test, which will form part of its assessment of the appropriate level for cross-border interchange fees for these types of transactions.

Comments on the draft questionnaire are requested by 5 March 2026. [27 Feb 2026] #Payments

HM Treasury/BoE/FCA/PSR: Payments Forward Plan

The Payments Vision Delivery Committee – comprised of HM Treasury, the Bank of England (BoE), the FCA and the Payment Systems Regulator (PSR) – has published the Payments Forward Plan, which sets out a regulatory roadmap for the payments sector over the next three years.

The publication outlines planned payments-related initiatives being delivered by the Government and the regulators and sets out how each initiative supports delivery of the National Payments Vision (NPV). The programme of work will also have an impact beyond payments. In particular, the FCA will continue to consider potential interoperability between Open Banking and other smart data schemes, given the Government's intention for the Open Banking framework to lay the foundations for Open Finance.

While the Plan captures a wide range of initiatives which are relevant to payments and seeks to provide clarity on key milestones, it is not exhaustive and timings remain subject to change. Going forward, the Committee has agreed to add an enhanced focus on payments to the Regulatory Initiatives Grid in its first 2027 publication.

The FCA has also released a statement regarding the Plan. [26 Feb 2026] #Payments #PaymentsForwardPlan

BoE publishes PS to extend CHAPS settlement hours

The Bank of England (BoE) has published the policy statement (PS) which sets out the decision to extend Clearing House Automated Payment System (CHAPS) settlement hours by moving the start of settlement from 06:00 to 01:30. The BoE's intention is to put this early morning extension in place in September 2027, subject to final confirmation of the planned timelines with impacted CHAPS direct participants. This decision follows the BoE's July 2025 consultation paper (CP) on extending settlement hours.

Based on the feedback received, however, the BoE will not progress the proposal for an extension to the evening contingency window further at this stage.

In Spring 2026, the BoE aims to publish a CP that will explore further the potential for the near 24x7 extension of Real Time Gross Settlement (RTGS)/CHAPS settlement hours, discussing the opportunities, challenges and use cases of near 24x7 settlement and the steps needed to achieve it. [24 Feb 2026] #Payments

FCA: Influencers sentenced for unauthorised financial promotions

The FCA has reported that seven social media influencers were sentenced at Southwark Crown Court for their role in the promotion of an unauthorised foreign exchange trading scheme. All of the individuals pleaded guilty to one count of issuing unauthorised financial promotions. Five were fined, one received a conditional discharge, and one an absolute discharge. Each was ordered to pay costs. [23 Feb 2026] #SocialMedia

Europe

ESMA publishes new Q&As – MiCAR

The European Securities and Markets Authority (ESMA) has published or updated the following questions and answers (Q&As) in relation to the Markets in Cryptoassets Regulation (MiCAR):

• Clarification on Withdrawal Requirements under Article 75 of MiCAR for cryptoasset service providers (CASPs)
• Calculation of fixed overheads
• Interests earned from client funds deposited at credit institutions
• Payouts in fiat currency by CASPs in the context of exchange services
• Overlap between offers of cryptoassets and placing
• Application of Title II requirements to CASPs operating a trading platform for crypto-assets #Crypto #DigitalAsset #MiCAR

ESMA: Supervisory briefing on algorithmic trading in EU

ESMA has published a supervisory briefing designed to support consistent supervision of algorithmic trading across the EU. The briefing provides national competent authorities (NCAs) with practical tools and clarified expectations for supervising firms engaged in algorithmic trading under the Markets in Financial Instruments Directive (MiFID II). It focuses on key areas where supervisory practices have diverged, including pre-trade controls, governance arrangements, testing frameworks and outsourcing of algorithmic trading systems. The briefing also touches upon emerging technological developments, outlining considerations for the use of AI.

The briefing is a non-binding convergence tool intended to complement existing requirements. [26 Feb 2026] #AI

ESMA reminds firms of their obligations under CFD product intervention measures amid rising offerings of perpetual futures

ESMA has issued a statement reminding firms of their obligation to assess whether newly offered products fall within the scope of existing product intervention measures on contracts for differences (CFDs).

The statement responds to the increased offering of derivatives, often marketed as perpetual futures or perpetual contracts, that provide leveraged exposure to underlying values, including cryptoassets such as Bitcoin. These financial instruments are likely to fall within the scope of the existing national product intervention measures on CFDs adopted by national competent authorities (NCAs). [24 Feb 2026] #Crypto #DigitalAsset

EBA: Peer review follow-up report on ICT risk assessment under SREP

The EBA has published a follow-up report to its 2022 peer review on ICT risk assessment under the supervisory review and evaluation process (SREP). The report finds that competent authorities have made notable progress in strengthening ICT risk assessment, driven largely by the implementation of the Digital Operational Resilience Act (DORA). However, it highlights that further work and continued investment remain necessary to ensure consistent and effective ICT risk supervision across the EU.

The follow-up exercise reviewed the recommendations issued to competent authorities in 2022, including a targeted follow-up on relevant benchmarking questions. It assessed progress in light of the application of DORA since January 2025, and the forthcoming integration of the ICT SREP guidelines into the revised SREP guidelines, a key recommendation of the 2022 report. [23 Feb 2026] #DORA #ICT

ECON report: Digital assets – challenges for competitiveness and integrity of EU's financial system

The European Parliament Committee on Economic and Monetary Affairs (ECON) has published a draft report on the impact of the emergence of digital assets on the financial services sector and what that means for the regulatory framework. The report:

• supports the long-term aim of a system-wide, activity-based and technologically neutral approach for the EU regulatory framework for financial services;
• emphasises that the emergence of new technologies poses new challenges for the regulatory and supervisory framework; and
• underlines the potential innovation and connectivity capabilities of cryptographically secured distributed ledgers and similar technologies for financial services infrastructure, both within the EU and for the EU's global role. [23 Feb 2026] #DigitalAsset #Crypto

Hong Kong

Financial Secretary delivers 2026-27 Budget Speech outlining initiatives to drive high-quality and inclusive growth with innovation and finance

In his 2026-27 Budget Speech, Hong Kong's Financial Secretary, Mr Paul Chan, outlined key initiatives aimed at driving high-quality and inclusive growth with innovation and finance. Highlights and further information on the Budget can be found here and here. The key initiatives relating to financial services include (among others):

International innovation and technology hub

• The HKMA and Cyberport have recently commenced trials for the second cohort of sandbox, focusing on 'AI vs AI' strategies for promoting secure and responsible AI application in the banking sector.

Bond market

• An electronic bond-trading platform will be launched in the second half of 2026.
• The Government will continue issuing tokenised bonds on a regular basis, and the HKMA will encourage more digital bond issuances through the Digital Bond Grant Scheme.

Fintech and financial infrastructure

• The Government will introduce a bill in 2026 to establish licensing regimes for, among others, digital asset dealing and custodian service providers.
• The HKMA will issue its first batch of licences to issuers of fiat-referenced stablecoins in March 2026.
• The SFC will further enhance the liquidity of Hong Kong's digital asset market and facilitate the offering of more products and services to professional investors, as well as set up an accelerator to expedite market innovation.
• The Government will provide guidelines to clarify that registers of debenture holders can be kept in the form of a distributed ledger, and explore the adoption of electronic signatures for bond issuance documents and the digitalisation of bearer bonds.
• The Government will amend the Inland Revenue Ordinance to implement the Crypto-Asset Reporting Framework and the amended Common Reporting Standard by the Organisation for Economic Co-operation and Development, and introduce an amendment bill in the first half of 2026.
• The Government will explore offering tax incentives for eligible institutions conducting gold trading and settlement in Hong Kong, assist the industry in setting up an industry-led trade association to consolidate resources, step up promotion, and foster ties with industry stakeholders globally.

The SFC, the Insurance Authority, and the Accounting and Financial Reporting Council have announced their support for the measures announced by Mr Chan. [25 Feb 2026] #AI #DigitalAsset #Stablecoin #Crypto

India

SEBI: Disclosure of registered name and registration number by regulated entities and their agents on social media

SEBI has published a circular on the disclosure of registered name and registration number by SEBI regulated entities and their agents on social media platforms.

The provisions of this circular shall come into effect from 1 May 2026 for all contents uploaded from the effective date. [26 Feb 2026] #SocialMedia

US

Fed Vice Chair for Supervision testifies before the Senate Banking Committee

The Federal Reserve (Fed) has published the testimony delivered by Vice Chair for Supervision Michelle W. Bowman before the Senate Committee on Banking, Housing, and Urban Affairs. Ms Bowman covered both banking conditions and her priorities as Vice Chair for Supervision. Her remarks included:

• The Fed is working with other banking regulators to develop regulations for stablecoin issuers as required by the GENIUS Act.
• The Fed will also provide clarity on the treatment of digital assets "to ensure that the banking system is well placed to support digital asset activities." [Feb 26, 2026] #DigitalAsset #Stablecoin #GENIUS

OCC consults on GENIUS Act implementation

The Office of the Comptroller of the Currency (OCC) has issued a proposed rulemaking to implement the GENIUS Act. The OCC has set out the proposed regulations that would apply to permitted payment stablecoin issuers and foreign payment stablecoin issuers under the OCC's jurisdiction as well as certain custody activities conducted by OCC-supervised entities.

Feedback is requested within 60 days of publication in the Federal Register. [Feb 25, 2026] #DigitalAsset #Stablecoin #GENIUS

Treasury releases new resources to guide AI use in financial sector

The U.S. Department of the Treasury has released a shared AI Lexicon and the Financial Services AI Risk Management Framework (FS AI RMF); these two new resources aim to guide AI use in the financial sector and are issued in support of President Trump's AI Action Plan.

The AI Lexicon defines key AI-related terms based on definitions from various industry standards and government resources, covering aspects ranging from risk management to contracts negotiation. It includes common risk management and technical terminology with a focus on frequently used terms that have a specific meaning in the context of AI use in the financial sector.

The FS AI RMF consists of four elements: an AI Adoption Stage Questionnaire; a Risk and Control Matrix; a User Guidebook; and a Control Objective Reference Guide. It is designed as a complement to existing frameworks. [Feb 19, 2026] #AI

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