Asia Fintech and Payments Regulatory Update: August 2025
Hong Kong SAR
Fintech
New HKMA stablecoin regulatory regime now in effect: The new stablecoin regulatory regime has taken effect on 1 August 2025. The Hong Kong Monetary Authority (HKMA) has published the final version of two consultation papers, the Consultation conclusions on the Guideline on Supervision of Licensed Stablecoin Issuers and the finalised Guideline, alongside the Consultation conclusions on the Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Licensed Stablecoin Issuers) and the finalised Guideline. Those interested in applying for a licence should contact the HKMA by 31 August 2025. Meanwhile, the HKMA Chief Executive, Eddie Yue, has announced that they will grant only a handful of stablecoin issuer licences at the start, however, the HKMA did also publicise the publication of its Explanatory Note on Licensing of Stablecoin Issuers on elements of the licensing regime and application process, as well as guidance on transitional arrangements. Read more in our blog post.
New cryptoassets capital standards rules: Following an industry consultation earlier this year, the capital standards, disclosure and exposure limits in relation to the prudential treatment of cryptoasset exposures promulgated by the Basel Committee on Banking Supervision have been implemented through the Banking (Capital) (Amendment) Rules 2025, Banking (Disclosure) (Amendment) Rules 2025, and Banking (Exposure Limits) (Amendment) Rules 2025. The new rules are expected to come into force on 1 January 2026.
Fintech Maturity Stock-take 2025: The HKMA has published its report detailing the key observations from the Tech Maturity Stock-take exercise which it recently concluded. Since the previous assessment in 2022, overall Fintech adoption and maturity in Hong Kong’s banking sector have advanced rapidly. Regtech leads the way, reaching near-universal adoption at 97 percent (up from 83 percent in 2022), while AI adoption rose to 75 percent (from 59 percent), while Distributed Ledger Technology (DLT) reached 45 percent (from 30 percent). Wealthtech, Insurtech, and Greentech have also shown significant improvements. AI and DLT are singled out as transformative drivers for future Fintech applications.
Mainland China
Payments
PBOC releases its draft revisions to the Measures for the Administration of the Categorisation and Rating of Non-bank Payment Institutions for public consultation: The People’s Bank of China (PBOC) has released its draft revisions to the Measures for the Administration of the Categorisation and Rating of Non-bank Payment Institutions for public consultation, which ends on 17 August 2025. Originally introduced in 2016, the Measures are now being updated to refine and bring the requirements of the Regulations on the Supervision and Administration of Non-bank Payment Institutions – one of the cornerstone pieces of legislation for non-bank payment institutions in China – into practical effect. The revised Measures clarify how each rating corresponds to a payment institution’s operating status and risk profile, and what the corresponding regulatory measures will be.
Data and cyber
CAC requires reporting of DPO details: On 18 July 2025, the Cyberspace Administration of China (CAC) issued a notice requiring certain personal information processors to report details of their designated personal information protection officer (DPO). This development implements existing requirements under China’s Personal Information Protection Law, and applies to processors handling the personal information of over one million individuals. A governmental online system has been launched to facilitate these submissions. Organisations that already meet the threshold must report their DPO's information by 29 August 2025, while others must do so within 30 business days of reaching the threshold. Read more in our newsletter.
Singapore
Payments
Consultation paper on roadmap to sunset corporate cheques and introduction of alternative payment methods: The Monetary Authority of Singapore (MAS) had previously committed to phasing out corporate cheques, as part of its broader strategy to modernise Singapore’s payment landscape. It had issued a consultation paper in December 2024 on its planned initiatives to (i) phase out SGD corporate cheques and launch the Electronic Deferred Payment solution for post-dated payments, and (ii) sunset the current Cheque Truncation System and replace it with an alternative cloud-based system. On 31 July 2025, the MAS published its response to the consultation paper, setting out further details on the initiatives. The publication is particularly relevant to (i) banks who offer cheque processing services to clients, as the MAS provides details on the phase-out and changes to these services and (ii) the payments industry in general, as the MAS emphasises the importance of developing cost-effective payment alternatives, including its EDP and EDP+ solutions. Read more in our blog post.
Data and AI
MAS Pathfinder Programme: PathFin.ai: The MAS has launched an initiative with the financial industry, to foster knowledge exchange in AI solutions. PathFin.ai curates a library of proven AI solutions and implementation best practices among financial institutions. Interested financial institutions and AI solution providers can register their interest in the initiative. By centralising these resources and insights, the programme aims to reduce the time and effort required for financial institutions to search for, select, and effectively implement AI solutions.
AI governance not-for-profit launches in Singapore: The Global Council for Responsible AI (GCRAI) – a US-based not-for-profit body that promotes the ethical and responsible use and development of AI – is opening a new chapter in Singapore, which will be its first in Southeast Asia (GRCAI has 15 local chapters in other jurisdictions). Reportedly it already has several initiatives it intends to focus on, including a collaboration with the Infocomm Media Development Authority’s AI Verify Foundation to develop tools to detect ‘inauthentic content’ as well as proposing new AI governance certifications to help financial institutions identify and correct bias in AI-powered loan approval systems.
Digital Assets
Guardian FX workstream: The Guardian Foreign Exchange Industry Group has published a report on the use of tokenised bank liabilities for transaction banking. The report provides an overview of the potential applications of shared ledgers and tokenised bank liabilities used in transaction banking, and expands on design, operational and risk considerations. In this connection, the paper focuses on two pain points identified by workstream participants, and showcases Project Guardian use cases that have been designed to consider and/or address these pain points.
The MAS takes regulatory action against financial institutions for AML-related breaches: The MAS has published enforcement actions against nine financial institutions and a number of individuals, relating to the S$3 billion money laundering scandal of August 2023. Among the S$2.79 billion worth of assets recovered, S$39 million were virtual assets. The MAS identified shortcomings in the areas of: (i) customer risk assessment; (ii) establishing and corroborating the source of wealth for higher-risk customers; (iii) transaction monitoring; and (iv) post-suspicious transaction report follow-up. The MAS imposed composition penalties totalling S$27.45 million on the nine financial institutions, issued prohibition orders and reprimands to certain personnel involved.
Public feedback on AML related amendments: Singapore's Ministry of Finance (MOF) and the Accounting and Corporate Regulatory Authority (ACRA) have proposed amendments to corporate and accounting legislation which are aimed at strengthening the anti-money laundering regime. Key changes include disqualifying individuals convicted of certain money laundering offences from serving as company directors, streamlining the deregistration process for inactive companies to prevent misuse, and updating definitions in the Accountants Act 2004 to include proliferation financing (i.e. in addition to money laundering and terrorism financing). These amendments follow Singapore’s largest money laundering case in 2023 which involved more than S$3 billion in frozen assets. The public consultation closed on 31 July.
Digital Finance
UK and Singapore strengthened collaboration in digital finance & innovation and sustainable finance: The UK and Singapore held their 10th Financial Dialogue in London, focusing on digital finance and innovation, sustainable finance, capital markets, and international regulatory developments. Both countries discussed opportunities and challenges within the digital landscape and reaffirmed their ongoing partnership in this area. The Financial Conduct Authority (FCA) and the MAS reviewed progress on Project Guardian and the Global Layer One initiative, agreeing to deepen collaboration to further explore the impact of asset tokenisation. Among other things, they also discussed the adoption of artificial intelligence in financial services, and committed to joint collaboration by sharing innovative AI solutions and engaging in discussions on cross-border AI developments.
Thailand
Financial regulation landscape
Digital asset sandbox project for tourists in Thailand: The Office of the Securities and Exchange Commission of Thailand (SEC) has conducted a public consultation seeking feedback on a digital asset sandbox project for tourists in Thailand (which closed on 13 August 2025). This project aims to position Thailand as a digital asset friendly destination by allowing foreign tourists to open digital asset accounts with digital asset operators and e-money service providers that participated in the sandbox, to spend via electronic channels at participating merchants. The project also required the participating service providers to use blockchain forensic tools to verify the source of digital assets, and to promptly report suspicious or high-risk transactions to the SEC to prevent money laundering.
Proposed amendments to the rules for contact and services provided by ICO portals: The SEC has conducted a public consultation seeking feedback on the proposed amendments to the rules for contact and services provided by ICO portals to investors (which closed on1 August 2025). The amendments aim to reduce redundant knowledge-testing requirements and formalising regular suitability assessments to better align digital asset investment with investor capability and risk profiles.
UAE
Financial regulation landscape
DIFC tokenisation regulatory sandbox: Firms exploring issuing tokenised investment products (such as equities, bonds, sukuk, and collective investment fund units) and providing relating services (including trading, holding, or settling tokenised investments) within the DIFC may apply to take part in the DFSA’s newly launched Tokenisation Regulatory Sandbox. Selected firms can test their tokenised products and services if granted an Innovation Testing Licence (ITL). The sandbox excludes crypto tokens and fiat tokens.
New Central Bank of the UAE Exchange Regulations issued: The Central Bank of the UAE published a new Exchange Business Regulation (C 7/2025) in June 2025 which supersedes the previous regulations, dating from 2014. It applies to entities applying or licensed to carry out the regulated activity of providing currency exchange and money transfer services. It introduces four licence categories, depending on the specific activities the applicant proposes to carry out, replacing the previous single licence framework. Licensed entities must comply with enhanced obligations around corporate governance and operational matters, IT infrastructure, reporting, accounts and audit, and security requirements, as well as consumer protection and AML/CFT regulations. Further, all transactions must be settled in AED via the appropriate payment systems of the UAE Central Bank.
