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UK
Digital assets
- UK sets out draft legislation on crypto assets: The draft Financial Services and Markets Act 2000 (Regulated Activities and Miscellaneous Provisions) (Cryptoassets) Order 2025 introduces new regulated activities such as issuing a qualifying stablecoin and operating a qualifying cryptoasset trading platform. HM Treasury welcomes technical comments on the draft law by 23 May 2025 and plans to make the legislation later in the year.
Read our blogpost: UK sets out draft law for regulating cryptoassets
Payments
- UK to regulate ‘debanking’: The UK Government has laid draft legislation before Parliament which would amend the Payment Services Regulations 2017. Under the changes, banks and other payment service providers will be required to give customers at least 90 days’ notice before closing their account or terminating a payment service which is an increase from the two months currently required. Banks must also explain to customers in writing the reasons for termination. The new rules are drafted to come into force for relevant new contracts from 28 April 2026.
- FCA expands on good practice in international payment pricing transparency: In order to assist firms in meeting the Consumer Duty, the FCA has shared examples of good and bad practice on how firms communicate the cost of international payments. The FCA has reviewed websites of a sample of firms offering money remittance and cross-border payments. It found that transaction fees were not always clearly displayed, it was not always clear that fees could vary and that additional fees were often not displayed upfront. The FCA expects firms to review the information they provide to consumers in light of these findings.
- FCA contactless payments paper to close: The FCA is exploring a more “outcomes-based” approach to current limits on contactless transactions. The FCA requests feedback on three options in its engagement paper by 9 May 2025.
Read our blogpost: FCA suggests relaxing contactless payment limits
- PSR delays APP scams claims management consultation: The PSR has published an update regarding the next steps on the PSR's consultation on authorised push payment scams claims management and its intention to adopt Reporting Standard B by December 2026. Reporting standard B refers to one of two scenarios under which all directed payment services providers must report data and information on APP scams to the Bank of England. The PSR had planned to consult on regulatory requirements in April 2025 but this is now delayed by three to six months.
- PSR consulting on remedies to address issues uncovered in card scheme review: Following its final report into scheme and processing fees charged by Mastercard and Visa, the PSR has set out proposed remedies. This includes mandatory financial reporting, better decision-making processes around pricing, and requirements for clearer communication of fees. The PSR encourages all interested parties to respond by 28 May 2025. If the regulator decides to proceed with the remedies, there will be a final consultation on the specific proposed remedy package.
AI
- FCA to launch live AI testing service: The live testing service will provide regulatory support to firms who are ready to deploy consumer or market-facing AI models. The proposed live testing service will launch in September 2025 and initially run for 12 to 18 months.
Read our blogpost: FCA shares AI themes and launches AI test service
- Bank of England monitoring AI’s implications for financial stability: In a new report, the Bank of England’s Financial Policy Committee pledges to work with the industry to better understand how AI is being used by firms and acknowledges that more regulation may be needed to support the safe adoption of AI.
Read our blogpost: Bank of England considers financial stability implications of AI
General
- PRA releases Business Plan 2025/26: In its Business Plan for 2025/26, the PRA outlines its plans for the year to come, which include developing its proposed policy to implement the BCBS standard on banks' cryptoasset exposures in the UK. The Plan also refers to the PRA approach to operational resilience, implementation of the critical third party regime and cyber resilience. In H2 2025 the PRA plans to consult with the FCA on expectations for the management of ICT and cyber resilience risks.
EU
Digital assets
- EBA publishes new regulatory standards for crypto assets service providers: New draft regulatory technical standards define when crypto-asset service providers (CASPs) have to appoint a central contact point to help fight financial crime. The draft standards will now be submitted for approval with the EU political institutions.
Open finance
- FIDA trilogues kick off: The first trilogue meeting on the regulation for a framework on financial information data access (FIDA) has taken place between the European Commission, Council and Parliament. The next meeting is expected to take place around mid-May.
General
- EU opens consultation to improve supervision of financial markets: The European Commission has launched an eight-week consultation regarding obstacles to financial market integration. Among other things, the survey seeks feedback on the possible benefits of more integrated EU-level supervision of crypto-asset service providers. The consultation closes on 10 June and the responses will inform draft legislation due before the end of this year.
Read out blogpost: EU calls for ideas on improving supervision of financial markets
- European Supervisory Authorities publish joint annual report: EBA, EIOPA and ESMA published its 2024 Annual Report, which provides an overview of the joint ESAs work completed during the past year. Among other things, the report summarises the ESAs’ work on implementing DORA. It also notes the work done by the European Forum for Innovation Facilitators on decentralised finance (DeFi), open finance / FIDA, and the provision of financial services by Big Techs.
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