19 มิถุนายน 2568 Peiying Chua Heikes Banking - Capital Markets - Debt - Capital Markets - Equity - Financial Regulation - Fintech - Technology

Asia Financial Regulatory Update - June 2025

Hong Kong SAR

Fintech

Hong Kong passes Stablecoins Bill: The Legislative Council has approved the Stablecoins Bill, creating a licensing regime for fiat-referenced stablecoins (FRS) issuers in Hong Kong which will take effect on 1 August 2025. Under the new law, FRS issuers must obtain a licence from the Hong Kong Monetary Authority (HKMA) and adhere to strict requirements, including reserve asset management, redemption processes, anti-money laundering measures, and investor protection protocols. The Bill aligns with international standards and strengthens the wider digital asset regulatory framework in Hong Kong. Officials expect the Ordinance to take effect this year, and have included a period of transitional arrangements before the regime will be fully enforced. Read more in our Bulletin. 

HKMA stablecoin consultations on supervision and AML: The HKMA has also launched two stablecoin regime consultations with a short response window that runs until 30 June 2025. One covers the draft Guidelines on Supervision of Licensed Stablecoin Issuers which provide further details on areas which had previously been consulted on such as reserve management, risk management and issuance, distribution and redemption of stablecoins. Many key issues remain as outlined by the earlier consultation papers but there are some interesting developments, such as the possibility for HKD referenced stablecoins to use USD as their reserve assets. The second consultation is on the Proposed AML/CFT Requirements for Regulated Stablecoin Activities. Read more in our Bulletin 

SFC updates on Non-Face-to-Face Client Onboarding: The Securities and Futures Commission (SFC) has updated its non-face-to-face client onboarding guidance, reflecting advances in digital identity verification. The SFC now recognises more remote certification services, including Digi-Sign’s Personal (Remote) ID-Cert for ICAO-compliant ePassport holders which can be used for overseas investors. The SFC has also expanded its list of eligible jurisdictions for remote onboarding of overseas individual clients, adding 15 new countries for overseas clients’ account funding. Intermediaries are encouraged to adopt these technologies and to remain vigilant regarding cybersecurity and compliance with overseas regulations.

Cybersecurity

SFC reminds firms of cybersecurity expectations to combat phishing: The SFC has issued a reminder to all licensed corporations (LCs) on heightened vigilance against phishing attacks, following recent client losses. LCs must not send emails or SMS with embedded hyperlinks requesting sensitive information, and must educate clients not to disclose login details to unverified sites. Regular cybersecurity alerts and robust monitoring for unauthorised access are required. In connection with phishing attacks, the regulator also reminds LCs about their self-reporting obligations to the SFC under paragraph 12.5 of the SFC Code of Conduct.

Banking

HKMA Provides Guidance for Banks to Implement Global FX Code: A recent HKMA circular provides guidance to Authorised Institutions (AIs) instructing them to review and update their practices to comply with the revised FX Global Code. The latest version of the Code was published on 24 January 2025 by the Global Foreign Exchange Committee. The Code, consisting of global best practice principles for the wholesale FX market, has recently refined five principles focused on mitigating FX settlement risk, enhancing transparency in execution, and appropriate data usage. AIs are required to ensure effective internal controls, align with the updated Code, and renew or issue their Statement of Commitment by 24 January 2026, submitting this to the Treasury Markets Association (TMA). The Hong Kong Monetary Authority expects AIs to also promote the updated Code to relevant counterparties and customers. Compliance with these standards is linked to the TMA Code of Conduct and ongoing regulatory expectations under HKMA’s Supervisory Policy Manual.

HKMA Expectations on AIs, AI Holding Companies and Money Brokers Re-Domiciling to Hong Kong: New legislation (the Companies (Amendment) (No. 2) Ordinance 2025) establishes Hong Kong’s first inward company re-domiciliation regime, allowing companies incorporated elsewhere to re-domicile in Hong Kong and obtain rights and obligations equivalent to local companies. The HKMA has issued a circular setting out its expectations for AIs, AI holding companies and approved money brokers incorporated outside Hong Kong who wish to re-domicile. The regulator will require these firms to obtain prior HKMA approval before applying to re-domicile, followed by compliance with the required notifications after successful re-domiciliation and deregistration. 

Capital Markets

Hong Kong Tech Company Listing Reforms: The SFC and the Hong Kong Exchange have launched the Technology Enterprises Channel (TECH), a new platform to streamline new listing applications and introduce confidential filing for Specialist Technology Companies and Biotech Companies in Hong Kong. Additionally, the Exchange’s Guide for New Listing Applicants now presumes these companies meet both the “Innovative Company Requirements” and the external validation requirement for weighted voting right structures under Main Board Chapter 8A. These changes aim to provide earlier support, clearer regulatory guidance, and a more efficient listing process.

Enforcements

SFC Revokes Licence of RO for Conviction and Delayed Disclosure: The SFC has revoked the licence of an individual and removed his approval as a responsible officer of a securities firm after his criminal conviction for theft and his failure to promptly notify the SFC of the charge. The individual did not notify the SFC upon being charged but instead waited until he was convicted. The SFC considers this to be a breach of his duties under the Securities and Futures Ordinance and the Securities and Futures (Licensing and Registration) (Information) Rules. As a result, he has been banned from re-entering the industry for two years. 

SFC Sanctions Margin Lending Failures: The SFC has reprimanded and fined a securities firm HK$2 million for prolonged failures in documenting and enforcing its margin lending policy between December 2017 and September 2019. The firm did not require objective proof of clients’ financial standing when setting credit limits, nor written explanations for policy deviations, breaching the Code of Conduct. The SFC also suspended the officer responsible for over five months, citing his management failures as the cause. The SFC considered previous disciplinary history, the firm’s remedial steps and financial position, and cooperation before determining the penalty. 

Singapore

Capital Markets

MAS Announces Corporate Governance Advisory Committee to Review Code of Corporate Governance: The Monetary Authority of Singapore (MAS) has ⁠announced that the Corporate Governance Advisory Committee (CGAC) will review the Code of Corporate Governance (CG Code) for listed companies. The review aims to enhance established good practices in corporate governance and disclosure among listed companies, complementing the ongoing work of the Equities Market Review Group. The review will involve industry stakeholders and the support of two Sub-Committees: (1) the first will focus on facilitating meaningful implementation of the CG Code, by developing practical guidance and examples suited for companies’ operating contexts; and (2) the second will consider new provisions and guidance on topics such as corporate culture, board effectiveness, and risk management, including for emerging areas like artificial intelligence.

MAS Proposes Amendments to Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) Regulations: The MAS has published a consultation paper outlining proposed changes to margin requirements for capital market services licence holders providing the regulated activity of product financing. The proposed amendments to the Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences (CMSL)) Regulations (SF(FMR) Regulations), which were last revised in 2002, include: (i) increasing the aggregate limit on margin exposures in customers’ margin accounts from 300% to 500% of the CMSL holder’s free financial resources; and (ii) removing the margin limit currently set at 100% of the CMSL holder’s free financial resources on margin exposures in customers’ margin accounts in respect of specific products other than those quoted on an approved exchange products. These amendments are part of MAS’ ongoing efforts to align the regulatory framework with developments in the capital markets.

MAS Proposes to Streamline Prospectus Requirements and Broaden Investor Outreach Channels for IPOs: The MAS has released a consultation paper seeking feedback on its proposals to streamline prospectus disclosure requirements under the Securities and Futures (Offers of Investments) (Securities and Securities-based Derivatives Contracts) Regulations and broaden investor outreach channels for initial public offerings (IPOs). Key MAS proposals include: (i) streamlining the prospectus disclosure requirements for primary listings on the Singapore Exchange, to focus on disclosure of core information that are most relevant and material for investors; (ii) simplifying the process for secondary listings by aligning prospectus disclosure requirements with baseline international disclosure standards, allowing issuers seeking a secondary listing on SGX to use the same prospectuses with minimal adaptation; and (iii) enhancing flexibility and scope to allow issuers to gauge investor interest earlier by amending existing legislation. These proposals align with recommendations from the Equities Market Review Group announced in February 2025 to enhance Singapore's equities market. In parallel, Singapore Exchange Regulation is revising the SGX-ST Listing Rules to adopt a more disclosure-based approach. The MAS has also published a media release to announce the consultation paper.

Best Practices in Relation to Risks in Wealth Management: The AML/CFT Industry Partnership (ACIP) Legal Persons & Arrangements Working Group has issued a best practice paper for financial institutions (FIs) in the wealth management (WM) sector to share recommended good practices, illustrate key risks and mitigation strategies in dealing with WM customers. The paper focuses on areas like complex WM structures (e.g., family offices, trusts), macroeconomic developments and events, non-face-to-face onboarding, heightened risks due to client nationality/residence (e.g. “Golden Passport” citizenships), clients’ relationships with External Asset Managers (EAMs) or Financial Intermediaries (FIMs), and ongoing monitoring challenges. 

Industry Perspectives on Best Practices for Source of Wealth Due Diligence: The ACIP Legal Persons & Arrangements Working Group has published a best practices paper which provides recommended practices to FIs on establishing customers’ sources of wealth (SoW) using a risk-based approach. Key recommendations include: (i) implementing tiered SoW risk identification and corroboration, with enhanced due diligence for higher-risk customers, such as political Exposed Persons; (ii) implementing risk mitigation controls for retail and corporate banking customers assessed as having lower SoW risks, as well as best practices for addressing the corroboration of common SoW types that present the most significant risk; (iii) tailoring ongoing monitoring and re-assessing SoW risk to the specific characteristics of each business segment within each FI; and (iv) enhancing senior management oversight. 

Consultation Paper on Proposed Revisions to Financial Advertisement Regulations: Removal of Existing Exclusions: The MAS has released a consultation paper seeking feedback on proposed changes to advertising regulations for financial products and services. Currently, under the Financial Advisers Regulations and the Securities and Futures (Licensing and Conduct of Business) Regulations, certain persons (e.g., accredited and institutional investors) and activities (e.g., advising on spot foreign exchange contracts not related to leveraged trading) are not required to comply with advertising requirements. The MAS proposes removing these exclusions, such that all advertisements for any investment product will be subject to the same regulations, regardless of the target audience. There will also be no exclusions for non-product advertisement requirements to ensure a consistent approach across product and non-product advertisements. The proposed amendments will come into force at the same time as the legislative amendments outlined in the Consultation Paper on Enhancing Safeguards for Proper Conduct of Digital Prospecting and Marketing Activities, which MAS will respond to in due course.

Digital Assets

MAS finalises digital token service providers (DTSP) regime and issues Notices and Guidelines: The MAS has issued its responses to the Consultation Paper on Proposed Regulatory Approach, Regulations, Notices and Guidelines for DTSPs issued under the Financial Services and Markets Act 2022 (FSMA). In its responses, the MAS finalised its regulatory framework for DTSPs which are individuals operating from or corporations incorporated in Singapore that provide digital token services outside of Singapore. The proposed regulatory framework, encompassing a suite of Regulations, Notices and Guidelines, will come into effect on 30 June 2025:

There is no transitional arrangement and all DTSPs who are required to obtain a licence under section 137 of the FSMA must suspend or cease carrying on a business of providing digital token services outside of Singapore by 30 June 2025, or face penalties under the FSMA. The MAS has also updated the Fit and Proper Guidelines to include provisions under the new framework for DTSPs. 

Mergers and Acquisition

Securities Industry Council Consults on Amendments to Singapore Code on Take-Overs and Mergers: The Securities Industry Council issued a consultation paper on proposed amendments to the Singapore Code on Take-overs and Mergers (the Code). Key proposals include: (i) prohibiting deal protection measures (e.g., break fees), except in limited circumstances; (ii) requiring offerors to promptly take procedural steps to proceed with schemes once approved by shareholders and mandating scheme approval meetings to be held within six months of announcement; (iii) holding offerors to their no increase/no extension statements within a certain window, and imposing a 28-day deadline for potential offerors to clarify their intentions after a holding announcement; and (iv) enhancing disclosure provided to shareholders in the case of frustrating actions (e.g. requiring offeree companies to quantify potential shareholder returns from competing asset offers), and mandating independent advice for proposed frustrating actions which require shareholder approval.