As part of our ongoing commitment to keeping our clients and stakeholders informed, j. awan & partners has compiled the latest regulatory developments shaping financial markets across the GCC, APAC and key global jurisdictions for August 2025. This edition highlights critical updates impacting Financial Institutions, Fintechs, VASPs and other Regulated Entities, including new consultations, enforcement actions, rule changes, and supervisory priorities. We encourage market participants to review these developments closely to stay aligned with evolving regulatory expectations and global best practices.

Gulf Cooperation Council Regulatory Developments

United Arab Emirates

Abu Dhabi Global Market (ADGM) | Registration Authority (RA)

• Abu Dhabi Finance Week 2025 Set to Double in Size at New Location

  • Under the patronage of His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Abu Dhabi Finance Week (ADFW 2025) is set to take place from 8 to 11 December 2025 at a new, expanded venue on Al Maryah Island. Themed "Engineering the Capital Network", the event will focus on leveraging advanced technologies such as AI and quantum computing to reshape global finance and underscore Abu Dhabi’s ascent as a dynamic two-way capital hub.

Source: ADGM

Abu Dhabi Global Market (ADGM) | Financial Services Regulatory Authority (FSRA)

• FSRA Finalises Amendments to its Prudential Framework for Lower-Risk Firms

  • The FSRA finalised amendments to its Prudential – Investment, Insurance Intermediation and Banking Rulebook (PRU) affecting lower-risk Authorised Persons (Categories 3B, 3C, and 4). Changes include revised capital requirements for Category 4 firms, adjusted reporting obligations for Categories 3B and 3C, and updated professional indemnity insurance (PII) requirements. Most changes are effective immediately, with the new minimum PII standards applicable from 1 January 2026.

Source: ADGM

Kuwait

Capital Markets Authority (CMA)

• CMA and Guernsey Financial Services Commission Sign MoU

  • The CMA and the Guernsey Financial Services Commission signed a Memorandum of Understanding (MoU) to strengthen cooperation. The agreement facilitates voluntary exchange of information, investigation support, and reciprocal inspections, while safeguarding confidentiality and data protection.

Source: CMA

Asia-Pacific Regulatory Develpments

Australia

Australian Prudential Regulation Authority (APRA)

• APRA Announces Plans to Support Small and Medium-Sized Banks

  • APRA announced proportionality reforms designed to support small and medium-sized banks. The measures include lighter regulatory frameworks, clarified capital requirements, and streamlined licensing processes. These reforms aim to reduce compliance burdens, improve regulatory clarity, and enhance operational flexibility for smaller institutions.

Source: APRA

Hong Kong

Securities and Futures Commission (SFC)

• SFC Elaborates on Custody Standards for Virtual Asset Trading Platforms

  • The SFC issued a circular urging all licensed virtual asset trading platforms to review and strengthen their asset custody frameworks in light of overseas breaches and cybersecurity weaknesses. The guidance sets out best practices and minimum standards across senior management accountability, secure cold-wallet infrastructure, third-party wallet usage, and real-time threat monitoring. The SFC signalled that these standards will soon form part of mandatory requirements for custodians in the virtual asset sector, reinforcing client asset protection and fostering a more secure digital asset ecosystem in Hong Kong.

Source: SFC

Insurance Authority (IA)

• Consultation Conclusions on Draft Rules for Public Disclosure Requirements

  • The IA released its consultation conclusions on the draft Insurance (Public Disclosure) Rules, which detail Pillar 3 public disclosure obligations under Hong Kong’s risk-based capital regime. The rules outline what insurers must disclose, including the format and timing of disclosures. Originally published in March 2025, the draft received generally supportive feedback, with refinements made to the scope of application and disclosure items. The revised rules are slated for submission to the Legislative Council for negative vetting, with implementation targeted for 2026.

Source: IA

European Union Regulatory Developments

European Banking Authority (EBA)

• EBA Publishes Draft Technical Standards on Prudential Treatment of Crypto Asset Exposures

  • The EBA published its final draft Regulatory Technical Standards (RTS) under CRR 3, setting out how institutions must calculate and aggregate crypto-asset exposures for prudential capital purposes. The RTS cover credit risk, counterparty credit risk, market risk, and valuation adjustment risk for asset-referenced tokens, unbacked crypto-assets (e.g., Bitcoin), and tokenised traditional assets. The framework aligns with Basel standards and the Markets in Crypto-Assets Regulation (MiCA), providing an interim prudential regime until a permanent framework is introduced.

Source: EBA

• EBA Highlights SupTech as a Driver of More Effective AML/CFT Supervision

  • The EBA published a report assessing the use of supervisory technology (SupTech) in AML/CFT oversight. The report found that nearly half of EU authorities already have SupTech tools in production, delivering benefits such as improved data quality, stronger analytics, and more efficient supervision. Challenges remain around legal clarity, governance, and resource constraints, but the EBA has committed to promoting broader adoption of SupTech across the EU as part of the evolving AML/CFT supervisory framework.

Source: EBA

United Kingdom Regulatory Developments

Financial Conduct Authority (FCA)

• First PISCES Operator Approved in Drive for Growth

  • The FCA approved the London Stock Exchange (LSE) as the first operator of PISCES (Private Intermittent Securities and Capital Exchange System), the world’s first regulated private stock market. PISCES will enable intermittent trading of shares in private companies to improve liquidity and growth-stage fundraising. The LSE will run the platform under the FCA’s financial market infrastructure sandbox, with intermittent trading events supported by incentives such as stamp duty exemptions and tax benefits for employee share options.

Source: FCA

• FCA Opens Retail Access to Crypto ETNs (cETNs)

  • The FCA will allow retail investors access to crypto exchange-traded notes (cETNs) traded on FCA-approved UK Recognised Investment Exchanges (RIEs) from October 8, 2025. These products will be subject to financial promotion rules and the Consumer Duty framework, though they will not be covered by the Financial Services Compensation Scheme (FSCS). The FCA maintains its ban on retail access to crypto derivatives and urges consumers to understand the risks before investing.

Source: FCA

United States Regulatory Developments

Federal Reserve Board (Fed)

• Federal Reserve to Sunset Novel Activities Supervision Program

  • The Federal Reserve announced it will end its dedicated supervision program for banks’ “novel activities” (such as certain crypto and fintech exposures). Oversight of these activities will return to the standard supervisory process, and the 2023 supervisory letter establishing the program (SR 23-7) has been rescinded. The change reflects the Fed’s increased understanding of risk management practices in this space.

Source: FED

Commodity Futures Trading Commission (CFTC)

• CFTC Issues Advisory on FBOT Registration for Non-U.S. Exchanges

  • The CFTC’s Division of Market Oversight published an advisory clarifying the registration framework for Foreign Boards of Trade (FBOTs). The advisory confirms FBOT registration applies across all asset classes, including derivatives and digital assets, and provides non-U.S. exchanges with a clear path to offer direct market access to U.S. clients without establishing local operations.

Source: CFTC

For further insights and tailored regulatory guidance, reach out to j. awan & partners.

Email: info@jawanpartners.com