As part of j. awan & partners' commitment to delivering timely and actionable regulatory intelligence, this edition highlights key regulatory developments across the GCC, APAC, and selected global jurisdictions in January 2026. Key themes include intensified regulatory scrutiny of digital assets across the UAE, Hong Kong, China, South Korea, and Switzerland, significant legislative and supervisory reforms in Saudi Arabia’s capital markets, and material updates to tax, AML/CFT, sanctions, and custody frameworks globally. Firms should prioritise regulatory gap assessments, governance and suitability framework reviews, crypto and digital asset controls, and readiness for consultation outcomes and newly effective legislative measures.

Gulf Cooperation Council Regulatory Developments

United Arab Emirates

Abu Dhabi Global Market Registration Authority (ADGM Registration Authority)

• ADGM Registration Authority Publishes Discussion Paper on Crypto Mining Activities

  • The ADGM Registration Authority has issued Discussion Paper No. 1 of 2026 proposing guidance and supervisory expectations for crypto mining activities conducted in or from ADGM. The paper clarifies that crypto mining activities fall within ADGM’s commercial licensing regime and sets out proposed governance, operational, cybersecurity, and disclosure requirements. The Registration Authority has invited stakeholder feedback as part of a public consultation, signalling increased supervisory focus on crypto mining activities and related service providers operating within or from ADGM. 

Source: ADGM

Dubai Financial Services Authority (DFSA)

• DFSA Revises the Crypto Token Regulatory Framework for DIFC-Authorised Firms

  • The DFSA has introduced substantive revisions to its Crypto Token Regulatory Framework applicable to firms operating in the DIFC. The changes mark a shift towards firm-led crypto token suitability and assessment processes and introduce enhanced regulatory expectations around governance arrangements, risk management, and investor protection. DIFC-authorised firms conducting crypto token activities are required to implement updated assessment frameworks, strengthen product governance and oversight, enhance investor disclosures and suitability controls, and update internal policies, procedures, and training programmes in line with the revised requirements.

Source: DFSA

• DFSA Publishes Thematic Review on Issues in Existing Suitability Assessments

  • The DFSA has published a thematic review highlighting observed weaknesses and recurring issues in suitability assessments conducted by DIFC authorised firms. The review sets out supervisory findings and the DFSA’s expectations for improvement, with a particular focus on suitability frameworks, documentation standards, governance arrangements, and control effectiveness. Firms conducting advisory, discretionary management, or suitability assessments are expected to review and remediate identified gaps in line with the DFSA’s guidance and supervisory expectations.

Source: DFSA

Virtual Assets Regulatory Authority (VARA)

• VARA Issues Circular on Investor Onboarding and Classification Requirements

  • VARA has issued a Circular dated 8 January 2026 reinforcing regulatory requirements related to investor onboarding and classification for Virtual Asset Service Providers operating in Dubai. The Circular strengthens financial eligibility thresholds, suitability assessment standards, documentation requirements, and ongoing monitoring obligations. VARA licensed and in principle approved firms are expected to review and enhance onboarding frameworks, investor classification methodologies, and supporting controls to ensure compliance with the updated supervisory expectations.

Source: VARA

UAE Federal Legislation

• UAE Issues Decree Law No. (1) of 2026 on Value Added Tax, Decree Law No. (2) of 2026 on Corporate Tax, and Decree Law No. (3) of 2026 on Tax Procedures

  • The UAE legislation portal has listed Decree Law No. (1) of 2026 on Value Added Tax, Decree Law No. (2) of 2026 on Corporate Tax, and Decree Law No. (3) of 2026 on Tax Procedures. The Decree Laws introduce legislative updates across the UAE tax framework and are applicable to all taxpayers and entities subject to VAT, Corporate Tax, and related procedural requirements. Entities should assess applicability, implementation timelines, and required governance, policy, and process updates once the full legislative texts and supporting guidance are published and reviewed.

Source: GOV

Kingdom of Saudi Arabia (KSA)

Capital Market Authority (CMA)

• CMA Issues Amended Rules for Foreign Investment in Securities

  • The CMA has published amended rules governing foreign investment in securities in the Kingdom of Saudi Arabia. The amendments introduce updates to eligibility criteria, onboarding requirements, reporting obligations, and related operational processes applicable to foreign investors and capital market institutions. Market participants are expected to review and update compliance mappings, investor onboarding frameworks, and internal controls to align with the revised regulatory requirements.

Source: CMA

• CMA Issues Amended Investment Accounts Instructions

  • The CMA has published amended instructions relating to investment accounts in the Kingdom of Saudi Arabia. The amendments affect account opening and maintenance procedures, KYC requirements, account governance, and associated operational controls applicable to capital market institutions and account holding clients. Firms are expected to assess and update relevant procedures and systems to ensure compliance with the revised instructions.

Source: CMA

• CMA Issues Controls on the Ownership of Real Estate by Listed Companies, Investment Funds, and Special Purpose Entities

  • The CMA has issued new controls governing the ownership of real estate in the Kingdom by listed companies, investment funds, and special purpose entities. The controls set out conditions, restrictions, and governance requirements applicable to real estate ownership and acquisition. Affected entities and capital market institutions are expected to assess transaction approval processes, disclosure obligations, and governance frameworks to ensure alignment with the new requirements.

Source: CMA

• CMA Licenses j awan capital Company to Conduct Managing Investments Activity

  • The CMA has announced that j awan capital Company has completed the commencement of business requirements and is licensed to conduct the Managing Investments activity in the Kingdom of Saudi Arabia. The announcement is relevant for market awareness, competitive landscape monitoring, and third party due diligence purposes. No immediate regulatory action is required for other market participants.

Source: CMA

Asia-Pacific Regulatory Develpments

China

China Securities Regulatory Commission (CSRC)

• CSRC Seeks Public Comments on Draft Derivatives Supervision Rules

  • The CSRC has published the Draft Derivatives Trading Supervision and Administration Measures (Trial) for public consultation. The draft sets out proposed supervisory and administrative requirements for derivatives trading activities and invites market feedback ahead of the consultation deadline of 16 February 2026. The initiative aims to support the orderly development of China’s derivatives market and strengthen regulatory oversight of derivatives trading activities.

Source: CSRC

Hong Kong

Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC)

• SFC and UAE Capital Market Authority Sign Memorandum of Understanding to Strengthen Cross-Border Digital Asset Collaboration

  • The Securities and Futures Commission and the United Arab Emirates Capital Market Authority have signed a Memorandum of Understanding on 27 January 2026 to strengthen cross-border supervisory cooperation on digital asset related matters. The MoU focuses on supervision and oversight, rather than enforcement, of cross-border regulated entities involved in digital asset activities across both jurisdictions. It establishes a framework for consultation and information exchange to support investor protection, market integrity, and financial stability in the digital asset sector. Regulated digital asset firms operating across Hong Kong and the United Arab Emirates should expect more structured cross-border supervisory engagement, including supervisory updates, risk discussions, and event triggered notifications.

Source: SFC

Japan

Financial Services Agency (FSA)

• FSA Publishes Public Consultation Information and Regulatory Updates

  • The FSA has published information on ongoing public consultations and regulatory updates, including draft rules relating to prepaid payment instruments and the designation of qualified donation recipients. The update also covers recent meetings of corporate risk management and sustainability working groups. The publication provides visibility on forthcoming regulatory developments and policy discussions relevant to financial institutions operating in Japan.

Source: FSA

South Korea

Financial Services Commission (FSC)

• Amended Legislation Establishes Legal Basis for Introducing and Circulating Security Tokens

  • The FSC has announced the passage of legislative amendments enabling the issuance and circulation of security tokens, also referred to as tokenised securities. The amendments legally recognise distributed ledger based recording and management of securities and update relevant securities laws to support tokenised issuance and trading models. The reforms establish a formal legal foundation for security tokens within South Korea’s capital markets framework.

Source: FSC

• FSC Proposes Capital Market Rule Changes to Upgrade Domestic ETF Regulations

  • The FSC has proposed amendments to capital market regulations aimed at upgrading the domestic exchange traded fund market and reducing the regulatory gap between domestically listed ETFs and overseas listed ETFs. The proposed changes have been released for public comment, with the consultation period running from 30 January to 11 March 2026. The proposals are intended to enhance market competitiveness and regulatory consistency across ETF products.

Source: FSC

European Union

Switzerland

Swiss Financial Market Supervisory Authority (FINMA)

• New Ordinance on the Freezing of Assets in the Context of Venezuela

  • FINMA has published an official notice regarding a new federal ordinance (RS 196.127.85) adopted by the Swiss Federal Council concerning the freezing of assets in the context of Venezuela. The ordinance is based on Article 3 of the Federal Act on the Freezing and Restitution of Illicit Assets held by Foreign Politically Exposed Persons and entered into force on 5 January 2026 at 11:00 a.m. It mandates the immediate freezing of all assets belonging to the persons listed in the annex to the ordinance. Financial intermediaries and other institutions holding or managing such assets are required to freeze the assets without delay and notify the Money Laundering Reporting Office Switzerland in accordance with applicable requirements.

Source: FINMA

• FINMA Publishes Guidance on Risks Associated with the Custody of Cryptobased Assets

  • FINMA has issued Guidance 01/2026 setting out its supervisory approach to the custody of cryptobased assets such as Bitcoin and Ether. The guidance addresses key risks associated with crypto custody, including distributed ledger technology risks, operational and legal risks, outsourcing arrangements, and insolvency considerations. FINMA emphasises expectations around governance, technology infrastructure, segregation of client assets in bankruptcy scenarios, and the continued responsibility of authorised institutions even where third party custodians are used. FINMA supervised institutions providing crypto custody or related services are expected to reassess and strengthen their risk management, governance, and operational controls in line with the guidance.

Source: FINMA

Africa

South Africa

South African Reserve Bank (SARB)

• Draft General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill, 2025 Published for Public Comment

  • National Treasury has published for public comment the draft General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill, 2025, as announced in Government Gazette No. 53955 on 14 January 2026. The draft Bill updates and expands the 2024 version and introduces additional amendments relating to non-governmental organisations and the conduct of lifestyle audits. The proposals aim to strengthen South Africa’s AML/CFT framework by addressing remaining deficiencies identified in the 2021 FATF Mutual Evaluation and supporting the post-greylist remediation process following South Africa’s exit from the FATF greylist in October 2025. The draft Bill proposes amendments to multiple statutes, including the Financial Intelligence Centre Act, the Financial Sector Regulation Act, the Companies Act, and the Nonprofit Organisations Act.

Source: FIC

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

Email: info@jawanpartners.com