LATEST FINTECH REGULATORY UPDATES FROM ACROSS THE GLOBE :
The Basel Committee on Banking Supervision ( BCBS ) has deferred the implementation of its prudential standard for banks ’ cryptoasset exposures by one year to January 1 , 2026 . This indicates ongoing regulatory adjustments in the crypto space within the broader fintech landscape .
The European Union has finalised a comprehensive package of antimoney laundering ( AML ) regulations , including the establishment of the AML Authority ( AMLA ) in Frankfurt . This new authority will have crossjurisdictional enforcement powers over larger EU-based financial institutions .
In the United States , the Corporate Transparency Act ( CTA ) has progressed , with a federal register of beneficial ownership now accepting new company reports as of January 2024 . This development aims to curb illicit finance in the fintech sector .
The UK has enacted the Economic Crime and Corporate Transparency Act of 2023 , enhancing supervisory and enforcement powers for relevant authorities , including Companies House . This legislation aims to boost financial market transparency and enforcement in the post-Brexit regulatory environment .
Regulators are closely monitoring the implications of generative AI technologies in fintech , with various jurisdictions introducing AI regulations .
AML AN
THE FIRST LI
One area that has long been at the cornerstone of financial regulation is those that directly concern consumers – Anti-Money Laundering ( AML ) and Know Your Customer ( KYC ) regulations . But even the application of such laws presents unique challenges in the fintech space .
The Financial Action Task Force ( FATF ), the global money laundering and terrorist financing watchdog , has been at the forefront of adapting these regulations for the digital age .
In 2019 , the FATF introduced updated guidance specifically addressing virtual asset service providers ( VASPs ), requiring them to implement the same AML / KYC standards as traditional financial institutions . This move has had far-reaching implications for cryptocurrency exchanges and other blockchain-based financial services .