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Global Regulatory Developments - March 2025

March 2025 witnessed significant regulatory advancements in the global financial sector, particularly concerning digital finance. Key developments included the progressive implementation of the Markets in Crypto-assets (MiCA) and Digital Operational Resilience Act (DORA) in Europe and intensified scrutiny of crypto-assets, Decentralized Finance (DeFi), and central bank digital currencies (CBDCs) worldwide.


Europe led with substantial progress in MiCA implementation, issuing numerous technical standards and delegated regulations covering CASP authorisation, qualifying holdings, white paper classifications, and transparency requirements. Concurrently, DORA implementation continued, marked by formal notices for non-transposition and adoption of RTS on ICT service sub-contracting.


Financial Crime (FinCrime) remained a priority, with the European Banking Authority (EBA) consulting on draft RTS under new Anti-Money Laundering (AML) regulations and the UK's Financial Conduct Authority (FCA) publishing its AML supervision report.


Digital Markets saw diverse regulatory activities, including reports on digitalisation trends and risks by the European Central Bank (ECB), Switzerland's first DLT trading facility license, and strategic statements on digital asset development from Australia and Hong Kong. The "Genius Act" was under consideration in the US, while international bodies and firms like PwC and the IMF released comprehensive reports on crypto regulation, stablecoins, and DLT.


CBDC exploration persisted, with the ECB publishing consumer attitude research and the Bank of England commenting on stablecoins. International discussions focused on interoperability and the potential impact of digital currencies on cash.

DeFi attracted increasing regulatory attention, with research from the Bank of Canada and policy insights from the Financial Stability Institute (FSI).


Broader discussions on Digital Assets, FinTech, and Consumer Duty (UK) also occurred, highlighting the global push towards comprehensive regulatory frameworks for the evolving digital financial landscape.

Overall, March 2025 underscored a global trend of proactive regulatory development, aiming to balance innovation with stability and consumer protection in the rapidly evolving digital financial ecosystem.



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Introduction 


This report provides an overview of the key regulatory developments in the financial sector across various regions and international bodies during March 2025, with a particular focus on digital finance and related areas.


1. Markets in Crypto-assets (MiCA) - Europe

March 2025 saw significant advancements in the implementation of the Markets in Crypto-assets (MiCA) Regulation (EU) 2023/1114:

  • Technical Standards for CASP Authorisation: Commission Implementing Regulation (EU) 2025/306 specifies the standard forms and procedures for crypto-asset service provider (CASP) authorisation applications.

  • Acquisition of Qualifying Holdings in CASPs: Commission Delegated Regulation (EU) 2025/414 details the information required to assess proposed acquisitions of qualifying holdings in CASPs.

  • Acquisition of Qualifying Holdings in ART Issuers: Commission Delegated Regulation (EU) 2025/413 outlines the information needed to assess proposed acquisitions of qualifying holdings in asset-referenced token (ART) issuers.

  • Information Requirements for CASP Authorisation: Commission Delegated Regulation (EU) 2025/305 details the regulatory technical standards (RTS) for information required in CASP authorisation applications.

  • ESMA Guidelines on Portfolio Management: Official translations of ESMA guidelines on suitability requirements and the format of periodic statements for portfolio management activities involving crypto-assets were released.

  • Classification of Crypto-Asset White Papers: Delegated Regulation (EU) 2025/421 specifies the data necessary for classifying crypto-asset white papers and the practical arrangements to ensure such data is machine-readable.

  • Adjustment of Funds for ART and EMT Issuers: Delegated Regulation (EU) 2025/419 specifies the procedure and timeframe for issuers of ARTs or e-money tokens (EMTs) to adjust their funds.

  • Governance Arrangements for Significant ART and EMT Issuers: Delegated Regulation (EU) 2025/418 details the minimum content of governance arrangements on the remuneration policy of issuers of significant ARTs or EMTs.

  • Own Funds and Stress Testing for ART and EMT Issuers: Delegated Regulation (EU) 2025/415 specifies the adjustment of own funds requirements and minimum features of stress testing programmes for issuers of ARTs or EMTs.

  • ESMA Guidelines on Classification as Financial Instruments: Official translations of ESMA guidelines on the conditions for qualifying crypto-assets as financial instruments under MiCA were published.

  • Transparency Data for CASP Trading Platforms: Commission Delegated Regulation (EU) 2025/417 specifies how CASPs operating a trading platform for crypto-assets should present transparency data.

  • Order Book Records for CASP Trading Platforms: Commission Delegated Regulation (EU) 2025/416 details the content and format of order book records for CASPs operating a trading platform.

  • ESMA Guidelines on Crypto-Asset Classification: Official translations of guidelines on explanations, opinions, and standardised tests for classifying crypto-assets were made available.

  • EBA Public Hearing on Crypto Exposure Calculation: The EBA held a public hearing on the draft RTS for calculating and aggregating crypto-asset exposures for credit institutions.


2. Digital Operational Resilience Act (DORA) - Europe

The implementation of the Digital Operational Resilience Act (DORA) (EU) 2022/2554 continued in March 2025:

  • Formal Notices for Non-Transposition: The European Commission sent formal notice letters to member states for failing to transpose the DORA Directive into national law.

  • RTS on Sub-contracting ICT Services: The European Commission adopted RTS on the sub-contracting of ICT services supporting critical functions under DORA.

  • Delegated Regulation on Joint Examination Teams: A Delegated Regulation on the composition of joint examination teams under DORA was published in the Official Journal.

  • ESA Guidelines on Aggregated Costs and Losses: Official translations of ESA guidelines on estimating aggregated annual costs and losses caused by major ICT-related incidents under DORA were released.

  • Joint Committee Opinion on RTS on Sub-contracting: The Joint Committee of ESAs issued an opinion on the European Commission's rejection of draft RTS on sub-contracting ICT services supporting functions under DORA.


3. Financial Crime (FinCrime)

Developments in combating financial crime occurred in both Europe and the United Kingdom:

  • Europe: The EBA consulted on draft RTS under the new Anti-Money Laundering Authority (AMLA) Regulation, the revised AML Regulation, and the Sixth Anti-Money Laundering Directive (MLD6).

  • United Kingdom: The Financial Conduct Authority (FCA) published its Anti-Money Laundering and Counter-Terrorist Financing Supervision Report 2023-24.


4. Digital Markets

Regulatory activities and reports concerning digital markets were prominent globally:

  • Europe: The ECB released a report on "Digitalisation and innovation transforming financial markets," highlighting trends, risks, and vulnerabilities. The EBA provided insights on crypto lending, borrowing, and staking. The ECB also published Occasional Papers from its Crypto-Asset Monitoring Expert Group (CAMEG) 2024 Conference.

  • Switzerland: FINMA licensed its first DLT trading facility, marking a significant step in adopting distributed ledger technology in the Swiss financial market.

  • United Kingdom: The Chancellor announced plans to slash ‘duplicative and burdensome rules’ to encourage innovation in financial services.

  • Australia: A statement on developing an innovative Australian digital asset industry was released, indicating a strategic focus on fostering growth in this sector.

  • Hong Kong: The Hong Kong Monetary Authority (HKMA) published a research paper and a study on Distributed Ledger Technology (DLT) in the financial sector, exploring its opportunities and challenges.

  • Canada: While the provided text mentions the "Genius Act," the description indicates it pertains to the US.

  • United States: The "Genius Act" (S. 394) was under consideration. The Congressional Research Service (CRS) provided overviews of the Genius Act and an introduction to cryptocurrency. The CRS also issued a report overviewing cryptocurrencies. The Securities and Exchange Commission (SEC) released a statement on "Crypto 2.0: Regulatory Whiplash" and a staff statement on meme coins. A report examined the liquidity and NAV premium of crypto ETPs.

  • International: PwC released its Global Crypto Regulation Report. The Intergovernmental Fintech Working Group (IFWG) in South Africa published a diagnostic on the stablecoin landscape. A report on "Setting the Risk Agenda Exploring the future of the risk management profession" was published. "The State of Stablecoins 2025: Supply, Adoption & Market Trends" report analysed this sector. A report on the "Impact of Distributed Ledger Technology on Global Capital Markets" was released, along with analyses on "Tokenisation Standards: Taming the Regulatory Menagerie" and "RWA Tokenization: Key Trends and 2025 Market Outlook."


5. Central Bank Digital Currency (CBDC)

Central banks continued their exploration into CBDCs:

  • Europe: The ECB published a Working Paper on consumer attitudes towards a central bank digital currency.

  • United Kingdom: The Bank of England commented on its approach to stablecoins, a related form of digital currency.

  • International: The IMF analysed whether digital currencies could lead to the disappearance of cash. The Digital Dollar Project and the Atlantic Council’s GeoEconomics Center explored interoperability standards in the emerging landscape of digital assets.


6. Decentralized Finance (DeFi)

DeFi continued to attract regulatory attention:

  • Canada: The Bank of Canada (BoC) published research on liquidation mechanisms, price impacts in DeFi, and an introduction to flash loans and risk-free uncollateralised lending in decentralised markets.

  • International: The Financial Stability Institute (FSI) issued insights on policy implementation concerning crypto, tokens, and DeFi, navigating the regulatory landscape.


7. Digital Assets

Beyond specific regulations, broader discussions on digital assets took place:

  • Canada: A report provided key takeaways on Canadian Bitcoin ownership in 2023.

  • United States: The Congressional Research Service (CRS) offered introductory materials and overviews on cryptocurrencies.

  • International: The IMF published a primer for supervisors on privacy technologies and the digital economy.


8. Financial Technology (FinTec)

Strategic outlooks and reports on FinTech emerged:

  • United Kingdom: The FCA outlined its Strategy for 2025 to 2030 and provided a regulatory round-up for March 2025.

  • International: The IMF analyzed the factors driving FinTech growth in its report "Prometheus Unbound: What Makes Fintech Grow?"


9. Consumer Duty - United Kingdom

The FCA continued its focus on consumer protection:

  • The FCA released feedback on its consumer duty rule review.

  • Reviews were conducted on firms' approaches to consumer support and the treatment of customers in vulnerable circumstances under the consumer duty.


10. Other International Developments

  • IOSCO (the International Organization of Securities Commissions) launched its work program for 2025, indicating its priorities for international securities regulation.


This global overview highlights a consistent trend towards greater regulatory scrutiny and developing comprehensive frameworks for digital finance, operational resilience, and financial crime across various jurisdictions. The implementation of MiCA in Europe and the ongoing developments related to DORA are particularly noteworthy, alongside the increasing focus on understanding and potentially regulating crypto-assets, DeFi, and CBDCs worldwide.



 
 

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