Report on Global Regulatory Developments - February

This report summarises key global regulatory developments in the financial sector during February. The focus is on publications, consultations, and regulatory updates from major jurisdictions and international bodies, covering digital operational resilience and crypto-assets to financial promotions and digital currencies. Europe saw significant activity in implementing the Digital Operational Resilience Act (DORA) and the Markets in Crypto-Assets Regulation (MiCA), while the United Kingdom focused on financial promotions and digital market competition. The United States continued to explore the implications of stablecoins and digital currencies. Internationally, bodies like the IMF, FSB, BIS, and Wolfsberg Group addressed topics ranging from tokenisation and crypto-asset regulation to financial crime and artificial intelligence in finance.

Europe

February witnessed a flurry of European activity, primarily centered around the ongoing development and implementation of landmark regulations like DORA and MiCA.

European Securities and Markets Authority (ESMA)

ESMA remained active in February, providing general updates and focused risk assessments:

• ESMA – February Newsletter: ESMA published its February newsletter, offering a broad overview of its ongoing work and key developments across financial markets. This likely includes updates on various regulatory initiatives and market trends monitored by ESMA.

• ESMA—TRV Risk Monitor: ESMA released its regular Trends, Risks, and Vulnerabilities (TRV) Risk Monitor. This report provides ESMA’s assessment of financial market risks and vulnerabilities, which informs supervisory priorities and actions.

Digital Operational Resilience Act (DORA)

Significant progress was made in operationalising DORA, with multiple publications focusing on technical standards and implementation roadmaps:

• Commission Delegated Regulation (EU) 2025/301 on regulatory technical standards (RTS) for the notification and reporting of major ICT-related incidents and significant cyber threats (C/2024/6901): This Delegated Regulation establishes detailed Regulatory Technical Standards (RTS) specifying how financial entities should notify and report major Information and Communication Technology (ICT)- related incidents and significant cyber threats, a core requirement under DORA.

• Commission Implementing Regulation (EU) 2025/302 complements DORA by establishing technical standards for financial entities to report major ICT incidents and significant cyber threats (C/2024/7277), made under Article 20(4) of DORA: This Implementing Regulation complements the Delegated Regulation by providing the technical standards necessary for financial entities to effectively report major ICT incidents and cyber threats, ensuring consistent application of DORA’s reporting requirements.

• ESAs publish roadmap for designation of critical ICT third-party service providers under DORA: The European Supervisory Authorities (ESAs) – ESMA, EBA, and EIOPA – jointly published a roadmap outlining the process and timeline for the designation and subsequent oversight of critical ICT third-party service providers under DORA. This roadmap is crucial for establishing the operational framework for overseeing these entities.

• ECB updates TIBER-EU framework to align with DORA RTS on threat-led penetration testing: The European Central Bank (ECB) updated its Threat Intelligence-based Ethical Red Teaming (TIBER-EU) framework to align with the forthcoming DORA Regulatory Technical Standards on threat-led penetration testing. This update ensures that the TIBER-EU framework remains a relevant and effective tool for cyber resilience testing in the DORA context.

• Commission Delegated Regulation (EU) 2025/295 of 24 October 2024 supplementing Regulation (EU) 2022/2554 of the European Parliament and the Council about regulatory technical standards on harmonisation of conditions enabling the conduct of the oversight activities: This Delegated Regulation sets out RTS to harmonize the conditions that will allow the smooth and effective conduct of oversight activities of critical ICT third-party providers, ensuring consistent supervisory approaches across the EU.

• EBA amends final guidelines on ICT and security risk management in the context of DORA application: The European Banking Authority (EBA) amended its existing ICT and security risk management policies to ensure alignment with DORA's requirements. This clarifies how firms should manage ICT and security risks under the new regulatory regime.

Markets in Crypto-Assets Regulation (MiCA)

February saw continued progress in the implementation of MiCA, with a focus on delegated and implementing acts, as well as consultations and opinions:

• A Delegated Regulation specifying requirements for conflict of interest policies for issuers of asset-referenced tokens (C(2025) 1220 final), as mandated by Article 32(5) of MiCA: This Delegated Regulation details the specific requirements for conflict of interest policies that issuers of asset-referenced tokens (ARTs) must establish and maintain, as mandated by MiCA.

• Commission Delegated Regulation on RTS for cryptoasset service providers' conflict of interest policies and disclosure methods (C(2025) 1216 final), based on Article 72 of MiCA: This Delegated Regulation provides Regulatory Technical Standards (RTS) for cryptoasset service providers (CASPs) concerning their conflict of interest policies and the methods they should use for disclosing these policies to clients, ensuring transparency and client protection.

• Commission Delegated Regulation (C(2025) 1206 final) establishes regulatory technical standards for recordkeeping for all crypto asset services, activities, orders, and transactions. This regulation implements Article 68(10) of MiCA: This Delegated Regulation establishes RTS that standardise the recordkeeping requirements for all crypto asset services, activities, orders, and transactions, ensuring regulatory oversight and market integrity.

• EBA opinion on European Commission's partial rejection of RTS on authorisation for issuers of ARTs: The EBA issued an opinion on the European Commission's partial rejection of certain aspects of the draft RTS related to the authorisation of issuers of asset-referenced tokens. This highlights the ongoing refinement of MiCA's implementing measures.

• Official translations of ESMA guidelines on maintenance of systems and security access protocols under MiCA, reverse solicitation under MiCA, and crypto asset transfer services under MiCA: ESMA released official translations of its guidelines on several key areas under MiCA, including system maintenance, reverse solicitation, and crypto asset transfer services, facilitating broader understanding and consistent application across the EU.

• Commission Delegated Regulation (EU) 2025/303 supplements MiCA by specifying information that certain financial entities must include when notifying their intention to provide crypto asset services under Article 60(13): This Delegated Regulation specifies the detailed information that certain financial entities, such as credit institutions and investment firms, must include when notifying competent authorities of their intention to provide crypto asset services under MiCA's Article 60.

• Commission Implementing Regulation (EU) 2025/304 sets forth technical standards for informing financial entities of their intention to offer crypto asset services (C/2024/7542) by Article 60(14) of MiCA: This Implementing Regulation establishes the technical standards for competent authorities to follow when informing financial entities about the process and requirements for notifying their intention to offer crypto asset services.

• ESMA consults on criteria for assessing knowledge and competence under MiCA: ESMA launched a consultation on draft guidelines setting out criteria for assessing the knowledge and competence of management and staff of crypto-asset service providers, a key aspect of ensuring investor protection and market integrity under MiCA.

• EBA opinion on European Commission amendments to draft RTS on conflicts of interest for asset-referenced token issuers under MiCA: The EBA provided an opinion on the European Commission's amendments to the draft RTS concerning conflict of interest policies for issuers of asset-referenced tokens, contributing to the finalisation of these crucial implementing rules.

• Commission Delegated Regulations (EU) 2025/293, 294, 296, 298, and 299 of 2024 supplementing MiCA on complaints handling, white paper approval, transaction estimation, and continuity of services: A suite of Delegated Regulations finalized RTS on various operational aspects under MiCA, including:

  • Regulation (EU) 2025/293: Handling complaints relating to asset-referenced tokens.

  • Regulation (EU) 2025/294: Handling of complaints by crypto-asset service providers.

  • Regulation (EU) 2025/296: Procedure for approving a crypto-asset white paper.

  • Regulation (EU) 2025/298: Methodology to estimate transaction volumes of certain crypto-assets.

  • Regulation (EU) 2025/299: Continuity and regularity in the performance of crypto-asset services.

European Central Bank (ECB)

The ECB contributed to the digital finance discourse and infrastructure development:

• Working Paper Series: Digital money and finance: a critical review of terminology: The ECB published a working paper that critically reviews the terminology used in the rapidly evolving digital money and finance field, aiming to foster clarity and consistency in the discourse.

• Eurosystem expands initiative to settle DLT-based transactions in central bank money: The Eurosystem announced an expansion of its ongoing initiative to explore and enable the settlement of transactions based on Distributed Ledger Technology (DLT) using central bank money, signaling continued exploration of innovative financial infrastructure.

United Kingdom

The UK's regulatory focus in February included financial promotions and digital markets.

Financial Promotions (FinProm)

The Financial Conduct Authority (FCA) actively monitored and analysed financial promotions:

• FCA analysis of 2024 financial promotions data: The FCA released an analysis of financial promotions data from 2024, providing insights into trends and areas of concern within financial advertising and marketing.

• FCA financial promotions Q4 2024 data and examples of intervention: The FCA published data specifically for Q4 2024 on financial promotions, including concrete examples of regulatory interventions taken. This provides transparency on the FCA's enforcement activities in this area.

Digital Markets and Payments

• FCA and PSR feedback statement on BigTech and digital wallets: The FCA and the Payment Systems Regulator (PSR) jointly issued a feedback statement on the evolving landscape of digital markets and payments, with a particular focus on the role and potential impact of BigTech firms and digital wallets. This indicates ongoing regulatory attention to competition and innovation in digital financial services.

United States

The US continued to grapple with the implications of digital assets and the future of money.

Stablecoins

• Reflections on a Maturing Stablecoin Market: This publication reflects on the development and increasing maturity of the stablecoin market in the US, likely examining trends, risks, and regulatory considerations as stablecoins gain prominence.

Digital Currencies

• Money and Payments: The U.S. Dollar in the Age of Digital Transformation: This paper examines the broader implications of digital transformation for the US dollar and the payments landscape. It likely considers the potential for a central bank digital currency (CBDC) and the future of the US monetary system.

Banking and Cryptocurrency

• Banking and Cryptocurrency: Policy Issues: This report outlines key policy issues arising from the intersection of traditional banking and the cryptocurrency sector in the US. It likely addresses regulatory clarity, risk management, and consumer protection topics.

Indonesia

Indonesia focused on refining its regulatory approach to crypto assets.

Crypto Assets

• Revamp of the Whitelist of Crypto Assets Eligible for Trading: Indonesia announced a revamp of its allowlist of crypto assets legally permitted for trading on exchanges within the country. This indicates an ongoing effort to refine and update the regulatory framework for crypto assets in Indonesia.

International

International bodies addressed broad themes in financial regulation, technology, and crime.

Tokenisation

• IMF—Tokenization and Financial Market Inefficiencies: The International Monetary Fund (IMF) published a report examining the potential of tokenisation to address inefficiencies within financial markets. This suggests a growing international interest in tokenisation's benefits and challenges.

Crypto Assets Regulation

• FSB thematic peer review on global regulatory framework for crypto assets: consultation and terms of reference: The Financial Stability Board (FSB) initiated a thematic peer review on the global regulatory framework for crypto assets. The consultation and terms of reference release signals a coordinated international effort to assess and potentially enhance the global approach to crypto-asset regulation.

Financial Crime

• Wolfsberg Group FAQs on defining digital assets for AML and CTF purposes: The Wolfsberg Group, a banking association focused on financial crime, released Frequently Asked Questions (FAQs) clarifying the definition of digital assets in the context of Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF). This highlights the ongoing effort to adapt financial crime compliance frameworks to the digital asset space.

Artificial Intelligence (AI)

• BIS speech on foundations of trustworthy AI in the financial sector: The Bank for International Settlements (BIS) delivered a speech focusing on the foundational elements necessary for building reliable and responsible Artificial Intelligence (AI) systems within the financial sector. This underscores the increasing importance of AI governance and ethics in economic regulation.

Conclusion

February's regulatory landscape was marked by significant advancements in the digital finance, particularly in Europe with the continued implementation of DORA and MiCA. Across jurisdictions, there was a clear focus on managing the risks and harnessing the opportunities presented by digital assets, technological innovation, and the evolving financial landscape. International cooperation and standard-setting remain crucial, as evidenced by the activities of bodies like the FSB, IMF, and BIS, in shaping a consistent and effective global regulatory approach to these transformative developments.