December 2025 Regulatory Update

As part of azakaw's commitment to keeping compliance teams informed, this edition highlights key regulatory developments across the GCC, APAC, and the US in December 2025. This month's key regulatory shifts include the CFTC's approval of spot crypto trading on US exchanges, the DFSA's transition to firm-led crypto token assessments in the DIFC, and Kuwait's launch of a comprehensive cyber resilience framework. With several changes taking effect in January 2026, compliance teams need to act now to assess impacts, update frameworks, and ensure readiness. 

Below, we break down December's regulatory developments across the GCC, APAC, and the US to help you stay informed and compliant.

Gulf Cooperation Council Regulatory Developments

United Arab Emirates

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

• ADGM FSRA Publishes Discussion Paper on Enhancements to the Regulatory Framework for Insurance

  • The FSRA has published a Discussion Paper proposing enhancements to the ADGM insurance regulatory framework aimed at adopting a more risk sensitive and proportionate supervisory approach. The proposals seek to better align regulatory expectations with the nature, scale and complexity of insurance activities, and invite feedback from industry stakeholders ahead of potential regulatory changes.

Source: ADGM

Dubai Financial Services Authority (DFSA)

• Notice of Amendments to Legislation December 2025

  • The DFSA has issued a notice outlining the Markets Law Amendment Law No. 3 of 2025 alongside related amendments to the DFSA Rulebook. The legislative and rulebook changes will take effect from 31 December 2025 and apply to all DIFC market participants subject to the Markets Law and DFSA regulatory framework. Firms are expected to review and update policies and procedures to reflect the amended legal requirements.

Source: DFSA

• Notice of Amendments to Legislation December 2025

  • The DFSA has announced minor and consequential amendments to several DFSA Rulebook modules, including AML, COB, GEN, AMI and PIB. The updates form part of the December 2025 legislative amendment package and require DFSA regulated firms to review and update AML, conduct and governance frameworks ahead of the relevant effective dates.

Source: DFSA

• DFSA Releases Consultation Paper No. 169 on Miscellaneous Amendments

  • The DFSA has released Consultation Paper No. 169 proposing a series of miscellaneous amendments across its regulatory framework. The consultation invites feedback from DIFC firms and stakeholders, with comments due by 10 January 2026. The proposals may result in regulatory changes affecting multiple DFSA regulated activities and compliance requirements.

Source: DFSA

• DFSA Issues Updated Rules on the Regulation of Crypto Tokens in the DIFC

  • The DFSA has issued updated rules governing the regulation of crypto tokens in the DIFC. The revised framework removes the DFSA recognised token list and introduces a firm led approach to crypto token suitability assessments. Crypto asset firms and digital asset service providers are required to implement documented suitability, governance and control frameworks, with compliance expected by January 2026.

Source: DFSA

• Notice of Amendments to Legislation December 2025 Following CP168 and CP165

  • The DFSA has announced further rulebook amendments arising from Consultation Papers 168 and 165. The amendments affect multiple DFSA Rulebook modules and will come into force on staggered effective dates. DFSA regulated firms are expected to map impacted modules and undertake phased implementation planning to ensure timely compliance.

Source: DFSA

Kuwait

Central Bank of Kuwait (CBK)

• CBK Launches Cyber and Operational Resilience Framework for Local Banks and Financial

  • The Central Bank of Kuwait has launched the Cyber and Operational Resilience Framework to strengthen cyber security, operational resilience and business continuity across local banks and financial institutions. The framework sets supervisory expectations around governance, cyber risk controls, resilience testing and incident reporting, reinforcing CBK’s focus on system wide operational resilience.

Source: CBK

Asia-Pacific Regulatory Develpments

Australia

Australian Prudential Regulation Authority (APRA)

• Finalises Changes to Phase Out Additional Tier 1 (AT1) Capital

  • APRA has completed its multi-year review of Additional Tier 1 capital and confirmed that Australian banks will progressively phase out AT1 instruments by 2032. The reforms are intended to simplify bank capital structures and strengthen loss absorbency. To maintain overall capital calibration, APRA will reduce the Common Equity Tier 1 leverage ratio requirement from 3.5 percent to 3.25 percent, a change expected to particularly benefit smaller authorised deposit-taking institutions while maintaining prudential resilience.

Source: APRA

Australian Securities and Investments Commission (ASIC)

• ASIC Issues Updated Guidance on Digital Disclosures

  • ASIC has issued updated guidance through Regulatory Guide 221, Facilitating digital financial services disclosures, to clarify regulatory expectations for digital era disclosures. The update follows industry consultation and is intended to support clearer, more effective disclosure practices across digital channels while maintaining compliance with existing disclosure obligations.

Source: ASIC

• ASIC Renews Guidance on Managing Conflicts of Interest in Financial Services

  • ASIC has released updated guidance through Regulatory Guide 181, Managing Conflicts of Interest, providing principles based direction to assist Australian financial services licensees in identifying, managing and mitigating conflicts of interest. The updated guide reflects recent legal and policy developments and reinforces expectations around governance, controls and ongoing monitoring of conflicts across financial services businesses.

Source: ASIC

Hong Kong

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

• HKMA and SFC Reprimand and Fine EFG Bank AG HK$10.85 Million

  • In a joint enforcement action, supervisory findings by the HKMA led the SFC to impose a HK$10.85 million fine on EFG Bank AG for serious compliance failures. The breaches related to inadequate product due diligence and record-keeping practices between 2015 and 2020, as well as delayed reporting of regulatory breaches. The action highlights enhanced coordination between Hong Kong regulators and continued scrutiny of governance, compliance controls and cross-border regulatory obligations.

Source: GOV

Malaysia

Securities Commission Malaysia (SC Malaysia)

• ACSR Sets Out Regulatory Approach to Non-Compliance with Sustainability Reporting Requirements

  • The Advisory Committee on Sustainability Reporting has set out its regulatory approach to addressing non compliance with sustainability reporting requirements by Malaysian public listed companies. The statement clarifies how regulators will assess, engage and respond where issuers fall short of mandatory sustainability disclosures under applicable reporting frameworks, signalling increased supervisory focus on data quality, governance and board oversight.

Source: SC

South Korea

Korea Financial Intelligence Unit (KoFIU)

• KoFIU Launches Taskforce to Enhance Anti Money Laundering Framework

  • Korea’s Financial Intelligence Unit has launched a dedicated taskforce to review and strengthen the national AML and CFT framework. The initiative focuses on upgrading existing rules, including expanding the application of the virtual asset travel rule and aligning domestic AML standards with international best practices. The work is intended to support regulatory readiness ahead of Korea’s upcoming FATF evaluation.

Source: FSC

European Union

European Banking Authority (EBA)

• EBA Amends Guidelines on the Equivalence of Confidentiality Regimes

  • The EBA has published updated guidelines amending its framework for assessing the equivalence of confidentiality regimes of third country supervisory authorities. The amendments aim to support consistent supervisory cooperation and information exchange while safeguarding confidentiality standards. Key changes include refined equivalence assessment criteria, enhanced documentation requirements and alignment with recent EU legislative developments.

Source: EBA

Switzerland

Swiss Financial Market Supervisory Authority (FINMA)

• FINMA Publishes Video Identification Guidance for Online Onboarding

  • FINMA has issued updated guidance on the use of video identification for online client onboarding. The guidance clarifies technical and procedural requirements for secure video identification, including measures to prevent fraud, protect personal data and comply with anti money laundering obligations. It also addresses the use of AI assisted verification tools and sets minimum standards for financial institutions offering remote onboarding services.

Source: FINMA

Africa

South Africa

South African Reserve Bank (SARB)

• SARB Announces Cessation of JIBAR and Transition to Risk-Free Reference Rate

  • The SARB has announced the official cessation of the Johannesburg Interbank Average Rate (JIBAR) as a benchmark interest rate and set out the transition plan to the South African Rand Overnight Index Average (ZARONIA) as the preferred risk-free reference rate. The guidance includes timelines for discontinuation, contractual fallback expectations and implementation guidance for market participants to support an orderly transition across affected products and systems.

Source: SARB

United States of America

Commodity Futures Trading Commission (CFTC)

• CFTC Announces Reforms to the Wells Process and Amends Rules of Practice

  • The Acting Chairman of the CFTC has announced procedural reforms to the Wells process alongside amendments to the Rules of Practice and Rules Relating to Investigations. The changes are intended to improve fairness and efficiency in enforcement investigations and settlement discussions, including clearer procedures for Wells submissions and engagement with enforcement staff. The reforms signal refinements to the CFTC’s enforcement framework rather than a shift in supervisory intensity.

Source: CFTC

• CFTC Announces First-Ever Listed Spot Crypto Trading on US Regulated Exchanges

  • The CFTC has announced the first approval of listed spot crypto trading on designated US regulated exchanges under specified regulatory frameworks. The development marks a significant milestone in the evolution of US digital asset market structure and brings spot crypto trading activities within established regulatory and supervisory parameters, including surveillance, AML and reporting obligations.

Source: CFTC

• CFTC Launches Digital Assets Pilot Program for Tokenised Collateral in Derivatives Markets

  • The CFTC has launched a Digital Assets Pilot Program to support supervised testing and guidance on the use of tokenised collateral within derivatives clearing and settlement workflows. The program is intended to facilitate responsible innovation while maintaining robust controls around custody, segregation, valuation and legal enforceability of collateral. Participation is expected to be closely monitored under existing supervisory standards.

Source: CFTC

• CFTC Announces Reforms to the Wells Process and Amends Rules of Practice

  • The Acting Chairman of the CFTC has announced procedural reforms to the Wells process alongside amendments to the Rules of Practice and Rules Relating to Investigations. The changes are intended to improve fairness and efficiency in enforcement investigations and settlement discussions, including clearer procedures for Wells submissions and engagement with enforcement staff. The reforms signal refinements to the CFTC’s enforcement framework rather than a shift in supervisory intensity.

Source: CFTC

• CFTC Announces First-Ever Listed Spot Crypto Trading on US Regulated Exchanges

  • The CFTC has announced the first approval of listed spot crypto trading on designated US regulated exchanges under specified regulatory frameworks. The development marks a significant milestone in the evolution of the US digital asset market structure and brings spot crypto trading activities within established regulatory and supervisory parameters, including surveillance, AML and reporting obligations.

Source: CFTC

• CFTC Launches Digital Assets Pilot Program for Tokenised Collateral in Derivatives Markets

  • The CFTC has launched a Digital Assets Pilot Program to support supervised testing and guidance on the use of tokenised collateral within derivatives clearing and settlement workflows. The program is intended to facilitate responsible innovation while maintaining robust controls around custody, segregation, valuation and legal enforceability of collateral. Participation is expected to be closely monitored under existing supervisory standards.

Source: CFTC

Office of the Comptroller of the Currency (OCC)

• OCC Confirms Bank Authority to Engage in Riskless Principal Crypto Asset Transactions

  • The OCC has confirmed that national banks may engage in riskless principal transactions involving crypto assets as part of the business of banking, provided such activities are conducted in a safe and sound manner and in compliance with applicable law. The clarification supports banks exploring crypto asset market making models, subject to robust risk management, custody and settlement arrangements, AML controls and, where required, supervisory non objection.

Source: OCC

Federal Reserve Board

• Federal Reserve Board Announces 2026 Pricing for Payment Services

  • The Federal Reserve Board has announced pricing changes for payment services provided by the Federal Reserve Banks, effective 1 January 2026. The announcement follows public consultation on potential strategic changes to cheque services and sets out updated pricing across Federal Reserve payment services. The changes may require operational and budgetary adjustments for banks and credit unions using these services.

Source: FED

• Federal Reserve Board Issues New Policy Statement to Support Responsible Innovation

  • The Federal Reserve Board has withdrawn its 2023 policy statement and issued a new framework clarifying how certain Board-supervised banks may engage in activities that support responsible innovation. The revised policy emphasises strong risk management, consumer protection and compliance with applicable laws while allowing banks to explore innovative products and technologies under supervisory oversight. Banks are expected to align governance and control frameworks with the updated supervisory expectations.

Source: FED

• Federal Reserve Board Announces Annual Adjustments to Asset Size Thresholds

  • The Federal Reserve Board has announced updated asset size thresholds effective from 1 January 2026. The adjustments reflect changes in aggregate financial sector assets and are intended to maintain consistency with statutory requirements. The notice sets out revised dollar thresholds applicable to bank holding companies and other covered entities, which may affect the application of prudential and concentration related requirements.

Source: FED

Financial Industry Regulatory Authority (FINRA)

• FINRA Adopts Amendments to Rule 6730 to Streamline Allocation Reporting for BD IA Firms

  • FINRA has amended Rule 6730 on TRACE transaction reporting to allow firms operating as both broker dealers and investment advisers to submit a single aggregated TRACE report for allocations of an aggregate order across multiple managed customer accounts. Under the amendments, allocations executed at the same time and price may be reported in a single entry, including the number of accounts, rather than through separate reports. The changes are intended to improve reporting efficiency while maintaining market transparency.

Source: FINRA

US Securities and Exchange Commission (SEC)

• SEC Issues Risk Alert on Advisers’ Compliance with the Marketing Rule

  • The SEC’s Division of Examinations has issued a Risk Alert outlining common deficiencies observed in registered investment advisers’ compliance with the amended Advisers Act Marketing Rule (Rule 206(4)-1). Key issues identified include inadequate disclosures, weaknesses in the oversight of testimonials and endorsements, insufficient written agreements and non compliant use of third-party ratings. The alert signals heightened supervisory focus on marketing practices and reinforces expectations for robust compliance frameworks.

Source: SEC

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