May 2025 Regulatory Update

Gulf Cooperation Council Regulatory Developments

United Arab Emirates – Central Bank of the UAE (CBUAE)

• CBUAE Imposes AED 100 Million Fine on Exchange House

  • The Central Bank of the UAE imposed a financial sanction of AED 100 million on an exchange house for failures in anti-money laundering controls. The identity of the exchange house was not disclosed.

Source: CBUAE Financial Sanction

• CBUAE Fines Two Foreign Bank Branches for AML Violations

  • The Central Bank imposed financial sanctions totalling AED 18.1 million on two branches of foreign banks operating in the UAE due to violations of anti-money laundering regulations.

Source: CBUAE Financial Sanction

• CBUAE Sanctions Five Insurance Brokers for AML Failures

  • Administrative and financial sanctions were imposed on five insurance brokers for anti-money laundering failings, including poor documentation and lack of internal oversight.

Source: CBUAE Financial Sanction

Securities and Commodities Authority (SCA)

• SCA Launches 'Finfluencer' Licence to Regulate Digital Finance Content

  • The SCA introduced the region’s first “Finfluencer” licence, establishing a regulatory framework for individuals providing investment analysis and financial promotions on digital platforms.

Source: SCA Influencer License

Dubai Financial Services Authority (DFSA)

• DFSA Releases Consultation Paper on Offers of Securities to the Public

  • The DFSA has published Consultation Paper No. 166, titled Offers of Securities to the Public from the DIFC, inviting stakeholder feedback. Comments on the proposed changes are due by 16 June 2025.

Source: Paper 166

• DFSA’s Tokenisation Sandbox Attracts Strong Industry Interest

  • The DFSA announced that 96 firms have expressed interest in its inaugural Tokenisation Regulatory Sandbox, a key initiative under its Innovation Testing Licence programme. The sandbox aims to support responsible innovation around the tokenisation of shares, bonds (including sukuk), fund units, and related services within a regulated framework. The initiative reflects Dubai’s ambition to position itself as a global leader in digital finance and aligns with the D33 Agenda to be among the top four global financial hubs by 2033.

Source: DFSA

• DFSA Announces Amendments to Legislation Post Consultation

  • Following the consultation period on proposed legislative changes set out in Consultation Paper No. 161, the DFSA Board made amendments to the DFSA Rulebook.

Source: DFSA

• DFSA Launches 2025 Graduate Programme

  • The DFSA announced the launch of its 2025 Graduate Programme, reaffirming its commitment to nurturing UAE National talent in the financial services sector.

Source: DFSA

Financial Services Regulatory Authority (FSRA)

• ADGM and AIFC Strengthen Cross-Border Data Protection Cooperation

  • ADGM and the Astana International Financial Centre (AIFC) signed a Memorandum of Understanding to enhance cooperation in the enforcement of data privacy laws. The MoU includes frameworks for regulatory information exchange, joint investigations, complaint handling, and staff exchanges, aiming to support secure data flows and promote cross-border regulatory alignment.

Source: ADGM

• FSRA Fines 23 ADGM Entities for CRS and FATCA Non-Compliance

  • The FSRA imposed financial penalties totalling AED 610,000 on 23 ADGM-based entities for breaches of the Common Reporting Standard Regulations 2017 and/or the Foreign Account Tax Compliance Regulations 2022. Violations included failure to submit risk assessments and annual returns, incomplete or inaccurate reporting, and lack of valid self-certification forms. This enforcement action underscores ADGM’s commitment to global tax transparency and robust financial reporting.

Source: ADGM

• ADGM and Hong Kong SFC Sign MoU to Enhance Cross-Border Investment Oversight

  • ADGM’s FSRA and the Securities and Futures Commission (SFC) of Hong Kong signed a Memorandum of Understanding (MoU) to enhance cooperation on the supervision of collective investment scheme managers operating across both jurisdictions. The agreement, formalised at the IOSCO AGM in Doha, establishes a framework for consultation, cooperation, and information exchange relating to investment management, delegation arrangements, and fund offerings through master-feeder structures.

Source: ADGM

ADGM RA (Registration Authority)

• ADGM RA Joins IFIAR Enforcement Working Group

  • The Registration Authority of ADGM has joined the Enforcement Working Group (EWG) of the International Forum of Independent Audit Regulators (IFIAR), becoming the first Middle Eastern member of the group. This move strengthens ADGM’s audit enforcement capabilities and global engagement. The EWG promotes cross-jurisdictional collaboration, effective enforcement, and audit quality improvements through shared knowledge, best practices, and coordinated regulatory action.

Source: ADGM

• ADGM RA Publishes Consultation on Legal, Tax, and Company Service Provider Controls

  • The RA issued Consultation Paper No. 5 of 2025 proposing amendments to the Commercial Licensing Regulations affecting legal service providers, tax consultancies, auditors, and company service providers. The proposals include introducing new licensing conditions, professional indemnity insurance requirements, a controlled activity for tax services, and restrictions on combining certain services. The consultation period is open until 15 June 2025.

Source: ADGM

• ADGM RA Publishes Consultation Paper on Retail Consumer Protection Regulations

  • The ADGM RA issued a consultation paper seeking public feedback on the proposed Consumer Protection Regulations 2025, aimed at regulating entities engaging in 'Category C' retail activities. The proposed rules introduce requirements for product labelling, transparent advertising, approval processes for promotions, disclosure of product conditions, and consumer rights on warranties and defective goods. The framework also includes enforcement powers for the Registrar, including complaint resolution and penalty imposition.

Source: ADGM

Virtual Assets Regulatory Authority (VARA)

• VARA Issues Updated Activity Rulebooks to Strengthen Market Integrity

  • VARA published Version 2.0 of its activity-based Rulebooks, enhancing supervisory mechanisms across regulated virtual asset activities to promote market discipline and operational resilience.

Source: VARA

Saudi Arabia

• CMA Approves Guidelines for Issuing Sustainable Debt Instruments

  • The CMA approved new guidelines for green, social, sustainable, and sustainability-linked debt instruments. The framework aims to deepen the local debt market, enhance disclosure standards, and support Saudi Arabia’s sustainability goals under Vision 2030.

Source: CMA

• SAMA Seeks Public Consultation on Draft Update to Finance Companies Control Law

  • SAMA launched a draft update to the Implementing Regulations of the Finance Companies Control Law for public consultation, aiming to support sector stability and growth.

Source: SAMA

• CMA Calls for Public Consultation on Offshore Securities Business License

  • The CMA invited stakeholders to provide feedback on the Draft Regulatory Framework for the Offshore Securities Business License, aiming to enhance the Kingdom's capital market.

Source: SPA

Asia-Pacific Regulatory Develpments

Hong Kong

Hong Kong Monetary Authority (HKMA)

• HKMA Monthly Statistical Bulletin – May 2025

  • The HKMA released its Monthly Statistical Bulletin, providing data on renminbi-denominated assets, secondary market turnover of government bonds, and other financial statistics pertinent to Hong Kong's monetary policy and financial stability.

Source: HKMA

Securities and Futures Commission (SFC)

• SFC Enhances Market Sounding Guidelines Effective 2 May 2025

  • The SFC's new guidelines on market soundings aim to regulate the communication of confidential information before share placements and large securities transactions. The guidelines focus on maintaining market integrity and preventing insider trading.

Source: SFC

• SFC and ADGM’s FSRA Sign MoU to Strengthen Cross-Border Fund Supervision

  • The SFC and the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market signed a Memorandum of Understanding (MoU) to enhance regulatory cooperation on cross-border supervision of investment managers. The agreement establishes a framework for consultation, information sharing, and oversight of regulated entities engaging in collective investment activities between Hong Kong and the UAE.

Source: SFC

• SFC Strengthens Ties with UAE Regulators to Advance Virtual Asset Supervision

  • Senior executives from the SFC visited Abu Dhabi and Dubai to meet with regulators and Web3 industry leaders to exchange views on virtual asset supervision. The discussions focused on enhancing regulatory clarity and fostering international cooperation in line with the SFC’s ASPIRe roadmap.

Source: SFC

Insurance Authority (IA)

• IA Supports Measures to Promote Silver Economy

  • The IA expressed full support for initiatives aimed at promoting the silver economy, focusing on the aging population's needs. The measures include developing insurance products and services tailored to the elderly, enhancing social support, and medical services.

Source: IA

Singapore

Monetary Authority of Singapore (MAS)

• MAS Proposes Streamlined Prospectus Rules for IPOs

  • MAS launched a consultation to simplify prospectus requirements and expand investor outreach channels for IPOs. The proposed measures aim to facilitate listings and broaden access to investment opportunities in Singapore’s capital markets.

Source: MAS

• MAS Hosts 12th Asian Monetary Policy Forum

  • MAS co-hosted the Asian Monetary Policy Forum to address the region’s monetary policy and financial stability challenges amid geo-economic shifts. Discussions focused on resilience, inflation, and regulatory alignment across Asian markets.

Source: MAS

Japan

Financial Services Agency (FSA)

• FSA Addresses Surge in Online Brokerage Account Hijackings

  • The FSA reported a significant increase in online trading account hijackings, with fraudulent trades totalling ¥304.9 billion across 3,505 transactions from January through April. The agency is urging financial institutions to strengthen cybersecurity measures.

Source: FAS

Bank of Japan (BoJ)

• BoJ Slashes Growth Forecasts Amid Tariff Concerns

  • The BoJ reduced its economic growth forecasts for 2025 and 2026 due to uncertainties related to global trade and newly introduced U.S. tariffs. The central bank now anticipates GDP growth of 0.5% in 2025, down from 1.1%.

Source: BoJ

India

Reserve Bank of India (RBI)

• RBI Revises Economic Capital Framework to Enhance Financial Resilience

  • The RBI's central board approved a revised Economic Capital Framework and updated risk provisioning norms to strengthen the central bank's financial resilience amid global economic uncertainties.

Source: RBI

Securities and Exchange Board of India (SEBI)

• SEBI Strengthens Risk Monitoring of Equity Derivatives

  • SEBI introduced new measures to enhance risk monitoring in the equity derivatives market, including revising the method for calculating open interest in single stock and index derivatives. The regulator aims to curb speculation and reduce manipulation in the derivatives market.

Source: SEBI

European Union Regulatory Developments

European Central Bank (ECB)

• ECB to Conduct Stress Tests on Non-Bank Financial Institutions

  • ECB announced comprehensive stress tests for non-bank financial institutions, targeting systemic risk and resilience against market shocks.

Source: ECB

United Kingdom Regulatory Developments

• FCA Proposes Stablecoin Regulations

  • The FCA has published proposals for issuing stablecoins, aiming to allow UK crypto firms to compete internationally.

Source: FCA

Prudential Regulation Authority (PRA)

• PRA Updates Approach to International Bank Branches

  • The PRA published a policy statement on business conducted within branches of international banks operating in the UK, outlining its expectations for booking models and liquidity reporting.

Source: BoE

Bank of England (BoE)

• BoE Reduces Bank Rate to 4.25%

  • The Bank of England reduced its base interest rate by 0.25 percentage points to 4.25%, citing easing inflation and persistent global uncertainties.

Source: BoE

United States Regulatory Developments

Securities and Exchange Commission (SEC)

• SEC Initiates Proceedings on Cryptocurrency Trust Listings

  • The SEC initiated proceedings to evaluate the listing of cryptocurrency trusts, indicating increased scrutiny on digital asset investment vehicles.

Source: SEC

• SEC Dismisses Lawsuit Against Binance

  • The SEC has dismissed its 2023 lawsuit against Binance and its founder, Changpeng Zhao, marking a significant shift in regulatory approach under the Trump administration. The dismissal follows the SEC's formation of a "crypto task force" aimed at developing a supportive regulatory framework for digital assets.

Source: SEC

• SEC Speaks 2025 Highlights Enforcement Priorities

  • At the 2025 SEC Speaks conference, the SEC emphasized anticipated rulemaking in areas related to crypto, retail investment, and the Consolidated Audit Trail (CAT). The Commission continues to focus on fraud, individual liability, and retail investor protection.

Source: SEC

Federal Reserve (The Fed)

• Federal Reserve Holds Rates Steady Amid Tariff-Induced Uncertainty

  • The Federal Reserve maintained its benchmark interest rates at 4.25%-4.5%, citing persistent economic uncertainty stemming from recent tariff escalations and mixed economic indicators.

Source: FED

Commodity Futures Trading Commission (CFTC)

• CFTC Issues Advisory on Market Volatility Controls

  • The CFTC issued a staff advisory reminding designated contract markets and derivatives clearing organizations of certain core principles and regulatory obligations related to controls designed to address market volatility.

Source: CFTC

Office of the Comptroller of the Currency (OCC)

• OCC Announces May 2025 Enforcement Actions

  • The OCC announced enforcement actions against two banks and three institution-affiliated parties for unsafe or unsound practices, including those related to strategic and capital planning and board management supervision.

Source: OCC

Financial Industry Regulatory Authority (FINRA)

• FINRA Penalizes Broker-Dealer for Social Media Violations

  • FINRA fined a brokerage firm $850,000 for violations related to its social media influencer program, marking its first formal enforcement action against a firm over its supervision of finfluencers.

Source: FINRA

Key takeaways include:

• UAE Regulatory Enforcement Intensifies

  The CBUAE imposed major fines on exchange houses, foreign bank branches, and insurance brokers for AML violations, signalling increased supervisory vigilance and enforcement rigour across the financial services sector.

  
  

• Sustainable Finance Advances in Saudi Arabia

  The CMA approved comprehensive guidelines for green, social, sustainable, and sustainability-linked debt instruments, aiming to expand the local debt capital market and align with Vision 2030 sustainability goals.

  
  

• SCA Introduces Region’s First ‘Finfluencer’ Licence

  The UAE’s Securities and Commodities Authority launched a regulatory framework for digital financial content creators, reflecting a broader push to modernise investor engagement and marketing oversight.

  
  

• Cross-Border Fund and Data Cooperation Strengthens

   ADGM’s FSRA signed MoUs with Hong Kong’s SFC and Kazakhstan’s AIFC, enhancing cross-border regulatory cooperation on fund supervision and data protection—highlighting ADGM’s global alignment on oversight and transparency.

  
  

• Singapore Deepens Capital Market Access

  MAS launched a consultation to streamline IPO prospectus requirements and broaden investor outreach. It also hosted the Asian Monetary Policy Forum, focusing on resilience and regulatory cooperation amid global shifts.

  
  

• Cybersecurity in Focus in Japan

  Japan’s FSA reported a spike in online brokerage account hijackings involving ¥304.9 billion in fraudulent trades, prompting urgent calls for enhanced cybersecurity protocols at financial institutions.

  
  

• SEBI Reinforces Derivatives Market Integrity

  India’s SEBI introduced revised methodologies for calculating open interest in equity derivatives, aiming to reduce speculative behaviour and strengthen market transparency and control.

  
  

• ECB Broadens Systemic Risk Oversight

  The European Central Bank announced stress tests for non-bank financial institutions—an indicator of growing concern over systemic risks from shadow banking and non-traditional financial actors.

  
  

• UK Strengthens Crypto and Bank Branch Regulation

  The FCA proposed new rules for stablecoin issuance, while the PRA updated supervisory expectations for international bank branches operating in the UK, targeting greater operational resilience and financial stability.

  
  

• US Regulators Accelerate Digital Asset Oversight

  The SEC dropped its lawsuit against Binance amid a strategic shift under a new crypto task force, initiated proceedings on crypto trust listings, and emphasised 2025 enforcement priorities.

  The CFTC issued a market volatility advisory to clearinghouses and trading venues, while FINRA brought its first enforcement action related to social media influencer programmes in financial services.

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