Regulatory Updates

The Financial Intelligence Unit of India (FIU-IND) ordered the blocking of access to 25 offshore crypto exchanges for failing to register under the Indian Prevention of Money-Laundering Act, 2002 (PMLA 2002). The enforcement action follows earlier notices issued to offshore platforms that had been serving Indian users without compliance with registration and anti-money laundering obligations.

On 25 September 2025, Lucy Castledine, Director of Consumer Investments at the UK Financial Conduct Authority (UK FCA), set out the regulator’s five-year strategy at the PIMFA Compliance Conference. She confirmed four priorities that will shape the regulatory landscape for 2025 and beyond: supporting growth, being a smarter regulator, embedding Consumer Duty, and tackling financial crime.

On 30 September 2025, the Australian Securities and Investments Commission (Australia ASIC) published an update and urged financial advisers, also known as relevant providers, to immediately review and update their information on the Financial Advisers Register (FAR). ASIC cautioned that based on current records, at least 3,459 relevant providers risk being unable to provide personal advice to retail clients after 31 December 2025. From 1 January 2026, advisers who do not meet the professional standards will be prohibited from providing personal financial advice under the Australian Corporations Act 2001. ASIC emphasised that urgent corrective action is required, particularly for advisers relying on the experienced provider pathway and those offering tax (financial) advice services.

On 18 September 2025, the Cayman Islands Monetary Authority (CIMA) released a Supervisory Information Circular outlining its approach to anti-money laundering (AML), counter-terrorist financing (CFT), counter-proliferation financing (CPF), and targeted financial sanctions supervision for Virtual Asset Service Providers (VASPs). The circular provides detailed insights into how CIMA conducts both on-site inspections and off-site monitoring, while also disclosing findings of deficiencies and enforcement actions taken against VASPs. CIMA’s risk-based supervisory methodology, provides for the integration of supervisory technology, and the obligations that all registered VASPs must meet under the Virtual Asset (Service Providers) Act (2024 Revision) and the Anti-Money Laundering Regulations (AMLRs).

On 17 September 2025, the Cayman Islands Monetary Authority (CIMA) announced the appointment of Dr. Petr Jakubik as the new Head of its Financial Stability and Statistics Division, effective 3 September 2025. With more than 25 years of international experience in financial stability, macroprudential supervision, and statistical development, Dr. Jakubik will lead the Authority’s work in financial stability research and oversee the compilation and dissemination of official statistics.

On 29 September 2025, the Monetary Authority of Singapore (MAS), together with DBS, HSBC, OCBC, UOB, SPTel and SpeQtral, published a technical report on the successful completion of a proof-of-concept (PoC) sandbox evaluating Quantum Key Distribution (QKD) for secure communications in the financial sector along with Quotes from the Industry. The sandbox followed a Memorandum of Understanding (MoU) signed in August 2024 and builds upon Singapore’s earlier post-quantum cryptography (PQC) experiment with Banque de France. The report highlights the potential of quantum-safe communications to strengthen cyber resilience in financial services against emerging quantum threats.

On 26 September 2025, the United States Securities and Exchange Commission (United States SEC) published [Release No. 34-104101; File No. SR-NYSEARCA-2025-73] titled “Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Listing and Trading of Shares of the 7RCC Spot Bitcoin and Carbon Credit Futures ETF.” The notice states that NYSE Arca, Inc. filed the proposal under Section 19(b)(1) of the United States Securities Exchange Act of 1934 and United States SEC Rule 19b-4. The filing transitions the 7RCC Spot Bitcoin and Carbon Credit Futures ETF from its earlier authorisation under Rule 8.500-E (Trust Units) to the generic listing provisions of Rule 8.201-E (Generic). With the United States SEC granting immediate effectiveness, the ETF may now be listed and traded under the streamlined generic framework, reinforcing standardisation of crypto-linked and carbon-linked exchange-traded products in the United States.

On 26 September 2025, the United States Securities and Exchange Commission (United States SEC) published [Release No. 34-104103; File No. SR-NYSEARCA-2025-74] titled “Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Bitwise Ethereum ETF Shares.” The notice records that NYSE Arca, Inc. filed the proposal under Section 19(b)(1) of the United States Securities Exchange Act of 1934 and United States SEC Rule 19b-4. The filing was processed as a “non-controversial” proposal under Section 19(b)(3)(A)(iii) and United States SEC Rule 19b-4(f)(6). The Exchange seeks to shift the Bitwise Ethereum ETF from Rule 8.201-E (Non-Generic) to Rule 8.201-E (Generic), effective immediately upon filing, subject to compliance with continued listing requirements. This transition reflects the broader move towards generic listing standards for crypto exchange-traded products, reinforcing predictability and consistency in United States ETF regulation.

On 26 September 2025, the United States Securities and Exchange Commission (United States SEC) published [Release No. 34-104105; File No. SR-CboeBZX-2025-135] titled “Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend the Fidelity Wise Origin Bitcoin Fund, VanEck Bitcoin ETF, 21Shares Ethereum ETF, Fidelity Ethereum Fund, and the VanEck Ethereum ETF”. The notice records that the Cboe BZX Exchange, Inc. filed the change under Section 19(b)(1) of the United States Securities Exchange Act of 1934 and Rule 19b-4. The filing was accepted as “non-controversial” under Section 19(b)(3)(A)(iii) and Rule 19b-4(f)(6). Effective 1 October 2025, the funds will move under the generic listing standards of BZX Rule 14.11(e)(4).

On 25 September 2025, the United States Commodity Futures Trading Commission (US CFTC) announced that the U.S. District Court for the Middle District of Tennessee entered a Consent Order for Permanent Injunction, Civil Monetary Penalties, and Other Statutory and Equitable Relief against Michael Griffis and Amanda Griffis. The Tennessee couple, who operated a fraudulent pool called “Blessings Thru Crypto”, are ordered to pay US $5,528,121 in restitution to defrauded participants and a US $1,355,232 civil monetary penalty, totalling more than US $6.8 million in monetary relief. The order permanently bans the defendants from trading or registering with the US CFTC and prohibits further violations of the United States Commodity Exchange Act and related regulations.

On 24 September 2025, the United States Commodity Futures Trading Commission (US CFTC) issued a Notice of Proposed Rulemaking to revise specific business conduct and documentation requirements for swap dealers and major swap participants. The proposal aims to codify long-standing no-action relief issued by the US CFTC’s Market Participants Division and to harmonise United States regulations with parallel frameworks of the United States Securities and Exchange Commission (US SEC) and the Municipal Securities Rulemaking Board (MSRB). The amendments, if finalised, would alter obligations under 17 CFR Part 23 by eliminating certain disclosure requirements, introducing new definitional clarity, and revising swap trading relationship documentation rules. The US CFTC is inviting public comment on the proposal, with submissions due within thirty days of publication on the US CFTC’s website.

On 23 September 2025, the United States Commodity Futures Trading Commission (US CFTC) announced a new initiative to enable the use of tokenized collateral, including stablecoins, in derivatives markets. Acting Chairman Caroline D. Pham stated that this initiative forms part of the US CFTC’s crypto sprint to implement recommendations from the President’s Working Group on Digital Asset Markets report. The announcement builds on discussions at the US CFTC’s Crypto CEO Forum held in February 2025 and advances recommendations of the US CFTC’s Global Markets Advisory Committee (GMAC). Public input has been invited by 20 October 2025, with submissions to be published on CFTC.gov.