The UAE has rapidly positioned itself as a key player in the global virtual assets market, setting a benchmark with its forward-thinking regulatory frameworks. In this article, Akshata Namjoshi, Kabir Kumar, and Ahlam Faouzi from KARM Legal Consultants, the  emerging technologies-focused law firm, provide an in-depth analysis of the UAE’s regulatory landscape for stablecoins.  Akshata Namjoshi, Kabir Kumar, and Ahlam Faouzi The UAE has positioned itself at the forefront of the global virtual assets sector, becoming a pioneering jurisdiction in developing comprehensive regulations fo ..read more

Investment research budgets are increasing in 2024, particularly in the US, signalling a market rebound, but the potential implementation of the Financial Conduct Authority’s (FCA) new payment rules could further reshape spending dynamics and competitive practices in Europe. Substantive Research, a provider of research and data analytics for the buy side, has published the findings of its latest survey into investment research pricing, budgeting and consumption. The survey highlights a notable increase in research spending during the first half of 2024. The survey reveals that research b ..read more

The Basel Committee on Banking Supervision (the Committee), the standard setter for the prudential regulation of banks has turned its attention to the crypto world as it approves a disclosure framework for banks’ cryptoasset exposures.  The Committee met virtually on 2 and 3 July to discuss policy and supervisory initiatives. During this meeting, it also agreed to make targeted amendments to its cryptoasset standard and consult on updated principles for the sound management of third-party risk. It reviewed the comments received on its consultations related to a disclosure framework for b ..read more

The Central Bank of the UAE (CBUAE) has issued the Open Finance Regulation, a significant component of its financial infrastructure transformation programme. This regulation aims to ensure the soundness and efficiency of open finance services, promote innovation, enhance competitiveness and bolster the UAE’s status as a financial technology hub. The new regulation mandates that all financial institutions supervised by the CBUAE must participate in the open finance framework concerning their products as well as services. Licensed financial institutions (LFIs), as data holders and service owner ..read more

Six months after unveiling plans to reenter the UK market, Amsterdam-based challenger bank bunq insists it is waiting ‘patiently’ for its E-Money Institution (EMI) licence. However, the bank admits it could be next year before it secures the necessary regulatory approval. bunq initially pulled out of the UK market in 2020 due to the uncertainties and complications caused by Brexit. The withdrawal was a strategic decision, it says, but the UK has always remained a “hugely important market” for the bank, which highlighted the UK’s position at the forefront of European fintech. Bianca Zwart ..read more

The first stage of the European Union‘s Markets in Crypto Assets Regulation (MiCA) will come into play on 30 June. However, a new report by Acuiti, the management intelligence platform, and conducted by Eventus, the trade surveillance software provider, has found that a move to establish market surveillance systems is underway as firms find themselves underprepared.  MiCA represents one of the first comprehensive regulatory frameworks for crypto trading to be developed in a major financial jurisdiction, and its adoption will increase requirements for market participants in a range of are ..read more

As cybersecurity threats and operational disruptions become more prevalent, the need for robust ICT operational resilience is critical. The European Union’s Digital Operational Resilience Act (DORA) sets a new standard for resilience in the financial sector, with a compliance deadline of January 17, 2025. Giles Inkson, director of services EMEA at NetSPI, delves into DORA and its implications for the financial sector. He highlights the urgency of aligning with DORA’s requirements and the core components that financial institutions need to focus on. Decoding DORA – An introductory guide to und ..read more

Trading platforms must revise their engagement strategies to avoid inadvertently encouraging excessive or risky trading behaviours, the UK financial watchdog has warned. The Financial Conduct Authority (FCA) conducted an online experiment involving more than 9,000 consumers and found that digital engagement practices (DEPs) used by trading apps, such as push notifications and prize draws, significantly increase trading frequency and risk-taking. The FCA’s experimental trading app platform tested various DEPs to observe their impact on trading behavior. The study found that: Push notification ..read more

The Consumer Financial Protection Bureau (CFPB), a US government agency responsible for protecting consumers in the financial sector, has ruled that buy now, pay later (BNPL) lenders must treat consumers as credit card providers do, ensuring they receive the same key protections. This decision mandates that BNPL users will now have the right to dispute charges and obtain refunds for returned products, aligning BNPL services with the consumer safeguards traditionally associated with credit cards. The CFPB, which launched an inquiry in to the BNPL market more than two years ago, says it continu ..read more

Mastercard and Visa dominate the UK card payment market, lacking effective competition and leading to substantial fee hikes, according to a recent interim report by the Payment Systems Regulator (PSR). The report reveals that over the past five years, scheme and processing fees have surged by more than 30 per cent in real terms, without corresponding improvements in service quality. Mastercard and Visa cards account for 95 per cent of transactions using UK-issued cards, while non-card payment methods are often not effective competitive alternatives for businesses. Complicated and opaque prici ..read more