Asia Pacific Financial Services Regulatory Updates, Quarter Two 2025

The Deloitte Asia Pacific Centre for Regulatory Strategy is pleased to share with you the key regulatory updates from our region for Q2 2025.

This quarter saw a relatively similar topical focus compared to Q1 2025, with AP regulators issuing significant updates on financial risk, governance, and data & technology.

Financial risk regulations were a prominent focus in the region. Mainland China's National Financial Regulatory Administration (NFRA) introduced new guidelines for commercial banks on market risk management, covering risk identification, measurement, monitoring, internal models, and stress testing. The Reserve Bank of Australia (RBA) released draft guidance addressing threats to critical clearing and settlement services. Meanwhile, Japan's Financial Services Agency (JFSA) provided new rules under the Act on the Promotion of Cash Flow-Based Lending, encouraging banks to shift from collateral-heavy lending to cash flow and enterprise value-based methods.

AP regulators emphasised governance risks this quarter. The Monetary Authority of Singapore (MAS) plans to review the Code of Corporate Governance, focusing on corporate culture, board effectiveness, and emerging risks like AI. In Indonesia, the Financial Services Authority (OJK) introduced new regulations for the licensing and structure of guarantee institutions, updating requirements for governance and organisational frameworks. Similarly, Bank Negara Malaysia (BNM) released a policy document enhancing governance, risk management, and operational standards for Money Services Businesses (MSB), promoting accountability and requiring compliance officers to achieve recognised accreditation and annual training relating to financial crime.

Data and technology were key areas of focus. Japan enacted its first law regulating AI to promote responsible development and innovation. Mainland China issued a plan to enhance financial support for technological innovation. In Hong Kong (SAR), the Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) launched a joint consultation to create regulatory frameworks for virtual asset dealers and custodians, enabling the SFC to license and oversee them. Additionally, there were developments in Stablecoin licensing and new staking guidelines. Meanwhile, regulators in Thailand advanced oversight of virtual and digital assets, with the SEC Thailand announcing a public consultation on proposed principles and draft regulations for net capital requirements for Digital Asset Custodial Wallet Providers.