Latest Payments News: Australia Set To Bring Digital Asset Platforms Under Full Financial Services Regulation, and more

Catch up on some of the stories our payments compliance analysts have covered lately, and stay up-to-date on the latest news.

Australia Set To Bring Digital Asset Platforms Under Full Financial Services Regulation

Australia is poised for a significant regulatory shift in 2026 as the government moves to integrate digital asset and tokenised custody platforms into the existing financial services framework.

Throughout 2025, the Treasury and the Australian Securities and Investments Commission (ASIC) have undertaken reforms to close regulatory gaps, clarify financial services law and strengthen consumer safeguards in the fast-growing digital asset market.

The release of the Treasury Laws Amendment (Regulating Digital Asset and Tokenised Custody Platforms) Bill 2025 on September 24, 2025 marked a pivotal step. The draft legislation proposes amendments to the Corporations Act 2001 to bring digital asset platforms and tokenised custody platforms within the scope of financial products.

This reflects the government’s commitment to modernise Australia’s digital asset regime while maintaining technology neutrality and aligning with international regulatory principles. For payments and digital asset service providers, the shift is likely to affect compliance costs, licensing obligations and competitive positioning, as operators adjust to a more formalised supervisory environment.

As one of the most influential regulatory jurisdictions in Asia-Pacific, Australia’s approach is often viewed as a bellwether for neighbouring markets and a testing ground for principles under consideration in the UK, EU and US.

The reforms therefore have implications not only domestically but also for firms operating across the region and globe.

BRICS’ Digital Currency Plans Aim to Reshape Cross-Border Payments

In considering linking their central bank digital currencies (CBDCs), the BRICS economies are seeking to redesign global financial plumbing to reflect the bloc’s growing weight in the world economy.

Members of BRICS are reportedly contemplating linking their CBDCs to facilitate cross-border payments and reduce reliance on the US dollar.

If the initiative succeeds, it could create alternative payment methods that will affect nearly half of global trade.

The Reserve Bank of India (RBI) has recommended to the government that a proposal to connect CBDCs be included on the agenda for the 2026 BRICS summit, to be held in New Delhi in August or September 2026, Reuters reported, citing several anonymous sources.

BRICS countries have been increasingly active in exploring and implementing CBDCs as part of broader efforts to modernise payment systems and strengthen financial cooperation within the bloc.

All five core members, China, India, Russia, Brazil and South Africa, are experimenting with digital fiat currencies, although they are at different stages of development.

China's e-CNY is the most advanced: it has been in pilot use for several years and is being tested for both retail and cross-border transactions, making it one of the most mature CBDC programs globally.

India's e-Rupee has been rolled out to millions of users with functionality for things like offline payments and programmable government transfers.

Russia is piloting a digital ruble and aims for broader implementation through 2026, partly driven by a strategic desire to circumvent restrictions from Western financial infrastructure.

Brazil's Drex is in the late testing phase with commercial banks ahead of an anticipated 2026 launch, and South Africa continues early trials of a digital rand as it navigates regulatory challenges.

Payments Infrastructure Sovereignty In A Fragmenting World

Growing geopolitical tensions are forcing countries to reassess their critical national infrastructure, with growing political focus on the sovereignty of domestic payment rails.  

In 2023 alone, the global payments industry processed 3.4trn transactions valued at $1.8qrn.

Heightened geopolitical friction is forcing nations to rethink how exposed they are to financial systems beyond their control. As these tensions rise, governments are increasingly concerned about the sovereignty of their payment rails.

The war in Ukraine and the sanctions placed on Russia demonstrated how access to global payment networks can be restricted almost overnight.

At the same time, the leadership role of the US in the global order is becoming less predictable, which has prompted some jurisdictions to reassess their dependence on financial infrastructure anchored in the country.

Many economies are accelerating efforts to reduce reliance on foreign-controlled payment rails. The topic of infrastructure sovereignty was a recurring theme of City & Financial Global’s Payments Regulation and Innovation Summit 2026, held earlier this month in London.

In her keynote address, Sarah Breeden, the Bank of England’s (BoE) deputy governor for financial stability, positioned the next generation infrastructure of the UK’s payment rails as an “alternative to cards”, a nod towards the American dominated card industry.

Similarly, Megan Coulson, UK public policy lead at TrueLayer, noted that although pay by bank has been touted as a move towards payments sovereignty, UK’s current retail rails are provided by VocaLink, a Mastercard subsidiary since its acquisition in 2016.

During a panel discussion, she likewise pointed out how cloud nativity is affecting sovereignty, with increasing amounts of sensitive infrastructure held in data centres abroad.

The tone of the conference reflected concerns raised elsewhere in the world. European policymakers have become increasingly vocal about the strategic risks posed by reliance on foreign-controlled payments infrastructure.

Many commentators have emphasised that Europe’s heavy dependence on non-EU card schemes and payment networks undermines the sovereignty and resilience of the continent’s financial system.

Singapore And Malaysia Lead The Charge On AI Regulation in Asia-Pacific

Artificial intelligence (AI) regulation is accelerating across Asia-Pacific, as supervisors respond to rapid uptake of machine-learning models in credit, fraud detection and customer engagement.

Singapore and Malaysia are leading the way in regulating how the technology is used and implemented by financial institutions (FIs).

Bank Negara Malaysia’s (BNM) October 2025 discussion paper on AI sought feedback to inform its regulatory and developmental approach to AI in the financial sector. The paper signals BNM’s interest in model governance, explainability, data stewardship and safeguards against consumer harm.

The Monetary Authority of Singapore (MAS) released a consultation on its proposed guidelines for AI risk management in November 2025. The guidelines aim to establish expectations for FIs commensurate with their size, use of AI and risk profile.

The timing of the consultations reflects regulators’ efforts to keep pace with rapidly rising adoption of AI systems. It also aligns with recent Singapore–US and Malaysia–US trade agreements that include cooperation on digital and AI capabilities, implicitly raising expectations on regulatory safeguards.

India's New Data Protection Regime To Transform Compliance Landscape

In November 2025, India’s Ministry of Electronics and Information Technology operationalised the Digital Personal Data Protection Rules 2025 (DPDP), bringing the Digital Personal Data Protection Act 2023 into a unified, citizen-centred framework.

The rules signal a major shift in India’s digital economy, requiring firms to reassess how they collect, process, store and transfer data.

As one of Asia’s largest and fastest-growing digital markets, India’s approach is closely watched across South and Southeast Asia. Its scale and regulatory pace make the framework a benchmark for neighbouring jurisdictions calibrating digital data governance.

The DPDP framework aims to balance individual rights to privacy with the needs of a rapidly growing digital economy. The rules emphasise purpose limitation, transparency, consent and the accountability of organisations handling digital personal data.

For regulated entities, this signals a new phase of compliance. Firms must reassess how they collect, process, store and transfer data and embed governance and security frameworks aligned with the new regime.

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