Global Financial Rules Shift As India, US, UK, EU Act

In a world where digital finance is rapidly reshaping the global economy, January 2026 has seen a flurry of regulatory, policy, and industry developments that could define the future of payments, fintech, and cryptoassets across three continents. From India’s landmark free trade agreement with the European Union, to calls for regulatory clarity in the United States, and sweeping new crypto rules in the United Kingdom and European Union, the landscape is shifting faster than ever before. What does this mean for consumers, businesses, and the future of money?

On January 29, 2026, India and the European Union reached a significant milestone: the conclusion of negotiations on financial services within their long-awaited Free Trade Agreement (FTA). According to the Indian Ministry of Finance, the Financial Services Annex of the deal is designed to facilitate greater interoperability between the two economies’ payment systems, foster the development of electronic payment infrastructure, and make cross-border payments—such as real-time remittances and merchant transactions—more efficient than ever before. This is no small feat, given the size and complexity of both markets.

For India, the agreement directly supports its booming digital payments ecosystem, which has grown exponentially in recent years thanks to innovations like the Unified Payments Interface (UPI). The FTA is expected to enhance remittance flows from the Indian diaspora in the EU, create new market access opportunities for Indian payment service providers, and leverage India’s technological edge in digital payments. As outlined by the Ministry, both sides have also committed to strengthening cooperation in fintech innovation, including collaboration on supervisory technology (Sup Tech), regulatory technology (Reg Tech), and even Central Bank Digital Currencies (CBDCs).

Prime Minister Narendra Modi was quick to highlight the broad impact of the FTA, noting that it would “boost trade, manufacturing, services and global supply chains, while strengthening investor confidence in India.” He emphasized that sectors like textiles, gems and jewellery, leather, and footwear stand to benefit, and that the deal complements India’s other recent trade agreements with the UK and EFTA.

One of the agreement’s most notable features is its commitment to parity of treatment for Indian financial institutions operating in the EU. This provision ensures that Indian banks, insurance firms, and other financial service suppliers will not face arbitrary or discriminatory credit assessments, granting them the same market access as their EU counterparts. “This provision ensures parity of treatment with EU’s domestic institutions, facilitates market access for Indian banks, insurance companies, and other financial service suppliers, and prevents discriminatory regulatory treatment that could restrict Indian financial service suppliers’ operational capabilities,” the ministry stated.

The deal reflects a liberalized approach from India, which now allows 100% foreign direct investment (FDI) in the insurance sector and up to 74% FDI in banking. The bank branch licensing framework has also been expanded, permitting up to 15 branches over four years, compared to the previous limit of 12. As it stands, three Indian banks operate five branches in the EU, while five EU banks run 33 branches in India. Trade in financial services between the two regions reached $1.3 billion in 2024—$700 million in exports from India and $600 million in imports from the EU—underscoring the growing importance of cross-border financial flows.

Meanwhile, across the Atlantic, the Financial Data and Technology Association (FDATA) has called on U.S. banking regulators to clarify the rules around consumer-permissioned data access. In its submission to the Office of the Comptroller of the Currency (OCC), FDATA emphasized the need to distinguish between consumer-directed data sharing (as protected under Section 1033 of the Dodd-Frank Act) and traditional third-party vendor management. The group warned that treating fintech firms that handle consumer-approved data the same as regular bank vendors could impose heavy compliance burdens, especially on community banks with limited resources.

FDATA’s Executive Director, Steve Boms, put it bluntly: “The distinction matters for banks, regulators, and the more than 100 million Americans who rely on consumer-permissioned financial tools. Making sure vendor rules aren’t applied incorrectly protects consumer rights, keeps smaller banks operating efficiently, and allows FinTech innovation to grow.” The OCC’s current review of community banks’ relationships with core service providers has brought these issues to the fore, with FDATA urging regulators to issue clear guidance that avoids unnecessary barriers for consumers and supports continued innovation in the sector.

Europe, too, is navigating a wave of regulatory change, particularly in the world of cryptoassets. On December 15, 2025, HM Treasury in the United Kingdom published the final text of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025, which will bring previously unregulated cryptoasset and stablecoin activities under the UK’s financial services regime. The new rules, set to go live on October 25, 2027, will require firms offering cryptoasset or stablecoin services to UK customers to be licensed, even if they operate from overseas. The regulations specify new regulated activities, including issuing qualifying stablecoins, safeguarding cryptoassets, operating trading platforms, dealing and arranging deals in cryptoassets, and staking.

The Financial Conduct Authority (FCA) is working closely with the Bank of England to craft a comprehensive regulatory regime for stablecoins, with stablecoin payments set as a priority for 2026. Key proposals include requiring stablecoin issuers to back their coins with secure, liquid assets held in statutory trusts, provide clear redemption rights for holders, and maintain transparency about asset composition. Custodians, meanwhile, will be required to segregate client assets, hold them in trust, and keep meticulous records. The FCA’s consultations on these topics, launched in December 2025, close in February 2026, with final rules expected later in the year.

Across the channel, the European Union’s Regulation on Markets in Cryptoassets (MiCAR) has now fully applied since December 2024, introducing a comprehensive legal framework for a wide array of cryptoassets not previously covered by EU law. MiCAR establishes requirements for transparency, disclosure, and consumer protection, and introduces specific rules for stablecoins, divided into e-money tokens and asset-referenced tokens. Issuers and service providers must be authorized, adhere to governance standards, and comply with new market abuse rules designed to prevent insider trading and manipulation. Transitional measures are in place, but by July 1, 2026, all entities must be fully authorized to continue operating.

As part of its digital transformation, the EU is also advancing the digital euro project. The European Central Bank (ECB) has completed the preparation phase, developing a digital euro rulebook and selecting providers for the platform and infrastructure. While a final decision on issuing a digital euro awaits legislative approval, pilot transactions could start as early as mid-2027, with a full rollout possible in 2029. The digital euro would supplement physical cash, offering a universal, legally recognized means of payment across the euro area.

Not to be left behind, the UK is also exploring a retail central bank digital currency (CBDC), commonly referred to as the "digital pound." The Bank of England has launched the Digital Pound Lab for industry testing and practical experimentation, with a blueprint for the digital pound expected in 2026. Any decision to launch would follow parliamentary approval and further public consultation.

From India’s digital payment surge and U.S. debates over data access, to the UK and EU’s tightening grip on crypto markets, the future of finance is being written in real time. For consumers and businesses alike, the changes promise greater security, more choice, and—if all goes well—a seamless, interconnected global financial system. But as regulators race to keep up with innovation, the coming years will be critical in determining just how open and accessible that future will be.