WEEKLY RECAP BY FINANCEIQ HUB

1. EUROPE — USDC Faces Enhanced Supervision Under MiCA

The European Banking Authority (EBA) has classified USDC as the EU’s first significant e-money token (EMT) under the MiCA framework.

Starting 12 November 2026, the EBA will take on direct supervisory responsibilities alongside France’s ACPR, focusing on reserve management, liquidity requirements, capital adequacy and redemption mechanisms.

This marks an important development in the implementation of MiCA, as European regulators move towards more comprehensive supervision of major stablecoin issuers and their financial operations.

2. SINGAPORE — Stronger Consumer Protection for Payment Institutions

The Monetary Authority of Singapore (MAS) has proposed expanding mandatory participation in the Financial Industry Disputes Resolution Centre (FIDReC) to licensed payment service providers and future regulated stablecoin issuers.

The proposed changes would provide eligible customers with access to an independent dispute resolution mechanism for complaints involving regulated payment services.

The consultation remains open until 30 November 2026. The initiative reflects Singapore’s continued efforts to strengthen consumer protection and accountability within its rapidly developing fintech sector.

3. CANADA — New Regulatory Framework for Fiat-Backed Stablecoins

Canada is developing a dedicated regulatory framework for fiat-backed stablecoin issuers, introducing new requirements for financial stability, consumer protection and regulatory oversight.

Under the proposed framework, the Bank of Canada would supervise eligible non-bank stablecoin issuers, with particular attention to reserve assets, redemption obligations and operational risk management.

The initiative also raises important questions about how stablecoin-related payment activities interact with the Retail Payment Activities Act (RPAA) and existing FINTRAC registration requirements.

For fintech businesses operating in Canada, the proposed changes highlight the importance of distinguishing between MSB/FMSB registration, payment service provider registration and potential additional obligations for stablecoin issuers.

4. BRAZIL — Pix Strengthens Fraud Detection and Payment Traceability

Brazil has introduced enhanced anti-fraud tracing capabilities within its Pix instant payment system, with new provisions taking effect on 26 October 2026.

The updated mechanism improves the identification and tracking of suspicious funds as they move between multiple accounts, supporting investigations and potential recovery of fraud-related payments.

These improvements are particularly relevant to payment service providers, financial institutions and fintech companies operating within Brazil’s instant payment ecosystem.

The changes further strengthen Pix as a regulated payment infrastructure with increasingly sophisticated transaction monitoring and fraud prevention capabilities.

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