VIXIORegulatory intelligence solutions provider, which has released its 2025 protection prospects, examines upcoming global rules and their impact on how payment companies can protect consumer funds.

As part of the new research, Vixio warns that consumers could risk losing millions of pounds without proper protections. Lack of proper protection can cause serious damage – Wirecard The scandal revealed in 2020 what happens when clients’ funds are not protected, with the company embezzling about 1.9 billion euros of “safe” funds.

Since then, regulators have made meaningful progress in protection. Major markets, including the UK, the EU and Canada, are currently updating their protection regulations, and Vixio aims to provide companies operating in those jurisdictions with the information they need to update and hone their processes and practices.

In the UK, Financial Conduct Authority (FCA) announced plans to reform the protection requirements for payment and electronic monetary institutions to enhance consumer protection and market integrity. FCA data shows that £23 billion is held in UK protection accounts in 2023, so Vixio said ensuring safe holding of these funds is a major issue.

“The UK’s plan to overhaul the payment and electronic currency protection framework is a direct response to the failure of the existing regime, aiming to establish legal certainty and ensure that customer funds are properly protected.” John Gridhead of global regulatory research and analysis at Vixio. “It’s interesting whether the FCA can achieve its goals without making companies cumbersome settlements, reporting and funding quarantine requirements.”

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Vixio explained that the EU (EU) is also reviewing its safeguards system as part of the amendment to the Payment Services Directive (PSD2). Possible new requirements include mitigating the centralized risk by ensuring that protection funds from one institution are not fully held to ensure that electronic money is protected by the end of the next working day and notifying regulators of any significant changes in protection measures.

In North America, Canada is updating its own protection regulations designed to enhance integrity and consumer confidence, and payment companies with end-user funds will need to place them in a trust, or in a prescribed account or in an account backed by insurance or guarantee. this Bank of Canada A deadline has been set on September 8, 2025 to comply with its new protection rules.

exist Research ReportVixio warns that businesses must protect themselves from the threat of law enforcement actions by implementing appropriate systems and controls and ensuring they have diverse review custodians.