The World Council of Credit Unions (Woccu) has released its 2026 Global Regulatory Update, outlining how geopolitical forces are fundamentally reshaping financial services regulation around the world.
The report warns that financial institutions “must navigate a more complex environment in which tariffs, sanctions, and investment restrictions are increasingly used as instruments of national strategy, and regulation transforms from an emphasis on financial stability and consumer protection to a key instrument of global competition.”
As a result, the global regulatory landscape is “more fragmented, with economic nationalism driving a patchwork of localized regulatory regimes across jurisdictions,” Wok says.
The three key trends that Woccu has identified will shape the regulatory environment in 2026 are:
- Introduction of artificial intelligence accelerates
According to Woccu, AI is rapidly moving from experimentation to enforcement, with new regulatory frameworks such as the European Union’s AI Act introducing strict requirements for transparency, governance and accountability. For credit unions, AI is now a core compliance and risk management priority and requires board-level attention. - An evolving approach to digital currencies and payments
According to the report, stablecoins and central bank digital currencies (CBDCs) are moving towards clearer regulatory frameworks, creating both opportunities for innovation in payments and new risks related to compliance, interoperability and financial stability. - Impact of deregulation efforts in major jurisdictions
While the shift towards deregulation in key markets has reduced compliance burdens in some sectors, it has also introduced new risks such as increased competition, regulatory uncertainty and potential vulnerabilities in the financial system.
“Geopolitics is no longer the backdrop to financial regulation; it is now the driving force shaping how the financial system operates,” said Paul Andrews, vice president of international advocacy at Woccu. “For credit unions, this means navigating a more complex regulatory environment while recognizing the cooperative model and continuing to advocate for a framework that supports financial inclusion.”
The report also argues that the need for globally coordinated advocacy is growing, as regulatory decisions in one jurisdiction increasingly influence policy outcomes in other jurisdictions.
“In this environment, getting policymakers to understand the differences between cooperatives is critical to maintaining a comprehensive and balanced regulatory framework,” Wok says.
