Competition regulation

Coupang breach prompts scrutiny from South Korean regulators

South Korea is examining a significant data breach at Coupang after the retailer confirmed exposure of personal details linked to millions of users. Officials say the incident involves only domestic accounts. Regulators have opened a formal investigation.

Coupang first reported a small number of affected users, then revised its estimate to 33.7 million. The firm states that the leaked data includes names and contact details. It maintains that passwords and payment information remain secure.

Authorities believe the breach may date back several months and may involve an overseas server. Local media reports suspicion of a former employee in China. Investigators are assessing whether safety rules were breached.

The incident adds to a series of cyberattacks on major firms in South Korea this year. Commentators say repeated lapses point to structural weaknesses. Previous breaches at SK Telecom and Lotte Card remain fresh in public memory.

Coupang has apologised and warned customers to watch for scams using stolen information. Regulators pledge to enforce swiftly if violations are confirmed. The case has reignited debate over corporate safeguards and national cyber resilience.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Spar Switzerland expands crypto payments across its mobile app

Spar Switzerland has advanced retail crypto adoption by adding Bitcoin and over 100 digital assets to its mobile app. On-chain QR payments now replace third-party processors, following earlier pilots with the Lightning Network and Binance Pay.

Supportive national regulations continue to make Switzerland one of the most active retail environments for crypto payments. Merchants across the country have increasingly embraced digital assets, encouraged by clear legal frameworks and a population already familiar with fintech services.

The update follows previous pilots involving the Lightning Network and Binance Pay that began in 2025. Lessons from those trials helped shape Spar’s shift towards a fully integrated on-chain payment system.

Industry analysts view the expansion as a strong signal of growing consumer demand for flexible payment options. Broader access in major retail chains often accelerates mainstream adoption and encourages users and businesses to engage more confidently with the crypto economy.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Fraud and scam cases push FIDReC workloads to new highs

FIDReC recorded 4,355 claims in FY2024/2025, marking its highest volume in twenty years and a sharp rise from the previous year. Scam activity and broader dispute growth across financial institutions contributed to the increase. Greater public awareness of the centre’s role also drove more filings.

Fraud and scam disputes climbed to 1,285 cases, up more than 50% and accounting for nearly half of all claims. FIDReC accepted 2,646 claims for handling, with early resolution procedures reducing formal caseload growth. The phased approach encourages direct negotiation between consumers and providers.

Chief Executive Eunice Chua said rising claim volumes reflect fast-evolving financial risks and increasingly complex products. National indicators show similar pressures, with Singapore ranked second globally for payment card scams. Insurance fraud reports also continued to grow during the year.

Compromised credentials accounted for most scam-related cases, often involving unauthorised withdrawals or card charges. Consumers reported incidents without knowing how their details were obtained. The share of such complaints rose markedly compared with the previous year.

Banks added safeguards on large digital withdrawals as part of wider anti-scam measures. Regulators introduced cooling-off periods, stronger information sharing and closer monitoring of suspicious activity. Authorities say the goal is to limit exposure to scams and reinforce public confidence.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

UK to require crypto traders to report details from 2026

The UK government has confirmed that cryptocurrency traders will be required to report personal details to trading platforms from 1 January 2026. The move forms part of the Cryptoasset Reporting Framework (CAFR), aligned with an OECD agreement, and aims to improve compliance with existing tax rules.

Under the framework, exchanges must provide HM Revenue & Customs (HMRC) with customer information, including cryptocurrency transactions and tax reference numbers.

Traders who fail to supply required details could face fines of up to £300, while platforms may be fined the same amount per unreported customer. HMRC expects to raise up to £315 million by 2030 from the new reporting rules.

Experts warn exchanges may face challenges collecting accurate information, potentially passing compliance costs onto users. Some investors may initially turn to noncompliant platforms, but international standards are expected to drive global alignment over time.

The 2025 Budget also addressed the taxation of DeFi activities such as lending and staking. HMRC appears to favour taxing gains only when they are realised, although no final decision has been made and consultations with stakeholders will continue.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

DeepSeek opens access to gold-level maths AI

Chinese AI firm DeepSeek has released the first open AI model capable of achieving gold-medal results at the International Mathematical Olympiad. Math-V2 is now freely available on Hugging Face and GitHub, allowing developers to repurpose it and run it locally.

Gold-level performance at the IMO is remarkably rare, with only a small share of human participants reaching the top tier. DeepSeek aims to make such advanced mathematical capabilities accessible to researchers and developers who previously lacked access to comparable systems.

The company said its model achieved gold-level scores in both this year’s Olympiad and the Chinese Mathematical Olympiad. The results relied on strong theorem-proving skills and a new ‘self-verification’ method for reasoning without known solutions.

Observers said the open release could lower barriers to advanced maths AI, while US firms keep their Olympiad-level systems restricted. Supporters of open-source development welcomed the move as a significant step toward democratising advanced scientific tools.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

EU members raise concerns over the Digital Networks Act

Six EU member states urged the Union to reconsider the direction of the Digital Networks Act by asking for greater room for national decision-making.

Their joint position emphasised the wish to retain authority over frequency management and questioned proposals that could expand telecom rules into the digital services sector.

An intervention that followed previous debates at the ministerial level, where governments signalled reluctance to introduce new interconnection measures and stressed the need to consider the specific roles of different actors across the value chain instead of applying a single regulatory model to all.

Consumer groups and business organisations voiced further doubts as plans for network fees resurfaced in recent discussions. They argued that earlier consultations had already shown major risks for competition, innovation, and net neutrality, making renewed consideration unnecessary.

The US–EU trade agreement added another layer by including a clause that commits the EU to avoid such fees, leaving open how the Commission will balance domestic expectations with international obligations.

The Digital Networks Act faced an additional setback when the EU’s Regulatory Scrutiny Board delivered a negative opinion about its preparedness. That view disrupted earlier hopes of releasing a draft before the end of the year.

Even so, the Commission is expected to present an updated proposal in January 2026, setting the stage for one of the most difficult legislative debates of the coming year.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Concerns grow over WhatsApp rules as Italy probes Meta AI practices

Italy’s competition authority has launched an investigation into Meta over potential dominance in AI chatbots. Regulators are reviewing the new WhatsApp Business terms and upcoming Meta AI features. They say the changes could restrict rivals’ access to the platform.

Officials in Italy warn that the revised conditions may limit innovation and reduce consumer choice in emerging AI services. The concerns fall under Article 102 TFEU. The authority states that early action may be necessary to prevent distortions.

The case expands an existing Italian investigation into Meta and its regional subsidiaries. Regulators say technical integration of Meta AI could strengthen exclusionary effects. They argue that WhatsApp’s scale gives Meta significant structural advantages.

Low switching rates among users may entrench Meta’s market position further in Italy and beyond. Officials say rival chatbot providers would struggle to compete if access is constrained. They warn that competition could be permanently harmed.

Meta has announced significant new AI investments in the United States. Italian regulators say this reflects the sector’s growing influence. They argue that strong oversight is needed to ensure fair access to key platforms.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Australia moves to curb nudify tools after eSafety action

A major provider of three widely used nudify services has cut off Australian access after enforcement action from eSafety.

The company received an official warning in September for allowing its tools to be used to produce AI-generated material that harmed children.

A withdrawal that follows concerns about incidents involving school students and repeated reminders that online services must meet Australia’s mandatory safety standards.

eSafety stated that Australia’s codes and standards are encouraging companies to adopt stronger safeguards.

The Commissioner noted that preventing the misuse of consumer tools remains central to reducing the risk of harm and that more precise boundaries can lower the likelihood of abuse affecting young people.

Attention has also turned to underlying models and the hosting platforms that distribute them.

Hugging Face has updated its terms to require users to take steps to mitigate the risks associated with uploaded models, including preventing misuse for generating harmful content. The company is required to act when reports or internal checks reveal breaches of its policies.

eSafety indicated that failure to comply with industry codes or standards can lead to enforcement measures, including significant financial penalties.

The agency is working with the government on further reforms intended to restrict access to nudify tools and strengthen protections across the technology stack.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

EU prepares tougher oversight for crypto operators

EU regulators are preparing for a significant shift in crypto oversight as new rules take effect on 1 January 2026. Crypto providers must report all customer transactions and holdings in a uniform digital format, giving tax authorities broader visibility across the bloc.

The DAC8 framework brings mandatory cross-border data sharing, a centralised operator register and unique ID numbers for each reporting entity. These measures aim to streamline supervision and enhance transparency, even though data on delisted firms must be preserved for up to twelve months.

Privacy concerns are rising as the new rules expand the travel rule for transfers above €1,000 and introduce possible ownership checks on private wallets. Combined with MiCA and upcoming AML rules, regulators gain deeper insight into user behaviour, wallet flows and platform operations.

Plans for ESMA to oversee major exchanges are facing pushback from smaller financial hubs, which are concerned about higher compliance costs and reduced competitiveness. Supporters argue that unified supervision is necessary to prevent regulatory gaps and reinforce market integrity across the EU.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Virginia sets new limits on AI chatbots for minors

Lawmakers in Virginia are preparing fresh efforts to regulate AI as concerns grow over its influence on minors and vulnerable users.

Legislators will return in January with a set of proposals focused on limiting the capabilities of chatbots, curbing deepfakes and restricting automated ticket-buying systems. The push follows a series of failed attempts last year to define high-risk AI systems and expand protections for consumers.

Delegate Michelle Maldonado aims to introduce measures that restrict what conversational agents can say in therapeutic interactions instead of allowing them to mimic emotional support.

Her plans follow the well-publicised case of a sixteen-year-old who discussed suicidal thoughts with a chatbot before taking his own life. She argues that young people rely heavily on these tools and need stronger safeguards that recognise dangerous language and redirect users towards human help.

Maldonado will also revive a previous bill on high-risk AI, refining it to address particular sectors rather than broad categories.

Delegate Cliff Hayes is preparing legislation to require labels for synthetic media and to block AI systems from buying event tickets in bulk instead of letting automated tools distort prices.

Hayes already secured a law preventing predictions from AI tools from being the sole basis for criminal justice decisions. He warns that the technology has advanced too quickly for policy to remain passive and urges a balance between innovation and protection.

Proposals that come as the state continues to evaluate its regulatory environment under an executive order issued by Governor Glenn Youngkin.

The order directs AI systems to scan the state code for unnecessary or conflicting rules, encouraging streamlined governance instead of strict statutory frameworks. Observers argue that human oversight remains essential as legislators search for common ground on how far to extend regulatory control.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!