Competition regulation Archives | Page 26 of 116

Euro stablecoins pass $1 billion milestone

Euro-denominated stablecoins have surpassed $1 billion in circulating supply, according to industry data, marking a significant milestone but remaining relatively insignificant within Europe’s broader monetary system. The total represents just 0.006% of the eurozone’s estimated $15.5 trillion M2 money supply.

Issuance activity was limited during 2020 and 2021, before accelerating from late 2023 onwards. Growth has continued through 2024 and into 2025, signalling renewed interest in tokenised euro products despite their small overall footprint.

Ethereum still hosts the largest share of euro stablecoins, although issuance has expanded to other blockchain networks, including Solana, Polygon, Arbitrum, Base, Avalanche, and Stellar. The shift reflects a move toward multi-chain deployment, focusing on payments, settlement, and cross-border transfers.

Euro stablecoins remain far smaller than dollar-based tokens, which continue to dominate on-chain liquidity and settlement. The euro’s limited digital presence highlights growth potential if regulation and institutional adoption advance.

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AI-generated ads face new disclosure rules in South Korea

South Korea will require advertisers to label AI-generated or AI-assisted advertising from early 2026, marking a shift in how the country governs AI in online commerce and consumer protection.

The measure responds to a sharp rise in deceptive ads using synthetic imagery and deepfakes, particularly in healthcare and financial promotions. Regulators say transparency at the point of content delivery is intended to reduce manipulation and restore consumer trust.

Authorities in South Korea acknowledge that mandatory labelling alone may not deter malicious actors, who can bypass rules through offshore hosting or rapidly changing content. Detection challenges and uneven enforcement capacity across platforms remain open concerns.

South Korea’s industry groups warn that the policy could have uneven economic effects within the country’s advertising ecosystem. Large platforms and agencies are expected to adapt quickly, while smaller firms may face higher compliance costs that slow experimentation with generative tools.

Policymakers argue the framework aligns with South Korea’s broader AI governance strategy, positioning the country between innovation-led and precautionary regulatory models as synthetic media becomes more widespread.

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Brazilian bank executive promotes Bitcoin for diversification

Itaú Asset Management partner Renato Eid has advised investors to consider allocating between 1% and 3% of their portfolios to Bitcoin. The recommendation, described as a measured approach, aims to strike a balance between diversification benefits and protection against currency weakness.

As head of beta strategies at Brazil’s largest private bank, Eid stressed the importance of a long-term perspective rather than attempting to time market cycles. Bitcoin, in his view, should function as a complementary asset rather than a central holding in a portfolio.

The guidance highlights explicitly Itaú’s BITI11 fund, a Brazilian-listed Bitcoin ETF that began trading on the B3 exchange in 2022 through a partnership with Galaxy Digital. The fund currently manages about $115.6 million and offers regulated exposure to Bitcoin for local investors.

Brazil’s currency volatility supports the case, with the real hitting record lows in December 2024 before partially recovering. Eid linked the strategy to Itaú Unibanco’s wider crypto expansion and increasing acceptance of crypto allocations among central global banks.

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Generative AI use grows across the EU

In 2025, nearly a third of people aged 16–74 across the European Union reported using generative AI tools, according to Eurostat. Most respondents used AI for personal tasks, while fewer applied it for work or education.

The survey data illustrate how generative AI is becoming a part of daily life for millions of Europeans, offering new ways to interact with technology and access creative tools that were once limited to specialists.

Generative AI tools are capable of producing new content, including text, images, videos, programming code, or other forms of data, based on patterns learned from existing examples. Users provide input or prompts, such as instructions or questions, which the AI then uses to generate tailored outputs.

This accessibility is helping people across the EU experiment with technology for both practical and recreational purposes, from drafting documents to designing visuals or exploring creative ideas, demonstrating the growing influence of AI on digital culture and personal productivity.

Adoption of generative AI varies significantly across the EU. Denmark, Estonia, and Malta recorded the highest usage, with nearly half of residents actively engaging with these tools, while Romania, Italy, and Bulgaria showed the lowest uptake, with fewer than a quarter of the population using AI.

These differences may reflect variations in digital infrastructure, education, and public awareness, as well as cultural attitudes toward emerging technologies.

Overall, the Eurostat data provide a snapshot of a digital landscape in transition, reflecting how Europeans are adapting to a new era of intelligent technology.

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Banks and fintechs turn to Visa as stablecoin infrastructure matures

Visa has launched a Stablecoins Advisory Practice through its Visa Consulting & Analytics unit, reflecting rising institutional interest in stablecoin-based payment infrastructure. The service aims to help banks, fintech firms, merchants, and enterprises assess strategy, market fit and implementation.

The move comes as the global stablecoin market exceeds $250 billion in value and emerging reports of an annualised stablecoin settlement run rate of $3.5 billion as of late November. According to the company, demand is rising among financial institutions exploring faster and lower-cost payment rails.

Visa Consulting & Analytics will offer services ranging from market education and strategy development to use case sizing and technical integration. The programme draws on Visa’s network of consultants, data scientists and product specialists to support clients navigating regulatory and operational complexity.

Several financial institutions have already participated in early engagements, citing the need for clearer frameworks as stablecoins gain traction in cross-border payments and digital finance. The advisory practice reflects broader efforts to support responsible adoption alongside emerging standards.

Visa has previously piloted stablecoin settlement using USDC and now supports more than 130 stablecoin-linked card programmes across 40 countries. The company is also testing stablecoin-based pre-funding for international payouts.

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UK sets course for comprehensive crypto regulation

The UK government has announced plans to bring cryptoassets firmly within the regulatory perimeter, aiming to support innovation while strengthening consumer protection and attracting long-term investment into the sector.

From 2027, cryptoasset firms will be regulated by the Financial Conduct Authority under rules similar to those governing traditional financial products, such as stocks and shares. The move is intended to provide legal clarity and increase confidence among consumers and businesses.

Ministers say that proportionate regulation will support innovation, ensure competitive markets, and strengthen the UK’s position as a global hub for digital assets. Enhanced oversight will boost transparency, aid sanctions enforcement, and help detect and tackle illicit activity.

The initiative forms part of a broader strategy to shape global crypto standards, including ongoing cooperation with the United States through the Transatlantic Taskforce, as the UK seeks to secure its role in the future of digital finance.

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Streaming platforms face pressure over AI-generated music

Musicians are raising the alarm over AI-generated tracks appearing on their profiles without consent, presenting fraudulent work as their own. British folk artist Emily Portman discovered an AI-generated album, Orca, on Spotify and Apple Music, which copied her folk style and lyrics.

Fans initially congratulated her on a release she had not made since 2022.

Australian musician Paul Bender reported a similar experience, with four ‘bizarrely bad’ AI tracks appearing under his band, The Sweet Enoughs. Both artists said that weak distributor security allows scammers to easily upload content, calling it ‘the easiest scam in the world.’

A petition launched by Bender garnered tens of thousands of signatures, urging platforms to strengthen their protections.

AI-generated music has become increasingly sophisticated, making it nearly impossible for listeners to distinguish from genuine tracks. While revenues from such fraudulent streams are low individually, bots and repeated listening can significantly increase payouts.

Industry representatives note that the primary motive is to collect royalties from unsuspecting users.

Despite the threat of impersonation, Portman is continuing her creative work, emphasising human collaboration and authentic artistry. Spotify and Apple Music have pledged to collaborate with distributors to enhance the detection and prevention of AI-generated fraud.

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Indonesia fines Platform X for pornographic content violations

Platform X has paid an administrative fine of nearly Rp80 million after failing to meet Indonesia’s content moderation requirements related to pornographic material, according to the country’s digital regulator.

The Ministry of Communication and Digital Affairs said the payment was made on 12 December 2025, after a third warning letter and further exchanges with the company. Officials confirmed that Platform X appointed a representative to complete the process, who is based in Singapore.

The regulator welcomed the company’s compliance, framing the payment as a demonstration of responsibility by an electronic system operator under Indonesian law. Authorities said the move supports efforts to keep the national digital space safe, healthy, and productive.

All funds were processed through official channels and transferred directly to the state treasury managed by the Ministry of Finance, in line with existing regulations, the ministry said.

Officials said enforcement actions against domestic and global platforms, including those operating from regional hubs such as Singapore, remain a priority. The measures aim to protect children and vulnerable groups and encourage stronger content moderation and communication.

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Europe risks falling behind without telecom scale, Telefónica says

Telefónica has called for a shift in Europe’s telecommunications policy, arguing that market fragmentation is undermining investment, digital competitiveness, and the continent’s technological sovereignty, according to a new blog post from the company.

In the post, Telefónica says Europe’s emphasis on maximising retail competition has produced a highly fragmented operator landscape. It cites industry data showing the average European operator serves around five million customers, far fewer than peers in the United States or China.

The company argues that this lack of scale explains Europe’s lower per-capita investment in telecoms infrastructure and is slowing the rollout of technologies such as standalone 5G, fibre networks, and sovereign cloud and AI platforms.

Telefónica points to recent reports by Mario Draghi and Enrico Letta as signs of a policy shift, with EU institutions placing greater weight on investment capacity, resilience, and dynamic efficiency alongside traditional competition objectives.

The blog post concludes that Europe faces a strategic choice between preserving fragmented markets or enabling responsible consolidation. Telefónica says carefully regulated mergers could support sustainability, reduce regional digital divides, and strengthen Europe’s digital infrastructure.

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EU moves to tax low-value e-commerce parcels

The European Commission welcomed the decision by EU Member States to introduce a €3 customs duty on low-value e-commerce parcels arriving from third countries.

A measure, which enters into force in July 2026, that applies to items valued below €150 and aims to restore fair competition instead of allowing online imports to benefit from longstanding exemptions.

The move responds to the rapid growth of cross-border e-commerce shipments and will operate as a temporary solution until the EU Customs Data Hub becomes fully operational in 2028.

Until then, the Council and the Commission will coordinate legal changes and IT systems to ensure smooth implementation and effective customs supervision across the Union.

Once the Customs Data Hub is in place, a permanent customs duty regime will replace the temporary measure, offering authorities a comprehensive view of goods entering and leaving the EU.

The €3 duty applies only to parcels sent directly to consumers and remains separate from ongoing negotiations on a handling fee intended to offset the rising operational costs faced by customs authorities.

The reform builds on earlier Commission proposals to remove duty exemptions for low-value parcels and forms part of the most extensive overhaul of EU customs rules in decades.

European institutions argue that modernised customs controls are essential instead of relying on outdated frameworks, particularly as global e-commerce volumes continue to expand.

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