Australia warns of unexpected AI behaviour during safety testing

Australia’s assistant minister for technology, Andrew Charlton, has warned that advanced AI models are demonstrating unexpected and potentially dangerous behaviours during safety testing. Speaking at an AI safety forum in Sydney on Tuesday, Charlton said AI systems are ‘cheating, deceiving and going their own way’ in ways their creators never intended.

Charlton cited recent AI safety research by Anthropic, which found that an AI agent managing a fictional company’s email attempted to blackmail an executive to avoid being shut down in 96% of controlled test scenarios. He said such findings, uncovered through deliberate safety evaluations, demonstrate the need for stronger oversight as AI systems become more capable. Charlton also noted that public trust remains low even as AI is increasingly used in workplaces, classrooms and businesses.

Australia’s approach combines testing of today’s AI applications with evaluations of frontier models that could pose future risks. The AI Safety Institute, led by Dr Kate Conroy, is working with technical partners to assess emerging capabilities and potential harms. Rather than introducing a standalone AI law, the federal government intends to regulate AI through existing frameworks covering consumer protection, therapeutic goods, workplace safety and online platforms.

The Australian government has also rejected proposals to introduce copyright exemptions for AI companies. Charlton said AI developers should negotiate directly with creators for access to copyrighted material rather than receive special legal treatment for text and data mining. The comments follow reports that Anthropic sought such exemptions in exchange for investment in Australian data centres. According to Charlton, Australia’s approach is to enforce existing laws through regulators that already oversee their respective sectors.

Why does it matter?

Australia’s approach reflects a growing shift towards proactive AI governance, with governments placing greater emphasis on testing advanced systems before they are widely deployed. Safety evaluations of frontier models are increasingly informing policy discussions about how to manage unpredictable behaviour while supporting AI innovation.

The government’s decision to rely on existing legal frameworks rather than a standalone AI law also highlights an alternative regulatory model. Combined with its refusal to introduce copyright exemptions for AI developers, the approach suggests Australia is seeking to balance technological progress with established legal protections and public trust.

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Viber brings ChatGPT into its messaging app

Rakuten Viber has launched ChatGPT-powered tools inside its messaging app through a new partnership with OpenAI.

The integration allows users to ask questions in a dedicated ChatGPT chat or tab, mention @ChatGPT in supported private and group chats, summarise conversations and shared links, polish draft messages, translate messages and remix images.

Viber said most tools are available after users update the app, without requiring ChatGPT registration.

Image Remix requires users to log in to ChatGPT within Viber or create a free account. OpenAI says availability may vary by region, app version, account and chat type.

The privacy model depends on the feature used. Viber says its core messaging features remain protected by end-to-end encryption, while ChatGPT-powered tools are activated only when users choose to use them.

When a ChatGPT-powered feature is used, Viber sends OpenAI the information needed to process that request. Depending on the feature, that may include selected messages, drafts, images, prompts, link content, messages that mention @ChatGPT, timestamps, approximate location and a Viber-generated hashed user ID.

OpenAI says data sent from ChatGPT-powered features in Viber personal and group chats is not used to train its models, except for conversations in the ChatGPT tab.

If a user connects a ChatGPT account, activity may be associated with that account and handled under OpenAI’s standard retention and data settings.

Why does it matter?

The launch brings generative AI into everyday messaging, moving ChatGPT from a separate assistant into conversations, links, drafts, translations and images. That makes AI tools more accessible, but also creates a more complex privacy model. Users need to understand when messages remain inside an end-to-end encrypted chat and when selected content is sent to OpenAI for processing. For messaging platforms, the key governance challenge is adding useful AI features while preserving user control, clear consent and transparent data handling.

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ESMA launches first crypto custody review under MiCA

The European Securities and Markets Authority has launched a Common Supervisory Action on the digital operational resilience of crypto-asset service providers, with a specific focus on custody services.

The exercise will assess the maturity of authorised CASPs’ digital operational resilience frameworks in relation to custody activities.

National competent authorities will conduct a risk-based review of a sample of authorised crypto-asset service providers.

The exercise will run from the second half of 2026 to the first half of 2027.

ESMA said the review will focus on risks linked to distributed ledger technology, including governance arrangements, key and storage management, transaction controls, incident detection and response, smart contract risks and dependencies on third-party providers.

The initiative reflects ESMA’s risk-based supervisory priorities, which identify both digital operational resilience and crypto-asset service providers as key risk areas.

The findings collected by national regulators will be consolidated into a final report and submitted to ESMA’s Board of Supervisors upon the exercise’s conclusion in the second half of 2027.

The action marks a shift from rule implementation towards coordinated supervision of crypto firms operating under the EU’s MiCA framework.

Why does it matter?

Crypto custody is a critical part of the digital-asset market because failures in private key management, storage, transaction controls or incident response can directly affect users’ assets. ESMA’s coordinated review shows that MiCA supervision is moving from authorisation towards testing how firms manage operational and technology risks in practice. It could also help align national supervisory approaches and reduce uneven standards across the EU crypto market.

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Inaugural UN Global Dialogue on AI Governance ends with call to turn principles into action before 2027

The inaugural United Nations Global Dialogue on AI Governance concluded in Geneva with a clear message from governments, industry, civil society, and international organisations: the success of global AI governance will depend not on the principles adopted, but on the concrete actions taken before participants reconvene in New York in 2027. Speakers repeatedly argued that narrowing the widening AI divide, strengthening international cooperation, and embedding human rights into AI governance will require practical implementation rather than new declarations alone.

From principles to practice

Iceland’s President Halla Tómasdóttir opened the closing plenary by arguing that AI’s future will be shaped not by technological capability but by human choices about power, accountability, and inclusion. Drawing on Iceland’s experience of harnessing natural resources for the public good, she said AI should likewise serve society rather than narrow interests.

‘Access without agency is not inclusion,’ she said, warning that communities furthest from today’s centres of technological power must become co-authors of the AI future rather than passive recipients of it. She also cautioned that ‘principles without practice can inspire false comfort’, arguing that AI governance should ultimately be judged by whether it increases people’s dignity, opportunity, and hope.

Microsoft Vice Chair and President Brad Smith echoed those concerns, presenting new data showing that AI adoption has reached 27% of the working-age population in the Global North, compared with just 15% in the Global South. Without intervention, he warned, that gap is likely to widen further over the coming year. Smith identified four priorities for more equitable AI adoption: expanding access to electricity, completing global internet connectivity, supporting multilingual AI models, and making digital skills widely available. He also acknowledged that AI capabilities have advanced much faster than governance frameworks over the past year, calling interoperability between national governance approaches essential to avoid a fragmented regulatory landscape.

Building an inclusive global governance system

Several speakers underlined that no country or institution can govern AI alone and that the UN remains uniquely positioned to convene an inclusive international process.

Guy Ryder, UN Under-Secretary-General for Policy, described the organisation’s greatest strength as its ability to bring together all 193 UN member states alongside businesses, researchers, and civil society. He acknowledged the need for stronger coordination across UN agencies while arguing that the Global Dialogue should become a recurring platform connecting AI governance efforts across international organisations and forums.

Civil society representative Raman Jit Singh Chima of the Association for Progressive Communications urged policymakers to build on existing digital governance mechanisms such as the World Summit on the Information Society (WSIS) and the Internet Governance Forum (IGF), rather than replacing them with entirely new structures. He also warned that AI governance must be firmly grounded in human rights and informed by the experiences of women, girls, and marginalised communities, who are often disproportionately affected by AI systems while remaining underrepresented in governance discussions.

Namibia’s Minister of Information and Communications Technology Emma Theofelus shifted the discussion towards implementation, calling on the international community to help countries translate global AI principles into national legislation, invest in digital infrastructure, and strengthen scientific and technical capacity in developing economies. She argued that meaningful participation requires recognising countries’ different starting points rather than assuming all governments have equal resources and capabilities.

Dialogue identifies common priorities

The closing session also reflected on the discussions held across the Dialogue’s four thematic tracks, which collectively identified recurring governance gaps around infrastructure, funding, skills, trust, and participation.

Gaia Marcus, Director of the Ada Lovelace Institute, argued that public participation should become a source of evidence rather than a symbolic consultation exercise. Those most affected by AI systems, including workers facing automation and vulnerable communities, should have clear channels to influence policy decisions, she said, adding that trust depends on accountability rather than public relations.

Jaan Tallinn, co-founder of the Future of Life Institute, offered one of the session’s starkest warnings, arguing that AI capabilities are now advancing on a quarterly basis while governance processes typically evolve over years. He cautioned that frontier AI companies are pursuing increasingly capable systems despite acknowledging significant safety challenges, making international cooperation more urgent than ever.

Rapporteurs from the four thematic clusters highlighted broad convergence across the dialogue. Participants repeatedly called for stronger AI capacity building, practical interoperability between governance frameworks, greater support for local adaptation and multilingual AI, stronger human rights safeguards, and wider participation from developing countries and civil society. Rather than competing to build the most powerful AI systems, several speakers argued that countries should focus on developing the institutions, skills, and governance mechanisms needed to deploy AI responsibly.

Geneva lays the foundation for New York

Closing the event, co-chair Rein Tammsaar said the inaugural dialogue had brought together more than 4,200 registered participants from nearly 170 member states, alongside representatives of industry, academia, civil society, and international organisations. He argued that the discussions demonstrated the world’s challenge is no longer a lack of AI principles, but the absence of practical mechanisms to implement them.

Tammsaar said participants had moved beyond abstract debates towards discussions on national AI strategies, legal safeguards, teacher training, and public-sector capacity building. He also reiterated that the AI divide is about far more than access to technology, it is also about the ability to shape, govern, and benefit from AI.

Co-chair Egriselda López concluded that the Global Dialogue is intended not to replace existing AI governance initiatives but to connect them, strengthen cooperation, and help countries learn from one another. Recalling a remark from a representative of a small country who said, ‘We are here not to be a footnote,’ López said the statement captured the spirit of the inaugural dialogue.

Both co-chairs agreed that Geneva should be viewed not as the end of a process but as its beginning. They urged participants to return home with concrete commitments and practical actions so that, when the second UN Global Dialogue on AI Governance convenes in New York in May 2027, progress can be measured not by new principles but by tangible improvements in inclusion, capacity, and international cooperation.

Track all key moments from the Global Dialogue on AI Governance inaugural meeting on our dedicated page.

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France enforces new EU crypto rules under MiCA

France has entered a new phase of crypto regulation as the transitional period between its national Pacte law framework and the EU’s Markets in Crypto-Assets (MiCA) Regulation has ended. Since 2 July 2026, crypto-asset service providers operating in France must comply with MiCA requirements and obtain authorisation to offer services across the European Union.

The Autorité des Marchés Financiers (AMF) has supported firms throughout the transition while reviewing MiCA authorisation applications. France has authorised 31 crypto-asset service providers, making it the EU’s second-largest jurisdiction for approved firms.

MiCA introduces stricter requirements on investor protection, security, market integrity and the custody of crypto-assets. The AMF will continue supervising authorised providers and assessing new applications.

The regulator will also work with the European Securities and Markets Authority (ESMA) and other national authorities to oversee the orderly withdrawal of firms that failed to obtain MiCA authorisation. It has urged investors to use only authorised crypto-asset service providers operating under the new European framework.

Why does it matter?

France’s transition marks another step in MiCA‘s move from legislation to implementation. As national transitional regimes end, crypto firms across the EU must comply with a single regulatory framework, replacing fragmented national approaches with common licensing and supervisory standards.

The new regime is also intended to strengthen consumer confidence by introducing harmonised rules on investor protection, market integrity and operational resilience. Its long-term success will depend on whether it can provide effective oversight while allowing compliant firms to innovate and compete across the EU’s single market.

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South Korea opens antitrust proceedings over Google app market practices

South Korea’s Fair Trade Commission has begun formal deliberation procedures over allegations that Google abused its dominant position in the Android app market.

The case follows an examiner’s report submitted to the Commission, which outlines suspected violations of the country’s Fair Trade Act.

According to the report, Google used its Games/Google Velocity Program, known internally as Project Hug, to provide financial support for services such as Google Cloud, Google Ads and YouTube.

In return, participating game developers were allegedly required to launch games on Google’s app marketplace on terms at least as favourable as those offered to rival platforms.

The examiner concluded that the programme reduced incentives for developers to distribute games through competing app marketplaces, including ONE store, while strengthening Google’s position in the Android app ecosystem.

The allegedly affected revenue was estimated at 14.16 trillion won, or about $9.1 billion. If violations are confirmed, potential penalties could reach up to 6% of that amount.

Google will have an opportunity to respond before the Commission reaches a final decision.

The case adds to wider global scrutiny of app-store competition and the ways dominant platforms use developer incentives, contracts and ecosystem services to shape market access.

Why does it matter?

The case shows how antitrust scrutiny of app stores is expanding beyond commission fees and payment systems into developer incentive programmes and platform-service bundles. If KFTC confirms the allegations, the decision could influence how dominant platforms structure support packages for developers and whether such programmes are treated as loyalty-inducing conduct. It also reinforces South Korea’s role as an active jurisdiction in digital-platform competition enforcement.

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Belgium warns against unauthorised crypto platforms under MiCA

Belgium’s Financial Services and Markets Authority (FSMA) has added six crypto platforms to its warning list after finding that they are offering services in the country without the authorisation required under the EU’s Markets in Crypto-Assets (MiCA) framework.

The regulator identified Aurum Foundation, Bank Bit, Bithf Pro, Dxago, Global Dynamic Trade and ZeriaFunding as crypto-asset service providers operating without the required authorisation. The FSMA urged consumers to check its official register before using crypto platforms or transferring funds.

The warning comes shortly after the EU’s MiCA licensing deadline, as national regulators across the EU begin enforcing the bloc’s new crypto regulatory framework. Authorities are increasing scrutiny of crypto firms as they adapt to the new authorisation requirements.

MiCA is also prompting firms to reassess their regulatory strategies. Crypto exchange Binance recently withdrew its licence application in Greece while pursuing authorisation in another EU jurisdiction, illustrating how companies are adjusting to the new framework.

Why does it matter?

Belgium’s action illustrates that MiCA is entering its enforcement phase, with national regulators beginning to act against crypto firms that fail to obtain the necessary authorisations. The shift from adopting legislation to enforcing it is likely to reshape how crypto businesses operate across the EU.

The new framework also aims to strengthen consumer confidence by establishing common licensing standards throughout the single market. While stricter oversight may increase compliance costs for some firms, it could also encourage greater market stability and make it easier for authorised providers to operate across multiple EU member states.

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EU urged to cover platform monetisation in Digital Fairness Act

A coalition of civil society organisations, academics, and advocates has published an open letter urging the European Commission to ensure that forthcoming Digital Fairness Act rules on influencer marketing extend beyond third-party advertising payments to include income generated through platform monetisation services.

The signatories welcome the Commission’s proposal to require influencers to disclose payments received for their content but argue that it leaves a significant transparency gap. They note that social media platforms increasingly provide creators with monetisation tools such as subscriptions, donations, affiliate marketing, branded partnerships and platform-funded bonus programmes, many of which would fall outside rules focused solely on third-party advertising payments.

The letter proposes minimum transparency measures including labels identifying content that benefits from platform monetisation, account-level labels showing participation in monetisation programmes, public monetisation libraries to support independent oversight, and disclosures explaining platforms’ monetisation policies, moderation practices and enforcement.

The coalition, whose members include AlgorithmWatch, Bits of Freedom, Corporate Europe Observatory, and the Digital Rights Foundation, together with academic experts including an associate professor from Finland’s Hanken School of Economics, has invited the Commission to discuss ways of incorporating these proposals into the Digital Fairness Act before it is finalised.

Why does it matter?

The debate reflects a broader shift in how online influence is financed. Increasingly, creators earn income not only from advertisers but also through platform-designed monetisation systems that reward engagement, subscriptions and other forms of user activity. Without transparency around these incentives, audiences may struggle to distinguish between organic content and content shaped by commercial rewards built into platform design.

The Digital Fairness Act, therefore, presents an opportunity to broaden consumer protection beyond traditional advertising disclosure. Extending transparency requirements to platform monetisation could improve accountability for creators and platforms alike while giving regulators, researchers and users greater visibility into the financial incentives shaping online content.

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OpenAI rolls out GPT-5.5 Instant Mini in ChatGPT

OpenAI has started rolling out GPT-5.5 Instant Mini in ChatGPT as the fallback model users reach after hitting GPT-5.5 Instant or Auto rate limits.

The model replaces GPT-5.3 Instant Mini in that fallback role.

Because GPT-5.5 Instant Mini is used only as a fallback model, it will not appear in the model picker.

OpenAI said the update does not affect the API or Codex.

According to the company’s release notes, GPT-5.5 Instant Mini performs better than GPT-5.3 Instant Mini at tracking evolving user intent, calibrating tone and avoiding repetitive or overly structured responses.

OpenAI also said testing showed stronger personalisation and fewer factual issues than the previous fallback model.

Why does it matter?

Fallback models shape the experience users receive when they hit rate limits, especially on high-demand ChatGPT plans. Improving that fallback path can make the transition less disruptive by preserving tone, context and reliability more effectively. The update also shows OpenAI refining its everyday model-routing infrastructure, not just the flagship models available in the picker.

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UK FCA review warns agentic AI could reshape retail finance

A new FCA-commissioned review has warned that agentic AI could reshape retail financial services by allowing consumers to delegate more financial decisions to autonomous tools.

The Mills Review examines how AI could transform retail finance by 2030 and beyond, including banking, payments, savings, investments, insurance and debt advice.

The review says AI is moving financial services from human-led and episodic activity towards services that are AI-enabled, continuous and delegated.

Over time, AI agents could help consumers manage finances, compare products, execute tasks and optimise financial choices within agreed limits.

The report says the shift could help address long-standing market problems, including advice gaps, low switching, financial exclusion and poor savings outcomes.

It also warns that greater autonomy will create new risks around consent, accountability, redress, market power, cyber threats and financial crime.

The review recommends that the FCA consider developing trusted frameworks for AI agent participation in financial services, including clearer expectations for identity, consent, control and liability.

It also calls for stronger AI-enabled supervision so the FCA can detect risks across firms, shared models, cloud platforms and data sources more quickly.

The report says human accountability must remain central, with firms remaining responsible for outcomes produced by AI systems.

Why does it matter?

The review points to a shift from AI as a financial services support tool to AI as an active participant in consumer finance. If agents begin comparing products, moving money, managing portfolios or taking out insurance within delegated limits, regulators will need clearer rules on consent, liability, identity, redress and oversight. The report also raises a broader infrastructure question: agentic finance will depend not only on AI models, but also on trusted data access, digital identity, payments systems and supervisory tools that can detect risks across the market.

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