Consumer protection

UK retail investors can now access crypto ETNs

The FCA has lifted the ban on retail access to certain crypto exchange trade notes (cETNs), effective 8 October. UK consumers can now invest in cETNs listed on the Official List and traded on a Recognised Investment Exchange.

Firms offering cETNs must meet strict requirements. Products are categorised as Restricted Mass Market Investments (RMMIs), meaning financial promotions cannot include incentives, and firms must carry out appropriateness assessments, client categorisation, and risk disclosures.

Compliance with the Consumer Duty is also required, including acting in good faith, avoiding foreseeable harm, and ensuring products meet the needs of the target market.

The FCA emphasises that cETNs are complex products, and firms should have the correct permissions to offer them. Those seeking authorisation or new permissions can request pre-application support meetings.

The regulator is also advancing its crypto roadmap to integrate crypto assets more fully into its regulatory framework, with ongoing consultations on applying Handbook rules to crypto activities.

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IBM unveils Digital Asset Haven for secure institutional blockchain management

IBM has introduced Digital Asset Haven, a unified platform designed for banks, corporations, and governments to securely manage and scale their digital asset operations. The platform manages the full asset lifecycle from custody to settlement while maintaining compliance.

Built with Dfns, the platform combines IBM’s security framework with Dfns’ custody technology. The Dfns platform supports 15 million wallets for 250 clients, providing multi-party authorisation, policy governance, and access to over 40 blockchains.

IBM Digital Asset Haven includes tools for identity verification, crime prevention, yield generation, and developer-friendly APIs for extra services. Security features include Multi-Party Computation, HSM-based signing, and quantum-safe cryptography to ensure compliance and resilience.

According to IBM’s Tom McPherson, the platform gives clients ‘the opportunity to enter and expand into the digital asset space backed by IBM’s level of security and reliability.’ Dfns CEO Clarisse Hagège said the partnership builds infrastructure to scale digital assets from pilots to global use.

IBM plans to roll out Digital Asset Haven via SaaS and hybrid models in late 2025, with on-premises deployment expected in 2026.

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New ChatGPT model reduces unsafe replies by up to 80%

OpenAI has updated ChatGPT’s default model after working with more than 170 mental health clinicians to help the system better spot distress, de-escalate conversations and point users to real-world support.

The update routes sensitive exchanges to safer models, expands access to crisis hotlines and adds gentle prompts to take breaks, aiming to reduce harmful responses rather than simply offering more content.

Measured improvements are significant across three priority areas: severe mental health symptoms such as psychosis and mania, self-harm and suicide, and unhealthy emotional reliance on AI.

OpenAI reports that undesired responses fell between 65 and 80 percent in production traffic and that independent clinician reviews show significant gains compared with earlier models. At the same time, rare but high-risk scenarios remain a focus for further testing.

The company used a five-step process to shape the changes: define harms, measure them, validate approaches with experts, mitigate risks through post-training and product updates, and keep iterating.

Evaluations combine real-world traffic estimates with structured adversarial tests, so better ChatGPT safeguards are in place now, and further refinements are planned as understanding and measurement methods evolve.

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FDA and patent law create dual hurdles for AI-enabled medical technologies

AI reshapes healthcare by powering more precise and adaptive medical devices and diagnostic systems.

Yet, innovators face two significant challenges: navigating the US Food and Drug Administration’s evolving regulatory framework and overcoming legal uncertainty under US patent law.

These two systems, although interconnected, serve different goals. The FDA protects patients, while patent law rewards invention.

The FDA’s latest guidance seeks to adapt oversight for AI-enabled medical technologies that change over time. Its framework for predetermined change control plans allows developers to update AI models without resubmitting complete applications, provided updates stay within approved limits.

An approach that promotes innovation while maintaining transparency, bias control and post-market safety. By clarifying how adaptive AI devices can evolve safely, the FDA aims to balance accountability with progress.

Patent protection remains more complex. US courts continue to exclude non-human inventors, creating tension when AI contributes to discoveries.

Legal precedents such as Thaler vs Vidal and Alice Corp. vs CLS Bank limit patent eligibility for algorithms or diagnostic methods that resemble abstract ideas or natural laws. Companies must show human-led innovation and technical improvement beyond routine computation to secure patents.

Aligning regulatory and intellectual property strategies is now essential. Developers who engage regulators early, design flexible change control plans and coordinate patent claims with development timelines can reduce risk and accelerate market entry.

Integrating these processes helps ensure AI technologies in healthcare advance safely while preserving inventors’ rights and innovation incentives.

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Virginia’s data centre boom divides residents and industry

Loudoun County in Virginia, known as Data Center Alley, now hosts nearly 200 data centres powering much of the world’s internet and AI infrastructure. Their growth has brought vast economic benefits but stirred concerns about noise, pollution, and rising energy bills for nearby residents.

The facilities occupy about 3% of the county’s land yet generate 40% of its tax revenue. Locals say the constant humming and industrial sprawl have driven away wildlife and inflated electricity costs, which have surged by over 250% in five years.

Despite opposition, new US and global data centre projects continue to receive state support. The industry contributes $5.5 billion annually to Virginia’s economy and sustains around 74,000 jobs. Additionally, President Trump’s administration recently pledged to accelerate permits.

Residents like Emily Kasabian argue the expansion is eroding community life, replacing trees with concrete and machinery to fuel AI. Activists are now lobbying for construction pauses, warning that unchecked development threatens to transform affluent suburbs beyond recognition.

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Celebrity estates push back on Sora as app surges to No.1

OpenAI’s short-video app Sora topped one million downloads in under a week, then ran headlong into a likeness-rights firestorm. Celebrity families and studios demanded stricter controls. Estates for figures like Martin Luther King Jr. sought blocks on unauthorised cameos.

Users showcased hyperreal mashups that blurred satire and deception, from cartoon crossovers to dead celebrities in improbable scenes. All clips are AI-made, yet reposting across platforms spread confusion. Viewers faced a constant real-or-fake dilemma.

Rights holders pressed for consent, compensation, and veto power over characters and personas. OpenAI shifted toward opt-in for copyrighted properties and enabled estate requests to restrict cameos. Policy language on who qualifies as a public figure remains fuzzy.

Agencies and unions amplified pressure, warning of exploitation and reputational risks. Detection firms reported a surge in takedown requests for unauthorised impersonations. Watermarks exist, but removal tools undercut provenance and complicate enforcement.

Researchers warned about a growing fog of doubt as realistic fakes multiply. Every day, people are placed in deceptive scenarios, while bad actors exploit deniability. OpenAI promised stronger guardrails as Sora scales within tighter rules.

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Apple may have to pay $1.9B in damages to UK consumers over unfair App Store fees

Apple could face damages of up to £1.5 billion ($1.9 billion) after a British court ruled it overcharged consumers by imposing unfair commission fees on app developers.

The Competition Appeal Tribunal found that Apple abused its dominant position between 2015 and 2020 by charging excessive commissions, up to 30%, on App Store purchases and in-app payments. Judges ruled that the company’s fees should not have exceeded 17.5% for app sales and 10% for in-app transactions, concluding that half of the inflated costs were passed on to consumers.

The total damages, to be set next month, would compensate users who paid higher prices for apps, subscriptions and digital purchases. Apple said it will appeal, arguing that the App Store ‘helps developers succeed and provides consumers with a safe and trusted place to discover apps and make payments’.

The ruling comes as Apple continues to resist more burdensome antitrust regulation in Europe, which adds to Apple’s growing list of competition battles across Europe. Courts in the Netherlands and Belgium have accused the company of blocking alternative payment methods and charging excessive commissions, while similar lawsuits are ongoing in the United States.

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UN cybercrime treaty signed in Hanoi amid rights concerns

Around 60 countries signed a landmark UN cybercrime convention in Hanoi, seeking faster cooperation against online crime. Leaders cited trillions in annual losses from scams, ransomware, and trafficking. The pact enters into force after 40 ratifications.

UN supporters say the treaty will streamline evidence sharing, extradition requests, and joint investigations. Provisions target phishing, ransomware, online exploitation, and hate speech. Backers frame the deal as a boost to global security.

Critics warn the text’s breadth could criminalise security research and dissent. The Cybersecurity Tech Accord called it a surveillance treaty. Activists fear expansive data sharing with weak safeguards.

The UNODC argues the agreement includes rights protections and space for legitimate research. Officials say oversight and due process remain essential. Implementation choices will decide outcomes on the ground.

The EU, Canada, and Russia signed in Hanoi, underscoring geopolitical buy-in. Vietnam, being the host, drew scrutiny over censorship and arrests. Officials there cast the treaty as a step toward resilience and stature.

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EU MiCA greenlight turns Blockchain.com’s Malta base into hub

Blockchain.com received a MiCA license from Malta’s Financial Services Authority, enabling passported crypto services across all 30 EEA countries under one EU framework. Leaders called it a step toward safer, consistent access.

Malta becomes the hub for scaling operations, citing regulatory clarity and cross-border support. Under the authorisation, teams will expand secure custody and wallets, enterprise treasury tools, and localised products for the EU consumers.

A unified license streamlines go-to-market and accelerates launches in priority jurisdictions. Institutions gain clearer expectations on safeguarding, disclosures, and governance, while retail users benefit from standardised protections and stronger redress.

Fiorentina D’Amore will lead the EU strategy with deep fintech experience. Plans include phased rollouts, supervisor engagement, and controls aligned to MiCA’s conduct and prudential requirements across key markets.

Since 2011, Blockchain.com says it has processed over one trillion dollars and serves more than 90 million wallets. Expansion under MiCA adds scalable infrastructure, robust custody, and clearer disclosures for users and institutions.

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EU investigates Meta and TikTok for DSA breaches

The European Commission has accused Meta and TikTok of breaching the Digital Services Act (DSA), highlighting failures in handling illegal content and providing researchers access to public data.

Meta’s Facebook and Instagram were found to make it too difficult for users to report illegal content or receive responses to complaints, the Commission said in its preliminary findings.

Investigations began after complaints to Ireland’s content regulator, where Meta’s EU base is located. The Commission’s inquiry, which has been ongoing since last year, aims to ensure that large platforms protect users and meet EU safety obligations.

Meta and TikTok can submit counterarguments before penalties of up to six percent of global annual turnover are imposed.

Both companies face separate concerns about denying researchers adequate access to platform data and preventing oversight of systemic online risks. TikTok is under further examination for minor protection and advertising transparency issues.

The Commission has launched 14 such DSA-related proceedings, none concluded.

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