Development Archives | Page 23 of 545 | Digital Watch Observatory

Licence revocations hit unregistered crypto firms in Canada

Canada has increased crypto oversight, revoking registrations for nearly three dozen firms due to compliance failures. The move follows investigative reporting that uncovered widespread irregularities in the sector.

The Financial Transactions and Reports Analysis Centre of Canada removed 23 companies in one week, adding to previous actions against about a dozen other crypto firms.

Officials described the shift as part of a broader effort to address risks tied to virtual currencies, including fraud and money laundering.

Findings from the International Consortium of Investigative Journalists’ investigation highlighted clusters of crypto businesses operating without proper registration, particularly in Toronto.

Many of these services reportedly focused on converting digital assets into cash, raising concerns about gaps in oversight and compliance with anti-money laundering rules.

Authorities also flagged suspicious transaction patterns, including activity linked to wallets allegedly associated with Iran-backed groups. While regulators have promised further action, analysts warn that delayed enforcement and structural weaknesses may continue to expose the system to illicit financial flows.

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Sydney set to become hub for AI innovation with Oracle centre

Oracle has launched the AI Customer Excellence Centre (AI CEC) in Sydney to help organisations adopt and scale AI technologies across Australia and Oceania. The centre will act as a hub for collaboration and skills, letting businesses test AI solutions in real-world settings.

The AI CEC provides access to Oracle and partner technologies, with flexible deployment options through Oracle Cloud Infrastructure (OCI). Organisations can receive training, test early-stage AI innovations, and pilot proof-of-concept projects in secure cloud environments.

The centre supports industries such as healthcare, public sector, financial services, and telecommunications, helping companies accelerate AI adoption while improving efficiency and decision-making.

Experts highlight the centre’s potential to bridge the gap between AI experimentation and measurable business impact. Rising compute demand shows AI moving from pilots to production, while hands-on testing helps organisations reduce risk and validate initiatives.

Oracle plans to continue collaborating with governments, partners, and industry to ensure responsible, secure, and trustworthy AI adoption, reinforcing Australia’s position as a leader in the digital economy.

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Tokenised assets set to transform European capital markets

Piero Cipollone, Member of the Executive Board of the ECB, at an event on ‘Building Europe’s integrated digital asset ecosystem: from vision to implementation,’ highlighted Europe’s progress in tokenised financial markets.

Since 2021, European issuers have placed nearly €4 billion in DLT-based fixed-income instruments, including the first digital sovereign debt by EU Member States. Eurosystem trials in 2024 processed €1.6 billion in transactions, showing strong demand for central bank money settlement in digital markets.

Tokenisation enables the full lifecycle of transactions on distributed ledgers, often automated through smart contracts.

Fragmentation across DLT platforms and the absence of a widely accepted on-chain settlement asset are holding back market expansion. Private assets, including stablecoins, carry volatility and credit risks, making a central bank money anchor crucial.

The Pontes platform, launching in Q3 2026, is expected to provide secure settlement across DLT platforms and TARGET services, supporting features like smart contracts and 24/7 operation.

The Appia roadmap outlines a longer-term vision for an integrated European tokenised ecosystem by 2028, covering technical standards, interoperability, collateral management, and cross-border connectivity.

Collaboration between the public and private sectors is critical. Feedback from 64 industry participants shaped Pontes, while Appia engages stakeholders to establish standards and ensure interoperability.

Harmonised legal frameworks are equally important to reduce post-trade fragmentation and support seamless asset transfers across EU Member States. Without coordinated laws, tokenised markets risk inefficiency despite advanced technology.

Europe is building momentum but faces intense global competition. Secure settlement, stakeholder collaboration, and legal harmonisation could make the EU a leader in digital finance with a single tokenised market.

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AI improves stroke care and reduces patient risks in major study

The system, which analyses medical scans and provides treatment recommendations, was associated with better outcomes compared with standard approaches to stroke care. Researchers said the tool offers a more efficient and scalable method for improving treatment, particularly in resource-constrained healthcare systems.

The findings are based on more than 21,000 patients treated across 77 hospitals in China. Patients supported by the AI-driven clinical decision support system experienced fewer new vascular events, including stroke recurrence, heart attack, or related death, over follow-up periods of up to 12 months.

At three months, new vascular events occurred in 2.9% of patients using the system, compared with 3.9% in those receiving usual care, representing a 26% reduction. The benefit persisted at 12 months, with rates of 4% in the intervention group versus 5.5% in the control group.

Patients receiving AI-supported treatment also showed improved performance on key stroke care quality measures, although no significant differences were observed in disability, mortality, or bleeding outcomes between the groups.

Researchers noted limitations, including the study design, which randomised hospitals rather than individual patients, and potential differences in follow-up care. However, they highlighted the system’s ease of integration into hospital workflows and its potential to strengthen stroke care delivery and long-term prevention strategies.

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AI added to St Helens council strategic risk register

In the UK, the St Helens Council has added AI and digital disruption to its strategic risk register as it seeks to strengthen governance and oversight. The change reflects growing concern about how emerging technologies could affect operations and services.

The updated register, now featuring 12 strategic risks, was presented ahead of the audit and governance committee meeting. UK officials said effective risk management is vital to meeting the council’s objectives and mitigating potential challenges.

AI and digital disruption were cited for the first time alongside risks linked to extreme weather and community cohesion. The council noted that ethical, data privacy and workforce confidence issues are among the challenges associated with integrating AI into public services.

Leaders said other risks, including cybersecurity threats and budget pressures, remain under review. The move comes as local authorities across the UK weigh the impacts of new technologies on service delivery and strategic planning.

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Corning licenses new ferrule technology to boost AI data centre fibre density

Corning has expanded its data centre connectivity portfolio through a licensing agreement with US Conec, gaining access to PRIZM TMT optical ferrule technology designed to increase fibre density within data centre environments, particularly for AI infrastructure.

The move reflects the growing pressure on data centre operators to handle higher connection densities as AI workloads scale and cluster architectures become more demanding.

The PRIZM TMT ferrule uses expanded-beam technology with precision-aligned microlenses rather than direct fibre contact, an approach intended to improve installation reliability, reduce sensitivity to contamination, and speed deployment.

As AI deployments expand, data centres are rapidly increasing the number of connected accelerators and shifting from traditional copper links to optical connections, driving a need for compact, high-performance connectors within tightly packed server and switch racks.

Mike O’Day, Senior Vice President and General Manager of Corning Optical Communications, said the company is strengthening its ability to deliver ‘scalable, fibre-rich solutions’ that help customers build ‘larger, faster, and more efficient AI clusters.’

The agreement positions Corning to address the connectivity demands that accompany large-scale AI infrastructure build-outs, where high connection density and consistent performance are essential.

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Deepfakes scandal puts Elon Musk and X under scrutiny in France

French prosecutors have escalated concerns about deepfakes linked to Elon Musk’s platform X, alerting US authorities to suspicions that manipulated content may have been used to influence the company’s valuation.

According to the Paris prosecutor’s office, the controversy surrounding sexually explicit deepfakes generated by Grok, X’s AI tool, may have been deliberately amplified to artificially boost the value of X and its associated AI entity ahead of a planned stock market listing in June 2026.

Authorities in France confirmed they had contacted the US Department of Justice and legal representatives at the Securities and Exchange Commission to share findings related to the deepfakes investigation and potential financial implications.

The case builds on an ongoing French probe into X, which initially focused on alleged algorithmic interference in domestic politics. Investigations have since expanded to include the spread of Holocaust denial content and the dissemination of sexualised deepfakes through Grok.

French regulators have taken additional steps, including summoning Musk for a voluntary interview and conducting searches at X’s local offices, actions he has described as politically motivated. Parallel investigations have also been launched in the UK and across the European Union into the use of AI tools to generate harmful deepfakes involving women and minors.

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Social media ban in Ecuador targets youth crime recruitment

A proposal to restrict minors’ online activity is gaining momentum in Ecuador, where lawmakers are considering a social media ban for children under 15 as part of a broader response to rising organised crime.

Under discussion in the National Assembly, the initiative introduced by Assembly member Katherine Pacheco Machuca would amend the Code of Childhood and Adolescence to block access to platforms enabling public interaction, content sharing, and messaging. The proposal defines social networks broadly, covering services that allow users to create accounts, connect with others, and exchange content.

Unlike similar debates elsewhere, the justification for the social media ban is rooted less in mental health or privacy concerns and more in security. Ecuador has experienced a sharp deterioration in public safety, with rising homicide rates, expanding criminal networks, and increasing pressure on state institutions.

Recent findings from Ecuador’s Organised Crime Observatory indicate that around 27% of minors approached by criminal groups report initial contact through social media platforms. Surveys conducted by ChildFund Ecuador further suggest that vulnerable adolescents are increasingly exposed to recruitment tactics that combine economic incentives with normalised portrayals of violence.

In that context, the proposed social media ban is framed as a preventative measure against criminal recruitment rather than solely a child protection tool. The initiative forms part of a wider regulatory shift, including new cybersecurity legislation and draft laws targeting recruitment practices conducted through digital channels.

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Europe boosts AI, talent and investment to compete with US and China

Efforts to strengthen technological competitiveness in Europe focus on advancing AI capabilities, developing new forms of talent and improving access to investment.

Discussions at the CTx Tech Experience in Seville highlighted a growing consensus that innovation must scale more effectively if the region is to compete globally.

Participants emphasised that Europe continues to face structural challenges, including fragmented markets, regulatory complexity and limited capital for high-growth companies.

These constraints have made it more difficult for startups to expand, prompting calls for stronger coordination between public institutions and private investors.

AI is increasingly viewed as the foundation of the transformation. Industry leaders pointed to the emergence of new business opportunities driven by AI, alongside the need to translate innovation into scalable commercial outcomes.

At the same time, labour market dynamics are shifting towards hybrid skillsets that combine technical expertise with business understanding and critical thinking.

In such a context, strengthening Europe’s innovation capacity is seen as essential to competing with global powers such as the US and China.

As technological competition intensifies, the ability to align talent, capital and policy frameworks will play a decisive role in shaping the region’s position within the global digital economy.

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US releases national AI policy framework

The Trump Administration unveiled a national AI framework to boost competitiveness, security, and benefits for Americans. The plan seeks to ensure that AI innovation supports all citizens while maintaining public trust in the technology.

Six key objectives form the foundation of the policy. These include protecting children online, empowering parents with tools to manage digital safety, strengthening communities and small businesses, respecting intellectual property, defending free speech, and fostering innovation.

The framework also prioritises workforce development to prepare Americans for AI-driven job opportunities.

Federal uniformity is considered critical to the plan’s success. The Administration warns that a patchwork of state regulations could stifle innovation and reduce the United States’ ability to lead globally.

Congress is encouraged to collaborate closely to implement the framework nationwide.

The Administration emphasises that the United States must lead the AI race, ensuring the benefits of AI reach all Americans while addressing challenges such as privacy, security, and equitable access to opportunities.

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