Digital business models

Japan considers stricter crypto rules under securities law

Japan’s Financial Services Agency (FSA) has proposed moving cryptocurrency regulation under the Financial Instruments and Exchange Act (FIEA), which would align oversight with securities law and impose tougher rules on the industry.

The regulator noted crypto issues such as unclear disclosures, scams, unregistered operations, and exchange security weaknesses. Applying the Act could bring stricter disclosure requirements, regulation of brokerages, and enforcement tools such as emergency injunctions.

The report, though non-binding, highlights crypto’s growing role in Japan. Over 12 million exchange accounts have been opened, with deposits exceeding 5 trillion yen ($33.7bn).

Around 70 per cent of users are middle-income earners, and most expect long-term price gains. Finance Minister Katsunobu Kato recently acknowledged that cryptocurrencies could be part of diversified portfolios despite volatility risks.

If adopted, the proposed changes would reshape Japan’s regulatory landscape by treating crypto more like traditional financial instruments, aiming to reduce risks while strengthening investor confidence.

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ECB outlines plans for resilient digital euro

The European Central Bank (ECB) has emphasised that its proposed digital euro will enhance Europe’s resilience against cyber threats and infrastructure disruptions while ensuring broad access to digital payments.

Piero Cipollone, a member of the ECB’s Executive Board, told the European Parliament that resilience and inclusiveness are central to the project. The digital euro is intended to complement physical cash, providing spare capacity alongside private payment systems.

Safeguards include multi-region transaction processing, a mandatory ECB-run app, and offline functionality to allow peer-to-peer payments during network or power outages.

The ECB also highlighted the importance of accessibility. Millions of Europeans with visual or hearing impairments or limited digital literacy could benefit from adaptive interfaces, voice commands, large-font displays, and mandatory support from payment providers.

Public institutions such as post offices and libraries may offer free assistance for those less familiar with digital tools.

Lawmakers received the ECB’s 14th update on the digital euro, underscoring the central bank’s commitment to combining security, inclusivity, and technological innovation in Europe’s evolving payments landscape.

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Google Cloud study shows AI agents driving global business growth

A new Google Cloud study indicates that more than half of global enterprises are already using AI agents, with many reporting consistent revenue growth and faster return on investment.

The research, based on a survey of 3,466 executives across 24 countries, suggests agentic AI is moving from trial projects to large-scale deployment.

The findings by Google Cloud reveal that 52% of executives said their organisations actively use AI agents, while 39% reported launching more than ten. A group of early adopters, representing 13% of respondents, have gone further by dedicating at least half of their future AI budgets to agentic AI.

These companies are embedding agents across operations and are more likely to report returns in customer service, marketing, cybersecurity and software development.

The report also highlights how industries are tailoring adoption. Financial services focus on fraud detection, retail uses agents for quality control, and telecom operators apply them for network automation.

Regional variations are notable: European companies prioritise tech support, Latin American firms lean on marketing, while Asia-Pacific enterprises emphasise customer service.

Although enthusiasm is strong, challenges remain. Executives cited data privacy, security and integration with existing systems as key concerns.

Google Cloud executives said that early adopters are not only automating tasks but also reshaping business processes, with 2025 expected to mark a shift towards embedding AI intelligence directly into operations.

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Coinbase relies on AI for nearly half of its code

Coinbase CEO Brian Armstrong said AI now generates around 40 per cent of the exchange’s code, expected to surpass 50 per cent by October 2025. He emphasised that human oversight remains essential, as AI cannot be uniformly applied across all areas of the platform.

Armstrong confirmed that engineers were instructed to adopt AI development tools within a week, with those resisting the mandate dismissed. The move places Coinbase ahead of technology giants such as Microsoft and Google, which use AI for roughly 30 per cent of their code.

Security experts have raised concerns about the heavy reliance on AI. Industry figures warn that AI-generated code could contain bugs or miss critical context, posing risks for a platform holding over $420 billion in digital assets.

Larry Lyu called the strategy ‘a giant red flag’ for security-sensitive businesses.

Supporters argue that Coinbase’s approach is measured. Richard Wu of Tensor said AI could generate up to 90 per cent of high-quality code within five years if paired with thorough review and testing, similar to junior engineer errors.

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Perplexity AI teams up with PayPal for fintech expansion

PayPal has partnered with Perplexity AI to provide PayPal and Venmo users in the US and select international markets with a free 12-month Perplexity Pro subscription and early access to the AI-powered Comet browser.

The $200 subscription allows unlimited queries, file uploads and advanced search features, while Comet offers natural language browsing to simplify complex tasks.

Industry analysts see the initiative as a way for PayPal to strengthen its position in fintech by integrating AI into everyday digital payments.

By linking accounts, users gain access to AI tools and cash back incentives and subscription management features, signalling a push toward what some describe as agentic commerce, where AI assistants guide financial and shopping decisions.

The deal also benefits Perplexity AI, a rising search and browser market challenger. Exposure to millions of PayPal customers could accelerate the adoption of its technology and provide valuable data for refining models.

Analysts suggest the partnership reflects a broader trend of payment platforms evolving into service hubs that combine transactions with AI-driven experiences.

While enthusiasm is high among early users, concerns remain about data privacy and regulatory scrutiny over AI integration in finance.

Market reaction has been positive, with PayPal shares edging upward following the announcement. Observers believe such alliances will shape the next phase of digital commerce, where payments, browsing, and AI capabilities converge.

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UK factories closed as cyberattack disrupts Jaguar Land Rover

Jaguar Land Rover (JLR) has ordered factory staff to work from home until at least next Tuesday as it recovers from a major cyberattack. Production remains suspended at key UK sites, including Halewood, Solihull, and Wolverhampton.

The disruption, first reported earlier this week, has ‘severely impacted’ production and sales, according to JLR. Reports suggest that assembly line workers have been instructed not to return before 9 September, while the situation remains under review.

The hack has hit operations beyond manufacturing, with dealerships unable to order parts and some customer handovers delayed. The timing is particularly disruptive, coinciding with the September release of new registration plates, which traditionally boosts demand.

A group of young hackers on Telegram, calling themselves Scattered Lapsus$ Hunters, has claimed responsibility for the incident. Linked to earlier attacks on Marks & Spencer and Harrods, the group reportedly shared screenshots of JLR’s internal IT systems as proof.

The incident follows a wider spate of UK retail and automotive cyberattacks this year. JLR has stated that it is working quickly to restore systems and emphasised that there is ‘no evidence’ that customer data has been compromised.

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Advanced Pilot Assistance System enters year-long trial on CB Pacific

Mythos AI has installed its Advanced Pilot Assistance System (APAS) on the CB Pacific, a chemical tanker operated by CB Tankers under the Lomar group. The deployment marks the beginning of a year-long trial to introduce advanced bridge intelligence to the commercial shipping industry.

APAS uses a radar-first perception system that integrates with existing ship radars, processing multiple data streams to deliver prioritised alerts. By reducing its reliance on machine vision, the system aims to eliminate distractions, enhance decision-making, and improve navigation safety.

The CB Pacific, equipped with Furuno radar and consistent routes, will serve as a testbed to evaluate APAS performance in live conditions. Trials will assess collision prediction, safe navigation, signal processing, and compliance with maritime rules.

Mythos AI emphasises that APAS is designed to support crews, not replace them. CEO Geoff Douglass said the installation marks the company’s first operational use of the system on a tanker and a milestone in its wider commercial roadmap.

For LomarLabs, the pilot showcases its hands-on innovation model, offering vessel access and oversight to facilitate collaboration with startups. Managing Director Stylianos Papageorgiou said the radar-first architecture shows how modular autonomy can be advanced through trust, time, and fleet partnerships.

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Fintech CISO says AI is reshaping cybersecurity skills

Financial services firms are adapting rapidly to the rise of AI in cybersecurity, according to David Ramirez, CISO at Broadridge. He said AI is changing the balance between attackers and defenders while also reshaping the skills security teams require.

On the defensive side, AI is already streamlining governance, risk management and compliance tasks, while also speeding up incident detection and training. He highlighted its growing role in areas like access management and data loss prevention.

He also stressed the importance of aligning cyber strategy with business goals and improving board-level visibility. While AI tools are advancing quickly, he urged CISOs not to lose sight of risk assessments and fundamentals in building resilient systems.

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OpenAI set to spend $10bn on Broadcom AI chips

OpenAI has reportedly placed a $10bn order with Broadcom to mass-produce custom AI chips, due for shipment in 2026. Sources told the Financial Times that the move would help reduce OpenAI’s dependence on Nvidia, its primary supplier.

Sam Altman recently said OpenAI will use ‘well over 1m GPUs’ by the end of 2025, highlighting the company’s accelerating demand for computing power. In contrast, Elon Musk’s xAI is expected to double its Nvidia Hopper GPUs to around 200,000.

Broadcom confirmed a large custom chip order during its latest earnings call, without naming the buyer. The company’s AI revenue rose 63 percent to $5.2bn, chip sales grew 57 percent to $9.1bn, and shares gained nearly 5 percent.

The new order is expected to be for internal use rather than external customers. Industry observers suggest that OpenAI’s decision signals a strategic shift, allowing the ChatGPT maker to secure supply for its AI expansion while diversifying beyond Nvidia.

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Hollywood’s Warner Bros. Discovery challenge an AI firm over copyright claims

Warner Bros. Discovery has filed a lawsuit against AI company Midjourney, accusing it of large-scale infringement of its intellectual property. The move follows similar actions by Disney and Universal, signalling growing pressure from major studios on AI image and video generators.

The filing includes examples of Midjourney-produced images featuring DC Comics, Looney Tunes and Rick and Morty characters. Warner Bros. Discovery argues that such output undermines its business model, which relies heavily on licensed images and merchandise.

The studio also claims Midjourney profits from copyright-protected works through its subscription services and the ‘Midjourney TV’ platform.

A central question in the case is whether AI-generated material reproducing copyrighted characters constitutes infringement under US law. The courts have not decided on this issue, making the outcome uncertain.

Warner Bros. Discovery is also challenging how Midjourney trains its models, pointing to past statements from company executives suggesting vast quantities of material were indiscriminately collected to build its systems.

With three major Hollywood studios now pursuing lawsuits, the outcome of these cases could establish a precedent for how courts treat AI-generated content.

Warner Bros. Discovery seeks damages that could reach $150,000 per infringed work, or Midjourney’s profits linked to the alleged violations.

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