EU crypto tax reporting rules take effect in January

The European Union’s new tax-reporting directive for crypto assets, known as DAC8, takes effect on 1 January. The rules require crypto-asset service providers, including exchanges and brokers, to report detailed user and transaction data to national tax authorities.

DAC8 aims to close gaps in crypto tax reporting, giving authorities visibility over holdings and transfers similar to that of bank accounts and securities. Data collected under the directive will be shared across EU member states, enabling a more coordinated approach to enforcement.

Crypto firms have until 1 July to ensure full compliance, including implementing reporting systems, customer due diligence procedures, and internal controls. After that deadline, non-compliance may result in penalties under national law.

For users, DAC8 strengthens enforcement powers. Authorities can act on tax avoidance or evasion with support from counterparts in other EU countries, including seizing or embargoing crypto assets held abroad.

The directive operates alongside the EU’s Markets in Crypto-Assets (MiCA) regulation, which focuses on licensing, customer protection, and market conduct, while DAC8 ensures the tax trail is monitored.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

ChatGPT becomes more customisable for tone and style

OpenAI has introduced new Personalisation settings in ChatGPT that allow users to fine-tune warmth, enthusiasm and emoji use. The changes are designed to make conversations feel more natural, instead of relying on a single default tone.

ChatGPT users can set each element to More, Less or Default, alongside existing tone styles such as Professional, Candid and Quirky. The update follows previous adjustments, where OpenAI first dialled back perceived agreeableness, then later increased warmth after users said the system felt overly cold.

Experts have raised concerns that highly agreeable AI could encourage emotional dependence, even as users welcome a more flexible conversational style.

Some commentators describe the feature as empowering, while others question whether customising a chatbot’s personality risks blurring emotional boundaries.

The new tone controls continue broader industry debates about how human-like AI should become. OpenAI hopes that added transparency and user choice will balance personal preference with responsible design, instead of encouraging reliance on a single conversational style.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

EU credits DMA as Apple opens iOS 26.3 to third-party accessories

The European Commission has welcomed Apple’s latest interoperability updates in iOS 26.3, crediting the Digital Markets Act for compelling the company to open its ecosystem.

The new features are currently in beta and allow third-party accessories to integrate more smoothly with iPhones and iPads, instead of favouring Apple’s own devices.

Proximity pairing will let headphones and other accessories connect through a simplified one-tap process, similar to AirPods. Notification forwarding to non-Apple wearables will also become available, although alerts can only be routed to one device at a time.

Apple is providing developers with the tools needed to support the features, which apply only within the EU.

The DMA classifies Apple as a gatekeeper and requires fairer access for rivals, with heavy financial penalties for non-compliance.

Apple has repeatedly warned that the rules risk undermining security and privacy, yet the company has already introduced DMA-driven changes such as allowing alternative app stores and opening NFC access.

Analysts expect the moves to reduce ecosystem lock-in and increase competition across the EU market. iOS 26.3 is expected to roll out fully across Europe from 2026 following the beta cycle, while further regulatory scrutiny may push Apple to extend interoperability even further.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Small businesses battle rising cyber attacks in the US

Many small businesses in the US are facing a sharp rise in cyber attacks, yet large numbers still try to manage the risk on their own.

A recent survey by Guardz found that more than four in ten SMBs have already experienced a cyber incident, while most owners believe the overall threat level is continuing to increase.

Rather than relying on specialist teams, over half of small businesses still leave critical cybersecurity tasks to untrained staff or the owner. Only a minority have a formal incident response plan created with a cybersecurity professional, and more than a quarter do not carry cyber insurance.

Phishing, ransomware and simple employee mistakes remain the most common dangers, with negligence seen as the biggest internal risk.

Recovery times are improving, with most affected firms able to return to normal operations quickly and very few suffering lasting damage.

However, many still fail to conduct routine security assessments, and outdated technology remains a widespread concern. Some SMBs are increasing cybersecurity budgets, yet a significant share still spend very little or do not know how much is being invested.

More small firms are now turning to managed service providers instead of trying to cope alone.

The findings suggest that preparation, professional support and clearly defined response plans can greatly improve resilience, helping organisations reduce disruption and maintain business continuity when an attack occurs.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

ChatGPT may move beyond GPTs as OpenAI develops new Skills feature

OpenAI is said to be testing a new feature for ChatGPT that would mark a shift from Custom GPTs toward a more modular system of Skills.

Reports suggest the project, internally codenamed Hazelnut, will allow users and developers to teach the AI model standalone abilities, workflows and domain knowledge instead of relying only on role-based configurations.

The Skills framework is designed to allow multiple abilities to be combined automatically when a task requires them. The system aims to increase portability across the web version, desktop client and API, while loading instructions only when needed instead of consuming the entire context window.

Support for running executable code is also expected, providing the model with stronger reliability for logic-driven work, rather than relying entirely on generated text.

Industry observers note similarities to Anthropic’s Claude, which already benefits from a skill-like structure. Further features are expected to include slash-command interactions, a dedicated Skill editor and one-click conversion from existing GPTs.

Market expectations point to an early 2026 launch, signalling a move toward ChatGPT operating as an intelligent platform rather than a traditional chatbot.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Italy orders Meta to lift WhatsApp AI restrictions

Italy’s competition authority has ordered Meta to halt restrictions limiting rival AI chatbots on WhatsApp. Regulators say the measures may distort competition as Meta integrates its own AI services.

The Italian watchdog argues Meta’s conduct risks restricting market access and slowing technical development. Officials warned that continued enforcement could cause lasting harm to competition and consumer choice.

Meta rejected the ruling and confirmed plans to appeal, calling the decision unfounded. The company stated that WhatsApp Business was never intended to serve as a distribution platform for AI services.

The case forms part of a broader European push to scrutinise dominant tech firms. Regulators are increasingly focused on the integration of AI across platforms with entrenched market power.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Nomani investment scam spreads across social media

Fraudulent investment platform Nomani has surged, spreading from Facebook to YouTube. ESET blocked tens of thousands of malicious links this year, mainly in Czech Republic, Japan, Slovakia, Spain, and Poland.

The scam utilises AI-generated videos, branded posts, and social media advertisements to lure victims into fake investments that promise high returns. Criminals then request extra fees or sensitive personal data, and often attempt a secondary scam posing as Europol or INTERPOL.

Recent improvements make Nomani’s AI videos more realistic, using trending news or public figures to appear credible. Campaigns run briefly and misuse social media forms and surveys to harvest information while avoiding detection.

Despite overall growth, detections fell 37% in the second half of 2025, suggesting that scammers are adapting to more stringent law enforcement measures. Meta’s ad platforms earned billions from scams, demonstrating the global reach of Nomani fraud.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Deutsche Bank warns on scale of AI spending

Deutsche Bank has warned that surging AI investment is helping to prop up US economic growth. Analysts say that broader spending would have stalled without the heavy outlays on technology.

The bank estimates hyperscalers could spend $4 trillion on AI data centres by 2030. Analysts cautioned returns remain uncertain despite the scale of investment.

Official data showed US GDP grew at a 4.3% annualised rate in the third quarter. Economists linked much of the momentum to AI-driven capital expenditure.

Market experts remain divided on risks, although many reject fears of a bubble. Corporate cash flows, rather than excessive borrowing, are funding the majority of AI infrastructure.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

South Korea plans huge fines for major data breaches

Prime Minister Kim Min-seok has called for punitive fines of up to 10 percent of company sales for repeated and serious data breaches, as public anger grows over large-scale leaks.

The government is seeking swift legislation to impose stronger sanctions on firms that fail to safeguard personal data, reflecting President Lee Jae Myung’s stance that violations require firm penalties instead of lenient warnings.

Kim said corporate responses to recent breaches had fallen far short of public expectations and stressed that companies must take full responsibility for protecting customer information.

Under the proposed framework, affected individuals would receive clearer notifications that include guidance on their rights to seek damages.

The government of South Korea also plans to strengthen investigative powers through coercive fines for noncompliance, while pursuing rapid reforms aimed at preventing further harm.

The tougher line follows a series of major incidents, including a leak at Shinhan Card that affected around 190,000 merchant records and a large-scale breach at Coupang that exposed the data of 33.7 million users.

Officials have described the Coupang breach as a serious social crisis that has eroded public trust.

Authorities have launched an interagency task force to identify responsibility and ensure tighter data protection across South Korea’s digital economy instead of relying on voluntary company action.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

UNCTAD launches global database to track e-commerce value

UNCTAD has launched the first global database to consolidate national estimates of e‑commerce value, aiming to provide clearer insights and highlight major gaps in digital economy data.

The announcement was made during the sixth meeting of the UN Trade and Development Working Group on Measuring E-commerce, with representatives from 42 countries participating.

E-commerce and digitally delivered services are among the fastest-growing sectors of the global economy, yet most countries lack robust statistics to capture online transactions, cross-border trade, and social-media-based commerce.

Experts warned that inadequate data hinders policymaking, masks inequalities in digital access, and limits the benefits of digital transformation.

The working group recommended a 2026 review of indicators, including AI, platform business models, remote work, and fully digital services. Guidelines will be promoted via expanded capacity-building programmes, supported by the Kingdom of Saudi Arabia.

Cooperation between governments, the private sector, and international organisations is vital for consistent global measurement and to avoid duplication.

Experts called for technology-neutral, comparable frameworks and innovative tools, such as payment records and data mining, to improve global e‑commerce measurement.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot