E-commerce and trade Archives | Digital Watch Observatory

Financial crime risks are reshaped by the rise of autonomous AI agents

Autonomous AI agents are transforming finance by executing transactions independently and speeding up workflows in digital assets and programmable finance. Software can manage wallets and move funds across blockchains in seconds, narrowing detection windows.

AI agents don’t create new crimes but increase speed and complexity, making accountability essential. Responsibility rests with developers, operators, and beneficiaries, with investigators tracing control, configuration, and economic benefit to determine liability.

Weak oversight or misconfigured rules can lead to significant compliance and enforcement consequences.

Investigations face new challenges as autonomous agents operate across multiple blockchains, decentralised exchanges, and global jurisdictions.

Real-time analytics and automated tracing are essential to link transactions to accountable actors before funds move. Governance architecture and monitoring systems increasingly serve as evidence in regulatory or criminal actions.

Institutions and law enforcement are using AI monitoring, anomaly detection, and automated containment systems. Autonomous AI impacts sanctions and national security, emphasising the need for human oversight alongside automation.

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EU faces renewed pressure to ease industrial AI rules

European governments are renewing pressure to scale back industrial AI rules rather than expand regulatory demands.

Ten countries, including Germany, France, Italy, Spain and Poland, have urged the EU to clarify how the AI Act overlaps with machinery law and to adopt more realistic implementation deadlines. Their position is even more surprising, given that the legislation already outlines its relationship with existing industrial frameworks.

Parliament’s centre and centre-right groups are pushing for deeper cuts. The European People’s Party wants all industrial sectors to move to a lighter regime, while Renew is advocating broad exemptions for industrial and business-to-business AI.

The European Conservatives and Reformers are also seeking reductions for non-safety-related systems. Together, the three groups edge close to a parliamentary majority, signalling momentum for a broader deregulation push.

No sweeping changes have been added to the AI omnibus so far, yet policymakers expect more adjustments ahead. The package must be finalised by August, so legislators are focused on meeting the deadline instead of reopening primary debates.

Broader revisions to industrial AI rules are likely to reappear in the Commission’s forthcoming Digital Fitness Check, which will reassess how multiple EU tech laws interact.

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Japan probes Microsoft cloud licensing

Japan’s Fair Trade Commission has launched an investigation into Microsoft in Tokyo over suspected antitrust violations. Authorities conducted an on-site inspection of Microsoft’s Japanese subsidiary in Tokyo on Wednesday, according to sources.

Regulators are examining whether Microsoft charged higher licensing fees to customers running Microsoft 365 and Windows on rival cloud platforms rather than on Microsoft Azure. The inquiry centres on concerns that software dominance may have restricted competition in Japan’s cloud market.

Microsoft’s Japanese unit said it would cooperate fully with the Fair Trade Commission in Tokyo. The watchdog is assessing whether pricing practices unfairly hindered rivals such as Amazon and Google, which also compete in Japan’s expanding cloud sector.

Japan’s Fair Trade Commission has intensified oversight of major technology firms in recent years. Previous actions in Japan include investigations into Amazon Japan and a 2025 order requiring Google to end certain preinstallation practices.

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Binance targets Greece as EU gateway

Efforts to secure a foothold in Europe have led Binance to select Greece as its entry point for operating under the EU’s Markets in Crypto-Assets framework. A licence would let the exchange offer services across the European Union when the rules take effect in July 2026.

Strategic considerations outweigh speed in the decision. Co-chief executive Richard Teng cited workforce quality, safety, and long-term growth potential as decisive factors, even though several larger EU economies have already issued more licences.

Regulatory attention continues to shape the company’s trajectory. Founder Changpeng Zhao remains a shareholder, as leadership says reforms aim to make the platform one of the most regulated exchanges globally.

Expansion plans unfold amid turbulent market conditions. Bitcoin’s prices remain well below last year’s highs, dampening retail sentiment, yet institutional participation has remained resilient, supporting liquidity amid volatility.

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EU moves to enforce digital fairness rules with stronger consumer oversight

Regulatory scrutiny of the EU’s digital fairness framework is set to begin on 1 July as the European Commission moves to tighten its supervision of online platforms.

An initiative that forms part of a broader effort to ensure stronger consumer protection across digital markets, with officials signalling stricter oversight of commercial practices that disadvantage users.

The Commission is preparing a major upgrade of its consumer protection framework, expected by December 2026.

The reforms aim to reinforce enforcement tools under the Unfair Commercial Practices Directive and the Consumer Protection Cooperation Regulation, allowing regulators to intervene more effectively when platforms breach fairness standards.

Michael McGrath, Commissioner for Democracy, Justice and Rule of Law, has highlighted the need for greater transparency and accountability as digital markets expand rapidly.

The forthcoming scrutiny focuses on ensuring that platforms respect transparency obligations, avoid manipulating users and provide fair conditions in online transactions.

Regulators seek to replace fragmented enforcement with a more coordinated model that reflects the increasingly cross-border nature of digital commerce.

Stronger consumer safeguards are becoming central to the digital agenda of the EU.

The next phase of reforms is expected to streamline investigations across member states and deliver more predictable outcomes for affected consumers, offering steadier enforcement instead of reactive measures taken after violations escalate.

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ESMA sets guidance for crypto perpetuals and CFDs

The European Securities and Markets Authority (ESMA) has clarified that many crypto-perpetual contracts, including those for Bitcoin and Ether, are likely to be classified as contracts for difference (CFDs).

Due to their leverage, complexity, and risk, these products should target a narrow audience, with distribution strategies aligned accordingly.

The announcement came as Kraken launched perpetual futures for ten tokenised assets, including major indices, gold, and top tech and crypto stocks. ESMA warned that mass marketing or promotions targeting inexperienced investors are inappropriate under its guidance.

Firms must ensure that derivatives falling within the CFD category comply with product intervention requirements. Requirements include leverage limits, risk warnings, margin close-outs, negative balance protection, and a ban on incentives or benefits.

Non-advised services must include an appropriateness assessment to protect investors from unsuitable offerings.

ESMA also emphasised the importance of identifying and managing conflicts of interest arising from these products. The statement seeks to ensure firms market and distribute leveraged crypto products responsibly.

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Microsoft expands Sovereign Cloud with secure offline support for large AI models

Digital sovereignty is gaining urgency as organisations seek infrastructure that remains secure and reliable under strict regulatory conditions.

Microsoft is expanding its Sovereign Cloud to help public bodies, regulated industries and enterprises maintain control of data and operations even when environments must operate without external connectivity.

The updated portfolio allows customers to choose how each workload is governed, rather than relying on a single deployment model.

Azure Local now supports disconnected operations, keeping mission-critical systems running with full Azure governance within sovereign boundaries. Management, policies and workloads stay entirely on site, so services continue during periods of isolation.

Microsoft 365 Local extends the resilience to the productivity layer by enabling Exchange Server, SharePoint Server and Skype for Business Server to run locally, giving teams secure collaboration within the same protected boundary as their infrastructure.

Support for large multimodal AI models is delivered through Foundry Local, which enables advanced inference on customer-controlled hardware using technology from partners such as NVIDIA.

Such an approach helps organisations bring modern AI capabilities into highly restricted environments while preserving control over data, identities and operational procedures.

Microsoft positions it as a unified stack that works across connected, hybrid and fully disconnected modes without increasing operational complexity.

These additions create a framework designed for governments and regulated industries that regard sovereignty as a strategic priority.

With global availability for qualified customers, the Sovereign Cloud aims to preserve continuity, reinforce governance and expand AI capability while keeping every layer of the environment within local control.

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Crypto market embraces AI and structural growth in 2026

The cryptocurrency market in 2026 is showing a shift from hype-driven cycles to structured growth and strategic maturity. Institutional strategies dominate, retail investors take a smaller role, and geopolitical uncertainty affects market sentiment.

Analysts warn that the era of speculative memecoins and whitepaper millionaires is giving way to projects prioritising revenue, sustainability, and systemic utility.

Market leaders note a widening gap between top cryptocurrencies like Bitcoin and Ethereum and smaller altcoins. Major assets gain from liquidity and institutional adoption, while many tokens face higher risk as traditional exchange listings pull capital from on-chain markets.

Investors are advised to focus on infrastructure, liquidity, and scalable systems rather than short-term trends.

AI is emerging as a defining force. Experts highlight the growing use of AI agents to trade, allocate capital, and manage risk autonomously, with blockchain providing transparency and auditability.

The convergence of AI and crypto is expected to shape next-generation financial products, driving adoption beyond speculation and into practical, revenue-generating applications.

Strategic advice for 2026 emphasises diversification, system-oriented thinking, and long-term fundamentals. Investors should diversify across crypto, traditional, and offshore assets, using automated tools to reduce emotional decisions amid ongoing volatility.

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AI tool launched by Amazon Ads enables professional ad creation

Amazon Ads has unveiled Creative Agent, a new AI-powered tool that enables advertisers in Europe to create professional-quality ads rapidly. The tool handles the entire creative process, from brainstorming and scripts to video, animation, voiceovers, music, and final delivery.

Creative Agent uses Amazon retail insights and customer data to develop ad concepts that align with the brand and engage audiences. Its conversational interface guides users, explains creative choices, and lets them refine visuals, scripts, and audio in real time.

Advertisers can produce multi-format campaigns suitable for Sponsored Brands, Sponsored Display, Amazon DSP, Streaming TV, and Brand Stores.

The tool also manages localisation, cultural nuances, and multi-market campaigns efficiently, allowing mid-market and smaller brands to access capabilities previously reserved for large companies.

Built on AWS, including Amazon Nova and Anthropic Claude, Creative Agent enhances Amazon’s AI ad tools, reducing creative barriers and enabling fast experimentation. Early adopters say the platform enhances creative innovation while reducing time and cost across campaigns.

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New Relic advances AI agents for enterprise observability

The expansion into enterprise AI comes with a no-code platform from New Relic that allows companies to build and supervise their own observability agents.

A system that assembles AI-driven monitors designed to detect bugs and performance problems before they affect users, instead of leaving teams to rely on manual tracking.

It also supports the Model Context Protocol so organisations can link external data sources to the agents and integrate them with existing New Relic tools.

The company stresses that the platform is intended to complement other agent systems rather than replace them.

As AI agent software spreads across the market, enterprises are searching for ways to manage risk when giving automated tools access to internal systems.

Industry players such as Salesforce and OpenAI have already introduced their own agent platforms, and assessments from Gartner describe these frameworks as essential infrastructure for wider AI adoption.

New Relic also introduced new tools for the OpenTelemetry framework to remove friction around observability standards.

Its application performance monitoring agents now support OTel data, allowing enterprises to manage these streams in one place instead of operating separate collectors.

The update aims to reduce fragmentation that has slowed OTel deployment across large organisations and to simplify how engineering teams handle diverse observability pipelines.

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