E-commerce and trade Archives | Digital Watch Observatory

First Dutch credit institution enters crypto market under MiCA framework

ClearBank Europe has become the first Dutch credit institution to secure Crypto Asset Service Provider status under the EU’s Markets in Crypto-Assets Regulation. The Dutch Authority for the Financial Markets confirmed the approvalafter the bank completed its MiCAR notification on 9 April 2026.

The new status allows ClearBank to deliver regulated digital asset services across the European Union. The institution will use Circle’s Mint platform to provide clients with access to EURC, a euro-referenced stablecoin, and USDC, a US dollar-referenced stablecoin.

Under MiCA rules, the EU credit institutions can access a notification pathway distinct from the standard licensing regime for crypto service providers.

ClearBank becomes the first Dutch bank to complete the process, enabling seamless movement between fiat and digital assets within a regulated banking environment.

ClearBank operates under European Central Bank authorisation and is supervised by De Nederlandsche Bank. Its digital asset strategy, developed since gaining its banking licence in the Netherlands, is now advancing to its first large-scale implementation through MiCA compliance.

The development signals how the EU regulation is evolving to integrate traditional banking institutions into the crypto ecosystem, creating a more unified and compliant framework for digital asset adoption across financial markets.

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FBI reports billions lost to crypto and AI scams

The Federal Bureau of Investigation reports that cyber-enabled crimes cost Americans nearly $21 billion in 2025, according to its latest Internet Crime Report. The Internet Crime Complaint Center recorded more than 1 million complaints, marking a rise from the previous year.

Investment fraud, phishing, extortion, and tech support scams remained the most common threats, with older adults reporting disproportionately high losses. Individuals over 60 accounted for approximately $7.7 billion in losses, reflecting a sharp year-on-year increase.

Cryptocurrency-related fraud was the most financially damaging category, with losses exceeding $11 billion across more than 180,000 complaints. The report also highlighted emerging risks linked to AI, including deepfake identities, voice cloning, and fabricated media used to manipulate victims.

The FBI has expanded initiatives such as Operation Level Up to identify ongoing scams and reduce losses, while emphasising early reporting and awareness measures. Officials say scammers increasingly use psychological pressure and realistic digital impersonation to deceive victims.

Rising losses highlight how rapidly evolving digital fraud techniques are outpacing public awareness, with crypto and AI tools making scams more scalable and convincing.

Strengthening detection, reporting, and education will be critical to reducing financial harm and improving resilience against increasingly sophisticated online crime networks.

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China pushes blockchain adoption in banking sector

The State Administration of Taxation and the National Financial Regulatory Administration of China have called on banks to integrate blockchain and privacy computing into lending systems, aiming to improve transparency and expand access to financing for small businesses.

The initiative focuses on upgrading the ‘bank-tax interaction’ model by strengthening data sharing between financial institutions, tax authorities, and enterprises.

Authorities emphasise the need to standardise data exchange and reduce information asymmetry, which has long limited credit access for smaller firms. Improved credit models and faster approvals aim to support compliant businesses while boosting financial efficiency.

The directive aligns with China’s broader strategy to build a national data infrastructure supported by blockchain technology. A roadmap led by the National Development and Reform Commission targets nationwide implementation by 2029, with projected annual investment reaching 400 billion yuan.

Despite strict restrictions on cryptocurrency trading, China continues to promote blockchain as a core technology for economic development. Earlier initiatives, including blockchain invoicing, show a steady push to integrate the technology into real-world finance and administration.

Strengthening data sharing and transparency in lending could improve access to finance for small businesses, which remain a key driver of economic growth.

Wider blockchain integration may also support more efficient financial systems, reinforce trust in institutional processes, and advance China’s long-term digital infrastructure strategy.

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UNCTAD report notes global trade growth alongside increasing fragmentation risks

United Nations Conference on Trade and Development reports that global trade expanded by $2.5 trillion in 2025, reaching a total value of $35 trillion, driven by continued growth in goods and services.

Despite this expansion, the outlook has become more uncertain due to rising geopolitical tensions and disruptions to key shipping routes.

Conflicts in the Middle East and instability in critical maritime corridors are increasing energy and transport costs, placing additional pressure on developing economies. Higher import expenses and tighter financial conditions are limiting fiscal flexibility and constraining growth prospects in vulnerable regions.

While trade growth remains broad-based, services expansion has slowed, and much of the recent increase is linked to higher prices rather than volume gains. Emerging markets in East Asia and Africa remain central, supported by strong South–South trade and shifting supply chains.

The report notes that ongoing fragmentation in global trade, including US–China decoupling, is reshaping commercial flows and creating new ‘connector economies’. Although offering some value chain opportunities, inflation, debt pressures, and protectionism are expected to weigh on global trade growth in 2026.

Rising fragmentation and uneven growth highlight widening gaps in how countries benefit from globalisation, with developing economies most exposed to cost shocks and financial constraints.

Shifting global trade will shape investment flows, development prospects, and economic resilience, increasing the need for coordinated policy responses.

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China guidelines reshape e-commerce growth and digital trade strategy

New guidelines issued by China reflect an effort to reposition e-commerce as a structural driver of economic development rather than a purely consumer-facing sector.

Coordinated by the Ministry of Commerce of the People’s Republic of China, the policy links digital expansion with broader industrial strategy, aiming to integrate online platforms more deeply into manufacturing, supply chains, and regional economies.

A central policy objective is to extend the benefits of digital commerce to small and medium-sized enterprises and rural regions, where barriers to market access have historically limited growth.

By promoting industrial digitalisation and technological innovation, China seeks to enhance productivity and improve the quality of consumption, while reducing structural inequalities between urban and rural economies.

Instead of focusing solely on platform growth, the approach prioritises systemic economic transformation.

Internationally, China’s framework emphasises cross-border e-commerce and closer alignment with global digital trade rules, signalling an intention to expand participation in global markets while shaping emerging regulatory standards.

Initiatives linked to transnational digital trade corridors further indicate an effort to combine economic openness with strategic influence in rule-setting processes.

Regulatory measures form a parallel pillar of the policy, with clearer platform responsibilities and stronger oversight intended to balance innovation with accountability.

Combined with investments in data utilisation, financial support, and workforce development, the guidelines illustrate a governance model where the state actively structures digital markets to serve long-term economic and policy objectives.

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EU delegation in China calls for sustainable e-commerce and safety standards

Members of the European Parliament (MEPs) completed a visit to Beijing and Shanghai to address pressing e-commerce challenges affecting the European single market.

The delegation studied local business models and market supervision frameworks, engaging with Chinese regulators, e-commerce platforms, and the EU company representatives.

The discussions highlighted the surge of parcels from China, which now account for 91% of small shipments to Europe, and the resulting pressures on fair competition.

MEPs stressed that regulatory compliance must be consistent across all operators, ensuring consumer protection is not compromised by disparities in market practices or enforcement gaps.

The delegation urged representatives of e-commerce platforms to implement preventive measures, reinforcing accountability in areas such as product safety, customs compliance, and the removal of unsafe goods from the market.

MEPs underscored that these standards are essential to maintaining a sustainable and secure e-commerce environment for European citizens.

The visit, the first in eight years, demonstrated the EU’s commitment to safeguarding consumer rights, strengthening international cooperation, and ensuring digital commerce evolves in a manner that is fair, transparent, and safe for all citizens.

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Digital euro emerges as core pillar of EU financial independence

A speech by European Central Bank’s Member of Executive Board Piero Cipollone outlines how a digital euro could strengthen Europe’s resilience and autonomy in payments.

An initiative that responds to growing dependence on non-European financial infrastructure, which increasingly shapes transaction rules, costs, and access across the euro area.

According to Mr Cipollone, ‘dependence on a non-European infrastructure leaves users vulnerable to an outright withdrawal of access.‘

Most card transactions in the euro area depend on non-European schemes, while declining cash usage intensifies dependence on digital systems beyond European control.

He added that the proposed digital euro would function as a sovereign digital payment method, available online and offline, ensuring continuity and privacy.

It would also reduce reliance on foreign providers, lower transaction costs, and create a unified infrastructure supporting competition and innovation across the EU payment systems.

Beyond retail payments, the ECB emphasises a broader strategy including tokenised central bank money and distributed ledger technologies.

These measures aim to strengthen financial integration, prevent fragmentation, and ensure that the EU’s digital financial ecosystem develops on foundations aligned with its economic sovereignty.

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New quantum threat could weaken cryptocurrency encryption systems

A new warning from Google says advances in quantum computing could weaken widely used cryptographic systems protecting cryptocurrencies and digital infrastructure. A new whitepaper suggests future quantum machines may need fewer resources than previously estimated to break elliptic curve cryptography.

The research focuses on the elliptic curve discrete logarithm problem, which underpins much of today’s blockchain security. Findings suggest quantum algorithms like Shor’s could run with fewer qubits and gates, increasing concerns about cryptographic resilience.

To address the risk, the paper recommends a transition to post-quantum cryptography, which is designed to resist quantum attacks. It also outlines short-term blockchain measures, including avoiding reuse of vulnerable wallet addresses and preparing digital asset migration strategies.

Google also introduced a responsible disclosure approach using zero-knowledge proofs to communicate vulnerabilities without exposing exploitable details.

The company says this balances transparency and security, supporting coordinated efforts across crypto and research communities to prepare for quantum threats.

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UK authorities have fined an Apple subsidiary over a sanctions breach

The UK has fined Apple Inc. subsidiary Apple Distribution International £390,000 for breaching sanctions linked to Russia. The penalty relates to payments routed through a UK bank to a Russian streaming platform.

The payments, totalling more than £635,000, were made to Okko from a UK-based account. The subsidiary, responsible for Apple product sales across Europe and the Middle East, instructed the transfers despite the platform’s ownership links to sanctioned entities.

The Office of Financial Sanctions Implementation found the funds were linked to Sberbank and a company later sanctioned after the 2022 Ukraine invasion. Payments were made shortly after those restrictions came into force.

Regulators said the firm had voluntarily disclosed the transactions and had not been aware of the sanctions breach at the time. Apple stated it follows all applicable laws and has strengthened its compliance procedures following the incident.

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South Korea sets ambition to become AI leader

South Korea has unveiled a national strategy to become one of the world’s top three AI powers by 2028. The plan combines investment in digital infrastructure, data systems and next-generation connectivity.

Authorities aim to expand networks by advancing 5G capabilities and preparing for the commercial deployment of 6G by 2030. Cybersecurity and data integration are also key priorities to support a stronger digital ecosystem.

The strategy includes developing talent across education levels and investing in core technologies such as semiconductors and quantum computing. AI adoption is expected to expand across sectors, including manufacturing, healthcare and agriculture.

The South Korean officials also plan to promote digital inclusion through learning centres and assistive technologies. Coordination between ministries will be strengthened to ensure effective delivery of the long-term roadmap.

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