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Japan recognises crypto as financial products

Japan has passed amendments that move cryptoasset regulation closer to traditional financial-market oversight.

The changes shift core cryptoasset rules from the Payment Services Act to the Financial Instruments and Exchange Act, treating cryptoassets more like investment products than payment instruments.

The reforms create a clearer legal category for cryptoassets under financial-market rules while introducing stronger investor protection and market-integrity requirements.

They include insider-trading rules for crypto transactions, disclosure obligations for certain cryptoasset issuers and tougher penalties for unregistered businesses.

The legislation also lays the groundwork for separate tax treatment of crypto gains, with a future tax regime expected to reduce the rate to around 20% and allow investors to carry losses forward for three years.

Those tax changes are expected to apply from 2028, depending on implementation rules.

The amendments also create a legal basis for domestic spot cryptocurrency exchange-traded funds, although final approval of specific products has not yet been confirmed.

Implementation will depend on future cabinet ordinances, regulatory guidelines and supervisory practice.

The reforms form part of Japan’s wider effort to align digital assets more closely with financial-market regulation while supporting Web3, investment and digital-asset innovation.

Why does it matter?

Japan’s reforms are significant because they move crypto further into the mainstream financial regulatory framework rather than treating it mainly as a payment-related activity. Insider-trading rules, issuer disclosures and stronger supervision could improve investor protection and market integrity. At the same time, tax and ETF changes may make the market more attractive to institutional and retail investors. The approach also reflects a wider global shift: major economies are increasingly trying to integrate digital assets into regulated financial markets rather than leaving them in a separate or lightly supervised category. Japan’s implementation will be watched closely because it combines stricter oversight with measures that could support market growth.

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South Korea expands blockchain strategy with stablecoin plans

South Korea is keeping blockchain and digital assets on its policy agenda for the second half of 2026, alongside much larger investments in AI and semiconductors.

The government’s plans include work on stablecoin legislation, tokenised financial infrastructure and blockchain-based public-sector pilots.

Authorities are expected to move forward with the proposed Digital Asset Basic Act, which would create a broader legal framework for digital asset businesses and Korean won-backed stablecoins.

The government has also considered rules for cross-border stablecoin transactions and amendments that could support the introduction of spot cryptocurrency exchange-traded funds.

Blockchain adoption is also being tested in public finance. South Korea plans to pilot tokenised government bonds linked to the Bank of Korea’s institutional central bank digital currency project in 2027.

The Bank of Korea is also expected to examine interoperability between its institutional CBDC system and other blockchain networks.

At the local level, Gyeonggi Province is preparing a stablecoin pilot to test government payments, settlement and fraud-prevention technologies.

The plans show that blockchain remains part of South Korea’s digital strategy, even as AI, semiconductors and data-centre infrastructure dominate the country’s broader technology investment agenda.

Why does it matter?

South Korea’s roadmap shows that blockchain policy is moving beyond exchange regulation towards stablecoins, tokenised public finance and institutional digital-asset infrastructure. Clearer rules for won-backed stablecoins and crypto ETFs could increase legal certainty and institutional participation. At the same time, the focus on tokenised government bonds and CBDC interoperability suggests South Korea is exploring how blockchain could fit into public financial infrastructure, not only private crypto markets.

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Belarus introduces new compliance rules for crypto banks

Belarus has introduced prudential rules for crypto banks under a new National Bank resolution. Board Resolution No. 167, adopted on 10 July 2026, sets out how crypto banks must comply with prudential requirements after being added to the National Bank’s official crypto-bank register.

The rules implement provisions of Presidential Decree No. 19 on crypto banks and control in the sphere of digital tokens.
The framework defines the minimum banking operations that crypto banks may carry out.

These include opening and maintaining accounts for non-residents, individual entrepreneurs, legal entities, and correspondent banks; foreign-exchange and settlement operations; accepting funds into accounts; and providing cash settlement services.

The list is not closed, and the National Bank may authorise additional operations when a crypto bank is included in the register.
The resolution applies most prudential requirements for banks and non-bank credit and financial institutions to crypto banks, with adjustments depending on the operations they perform.

It sets a minimum regulatory capital requirement of 30 million Belarusian rubles and a leverage ratio of 7%. For crypto banks authorised to place attracted funds on repayment, payment and maturity terms, the thresholds rise to at least 60 million rubles and a leverage ratio of at least 3%.

The rules also define categories of digital tokens, including corporate tokens, tokenised assets, stable cryptocurrencies and other tokens.

Crypto banks will need to account for token-related claims and obligations when calculating prudential ratios, including limits on foreign-exchange risk and additional limits for positions in unreliable tokens.

The resolution also introduces prudential reporting obligations and enters into force on 18 July 2026.

Why does it matter?

Belarus’ new rules show how crypto-related banking is being drawn into prudential supervision, with capital, leverage, reporting and token-risk requirements applied to institutions that handle digital-asset services. The framework could give crypto banks a cleaner legal operating environment, while allowing the National Bank to manage risks linked to liquidity, customer funds, foreign-exchange exposure and unstable tokens.

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ECB survey highlights popularity of Chinese e-commerce platforms

More than half of consumers in the euro area have used Chinese e-commerce platforms such as Temu, Shein and AliExpress, according to a Consumer Expectations Survey by the European Central Bank (ECB). Low prices and wide product selection were the main reasons for their popularity.

According to the survey, clothing, household goods and electronics are the most frequently purchased product categories, with most orders worth €50 or less. Usage is highest in Greece, Portugal and Spain and is more common among lower- and middle-income households.

Among consumers who do not use these platforms, the main concerns are product quality, trust, personal data security and environmental impacts. The survey also found that geopolitical considerations play only a limited role in purchasing decisions compared with price and convenience.

The ECB says the findings highlight the growing influence of Chinese e-commerce platforms on consumer behaviour in the euro area and suggest they could affect competition and price dynamics in the retail market.

Why does it matter?

The survey illustrates how low-cost Chinese e-commerce platforms are reshaping consumer behaviour across Europe. Their growing popularity could intensify competition for European retailers while influencing pricing strategies, cross-border trade and consumer expectations around cost and convenience.

The findings also highlight the broader policy challenges posed by cross-border digital commerce. As platforms such as Temu, Shein and AliExpress expand their presence in Europe, regulators will continue balancing consumer benefits from lower prices with concerns over product safety, sustainability, data protection and fair competition.

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UNCTAD launches global consumer product safety framework

UN Trade and Development (UNCTAD) has officially launched the United Nations Principles for Consumer Product Safety, providing countries with the first globally agreed framework to strengthen product safety, improve market surveillance and enhance international cooperation.

The launch took place during a meeting in Geneva attended by more than 400 participants from over 80 countries, where governments, regulators and international organisations discussed emerging challenges in consumer protection, competition policy and digital markets.

The Principles, adopted by the UN General Assembly in December 2025, are intended to help countries respond to increasingly complex global supply chains and the rapid growth of digital marketplaces.

UNCTAD also announced plans to publish a practical Handbook on Consumer Product Safety to support their implementation. Participants stressed that product safety is essential for consumer confidence and that stronger international cooperation is needed as product risks increasingly cross national borders.

Participants also discussed wider consumer protection and competition issues, including the impact of digital markets, cross-border e-commerce and concentrated supply chains.

They called for stronger international cooperation and regulatory frameworks capable of keeping pace with technological change while supporting innovation and consumer trust.

The meeting also launched the Voluntary Peer Review of Argentina’s consumer protection framework, reinforcing UNCTAD’s role in supporting member states through policy advice, technical assistance and the exchange of best practices.

Participants reaffirmed that international dialogue remains essential to ensuring markets remain fair, competitive, and safe during a period of growing global economic uncertainty.

Why does it matter?

The UN Principles for Consumer Product Safety establish a common international reference point for governments seeking to strengthen consumer protection in increasingly global and digital markets. As products are traded through complex international supply chains and online marketplaces, shared principles can help improve market surveillance, regulatory cooperation and consumer confidence.

The initiative also reflects a broader trend towards international coordination on digital commerce and consumer protection. By providing a common framework rather than legally binding rules, the Principles give countries greater guidance while encouraging more consistent approaches to product safety across jurisdictions.

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ECB confirms payment providers for digital euro trial

The European Central Bank has selected 36 payment service providers from across the euro area to take part in a digital euro pilot.

The pilot is due to start in the second half of 2027 and will run for 12 months.

It will test the digital euro’s technical functionality, operational processes and user experience as part of preparatory work for possible future issuance.

The ECB said it received more than 50 applications after opening expressions of interest in March 2026.

Selected participants include banks and non-bank payment service providers, covering a range of business models, sizes and euro area countries.

The pilot will use a beta version of the digital euro that is close to the design foreseen in draft legislation, but it will not have legal tender status.

Some providers will act as distributing PSPs, allowing Eurosystem staff to set up beta digital euro accounts and make payments. Others will act as acquiring PSPs, enabling selected merchants to receive beta digital euro payments.

Testing will take place at the ECB and 19 national central banks across the euro area.

The pilot will include person-to-person and person-to-business payments, both online and offline, as well as in-store and e-commerce transactions.

The ECB said the exercise will help refine the digital euro’s design and user experience before any decision on issuance.

Why does it matter?

The pilot is a significant step in testing how a digital euro could work in practice, especially through banks, payment providers and merchants. It will help the ECB assess technical performance, operational readiness and user experience before any launch decision. The exercise also matters for Europe’s payments sovereignty, as the digital euro is being developed as a public digital payment option alongside private payment services.

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New York City targets junk fees and subscription traps

New York City has introduced two major consumer protection measures targeting hidden charges and difficult subscription cancellations, combining mandatory all-in pricing with new ‘Click-to-Cancel’ requirements.

The Click-to-Cancel rule will take effect on 1 October 2026, making New York City the first municipality to require businesses to offer subscription cancellations that are as simple as sign-up. Companies must clearly disclose subscription terms and provide straightforward cancellation mechanisms, ending practices that rely on confusing procedures or hidden recurring charges. According to the Roosevelt Institute, the rule could save New Yorkers between $21.5 million and $162.5 million each year.

The proposed Junk Fees rule would require businesses to display the full price upfront, including all mandatory charges. Companies would be prohibited from advertising misleading prices and would have to include service and processing fees in advertised prices. Businesses that violate either rule could face consumer restitution and civil penalties starting at $525 per violation.

Consumer Reports estimates that hidden fees cost the average family of four around $3,200 annually. The Department of Consumer and Worker Protection has published guidance explaining the proposed all-in pricing rules, with public consultation remaining open until a hearing on 7 August.

Why does it matter?

The measures reflect a growing regulatory effort to tackle so-called ‘dark patterns’—design practices that make prices harder to understand or subscriptions more difficult to cancel. By requiring transparent pricing and straightforward cancellation, New York City is shifting responsibility from consumers to businesses to ensure commercial practices are fair by design.

The rules could also influence wider consumer protection policy. As many companies operate nationally or globally, local requirements on pricing transparency and subscription management may encourage businesses to adopt similar practices across multiple markets, potentially shaping future regulation in other jurisdictions.

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European Commission accepts SAP commitments in ERP antitrust case

The European Commission has accepted legally binding commitments from SAP to address competition concerns over maintenance and support (M&S) services for its on-premises enterprise resource planning (ERP) software.

The commitments follow the Commission’s preliminary finding that SAP may have abused its dominant market position by limiting customer choice, increasing switching costs and restricting competition in the aftermarket for ERP support services.

Under the agreement, SAP will give customers greater flexibility in managing software licences and support contracts. Businesses will be able to split their SAP environments and choose different maintenance providers or support levels for different parts of their systems.

SAP will also allow licence termination in specific circumstances, including reduced support phases, failed implementation projects attributable to SAP, insolvency, major workforce reductions and business divestitures.

Additional commitments include broader access to alternative licensing models, the removal of reinstatement fees, lower back-maintenance charges, clearer contractual terms and an internal mechanism for handling customer complaints related to compliance with the commitments.

The Commission opened its formal antitrust investigation in September 2025 after identifying practices that could have discouraged customers from using independent support providers and increased the cost of leaving SAP’s maintenance services.

Following a market test, SAP revised its proposal before the Commission concluded that the final commitments adequately addressed its concerns. The commitments will apply globally for ten years under the supervision of an independent monitoring trustee.

Executive Vice-President Teresa Ribera said the decision would give businesses using SAP’s on-premises ERP software greater freedom to choose maintenance and support providers while strengthening competition in enterprise software markets.

She added that the case sends a broader message that dominant technology companies should not use restrictive commercial practices to lock customers into their ecosystems, particularly as enterprises continue migrating to cloud-based services.

Why does it matter?

The decision reinforces the principle that customers should be able to choose maintenance and support providers without facing unnecessary contractual or financial barriers. For businesses relying on enterprise software, greater flexibility could reduce costs, increase negotiating power and make it easier to adopt competing services.

The case also shows that the European Commission is extending competition enforcement beyond consumer-facing digital platforms to enterprise software markets. As organisations increasingly depend on integrated cloud and business software ecosystems, regulators are paying closer attention to practices that may create customer lock-in and restrict competition after the initial software sale.

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China seeks stronger rules for virtual currency money laundering

China has proposed a series of legal and procedural reforms to improve the investigation and prosecution of virtual currency-related money laundering cases. Prosecutors argue that current legislation creates difficulties in determining criminal liability, collecting digital evidence and recovering illicit assets, leaving gaps in the country’s enforcement framework.

The proposals recommend issuing dedicated judicial guidance, expanding training in blockchain analysis, and requiring investigators to examine both the underlying criminal offence and any related laundering activity. Greater use of blockchain transaction reports and earlier prosecutorial involvement in complex investigations are also intended to improve case handling.

Prosecutors have also suggested updating evidence rules to recognise verifiable blockchain transaction records and qualified blockchain analytics reports, subject to judicial review. Courts could rely more heavily on corroborating circumstantial evidence in cases involving mixers, privacy-focused cryptocurrencies or anonymous wallets where direct tracing is difficult.

The recommendations also call for a national framework to manage seized virtual assets through standardised custody, valuation and disposal procedures, alongside stronger international cooperation on cross-border investigations and asset recovery.

Why does it matter?

The move signals that China is refining its legal approach to virtual currency crime by focusing on investigative procedures and evidentiary standards rather than introducing an outright policy shift. Clearer rules for handling blockchain evidence and seized digital assets could strengthen enforcement while providing greater consistency in complex financial crime cases.

The recommendations also reflect a broader global trend towards equipping law enforcement with specialised tools to investigate illicit cryptocurrency activity. If adopted, the reforms could influence how other jurisdictions develop legal frameworks for digital asset investigations, cross-border cooperation and asset recovery.

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UNCTAD warns that strategic investment is becoming more concentrated

Investment in strategic sectors, including AI infrastructure, semiconductors, critical minerals and energy transition technologies, has surged over the past five years. According to UN Trade and Development’s (UNCTAD) World Investment Report 2026, these sectors accounted for 44% of global greenfield investment in 2025, up from 16% in 2020.

The report also highlights a growing concentration of investment among advanced economies. The three largest investor economies accounted for 72% of strategic sector project values in 2025, while the three biggest recipient economies attracted 56%. Low-income and lower-middle-income countries received just 10% of global greenfield investment in strategic sectors between 2020 and 2025, compared with more than 20% in other industries.

At the same time, manufacturing investment outside strategic sectors is declining. The value of announced greenfield manufacturing investment beyond these industries fell by 17% between 2021 and 2025 compared with the 2015–2019 period. The decline was particularly pronounced in developing and least-developed countries, where manufacturing has traditionally played a key role in building productive capacity and creating jobs.

The report also highlights widening differences in technological capabilities. The United States leads outward investment in AI and advanced technologies, while the EU has become the largest destination for those investments. China remains a major investor in critical minerals and downstream supply chains. Between 2016 and 2024, developed economies provided an estimated US$174 billion in industrial subsidies, compared with just US$19 billion in developing economies.

Why does it matter?

The report points to a structural shift in global investment that could deepen the divide between advanced and developing economies. Countries lacking the capital, infrastructure and skills needed to compete in strategic sectors risk missing out on the industries expected to drive future growth and productivity.

Rather than competing directly with the large subsidy programmes of major economies, UNCTAD argues that developing countries should identify targeted opportunities within strategic value chains, such as critical minerals processing, data infrastructure or regional manufacturing networks. Without stronger international cooperation and investment partnerships, the report warns that technological and economic disparities are likely to widen, with implications for global development and geopolitical stability.

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