E-commerce and trade

France enforces new EU crypto rules under MiCA

France has entered a new phase of crypto regulation as the transitional period between its national Pacte law framework and the EU’s Markets in Crypto-Assets (MiCA) Regulation has ended. Since 2 July 2026, crypto-asset service providers operating in France must comply with MiCA requirements and obtain authorisation to offer services across the European Union.

The Autorité des Marchés Financiers (AMF) has supported firms throughout the transition while reviewing MiCA authorisation applications. France has authorised 31 crypto-asset service providers, making it the EU’s second-largest jurisdiction for approved firms.

MiCA introduces stricter requirements on investor protection, security, market integrity and the custody of crypto-assets. The AMF will continue supervising authorised providers and assessing new applications.

The regulator will also work with the European Securities and Markets Authority (ESMA) and other national authorities to oversee the orderly withdrawal of firms that failed to obtain MiCA authorisation. It has urged investors to use only authorised crypto-asset service providers operating under the new European framework.

Why does it matter?

France’s transition marks another step in MiCA‘s move from legislation to implementation. As national transitional regimes end, crypto firms across the EU must comply with a single regulatory framework, replacing fragmented national approaches with common licensing and supervisory standards.

The new regime is also intended to strengthen consumer confidence by introducing harmonised rules on investor protection, market integrity and operational resilience. Its long-term success will depend on whether it can provide effective oversight while allowing compliant firms to innovate and compete across the EU’s single market.

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Belgium warns against unauthorised crypto platforms under MiCA

Belgium’s Financial Services and Markets Authority (FSMA) has added six crypto platforms to its warning list after finding that they are offering services in the country without the authorisation required under the EU’s Markets in Crypto-Assets (MiCA) framework.

The regulator identified Aurum Foundation, Bank Bit, Bithf Pro, Dxago, Global Dynamic Trade and ZeriaFunding as crypto-asset service providers operating without the required authorisation. The FSMA urged consumers to check its official register before using crypto platforms or transferring funds.

The warning comes shortly after the EU’s MiCA licensing deadline, as national regulators across the EU begin enforcing the bloc’s new crypto regulatory framework. Authorities are increasing scrutiny of crypto firms as they adapt to the new authorisation requirements.

MiCA is also prompting firms to reassess their regulatory strategies. Crypto exchange Binance recently withdrew its licence application in Greece while pursuing authorisation in another EU jurisdiction, illustrating how companies are adjusting to the new framework.

Why does it matter?

Belgium’s action illustrates that MiCA is entering its enforcement phase, with national regulators beginning to act against crypto firms that fail to obtain the necessary authorisations. The shift from adopting legislation to enforcing it is likely to reshape how crypto businesses operate across the EU.

The new framework also aims to strengthen consumer confidence by establishing common licensing standards throughout the single market. While stricter oversight may increase compliance costs for some firms, it could also encourage greater market stability and make it easier for authorised providers to operate across multiple EU member states.

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IMF warns policy choices will define tokenised finance future

The International Monetary Fund has warned that policy choices made today will shape whether tokenised finance strengthens or fragments the financial system.

In a new blog post, IMF Financial Counsellor Tobias Adrian said tokenisation should not be viewed only as a technological upgrade for faster settlement, cheaper payments and programmable assets.

When financial assets and liabilities move onto shared digital ledgers, processes that are currently sequential, including execution, clearing and settlement, can happen simultaneously through software.

The IMF said this could reduce costs, improve efficiency and enable new forms of programmable finance. However, it could also shift risks away from traditional financial institutions and towards platforms, service providers and market infrastructures.

Related IMF research highlights several possible settlement assets for tokenised finance, including tokenised bank deposits, stablecoins and tokenised central bank reserves.

Each model raises different policy questions around liquidity, financial stability, private-sector innovation and the role of public money.

The IMF said the long-term success of tokenisation depends on clear policy frameworks, safe settlement assets, robust governance of code, legal certainty and international coordination.

It also stressed that policymakers will need to address cybersecurity, interoperability and oversight of smart contracts as tokenised markets develop.

Why does it matter?

Tokenisation could change how financial assets are issued, transferred and settled, making finance faster and more programmable. Yet the IMF warns that efficiency gains alone do not guarantee stability. If tokenised markets develop across incompatible platforms, weak settlement assets or poorly governed smart contracts, the result could be fragmentation and new systemic risks. The policy challenge is therefore to build rules and infrastructure that support innovation while preserving trust, legal certainty and financial stability.

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Germany reviews crypto tax rules in 2027 budget plan

Germany’s federal government has listed a possible adjustment to cryptocurrency taxation among consolidation measures for its 2027 budget framework.

The Federal Ministry of Finance said the 2027 budget plan and financial framework to 2030 require further measures to address remaining fiscal pressures.

The measures listed by the ministry include efficiency reforms, changes to social spending, new levies on plastic and sugar, adjustments to alcohol and tobacco taxes, and stronger action against financial and tax crime.

The same list also refers to an adjustment of cryptocurrency taxation, without specifying the exact reform under consideration.

Germany currently applies favourable tax treatment to private crypto holdings in many cases. Profits from private disposals can be taxable if crypto assets are sold within one year, whereas gains from longer-term holdings are generally treated more favourably under existing rules.

Any change could therefore draw attention from investors and the crypto industry, particularly if it affects long-term holding exemptions.

The proposal remains at the budget-planning stage. The government said the relevant ministries must make agreed consolidation measures ready for inclusion in draft legislation before the 2027 federal budget is finalised.

Why does it matter?

Germany’s reference to crypto taxation in the 2027 budget framework signals that digital assets are becoming part of mainstream fiscal policy, not only financial regulation. A change to the country’s favourable tax treatment for private crypto holdings could affect investors, platforms and Germany’s position in Europe’s digital asset market. However, the policy impact cannot be assessed fully until the government specifies which tax rules it wants to change.

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UK FCA review warns agentic AI could reshape retail finance

A new FCA-commissioned review has warned that agentic AI could reshape retail financial services by allowing consumers to delegate more financial decisions to autonomous tools.

The Mills Review examines how AI could transform retail finance by 2030 and beyond, including banking, payments, savings, investments, insurance and debt advice.

The review says AI is moving financial services from human-led and episodic activity towards services that are AI-enabled, continuous and delegated.

Over time, AI agents could help consumers manage finances, compare products, execute tasks and optimise financial choices within agreed limits.

The report says the shift could help address long-standing market problems, including advice gaps, low switching, financial exclusion and poor savings outcomes.

It also warns that greater autonomy will create new risks around consent, accountability, redress, market power, cyber threats and financial crime.

The review recommends that the FCA consider developing trusted frameworks for AI agent participation in financial services, including clearer expectations for identity, consent, control and liability.

It also calls for stronger AI-enabled supervision so the FCA can detect risks across firms, shared models, cloud platforms and data sources more quickly.

The report says human accountability must remain central, with firms remaining responsible for outcomes produced by AI systems.

Why does it matter?

The review points to a shift from AI as a financial services support tool to AI as an active participant in consumer finance. If agents begin comparing products, moving money, managing portfolios or taking out insurance within delegated limits, regulators will need clearer rules on consent, liability, identity, redress and oversight. The report also raises a broader infrastructure question: agentic finance will depend not only on AI models, but also on trusted data access, digital identity, payments systems and supervisory tools that can detect risks across the market.

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UAE Central Bank approves dirham stablecoin for retail use

The UAE Central Bank has issued a No Objection Certificate allowing the dirham-backed stablecoin DDSC to go live on selected exchange platforms regulated by Dubai’s Virtual Assets Regulatory Authority.

DDSC was developed through a collaboration between International Holding Company, First Abu Dhabi Bank and Sirius International Holding. The stablecoin is pegged 1:1 to the UAE dirham and operates on ADI Chain, an institutional Layer-2 blockchain.

The latest clearance follows earlier Central Bank approval for the launch of DDSC, announced in February 2026. The new no-objection certificate allows the stablecoin to partner with selected VARA-regulated exchange platforms.

The regulatory structure reflects the UAE’s dual-layer approach to digital assets. The Central Bank oversees payment tokens and monetary stability requirements, while VARA licenses and supervises virtual asset platforms in Dubai.

DDSC is designed to support digital payments, including peer-to-peer transfers, merchant payments and supplier settlements in dirhams.

The project has already been tested in institutional transactions, including a reported AED 110 million transfer on ADI Chain.

The approval marks another step in the UAE’s effort to build a regulated dirham-denominated digital payment infrastructure.

Why does it matter?

The DDSC approval demonstrates that the UAE is establishing a regulatory framework for stablecoins tied to its national currency. Central Bank clearance combined with VARA-regulated exchange access could make dirham-backed tokens more usable in payments, settlement and digital asset markets. The case also highlights a broader regulatory model in which monetary authorities oversee the approval of payment tokens, while specialised virtual asset regulators supervise exchange platforms.

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South Africa releases draft crypto tax guide

The South African Revenue Service has released draft guidance on how crypto assets should be taxed under existing income tax and capital gains tax rules.

The Draft Guide to the Taxation of Crypto Assets is open for public comment until 31 August 2026. It provides guidance on tax consequences that may arise when taxpayers hold or transact in crypto assets.

SARS treats crypto assets as intangible assets rather than currency. The draft guide says taxpayers must apply normal tax rules to determine whether amounts received or accrued from crypto transactions are revenue or capital in nature.

Tax treatment will depend on the facts of each case, including the taxpayer’s intention, the nature of the transaction and whether the asset is held as trading stock or on capital account.

The guide covers activities such as selling crypto assets for fiat currency, swapping one crypto asset for another, using crypto assets to pay for goods or services, mining, staking, decentralised finance, airdrops and hard forks.

The draft also notes that South Africa has implemented the Crypto-Asset Reporting Framework, requiring reporting crypto-asset service providers to collect and report transaction data to SARS.

SARS said the guide is foundational and not a binding general ruling, meaning taxpayers should still consider the specific characteristics of each crypto asset and transaction.

Why does it matter?

The draft guide gives taxpayers and crypto service providers clearer expectations on how South Africa’s existing tax system applies to digital assets. Treating crypto as intangible property rather than currency means trading, staking, mining, swaps and payments can create income tax or capital gains tax consequences depending on the circumstances. CARF reporting also increases tax authority visibility over crypto transactions, moving enforcement towards data-driven oversight and making non-disclosure harder.

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UK finalises crypto regime with lower stablecoin capital coefficient

The UK Financial Conduct Authority has finalised key parts of its new cryptoasset regime, which will bring a broad range of crypto firms into full FCA authorisation from 25 October 2027.

The regime will apply to firms carrying out regulated cryptoasset activities, including trading platforms, intermediaries, custodians, stablecoin issuers and firms arranging staking.

As part of the package, the FCA has reduced the stablecoin issuance capital requirement coefficient from 2% to 1%. The regulator said the change makes the prudential framework more proportionate for larger issuers while maintaining the robustness of the overall regime.

The FCA said the new framework moves the UK beyond the anti-money laundering and financial promotions standards that previously defined its role in crypto markets.

The policy package includes final rules and guidance on stablecoin issuance, regulated cryptoasset activities, admissions and disclosures, market abuse, prudential requirements and the application of the FCA Handbook.

Under the stablecoin rules, non-systemic UK-issued qualifying stablecoins will be subject to requirements covering issuance, backing assets, redemption, safeguarding and disclosures.

Firms will be able to apply for authorisation between 30 September 2026 and 28 February 2027, ahead of the mandatory regime taking effect in October 2027.

Why does it matter?

The FCA’s policy package marks a major shift from limited crypto oversight towards a full authorisation-based regime. For stablecoin issuers, the reduction of the K-SII coefficient from 2% to 1% shows the regulator responding to industry concerns about proportionality and competitiveness while keeping baseline prudential safeguards. The wider regime could give firms clearer rules for operating in the UK, but it will also raise compliance expectations for platforms, custodians, intermediaries and staking providers.

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EU introduces €3 duty on low-value e-commerce imports

From 1 July 2026, the European Commission is introducing a temporary €3 customs duty on low-value goods imported into the EU from outside the bloc, primarily through e-commerce platforms. The duty applies to a wide range of commonly purchased goods including clothing, toys, and electronics, covering items worth up to €150.

The duty is charged per customs tariff classification rather than by quantity. For example, purchasing five T-shirts attracts a single €3 charge because they share the same tariff code, whereas buying three T-shirts and a watch incurs two €3 charges because they fall under different classifications. Sellers or importers will declare and pay the duty through the customs process.

The measure is intended to create fairer competition for the EU businesses, improve consumer protection by strengthening oversight of imported goods, reduce customs fraud linked to undervaluation and false declarations, and address the environmental impact of growing volumes of low-value shipments.

The European Commission said the measure forms part of a broader customs reform package aimed at modernising border procedures, strengthening the single market and ensuring that businesses selling into the EU comply with the bloc’s safety and regulatory standards. The duty is described as a temporary measure.

Why does it matter?

The new customs duty reflects the EU’s broader effort to adapt its customs system to the rapid growth of cross-border e-commerce. By introducing a flat charge on low-value imports, the Commission aims to reduce incentives for undervaluation, improve enforcement of product safety rules and create more equal competitive conditions for businesses operating within the single market.

The measure could also influence the business models of major online retailers and marketplaces that rely on high volumes of low-cost imports. Whether the duty succeeds in improving compliance without significantly increasing costs for consumers or slowing legitimate trade will help shape future reforms of the EU’s customs framework.

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WTO highlights AI opportunities for small businesses

The WTO’s Informal Working Group on Micro, Small and Medium-sized Enterprises (MSMEs) has highlighted AI as a key tool for helping small businesses compete in international trade.

During meetings on 29 and 30 June, WTO members explored how AI could strengthen supply chains, reduce trade barriers and help smaller firms navigate an increasingly uncertain global trading environment. The group also welcomed Ghana as its 106th member.

One of the highlights was the announcement of the 2026 Small Business Champions, recognising organisations using AI to support international trade.

Zambia’s Rinato Space was selected to apply satellite technology and AI to provide climate monitoring, early warning systems and capacity-building services for smallholder farmers, helping improve agricultural productivity and export opportunities.

France-based Koaloo.FI was also recognised for using generative AI to automate environmental, social and governance compliance, assess supply chain risks and improve access to financing for small suppliers.

The competition also recognised Colombia’s Cámara Colombiana de Informática y Telecomunicaciones and the Center for International Private Enterprise for developing an AI governance roadmap for Latin America that includes affordable AI tools for MSMEs.

Türkiye’s Globby was honoured for creating an AI-powered trade intelligence platform that helps small businesses identify international market opportunities and participate more effectively in global commerce.

WTO members acknowledged persistent barriers to AI adoption, including limited digital infrastructure, fragmented international standards, shortages of technical expertise, constrained access to finance and the need for supportive legal and regulatory frameworks.

WTO officials also presented ongoing initiatives, including preparations for the upcoming World Trade and Tech Day, alongside new AI-related learning tools and digital trade resources.

The meeting also focused on broader trade uncertainty affecting small businesses worldwide.

The meeting also addressed broader trade uncertainty affecting MSMEs. Representatives from organisations including World Intellectual Property Organization, the International Finance Corporation, the International Telecommunication Union, the Food and Agriculture Organization and the Pan African Alliance of Small and Medium Industries presented initiatives to improve market access, trade finance, intellectual property protection and digital trade participation.

Why does it matter?

The discussions reflect a growing recognition that AI is becoming an important enabler of international trade, particularly for smaller businesses that often lack the resources to compete with larger firms. By helping automate compliance, improve supply chain management and identify export opportunities, AI could reduce longstanding barriers to global market participation.

At the same time, the meeting highlighted that technology alone is not enough. Expanding the benefits of AI for MSMEs will depend on investment in digital infrastructure, skills, financing and interoperable regulatory frameworks, making international cooperation an increasingly important component of digital trade policy.

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