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Mauritius unveils fintech strategy to boost digital finance growth

Mauritius has launched its National Fintech Strategy 2026–2030, a roadmap aimed at strengthening digital finance, innovation and financial inclusion.

The strategy was developed by the Ministry of Financial Services and Economic Planning with technical support from the UN Economic Commission for Africa and input from public and private-sector stakeholders.

The government says the strategy is intended to position Mauritius as Africa’s trusted fintech hub while supporting sustainable growth and the wider digital transformation of financial services.

The roadmap focuses on six areas: regulation and innovation, digital infrastructure and cybersecurity, skills development, market growth, international cooperation and consumer protection.

Implementation will run until 2030 and will be overseen through a dedicated governance framework. Planned targets include shorter licensing approval times, expanded digital onboarding, stronger digital infrastructure and training more than 5,000 people each year in specialised fintech skills.

Officials said the strategy responds to the growing role of digital technologies in finance, including digital payments, digital assets, regulatory technology and cross-border financial services.

UNECA said the initiative could support fintech development in Mauritius and offer lessons for other African countries seeking to build more inclusive and competitive digital finance ecosystems.

Why does it matter?

Mauritius’ strategy reflects a wider African policy trend: governments are trying to move fintech from fragmented innovation into structured national development plans. Stronger digital finance ecosystems can expand access to financial services, support small businesses, improve cross-border commerce and attract investment. The focus on cybersecurity, consumer protection and skills also shows that fintech growth depends not only on new products, but on trust, regulation and institutional capacity.

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EU customs reform targets low-value online imports

The EU has abolished the customs duty exemption for e-commerce parcels worth less than €150, introducing a temporary €3 duty on low-value items imported directly from non-EU countries.

The measure entered into force on 1 July 2026 and forms part of the wider EU Customs Reform. It is intended to create fairer competition between the EU retailers and non-EU online sellers while strengthening controls on unsafe or non-compliant products.

The previous exemption was designed for an earlier period of limited cross-border online shopping. The Commission said 5.9 billion low-value parcels entered the EU in 2025, representing 97% of all imported items but only 2% of their total value.

The EU authorities argue that the exemption distorted competition and created incentives to undervalue or split shipments to remain below the €150 threshold.

Under the new system, consumers should not have to pay the duty at the time of delivery. Businesses involved in selling and transporting imported goods will be responsible for customs payment and compliance.

The €3 duty is a transitional measure and will remain in place until 1 July 2028. After that, low-value imports will be treated under the standard customs framework, with duties based on product classification, origin and value.

The reform also introduces Product Identifiers, which become mandatory from 1 November 2026 to improve traceability and safety checks. A separate handling fee for imported e-commerce goods is also expected by November 2026.

Why does it matter?

The change addresses one of the biggest pressure points in the EU e-commerce: billions of low-value parcels entering the single market with limited customs duties and weak product-level data. Removing the exemption could reduce unfair advantages for non-EU sellers, strengthen enforcement against unsafe products and give customs authorities better tools to manage mass e-commerce imports. It also shows how the EU is treating online retail as a trade, consumer protection and digital platform accountability issue, not only a customs matter.

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Canada and Germany strengthen semiconductor supply chains

Canada and Germany have signed a joint declaration of intent to strengthen semiconductor supply chains and deepen industrial cooperation, reinforcing collaboration in a technology that underpins AI, advanced computing and the digital economy.

The declaration was signed on the sidelines of the International Energy Agency’s (IEA) Annual Global Conference on Energy Efficiency by Carlos Leitão, Parliamentary Secretary to Canada’s Minister of Industry, and Stefan Rouenhoff, Parliamentary State Secretary at Germany’s Federal Ministry for Economic Affairs and Energy.

Canada said resilient and diversified semiconductor supply chains are becoming increasingly important as global demand grows for AI, advanced computing and connected technologies.

The declaration establishes a framework for policy dialogue and cooperation on investment, industrial development, technology and research. It also aims to support start-ups, scale-ups and small and medium-sized enterprises while building on both countries’ semiconductor expertise to strengthen competitiveness.

Canada described semiconductors as foundational technologies for the digital economy, highlighting their role in enabling AI and other emerging technologies.

The declaration also supports Canada’s National Artificial Intelligence Strategy: AI for All, particularly its focus on infrastructure, international partnerships and long-term competitiveness. It builds on a series of bilateral initiatives launched since late 2025, including the Canada-Germany Digital Alliance, a joint AI declaration, the Sovereign Technology Alliance, and cooperation on automotive manufacturing, batteries and critical minerals.

A separate February 2026 declaration also expanded bilateral industrial cooperation in auto and battery manufacturing and critical minerals. Officials from both countries said stronger semiconductor supply chains can support innovation, economic resilience and long-term prosperity.

The partnership adds semiconductor supply chains to a wider Canada-Germany agenda focused on trusted advanced technologies, economic security and the next generation of AI-enabled digital infrastructure.

Why does it matter?

Semiconductors have become strategic assets that underpin AI, advanced computing, telecommunications and many other digital technologies. By strengthening cooperation on chip supply chains, Canada and Germany aim to reduce supply chain vulnerabilities, encourage investment and support long-term technological competitiveness.

The agreement also reflects a broader trend of trusted technology partnerships among like-minded countries. Rather than focusing solely on trade, governments are increasingly coordinating industrial policy, research and supply chains to strengthen economic security and reduce dependence on concentrated sources of critical technologies.

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New UK regime targets systemic stablecoin issuers

The Bank of England and the Financial Conduct Authority have set out how they will jointly regulate stablecoin issuers whose activities could pose risks to UK financial stability.

The joint approach forms part of the UK’s emerging stablecoin regime. Under the planned framework, the FCA will regulate UK-issued qualifying stablecoins, while issuers recognised as systemic by HM Treasury will also be subject to Bank of England oversight.

The authorities said the two-part regime is intended to provide clarity for firms while supporting innovation, consumer protection, market integrity and financial stability.

Stablecoin issuers may become systemic if their coins are widely used in payments and could create risks for the UK financial system. In those cases, the Bank would supervise prudential and financial-stability risks, while the FCA would continue to oversee consumer protection, competition and market integrity issues.

The framework includes transition arrangements for firms moving from FCA-only supervision to joint regulation. The Bank and FCA said this should help issuers scale without facing conflicting or duplicative requirements.

The approach also allows for issuers to be recognised as ‘systemic at launch’ where they are not yet operating at systemic scale but are likely to do so. Such firms could enter a phased supervisory pathway while meeting both FCA and Bank requirements.

The Bank is separately consulting on draft rules for sterling-denominated systemic stablecoin issuers. It intends to finalise its Code of Practice by the end of 2026, with regulated stablecoins expected to operate in the UK from 2027.

Why does it matter?

The UK framework is important because it creates a pathway for stablecoins to move from crypto-market products towards regulated payment instruments. By scaling supervision as issuers grow, the UK aims to support innovation without allowing systemically important stablecoins to develop outside financial stability oversight. The model could influence how other jurisdictions regulate digital money, especially where stablecoins are expected to support retail payments, wholesale settlement or cross-border transactions.

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Central Bank of Azerbaijan submits draft crypto law for review

Azerbaijan has moved closer to regulating its cryptocurrency sector after the Central Bank completed a draft law on virtual assets and crypto markets and submitted it to state authorities for review.

Fidan Tofidi, Director of the Central Bank’s Financial Technologies and Innovations Department, said the legislation could be adopted before the end of the year. She described the framework as a major step for a sector that has so far remained unregulated in the country.

The proposed regime is expected to introduce licensing and supervision for virtual asset service providers operating in Azerbaijan. Regulators have previously said the framework should cover virtual asset markets and the activities of companies providing crypto-related services.

The initiative is part of Azerbaijan’s broader financial-sector development agenda, which includes work on virtual assets, shared know-your-customer mechanisms, supervisory technology and digital financial infrastructure.

Earlier Central Bank discussions on virtual assets focused on regulatory and supervisory approaches, market risks and opportunities, and the experience of countries such as Kazakhstan and Türkiye.

Azerbaijan has also tested crypto-related projects through its regulatory sandbox. One pilot involved a platform for buying, selling, exchanging and storing virtual assets, although the project was suspended after failing to achieve expected test results.

The Central Bank has maintained a cautious stance on a possible central bank digital currency, saying it is monitoring international developments before moving forward.

Why does it matter?

Azerbaijan’s draft law signals a shift from a legal grey area towards formal oversight of crypto markets and virtual asset service providers. Licensing and supervision could give regulators more visibility over market activity, strengthen consumer protection and help address money-laundering and terrorism-financing risks. The move also reflects a wider trend among emerging markets: rather than banning crypto outright, authorities are building frameworks to integrate digital assets into regulated financial systems.

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US SEC reviews framework for crypto and other novel ETFs

The US Securities and Exchange Commission has opened a public consultation on how it should treat exchange-traded funds that invest in innovative asset classes or use novel investment strategies.

The request for comment focuses on so-called Novel ETFs and asks whether existing regulatory tools remain appropriate as the ETF market expands beyond traditional products.

The SEC said examples of Novel ETFs include funds linked to crypto assets, commodity-focused instruments, single-stock strategies, heightened leverage, blockchain-enabled opportunities, private assets and event contracts.

The consultation asks whether such products raise questions about investment company status, ETF listing standards, investor protection, market surveillance, arbitrage mechanisms and registration procedures.

The review comes after rapid growth in the ETF market. The SEC said total ETF net assets increased from more than $4 trillion at the end of 2019 to more than $12 trillion at the end of 2025, while the number of ETFs rose from almost 1,900 to more than 4,600.

The regulator is seeking feedback from funds, advisers, investors and other market participants on whether further action is needed to support innovation while protecting investors and maintaining fair, orderly and efficient markets.

Why does it matter?

The SEC consultation shows how regulators are reassessing ETF rules as products move into more complex and politically sensitive areas, including crypto assets and event-based instruments. Clearer rules could help issuers understand when a product can use existing ETF registration and listing pathways. At the same time, the review reflects concern that faster product launches should not weaken investor protection, market surveillance or the functioning of ETF arbitrage mechanisms.

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Australia’s ASIC extends digital asset licensing relief

Australia’s financial regulator, the Australian Securities and Investments Commission (ASIC), has extended its sector-wide no-action position for digital asset businesses until 30 September 2026, giving firms more time to apply for or vary an Australian Financial Services (AFS) licence. The extension is designed to support a smoother transition into the country’s evolving regulatory framework for digital assets.

The updated position also broadens the scope of relief to cover businesses operating under authorised representative arrangements or intermediary authorisations linked to AFS licence holders. ASIC said the changes are intended to provide greater regulatory certainty while maintaining investor protection and market integrity during the transition.

The extended timeline also applies to applications for Australian Market Licences and Clearing and Settlement facility licences. Firms must notify ASIC of their intention to apply and participate in a pre-application meeting before submitting an application.

ASIC said it has received around 30 licence applications since updating its guidance on digital assets and financial products in October 2025. According to the regulator, extending the no-action position gives firms additional time to adapt to Australia’s evolving Digital Asset Framework and clarified legal requirements.

Why does it matter?

The extension provides digital asset businesses with additional time to adapt to Australia’s evolving regulatory framework without disrupting existing operations. By pairing temporary regulatory flexibility with a clear licensing pathway, ASIC is seeking to encourage compliance while maintaining investor protection and market integrity.

The move also reflects a broader international trend in digital asset regulation. Rather than imposing immediate, sweeping requirements, regulators are increasingly using phased implementation and transitional relief to bring crypto businesses into established financial regulatory frameworks while reducing uncertainty for market participants.

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European Banking Authority proposes framework for MiCA enforcement fines

The European Banking Authority (EBA) has launched a consultation on a draft methodology for calculating fines under the Markets in Crypto-Assets Regulation (MiCA), aiming to ensure penalties are applied consistently, proportionately and transparently.

Under MiCA, the EBA supervises issuers of significant asset-referenced tokens (ARTs) and e-money tokens (EMTs). The proposed methodology explains how fines would be calculated when issuers or members of their management bodies are found to have intentionally or negligently breached regulatory requirements.

According to the EBA, the methodology is intended to improve transparency and consistency in enforcement while helping market participants better understand how supervisory penalties are determined in practice.

The public consultation will remain open until 28 September 2026, with a virtual public hearing scheduled for 16 July. The EBA said all feedback will be published after the consultation as part of its continued implementation of the MiCA framework.

Why does it matter?

The consultation strengthens the enforcement framework underpinning MiCA by claryfing how financial penalties will be calculated for significant crypto-asset issuers. Greater transparency and consistency can improve legal certainty for firms while reinforcing confidence that supervisory actions will be applied fairly across the EU.

The proposal also reflects the continued integration of crypto-assets into mainstream financial regulation. As MiCA moves from rulemaking to supervision and enforcement, detailed methodologies such as this one demonstrate how EU authorities are building a more mature and predictable regulatory environment for digital assets.

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US community lenders oppose stablecoin provisions in crypto bill

US community banks are campaigning against digital asset legislation, arguing it could encourage customers to move deposits from local lenders into stablecoins.

The Independent Community Bankers of America, which represents about 4,000 community banks, has launched an advertising campaign targeting provisions in the Digital Asset Market Clarity Act. The group argues that the bill could allow crypto firms and intermediaries to offer rewards or incentives linked to stablecoin use.

ICBA says such incentives could accelerate deposit outflows from community banks, reducing their ability to lend to small businesses, farmers and local communities. Based on its analysis of industry research, the group estimates that stablecoin-related deposit shifts could reduce community bank deposits by $1.3 trillion and cut lending by $850 billion.

Community banks argue that they play a central role in local credit creation, including agricultural and small-business lending. Bank executives warn that if deposits move into stablecoins, lenders may need to rely on more expensive funding sources, raising borrowing costs and limiting access to credit.

Crypto industry supporters reject the criticism, arguing that the legislation would provide clearer federal rules for digital assets and expand consumer choice. They say banking opposition reflects concern over competition, while banking groups argue they are seeking equivalent regulatory standards rather than protection from innovation.

The dispute highlights a growing policy tension over stablecoins, deposit competition and the role of banks in local economies as US lawmakers consider broader digital asset legislation.

Why does it matter?

The debate shows that stablecoin regulation is not only about crypto market oversight or consumer protection. It also raises questions about the structure of credit creation in the US economy. If stablecoins become attractive alternatives to bank deposits, local lenders argue they could lose funding used for small-business, agricultural and community lending. Crypto supporters see the same issue as an opportunity for competition and innovation. The outcome could shape how digital assets interact with traditional banking, especially outside major financial centres.

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Amazon announces $48 billion investment in India by 2030

Amazon has announced an additional $13 billion investment to expand AI and cloud infrastructure in India, bringing its planned investment in the country to $48 billion between 2026 and 2030.

The company said the new funding will expand AWS data centre capacity in Mumbai and Hyderabad, giving startups, enterprises and government organisations access to AI chips, managed AI services, cloud technologies and developer tools.

The announcement builds on a $35 billion investment across Amazon’s businesses in India announced in 2025. Amazon said its cumulative investments in India from 2010 to 2030 now stand at more than $88 billion.

Beyond AI and cloud infrastructure, Amazon said it will continue investing in its e-commerce and logistics network. The company plans to launch more than 20 new fulfilment centres and over 100 last-mile delivery stations across India this year, with a focus on faster deliveries in smaller cities.

Amazon said it has digitised 12 million small businesses in India, supported 2.8 million jobs, enabled more than $20 billion in cumulative e-commerce exports and trained more than 10 million people in cloud skills.

The company said its long-term priorities in India include AI-led digitisation, export growth and job creation.

Why does it matter?

Amazon’s investment highlights India’s growing role as a major market for AI infrastructure, cloud services and digital commerce. Expanding AWS capacity in Mumbai and Hyderabad could strengthen access to AI compute and cloud tools for businesses, startups and public-sector organisations. The announcement also shows how global technology companies are linking data centre investment with national priorities such as small-business digitisation, skills development, exports and job creation.

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