E-commerce and trade Archives | Digital Watch Observatory

Europol warns of rising online exploitation of minors

Europol has warned that criminal networks are increasingly using digital platforms to target, manipulate and recruit minors into criminal activity.

The agency said offenders exploit online environments, including dark web portals, social media networks, games and e-commerce platforms, which can offer anonymity, reach and operational efficiency. Europol and the EU member states have observed growing use of these digital tools to target and recruit minors.

According to Europol, young people are being drawn into offences including cyberattacks, drug distribution, online fraud and money laundering. In some cases, minors are also exposed to extremist ideologies, manipulation and pressure from online communities.

Europol said digital tools have made recruitment easier to scale and harder to detect. Minors may initially be approached as victims, but can later be pressured into carrying out further offences, increasing both the harm to the child and the reach of criminal networks.

The agency said it is working with the EU member states and international partners to strengthen intelligence sharing, operational support and the disruption of criminal groups. Prevention efforts also include awareness-raising and guidance for parents, educators and communities to help identify risks and support vulnerable minors.

Why does it matter?

The warning shows how child safety and organised crime are increasingly overlapping in online spaces. Social media, gaming environments, e-commerce platforms and dark web channels can be used not only to exploit minors, but also to recruit them into cybercrime, fraud, drug distribution or extremist networks. That creates a governance challenge for law enforcement, schools, parents and platforms, especially where manipulation, anonymity and cross-border digital services make early detection difficult.

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Yen stablecoin planned by Japan’s largest lenders

Japan’s three largest banking groups aim to conduct live commercial transactions using a jointly issued stablecoin during fiscal year 2026, marking a significant step for the country’s regulated digital payments market.

MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation said the stablecoin would be issued under a trust agreement, with the three banks acting as joint settlors and a trust bank or similar institution acting as trustee.

The banks have signed a memorandum of understanding to establish a voluntary council to examine operational frameworks, governance, and other requirements for practical implementation. The stablecoin initiative follows a demonstration experiment selected in 2025 by Japan’s Financial Services Agency under its FinTech Proof-of-Concept Hub.

The banks said they plan to accelerate work towards live transactions in fiscal year 2026, while taking account of relevant laws, regulations and market trends. The council will also consider possible collaboration with other financial institutions and stakeholders.

The initiative comes as Japan continues to develop a regulated stablecoin market. Amendments to the Payment Services Act that took effect in June 2023 created a legal framework for fiat-backed stablecoins as electronic payment instruments, while recent rule changes have further clarified conditions for foreign stablecoins and cross-border digital payment activity.

Why does it matter?

The project shows how stablecoin development is moving from crypto-native markets into regulated banking infrastructure. A jointly issued stablecoin by Japan’s largest banks could support payments, settlement and cross-border transactions while keeping issuance within a supervised financial framework. It also signals Japan’s effort to position stablecoins as part of mainstream payment infrastructure rather than a parallel, lightly regulated crypto market.

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Philippine regulator tightens oversight of digital assets

The Bangko Sentral ng Pilipinas has issued new coin and token listing guidelines for virtual asset service providers, setting clearer expectations for due diligence, monitoring and delisting.

The memorandum applies to all VASPs and clarifies how providers should review virtual assets before listing or offering them to customers. The central bank said the guidelines are intended to support financial stability and protect customers by ensuring virtual asset services are provided in a safe, sound and consumer-focused way.

VASPs are expected to assess coins and tokens across six areas: issuer background, market maturity, use cases, transparency, traceability and security, redemption, liquidity and reserves, and legal and compliance considerations.

For asset-backed or fiat-backed tokens, the guidelines call for information on lifecycle processes, reserve composition, reserve verifiability and stabilisation mechanisms. Providers should also assess cybersecurity risks, blockchain traceability, independent audits, legal status in other jurisdictions and potential anti-money laundering risks.

The BSP also requires VASPs to conduct ongoing monitoring of listed assets and define thresholds that would trigger suspension or delisting. Privacy-enhancing virtual assets, also known as privacy coins, remain prohibited from being listed or supported by licensed providers.

Why does it matter?

The guidelines show how crypto oversight is moving from licensing exchanges towards detailed supervision of which tokens can be offered to consumers. By requiring structured due diligence, reserve checks, legal review, cybersecurity assessment and delisting triggers, the Philippines is aligning digital asset oversight more closely with risk management and consumer protection. The stablecoin-related checks are especially relevant as regulators globally focus on reserve quality, redemption rights and market stability.

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Europol-backed operation dismantles crypto laundering service used by ransomware gangs

An international law enforcement operation has dismantled a cryptocurrency laundering service allegedly used by ransomware gangs and cybercriminal networks to process more than €336 million in illicit funds.

The platform, known as ‘AudiA6’, is suspected of laundering proceeds from ransomware attacks, large-scale cryptocurrency thefts and other cybercrime activity between 2022 and 2025. Europol said the service was linked through its analysis to more than 15 international cybercrime investigations.

The coordinated action, supported by Europol and Eurojust, led to the arrest of two alleged administrators in Georgia. Authorities also took down 25 domains, seized more than 30 servers, blocked Telegram accounts used by the network and froze or seized cryptocurrency assets worth more than €778,000.

Investigators allege that the service used thousands of fraudulent exchange accounts created with stolen or purchased identities. Criminal clients allegedly transferred cryptocurrency to wallets controlled by the group and received laundered funds through complex transaction chains designed to obscure the money trail.

Authorities also confiscated more than 80 vehicles and several properties in Georgia. Europol said the case highlights how specialised money laundering services help sustain ransomware and other forms of cybercrime by making it easier for criminal groups to cash out stolen digital assets.

Why does it matter?

Crypto laundering services are a key part of the cybercrime economy because they allow ransomware groups and other attackers to turn stolen digital assets into usable funds. Disrupting such infrastructure can weaken criminal business models. Still, the case also shows why cybercrime investigations increasingly require cooperation between cyber units, financial investigators, prosecutors, crypto exchanges and cross-border law enforcement agencies.

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Kraken becomes official crypto exchange supporter of FIFA World Cup 2026

Cryptocurrency exchange Kraken has been named the Official Crypto Exchange Supporter of the FIFA World Cup 2026, extending the visibility of digital asset firms in mainstream sports and entertainment.

According to Kraken, the partnership will focus on fan activations and product experiences across the tournament’s 16 host cities in Mexico, Canada and the United States. The company said the event is expected to reach a cumulative global audience of more than six billion people during its seven-week run.

The FIFA World Cup 2026 will be the first edition of the tournament to feature 48 teams, with 104 matches scheduled from 11 June to 19 July 2026. Kraken said the partnership is part of its broader strategy to use sports and cultural partnerships to raise awareness of digital assets.

The collaboration is expected to begin with the FIFA World Cup 2026 Countdown Concert, followed by further fan-focused programming during the tournament.

The announcement reflects the continued use of global sports events by crypto companies to reach mainstream audiences, even as digital asset products remain subject to regulatory scrutiny and consumer-risk concerns in many markets.

Why does it matter?

The partnership shows how crypto firms continue to use high-visibility sports events to reach mass audiences and normalise digital asset products. For digital policy, the relevant issue is not the sponsorship itself, but the consumer protection and regulatory context around crypto promotion, especially when marketing is attached to global events watched by millions of casual fans.

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Visa expands AI and stablecoin tools for programmable commerce

Visa has announced new AI, stablecoin and tokenisation capabilities aimed at supporting agentic and programmable commerce.

The updates were presented at the Visa Payments Forum 2026 and focus on transactions initiated or supported by AI agents, as well as blockchain-based settlement and value transfer. Visa said the tools are intended to add trust, security and control as commerce becomes more automated.

The company introduced Agent Score, which allows merchants to assess whether their websites are ready for AI agents to navigate and complete tasks. It also announced an Agentic Directory of verified agents and merchants, intended to help participants identify legitimate actors in agentic commerce.

Visa also announced a strategic partnership with OpenAI that would allow AI agents to initiate Visa payments within defined user permissions. OpenAI will provide the conversational interface, while Visa will provide the underlying payment infrastructure.

The company introduced a Large Transaction Model trained on billions of transactions to improve fraud detection, authorisation performance and reduce false declines. It also announced token enhancements designed to add more transaction context, identity, permissions and behavioural signals to digital payment credentials.

On the settlement side, Visa said it is developing technology that would allow banks to issue tokenised deposits and is expanding stablecoin settlement pilots across multiple regions, blockchains and currencies. The company said it has moved billions of dollars in stablecoins across VisaNet, with an annualised run rate of about $7 billion as of March 2026. More than 160 stablecoin-linked card programmes are live or in development globally, according to Visa.

Why does it matter?

Visa’s announcements show how major payment networks are preparing for AI agents to initiate transactions and for stablecoins and tokenised deposits to play a larger role in settlement. The policy relevance lies in trust infrastructure: verifying agents and merchants, defining user permissions, managing fraud risk, strengthening digital identity signals and keeping programmable payment systems within regulated financial channels.

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Crypto mixers gain recognition in US Treasury assessment

The US Treasury Department has acknowledged that cryptocurrency mixers may have lawful privacy uses, while warning that such tools remain vulnerable to abuse by illicit actors.

In a March 2026 report to Congress on innovative technologies to counter illicit finance involving digital assets, Treasury said lawful users may rely on mixers to protect sensitive financial information when transacting on public blockchains. The report said users may seek to conceal details about personal wealth, business payments, charitable donations or consumer spending habits.

Treasury distinguished between custodial digital asset services, including custodial mixers, and decentralised or non-custodial mechanisms that can operate without a central intermediary. Custodial services that accept and transmit value may be required to register with the Financial Crimes Enforcement Network as money services businesses, maintain records and file suspicious activity reports.

The report nevertheless stressed that criminals commonly use mixers, bridges and swaps to make illicit digital asset flows harder to trace. Treasury said mixing is frequently used by North Korea-linked cyber actors, money launderers, ransomware actors and darknet market participants.

Treasury also warned that stablecoins can form part of complex laundering processes involving mixers and other obfuscation techniques. According to the report, illicit actors may move stolen or fraud-linked assets through mixers and then swap them into stablecoins to break the traceable link to the original criminal activity.

The assessment was prepared under the GENIUS Act, which required the Treasury to examine innovative tools for countering illicit finance involving digital assets, including the role of mixers, tumblers and similar services.

Why does it matter?

The report shows the regulatory tension at the centre of digital asset policy: privacy tools can protect legitimate users on transparent public blockchains, but the same tools can also weaken AML/CFT controls, sanctions enforcement and law enforcement tracing. Treasury’s framing matters because future rules on mixers, DeFi, blockchain analytics and stablecoin compliance will need to balance financial privacy with security and illicit finance risks.

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Russian State Duma advances crypto licensing bill in first reading

Russia’s State Duma has approved the first reading of draft law No. 1194918-8, ‘On Digital Currency and Digital Rights’, moving the country closer to a formal legal framework for cryptocurrency activity.

The bill would establish a legal framework for the circulation of digital currencies in Russia and vest key supervisory powers in the Bank of Russia. It would also reform parts of the existing framework for digital financial assets and digital rights.

The proposed legislation would channel cryptocurrency activity through regulated intermediaries, including licensed exchanges, brokers, and authorised financial entities. Firms already operating within the Bank of Russia’s experimental legal regime would be able to use simplified approval procedures.

The draft maintains Russia’s prohibition on the use of cryptocurrency for domestic payments, while creating a framework for the use of digital currencies in foreign trade and cross-border settlements.

Retail access would remain limited. Non-qualified investors would be subject to purchase limits, while professional participants and licensed institutions would operate with broader access under regulatory oversight.

The bill would also define digital currency as property, strengthening its legal status in areas such as disputes, enforcement, and insolvency.

The proposal reflects Russia’s effort to bring cryptocurrency activity under tighter state supervision while preserving selected use cases for international transactions. The bill must still pass further readings before becoming law.

Why does it matter?

The bill shows how Russia is moving towards a controlled crypto framework rather than full market liberalisation. By allowing regulated circulation through licensed intermediaries while maintaining a ban on domestic payments, the proposal would give the state greater oversight of digital asset activity. The foreign trade angle is especially significant because Russia has been exploring alternative settlement channels amid sanctions and restrictions on access to traditional financial infrastructure.

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Hungary prepares rollback of crypto penalties

Hungary is preparing a significant shift in its digital asset policy after newly appointed Science and Technology Minister Zoltán Tanács announced plans to dismantle restrictive measures imposed by the previous government. The proposed changes would remove criminal penalties for unauthorised crypto services, marking a clear reversal in national regulatory direction.

The earlier framework, introduced in July 2025, tightened oversight of crypto activity and led several firms to scale back services in the country due to increased compliance pressure. The incoming policy direction frames those measures as politically driven rather than market-supportive, signalling a shift toward regulatory easing and improved competitiveness.

Alongside crypto reform, authorities are also reassessing cybersecurity auditor obligations linked to the EU’s NIS2 directive, a regulatory structure designed to strengthen digital infrastructure resilience. The changes could affect roughly 4,000 Hungarian companies approaching a 30 June compliance deadline, adding urgency to the policy review.

Hungary’s broader digital strategy appears to be aligning more closely with EU-wide standards such as the Markets in Crypto-Assets framework, which aims to harmonise rules across member states. The government is also reportedly drawing inspiration from Estonia’s digital governance model, seeking a more innovation-friendly regulatory environment while maintaining alignment with the EU.

Why does it matter?

If Hungary follows through, the shift could improve regulatory predictability across Central Europe, support the return of fintech and crypto firms, and increase competitive pressure on jurisdictions that continue to apply stricter or less consistent crypto rules.

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EU and India deepen digital cooperation through Tech Business Forum

The European Union and India have concluded the first EU-India Tech Business Forum in New Delhi, advancing digital and trade cooperation under the framework of the EU-India Trade and Technology Council (TTC). The forum brought together businesses, policymakers, researchers, think tanks, and civil society to strengthen private-sector collaboration and identify opportunities for joint innovation.

The forum was organised by the EU Delegation to I n dia and Bhutan and India’s Ministry of Electronics and Information Technology, with support from industry organisations including the Federation of European Business in India and the National Association of Software and Service Companies (NASSCOM).

More than 100 European and Indian technology companies participated in discussions covering semiconductors, AI, cybersecurity, data governance and digital public infrastructure.

Participants explored opportunities to strengthen interoperability, advance cooperation on technical standards and improve market access for companies operating in both markets. The forum also aimed to operationalise wider EU-India cooperation, including the recently concluded Free Trade Agreement and the Administrative Arrangement on Advanced Electronic Signatures and Seals signed under the Trade and Technology Council in January 2026.

Speaking at the forum, EU Ambassador to India Hervé Delphin said:

‘In today’s fragmented world, working with trusted partners like India is essential to diversify supply chains and reduce over-reliance on certain sources and geographies.‘

He said Europe brings strengths in advanced technology, innovation, and regulation, while India offers scale, talent, and technological applications.

The forum’s outcomes are expected to shape the next steps in EU-India digital and trade cooperation. The Trade and Technology Council remains the primary framework for EU-India cooperation on strategic technologies, digital governance and connectivity, covering areas such as digital public infrastructure, semiconductors, data governance and emerging technologies.

Why does it matter?

The EU and India are seeking to deepen cooperation on strategic technologies at a time when governments are prioritising supply chain resilience, digital sovereignty and secure technology partnerships. Closer collaboration in areas such as AI, semiconductors and cybersecurity could help both sides reduce dependencies and strengthen innovation ecosystems.

The forum also demonstrates the growing role of technology diplomacy in trade relations, with policymakers and businesses working together to address standards, interoperability and market access challenges that increasingly shape the global digital economy.

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