France challenges EU privacy overhaul

The EU’s attempt to revise core privacy rules has faced resistance from France, which argues that the Commission’s proposals would weaken rather than strengthen long-standing protections.

Paris objects strongly to proposed changes to the definition of personal data within the General Data Protection Regulation, which remains the foundation of European privacy law. Officials have also raised concerns about several more minor adjustments included in the broader effort to modernise digital legislation.

These proposals form part of the Digital Omnibus package, a set of updates intended to streamline the EU data rules. France argues that altering the GDPR’s definitions could change the balance between data controllers, regulators and citizens, creating uncertainty for national enforcement bodies.

The national government maintains that the existing framework already includes the flexibility needed to interpret sensitive information.

A disagreement that highlights renewed tension inside the Union as institutions examine the future direction of privacy governance.

Several member states want greater clarity in an era shaped by AI and cross-border data flows. In contrast, others fear that opening the GDPR could lead to inconsistent application across Europe.

Talks are expected to continue in the coming months as EU negotiators weigh the political risks of narrowing or widening the scope of personal data.

France’s firm stance suggests that consensus may prove difficult, particularly as governments seek to balance economic goals with unwavering commitments to user protection.

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Options markets signal caution as Bitcoin steadies

Bitcoin traded sideways on Tuesday after a short-lived rebound from a 10-month low, as caution continued to dominate derivatives markets. Early Asian trading saw limited movement, with prices hovering below $78,500 following a sharp sell-off the previous day.

Options positioning suggests nerves have yet to ease fully. Data from Deribit showed heavy put option concentrations around $75,000, marking a key support level, while the next downside area is seen closer to $70,000.

Although downside protection demand has softened, positioning indicates traders remain defensive.

Signals from perpetual futures markets reinforced the cautious tone. According to CryptoQuant, funding rates turned negative, their weakest since mid-2024, pointing to a market dominated by short sellers.

Implied volatility stayed elevated near 48.8, based on data from TradingView.

Some traders highlighted early signs of stabilisation after aggressive selling. Analysts at FalconX and STS Digital noted that a weekly close below $75,000 could reignite downside pressure, while holding above that level may support a near-term recovery.

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Portugal moves closer to its first cryptobank as Bison Bank advances

Bison Bank plans to integrate Bison Digital Assets into its core operations, moving closer to becoming Portugal’s first cryptobank. The investment bank plans to support client-led asset tokenisation projects, signalling a wider move into regulated digital finance.

The strategy is backed by the EU’s MiCA framework, which provides legal clarity and regulatory certainty for cryptoasset firms. Regulatory approval under MiCA allows the bank to operate in Portugal while dealing in and investing in cryptoassets on behalf of clients.

Alongside the structural integration, the bank outlined three initiatives: issuing the first stablecoin by a Portuguese bank, advancing tokenised asset offerings, and completing its transition into a cryptobank.

Tokenisation is designed to enable fractional ownership, continuous trading, improved liquidity, and transparent settlement for assets ranging from real estate to bonds.

Although no official launch date has been confirmed, chief executive António Henriques indicated that the new services are expected to become available in the first half of the year, subject to final regulatory and operational steps.

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Chinese court limits liability for AI hallucinations

A court in China has ruled that AI developers are not automatically liable for hallucinations produced by their systems. The decision was issued by the Hangzhou Internet Court in eastern China and sets an early legal precedent.

Judges found that AI-generated content should be treated as a service rather than a product in such cases. In China, users must therefore prove developer fault and show concrete harm caused by the erroneous output.

The case involved a user in China who relied on AI-generated information about a university campus that did not exist. The court ruled no damages were owed, citing a lack of demonstrable harm and no authorisation for the AI to make binding promises.

The Hangzhou Internet Court warned that strict liability could hinder innovation in China’s AI sector. Legal experts say the ruling clarifies expectations for developers while reinforcing the need for user warnings about AI limitations.

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The Board of Peace for Gaza: Assessing its legal boundaries and impact on the UN

The adoption of United Nations Security Council Resolution 2803 (2025) marked a significant development in international engagement with the Gaza conflict.

Central to the resolution is the endorsement of a Comprehensive plan to end the Gaza Conflict and the establishment of the ‘Board of Peace’, entrusted with transitional governance and security responsibilities in Gaza.

The initiative has sparked intense debate among diplomats, legal scholars, and policy practitioners. While some view the Board of Peace as a pragmatic response to a prolonged failure of existing approaches, others raise concerns about mandate overreach, accountability, respect for self-determination, and potential erosion of the United Nations’ institutional role.

Webinar objectives:

  • Clarify the legal boundaries of international transitional governance under UN auspices;
  • Assess institutional and accountability risks arising from delegated governance mechanisms; and,
  • Examine longer-term implications for the UN Security Council and the future of (effective) multilateralism.

Mining margins collapse amid falling Bitcoin prices

CryptoQuant data shows Bitcoin mining profitability has fallen to its weakest level in 14 months, as declining prices and rising operational pressure weigh on the sector. The miner profit and loss sustainability index dropped to 21, its lowest reading since November 2024.

Lower Bitcoin prices and elevated mining difficulty have left operators ‘extremely underpaid’, according to the report. Network hash rate has also declined across five consecutive epochs, reaching its lowest level since September 2025 and signalling reduced computing power securing the network.

Severe winter weather across parts of the eastern United States added further strain, disrupting mining activity and pushing daily revenues down to around $28 million, a yearly low. Weaker risk appetite across equities and digital assets has compounded the impact.

Shares in listed miners such as MARA Holdings, CleanSpark, and Riot Holdings have fallen by double-digit percentages over the past week. Data from the Cambridge Bitcoin Electricity Consumption Index shows mining BTC now costs more than buying it on the open market, increasing pressure on weaker operators.

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UK survey shows fewer crypto investors but larger holdings

Financial Conduct Authority research shows UK crypto ownership has declined even as Bitcoin prices surged. Adult participation fell from 12% in 2024 to 8% in the latest survey, equal to about 4.6 million people, although levels remain double those recorded in 2021.

A closer look suggests consolidation rather than collapse. Investors who stayed in the market are committing more capital, with higher-value portfolios becoming more common as retail activity gives way to institutional demand and Bitcoin ETF inflows.

Participants’ knowledge levels are improving. The regulator notes that active investors are more risk-aware and better informed, with ownership skewed towards men aged 18–34 from higher-income demographics and ethnic minority backgrounds.

Bitcoin retains the strongest recognition at 79%, while 57% of current investors hold BTC, a gradual year-on-year increase. Ether ownership stands at 43%, Dogecoin appears in 20% of portfolios, and awareness of newer altcoins remains limited, according to CoinMarketCap.

Stablecoin recognition has risen to 53%, reflecting broader discussion around payments and regulation.

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Deezer opens AI detection tool to rivals

French streaming platform Deezer has opened access to its AI music detection tool for rival services, including Spotify. The move follows mounting concern in France and across the industry over the rapid rise of synthetic music uploads.

Deezer said around 60,000 AI-generated tracks are uploaded daily, with 13.4 million detected in 2025. In France, the company has already demonetised 85% of AI-generated streams to redirect royalties to human artists.

The tool automatically tags fully AI-generated tracks, removes them from recommendations and flags fraudulent streaming activity. Spotify, which also operates widely in France, has introduced its own measures but relies more heavily on creator disclosure.

Challenges remain for Deezer in France and beyond, as the system struggles to identify hybrid tracks mixing human and AI elements. Industry pressure continues to grow for shared standards that balance innovation, transparency and fair payment.

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UK minister signals interest in universal basic income amid rising AI job disruption

Jason Stockwood, the UK investment minister, has suggested that a universal basic income could help protect workers as AI reshapes the labour market.

He argued that rapid advances in automation will cause disruptive shifts across several sectors, meaning the country must explore safety mechanisms rather than allowing sudden job losses to deepen inequality. He added that workers will need long-term retraining pathways as roles disappear.

Concern about the economic impact of AI continues to intensify.

Research by Morgan Stanley indicates that the UK is losing more jobs than it is creating because of automation and is being affected more severely than other major economies.

Warnings from London’s mayor, Sadiq Khan and senior global business figures, including JP Morgan’s chief executive Jamie Dimon, point to the risk of mass unemployment unless governments and companies step in with support.

Stockwood confirmed that a universal basic income is not part of formal government policy, although he said people inside government are discussing the idea.

He took up his post in September after a long career in the technology sector, including senior roles at Match.com, Lastminute.com and Travelocity, as well as leading a significant sale of Simply Business.

Additionally, Stockwood said he no longer pushes for stronger wealth-tax measures, but he criticised wealthy individuals who seek to minimise their contributions to public finances. He suggested that those who prioritise tax avoidance lack commitment to their communities and the country’s long-term success.

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Historic digital assets regulation bill approved by US Senate committee for the first time

The US Senate Agriculture Committee has voted along party lines to advance legislation on the cryptocurrency market structure, marking the first time such a bill has cleared a Senate committee.

The Digital Commodity Intermediaries Act passed with 12 Republicans voting in favour and 11 Democrats opposing, representing a significant development for digital asset regulation in the United States.

The legislation would grant the Commodity Futures Trading Commission new regulatory authority over digital commodities and establish consumer protections, including safeguards against conflicts of interest.

Chairman John Boozman proceeded with the bill after losing bipartisan support when Senator Cory Booker withdrew backing for the version presented. The Senate Banking Committee must approve the measure before the two versions can be combined and advanced to the Senate floor.

Democrats raised concerns about the legislation, particularly regarding President Donald Trump’s cryptocurrency ventures. Senator Booker stated the bill departed from bipartisan principles established in November, noting Republicans ‘walked away’ from previous agreements.

Democrats offered amendments to ban public officials from engaging in the crypto industry and to address foreign-adversary involvement in digital commodities. Still, all were rejected as outside the committee’s jurisdiction.

Senator Gillibrand expressed optimism about the bill’s advancement, whilst Boozman called the vote ‘a critical step towards creating clear rules’. The Senate Banking Committee’s consideration was postponed following opposition from the crypto industry, with no new hearing date set.

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