E-commerce and trade

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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Russian draft law includes 48-hour crypto cooling-off rule

Russian lawmakers are considering a 48-hour cooling-off period for certain cryptocurrency transfers as part of a draft law on digital currencies and digital rights.

The measure would apply to non-qualified investors and is intended to protect users from fraud, according to comments from Vladimir Chistyukhin, First Deputy Governor of the Bank of Russia.

Chistyukhin said the cooling-off period would not apply to cryptocurrency trading itself. He clarified that the mechanism is intended for transfers to other accounts and similar operations, rather than brokerage activity.

The proposal forms part of a broader legislative effort to establish a legal framework for the circulation of cryptocurrencies in Russia. The State Duma adopted the government-backed draft law in its first reading in April.

Russian officials have framed the cooling-off mechanism as a targeted investor-protection tool rather than a broader restriction on market activity.

The proposal reflects a regulatory approach focused on reducing fraud risks while allowing parts of the crypto market to operate under a more formal legal framework.

Why does it matter?

The proposal shows how crypto regulation is moving beyond general warnings and enforcement actions towards safeguards built into transaction flows. A cooling-off period can slow down transfers linked to fraud, giving users and intermediaries more time to detect suspicious activity. The narrow scope is also important: by excluding trading and brokerage activities, Russian regulators aim to reduce consumer harm without directly limiting market liquidity or day-to-day trading.

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Vietnam’s new e-commerce law takes effect

Vietnam’s Law on E-commerce came into effect on 1 July 2026, modernising the country’s digital economy framework after more than a decade of rapid growth in online commerce. The law addresses gaps that previous regulations failed to close, particularly around intermediary platforms, cross-border e-commerce, counterfeit goods, commercial fraud, and consumer rights infringements.

Under the new law, e-commerce platforms must verify sellers’ identities, disclose information about sellers, products and transaction terms, proactively identify violations, and establish effective complaint-handling mechanisms. They are also required to retain transaction data, provide it to authorities on request, and strengthen product information requirements, particularly for sensitive goods.

The legislation also promotes greener e-commerce through more efficient logistics and environmentally friendly packaging, while creating new opportunities for SMEs, household businesses and startups. Consumer protections have been strengthened through clearer rules on complaints, refunds, compensation and personal data, with experts expecting consistent enforcement to improve market confidence over time.

Major e-commerce platforms operating in Vietnam have already begun adapting, including by expanding the use of near-field communication (NFC) technology for seller verification and AI to detect counterfeit and intellectual property-infringing products. Although compliance costs may initially increase, the reforms are expected to reward businesses that invest in higher standards and strengthen the long-term development of Vietnam’s digital marketplace.

Why does it matter?

Vietnam’s new law reflects a broader shift towards platform accountability in digital commerce. By requiring marketplaces to verify sellers, retain transaction data and proactively tackle fraud and counterfeit goods, the government is placing greater responsibility on intermediaries to ensure the integrity of online marketplaces.

The legislation also illustrates how digital economy regulation is evolving beyond consumer protection alone. Combining AI-enabled enforcement, stronger data governance and sustainability measures, the framework aims to support long-term growth in e-commerce while increasing trust in Vietnam’s rapidly expanding digital economy.

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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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