E-commerce and trade

Luxembourg tightens crypto reporting rules for CASPs

Luxembourg introduced draft Law 8592 outlining registration, due diligence, and reporting duties for crypto-asset service providers. Mandatory reporting starts on 1 January 2026, covering crypto-assets, life insurance income, cross-border rulings, and expanded automatic tax data exchange.

The law applies to a broad range of crypto-asset activities, including portfolio management, custody, and exchange platforms. It also covers crypto-to-fund or crypto-to-crypto transactions and client order execution.

Luxembourg’s definition of crypto-assets aligns with EU MiCAR rules but includes all assets used for payment or investment purposes. Tax authorities will share reported data with the user’s country of residence by 30 September of the following year, starting with 2026.

CASPs must register with Luxembourg tax authorities by 30 June each year for reporting the previous year’s data. MiCAR-authorised operators are exempt from active registration. Penalties range from €5,000 for missed registrations to €250,000 for failing due diligence or reporting obligations.

The law also requires CASPs to verify user information through reasonable due-diligence procedures.

Law 8592 further updates rules on cross-border arrangements, online platform reporting, the Common Reporting Standard, and country-by-country reporting. DAC6 amendments now follow EU Court rulings, keeping lawyers’ client notifications while removing wider intermediary duties.

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Orange suffers major data breach

Orange Belgium has confirmed a data breach affecting 850,000 customers, after a cyberattack targeted one of its internal IT systems. The attack, discovered in late July, exposed names, phone numbers, SIM card details, tariff plans and PUK codes. No financial or password data was compromised.

The telecoms provider blocked access to the affected system and notified authorities. A formal complaint has also been filed with the judiciary. All affected users are being informed via email or SMS and are urged to stay alert for phishing and identity fraud attempts.

Orange Belgium has advised users to strengthen account security with strong, unique passwords and to be cautious of suspicious links and messages. This marks the third cyber incident involving Orange in 2025, following earlier attacks, though those breaches varied in impact.

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Google enhances AI Mode with personalised dining suggestions

Google has expanded its AI Mode in Search to 180 additional countries and territories, introducing new agentic features to help users make restaurant reservations. The service remains limited to English and is not yet available in the European Union.

The update enables users to specify their dining preferences and constraints, allowing the system to scan multiple platforms and present real-time availability. Once a choice is made, users are directed to the restaurant’s booking page.

Partners supporting the service include OpenTable, Resy, SeatGeek, StubHub, Booksy, Tock, and Ticketmaster. The feature is part of Google’s Search Labs experiment, available to subscribers of Google AI Ultra in the United States.

AI Mode also tailors suggestions based on previous searches and introduces a Share function, letting users share restaurant options or planning results with others, with the option to delete links.

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US and EU strike new trade agreement

The United States and the European Union have concluded a trade agreement that lowers tariffs and removes barriers for industrial, agricultural, and digital sectors. The pact formalises July’s commitments and aims to strengthen transatlantic economic ties.

Under the terms, Washington will reduce tariffs on European automobiles from 27.5% to 15% once Brussels lowers restrictions on US goods. Europe also pledged to buy $750 billion worth of American energy and to lift tariffs on all US industrial products.

Agricultural concessions include greater access for dairy, pork, nuts, and seafood, with an extension of the 2020 lobster deal.

The agreement extends beyond trade in goods. Brussels committed not to introduce digital network fees opposed by Washington and promised adjustments to sustainability regulations that could disadvantage non-EU firms.

Both sides emphasised the deal as the first step towards deeper cooperation in trade and investment.

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Google pushes agentic AI worldwide with AI Mode rollout

Google has expanded its AI Mode service to 180 additional countries, extending advanced agentic capabilities to a global audience.

Previously available only in markets such as the US, UK and India, the service allows users to search for information and carry out tasks on their behalf. The update reflects Google’s ambition to move from simple answers to action-oriented assistance.

A key rollout feature is the restaurant booking tool for AI Ultra subscribers. Using natural language requests such as ”find a romantic Italian spot for two tonight,” the system can check availability, offer personalised suggestions and confirm reservations directly within search.

The feature relies on real-time data from partners like OpenTable and highlights how Google’s AI can execute tasks instead of simply presenting options.

Further tools are expected soon, including ticketing for events and appointment scheduling. These are powered by the Gemini models, which tailor recommendations based on user behaviour and allow group planning through shared responses.

While the services could reduce reliance on third-party apps in sectors such as travel and hospitality, they also raise concerns over data privacy, inclusivity and cultural differences in an English-only rollout.

The global expansion strengthens Google’s position against rivals like Microsoft and OpenAI, who are also pushing forward in agentic AI. The company sees subscription upgrades to AI Ultra as a way to offset slower advertising growth, while early reports suggest increased user engagement.

However, the long-term impact will depend on balancing innovation with ethical safeguards as Google works to deliver more multilingual and accessible features.

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Caution rises over inflated AI-driven tech valuations

US tech stocks have stumbled after a sharp rally, with investors increasingly cautious over AI-linked valuations and shifting market conditions. The S&P 500 tech sector has dropped around 2.5% this week, while the Nasdaq has slipped 2%, led by losses in Nvidia and Palantir.

The fall follows a 50% surge in tech shares since April, far outpacing the broader market and pushing valuations to year-highs. Concerns are growing that investor enthusiasm around AI has become overheated, with some funds reducing their exposure ahead of expected interest rate guidance.

US market watchers are now focused on Federal Reserve Chair Jerome Powell’s speech at Jackson Hole, which could signal if rate cuts are on the horizon. Tech stocks, already heavily weighted in many portfolios, are particularly vulnerable to higher rates due to their stretched price-to-earnings ratios.

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Stablecoin growth driven by new Asian currency plans

China is preparing to take a major step in the digital currency race by considering yuan-backed stablecoins, marking a sharp reversal from its earlier tough stance on cryptocurrencies. According to sources, Beijing’s cabinet will soon review a national strategy, with Hong Kong and Shanghai expected to spearhead the rollout thanks to Hong Kong’s recently passed Stablecoins Bill.

The move comes as Japan accelerates its own efforts. JPYC Inc., a Japanese fintech firm, has received regulatory approval to issue a yen-backed stablecoin, also called JPYC. The company plans to sell up to 1 trillion yen ($68 billion) worth of the tokens within three years, each pegged 1:1 to the yen and backed by liquid assets such as government bonds.

These parallel developments in East Asia could challenge the dominance of dollar-backed stablecoins, which currently make up nearly the entire global market. Analysts say the introduction of major Asian currencies into the mix could reshape digital finance and add momentum to regulatory frameworks emerging worldwide.

Stablecoins are increasingly seen as a bridge between traditional finance and digital assets, offering stability that other cryptocurrencies lack. Despite regulatory hurdles and slow adoption, the market is expected to surge to $4 trillion by 2030, signalling how pivotal the latest steps from China and Japan could be for the global financial system.

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AI improves customer experience at Citi

Citi has expanded its digital client platform, CitiDirect Commercial Banking, with new AI capabilities to improve customer service and security.

The platform now supports over half of Citi’s global commercial banking client base and handles around 2.3 million sessions.

AI features assist in fraud detection, automate customer queries, and provide real-time onboarding updates and guidance.

KYC renewals have been simplified through automated alerts and pre-filled forms, cutting effort and processing time for clients.

Live in markets including the UK, US, India, and others, the platform has received positive feedback from over 10,000 users. Citi says the enhancements are part of a broader effort to make mid-sized corporate banking faster, more innovative, and more efficient.

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Japan pledges billions and AI training to Africa

Japan has pledged $5.5 billion in loans and announced an ambitious AI training programme to deepen economic ties with Africa.

At TICAD 9, Prime Minister Shigeru Ishiba proposed creating an Indian Ocean–Africa economic zone to link African nations with Asia and the Middle East.

Japan will also support training 30,000 AI experts over three years to drive digital transformation and job growth across the continent.

The initiative comes amid growing calls from leaders like António Guterres and João Lourenço to overhaul global finance systems and empower African representation.

Japan’s move signals renewed interest in African engagement, as the US scales back and China’s influence expands across the region.

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Honda teams up with US startup on self-driving tech

Honda has entered a multiyear partnership with US-based startup Helm.ai to enhance self-driving systems in its vehicles.

The collaboration focuses on developing advanced driver assistance for Honda’s mass market range, with a target launch set for 2027.

Helm.ai, backed by over $100 million in funding, specialises in AI camera-based perception software and simulation technologies.

Honda has held an equity stake in the firm since 2021, having invested at least $30 million to support early-stage development.

The move places Honda among major global carmakers aiming to deliver partial automation on highways and regular roads. Existing systems like GM’s SuperCruise and Tesla’s Autopilot have already pushed ahead in the driver assistance space.

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