Economic Archives | Digital Watch Observatory

UNCTAD warns least developed countries lag in services export growth

UN Trade and Development said services are reshaping global trade and that many developing and least developed countries remain on the margins of services-driven export growth.

According to UNCTAD, global trade in services grew by about 5.3% annually over the past decade and now accounts for more than a quarter of total trade. The organisation says this growth has been driven by digitally deliverable services, including information technology, finance, and professional services.

UNCTAD says participation remains uneven. Its data show that developing economies recorded the fastest average annual growth in digitally deliverable services exports between 2015 and 2024, while least developed countries lagged behind and saw stronger growth in goods exports than in digitally deliverable services. Separate figures also show that services account for a substantial share of intermediate inputs in both OECD and non-OECD economies.

The organisation links that shift to ‘servicification’, which it describes as the increasing integration of services across production, including logistics, finance, digital design, and marketing. UNCTAD says outcomes for developing economies depend on infrastructure, skills, and regulatory settings that support services-intensive production.

UNCTAD also says trade policy is becoming increasingly important as negotiations include more provisions on digital trade, including cross-border data flows, data protection, electronic transactions, and digital infrastructure. It says such provisions can reduce regulatory fragmentation and improve predictability, while restrictive measures can limit access to key services and reduce participation in global value chains.

The organisation says policymaking remains constrained by limited data, especially in developing countries. Gaps in detailed services trade statistics, including by sector, partner, and mode of supply, make it harder to identify competitive strengths, assess barriers, and negotiate effectively.

UNCTAD convened the 12th session of its Multi-year Expert Meeting on Trade, Services and Development in Geneva on 15 and 16 April to examine servicification and its implications for diversification. According to the organisation, discussions focused on how policy frameworks, regulatory choices, and trade agreements shape outcomes, and on the need to align data, policy, and implementation more closely.

UNCTAD says it is complementing that work with analytical and capacity-building support, including its Primer on data for trade in services and development policies, as well as work with the Caribbean Community through the Trade-in-Services Information System.

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ADR deadline falls for European Commission digital consumer redress tool

The European Commission is required, by 20 April 2026, to develop a user-friendly digital interactive tool providing information on consumer redress, including the use of alternative dispute resolution in cross-border disputes, under Directive (EU) 2025/2647.

According to the directive, the tool must also include links to information on consumer rights, host the lists of alternative dispute resolution entities and notified ADR contact points, and link to their websites. Where available, it must include direct links to ADR complaint forms.

The same provision requires the tool to include a machine translation function, which must be made available free of charge to ADR entities and ADR contact points. The Commis s ion is also required to promote the tool and ensure its technical maintenance.

The directive says the tool aims to help consumers identify appropriate redress options for their specific case, especially in cross-border situations, and to support them in taking the appropriate action.

The recitals state that the additional functions of the tool, including direct links to complaint forms and the machine translation function, should be available as soon as possible, no later than 20 April 2026. Member States are to apply the measures from 20 September 2028.

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ILO warns against treating AI exposure indicators as job-loss forecasts

A new brief from the International Labour Organisation argues that AI exposure indicators should not be treated as forecasts of job losses, even as they become a more common tool for assessing how artificial intelligence could reshape work.

According to the ILO, these indicators can help identify where jobs may be affected by AI. Still, they do not show whether workers will actually be displaced or how labour markets will adjust in practice.

The brief examines how different exposure measures are constructed and why they often produce different results. Earlier approaches to automation focused mainly on routine and lower-skilled work, while newer AI-related models point to greater exposure in higher-skilled cognitive occupations, including roles in finance, computing, business, and education. That shift reflects the growing capacity of AI systems to perform tasks once seen as less vulnerable to automation.

The ILO stresses that exposure does not necessarily lead to job loss. Most indicators rely on static task descriptions and estimate what may be technically feasible, rather than what employers will actually adopt or what makes economic sense. They do not capture whether automation is profitable, whether it improves productivity, or how firms, workers, and institutions may respond over time.

The brief also argues that AI-related disruption is unlikely to stay confined to a narrow set of occupations. Jobs are linked through shared skills, career mobility, and workplace structures, meaning that changes in one part of the labour market can influence broader employment patterns elsewhere. That makes simple occupation-by-occupation risk scores less useful on their own than they may appear.

For that reason, the ILO says exposure indicators should be used as early warning signals rather than stand-alone labour market forecasts. It recommends combining them with evidence on employment, wages, job transitions, and broader economic and institutional conditions to build a more realistic picture of how AI is affecting work.

The broader significance of the brief is that it pushes back against the simplest narratives about AI and employment. Rather than asking how many jobs AI will eliminate, the ILO is urging policymakers to focus on where work may change, how quickly adoption may happen, and what kinds of institutions, skills, and labour protections will shape the outcome.

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ESMA signals end of MiCA transition period as EU crypto enforcement tightens

The EU’s crypto rulebook is moving into a more decisive enforcement stage, with the European Securities and Markets Authority (ESMA) issuing a fresh warning ahead of the end of transitional periods under the Markets in Crypto-Assets Regulation (MiCA).

ESMA says the transition will expire across the EU on 1 July 2026, after which firms providing crypto-asset services to EU clients without MiCA authorisation will be in breach of EU law and must stop offering such services.

Rather than announcing a new rule, ESMA’s statement clarifies what supervisors expect in the final stretch before the deadline. Unauthorised crypto-asset service providers must have credible and immediately executable wind-down plans in place, including arrangements for offboarding clients and transferring assets to an authorised provider or a self-hosted wallet. By 1 July 2026, those plans must already have been implemented.

ESMA also expects authorised providers to prepare for client migration from unauthorised platforms before the deadline, including through robust onboarding procedures and compliance with anti-money laundering and counter-terrorist financing requirements.

National competent authorities are expected to verify wind-down plans, take action against unauthorised providers, and scrutinise migration strategies to prevent firms from continuing business as usual after the transition ends.

The statement also sharpens the message to firms outside the EU. ESMA says third-country entities are not permitted to provide MiCA services to EU investors or solicit EU clients, except in the narrow case of reverse solicitation. It also warns against outsourcing or delegation arrangements that would allow unauthorised non-EU entities to continue serving EU clients indirectly.

For users, ESMA’s message is straightforward: protections under MiCA depend on dealing with an authorised EU entity, not simply a familiar brand name.

Investors are being urged to verify whether their provider appears in ESMA’s interim MiCA register and, where necessary, move assets to an authorised provider or a self-hosted wallet.

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New Zealand steps up crypto tax enforcement with stronger data scrutiny

New Zealand’s Inland Revenue has stepped up its push for crypto tax compliance, warning investors to review their obligations as authorities expand enforcement using transaction data and new reporting tools. Officials say they have identified around 355,000 users involved in roughly 57 million crypto transactions worth a combined NZ$36 billion.

Under current tax rules, crypto-assets are treated as property, meaning profits from selling, trading, or exchanging digital assets are generally considered taxable income. Those gains must be declared as part of annual income and taxed under standard income brackets.

Inland Revenue says stronger data access and analytics have significantly improved its ability to identify potential non-compliance. The planned adoption of the Crypto-Asset Reporting Framework will further widen that reach by enabling cross-border data sharing and helping authorities detect offshore crypto activity involving New Zealand residents.

Initial compliance action is already underway. Inland Revenue has begun sending letters to individuals flagged for crypto trading activity, urging them to review previous filings and submit an IR3 return where necessary, as officials compare declared income with transaction records.

The move reflects a broader shift in how governments are approaching digital assets. Rather than treating crypto as a loosely visible or marginal market, tax authorities are increasingly folding it into mainstream financial oversight, backed by stronger reporting standards and more detailed transaction-level scrutiny.

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South Korea’s Fair Trade Commission closes consultation on domestic agent rules for foreign platforms

South Korea’s Fair Trade Commission closes its public consultation on proposed amendments to the Enforcement Decree of the Act on Consumer Protection in Electronic Commerce, including new rules on domestic agents for certain overseas businesses.

According to the Fair Trade Commission, an overseas business without an address or place of business in South Korea would be required to designate a domestic agent if it meets at least one of three criteria: sales in the previous year exceeding ₩1 trillion, an average of more than 1 million domestic consumers accessing the cyber mall each month in the three months immediately preceding the end of the previous year, or a Fair Trade Commission request to submit reports and materials.

The proposed rules would also require overseas businesses, once a domestic agent is designated, to submit the agent’s name, address, telephone number, and email address to the Fair Trade Commission in writing without delay and to disclose that information on the first screen of the cyber mall they operate.

The Fair Trade Commission also says the amendments would establish business suspension standards for violations of the domestic agent obligation. According to the proposal, a first violation would lead to a three-month business suspension, a second violation to six months, and a third violation to 12 months.

In the same legislative notice, the Fair Trade Commission also proposed reducing the scope of identity information that platforms facilitating person-to-person transactions must verify for individual sellers, from five items to two: telephone number and email address.

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Illegal cryptocurrency circulation to carry prison sentences in Russia

Russia’s government commission on legislative activity has approved new measures introducing criminal liability for large-scale cryptocurrency operations conducted without the central bank’s authorisation.

The proposal establishes penalties for the illegal organisation of digital currency circulation where significant damage or substantial financial gain is involved.

Under the approved amendments, individuals found to be organising crypto transactions in violation of Russian law could face prison sentences of 4 to 7 years. The rules apply to cases involving harm to individuals, organisations, or the state, or large-scale illicit income.

The draft introduces a new Article 171.7 into the Russian Criminal Code, formally defining ‘illegal organisation of digital currency circulation’ as a punishable offence. The measures are expected to come into force on 1 July 2027, marking a significant tightening of enforcement in the country’s digital asset sector.

By introducing custodial penalties, Russia is raising the legal and financial risks for unlicensed digital asset activity, which could deter informal market participation and push activity towards regulated channels.

In the broader context, it reflects a global trend in which governments are moving to formalise oversight of crypto markets in response to concerns about financial crime, capital flows, and systemic risk.

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EU updates technology licensing competition rules to reflect data and digital markets

The European Commission has adopted revised rules governing technology transfer agreements (Technology Transfer Block Exemption Regulation and Guidelines on the application of Article 101 of the Treaty to technology transfer agreements), updating a framework originally introduced in 2014.

These changes aim to reflect developments in the digital economy, particularly the growing role of data and standardised technologies in enabling interoperability across markets.

Technology transfer agreements allow firms to license intellectual property such as patents, software and design rights, supporting the dissemination of innovation. While such agreements are often considered pro-competitive, they may also create risks if they restrict market access or distort competition.

The revised framework clarifies how these agreements are assessed under Article 101 of the Treaty on the Functioning of the European Union.

The updated rules introduce specific guidance on data licensing and licensing negotiation groups, addressing new market practices.

They also refine conditions under which agreements benefit from exemptions, including simplified criteria for early-stage technologies and clearer safeguards for technology pools linked to industry standards.

Overall, the revision by the EU seeks to improve legal certainty for businesses while ensuring that licensing practices support innovation, competition and the broader functioning of the single market. The new framework will apply from May 2026.

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EU proposes data sharing measures for Google under Digital Markets Act

The European Commission has issued preliminary findings proposing measures for Google under the Digital Markets Act, focusing on access to search engine data.

These measures aim to ensure that third-party services can compete more effectively in digital markets characterised by high concentration.

The proposal would require Google to provide access to key categories of search data, including ranking, query, click and view data, on fair, reasonable and non-discriminatory terms.

Eligible recipients may include competing search engines as well as AI-based services with search functionalities.

Additional provisions address how data should be shared, including frequency, technical access conditions and pricing parameters. The framework also includes safeguards for anonymisation, reflecting the need to balance competition objectives with data protection requirements.

The Commission has opened a public consultation to gather stakeholder input on the proposed measures.

A case that illustrates ongoing efforts to operationalise the Digital Markets Act by addressing structural imbalances in access to data within the platform economy.

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UK moves closer to full crypto regime with FCA consultation

The UK Financial Conduct Authority (FCA) has launched a consultation on guidance for the country’s upcoming crypto regulatory regime, marking another step towards a full framework expected to take effect in October 2027.

The consultation covers key areas including stablecoins, trading platforms, custody and staking, as regulators seek to shape how firms will operate under the new system.

The FCA said the guidance is intended to help firms understand how future requirements will apply and to support the development of a ‘competitive and sustainable’ crypto sector.

Industry feedback is being invited until June 2026, with companies able to begin applying for authorisation from September 2026, ahead of the regime’s full implementation.

Further consultations have already been issued since late 2025, covering market abuse, prudential standards, and operational requirements for crypto firms.

Under the proposed system, all crypto service providers will need authorisation under the Financial Services and Markets Act, with existing registrations not automatically carrying over.

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