Economic Archives | Digital Watch Observatory

EU launches protected data register

The European Commission has introduced a European Register of protected data to improve access to public sector information. The initiative is presented through the data.europa.eu platform as part of wider data-sharing efforts.

According to the Commission, the register provides a central point for discovering protected data held by public authorities. It is designed to make such datasets more visible and easier to locate.

The platform helps users identify conditions under which protected data can be accessed and reused. This includes guidance on legal and technical requirements linked to sensitive datasets.

The European Commission states that the register aims to strengthen transparency and data-driven innovation while supporting access to public sector information across the European Union.

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DIFC unveils plan to build ‘AI-native’ financial centre in Dubai

Dubai International Financial Centre has announced plans to become what it describes as the world’s first ‘AI-native’ financial centre, embedding AI into regulation, business operations, and physical infrastructure rather than treating it as a stand-alone tool.

The initiative is being presented as a broader redesign of how a financial centre functions. Instead of limiting AI to back-office support or isolated digital services, DIFC says it wants AI to shape legal frameworks, compliance processes, client management, and the wider operation of the financial ecosystem.

The plan builds on DIFC’s longer-term AI strategy, launched in 2023 and already tied to changes in data governance and the centre’s wider innovation agenda.

According to DIFC, AI is already being used in areas such as compliance and client services, with further expansion planned across financial workflows, supervisory processes, and institutional decision-making.

DIFC also says the initiative will be supported by a broader ecosystem designed to attract investment, talent, and experimentation. That includes training programmes, venture support, accelerators, and the continued development of its AI-focused innovation infrastructure. The aim is not only to encourage firms to use AI, but to make Dubai a base for building and scaling AI-driven financial services.

The project also extends beyond software and regulation. DIFC says physical infrastructure will evolve alongside digital systems, with plans linked to smart buildings, robotics, autonomous mobility, and digital twins by the end of the decade.

That gives the announcement a broader urban and economic dimension, positioning AI as part of the district’s future design rather than simply a tool used by firms within it.

The broader significance of the move lies in how Dubai is trying to position itself in the global race to shape AI in finance. Rather than focusing only on innovation-friendly rhetoric, DIFC is presenting regulation, infrastructure, skills, and ecosystem-building as part of a single strategy.

If realised in practice, that could strengthen Dubai’s role as a hub for AI-driven financial services and as a testing ground for new governance models.

At the same time, the claim to be the world’s first ‘AI-native’ financial centre should be understood as DIFC’s own description of the project, rather than an independently established category.

The more solid story is that Dubai is trying to make AI part of the operating logic of a financial centre itself, using policy, infrastructure, and investment to support that ambition.

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Ofcom closes initial online safety fees notification window

Ofcom has closed the notification window for the initial 2026/27 charging year under the UK’s online safety fees regime, marking an important administrative step in implementing the Online Safety Act. Providers expected to submit a Qualifying Worldwide Revenue return for the first charging year, but who have not yet done so have been asked to contact the regulator as soon as possible.

Under the Online Safety Act 2023, Ofcom’s costs of regulating online safety are to be recovered through fees charged to certain providers of regulated services. Those duties apply to providers whose Qualifying Worldwide Revenue for the relevant period meets or exceeds the threshold set by the Secretary of State, unless they qualify for an exemption.

For the initial 2026/27 charging year, the relevant qualifying period is the 2024 calendar year. The proposed Qualifying Worldwide Revenue threshold is £250 million, while providers are exempt from fee-related duties if their UK referable revenue for that period is below £10 million.

Ofcom says the fees regime is designed to recover its online safety regulatory costs, without exceeding them. The regulator will calculate fees using a single percentage approach based on the total amount to be recovered and the combined revenue base of providers that are liable to pay.

For planning purposes, Ofcom has indicated an annual tariff in the region of 0.02% to 0.03%. However, the final tariff for 2026/27 can only be confirmed once submitted revenue notifications have been assessed. Invoices for the first charging year are expected to be issued by September 2026.

The closure of the notification window is not, in itself, a major policy shift. Its significance lies in showing that the UK’s online safety regime is moving further into its operational phase, where compliance no longer concerns only safety duties and codes, but also the financial architecture needed to support long-term enforcement.

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UK invests £500 million in Sovereign AI fund to boost startups

The UK government has launched a £500 million Sovereign AI initiative to support domestic startups, aiming to strengthen national capabilities and reduce reliance on foreign technology providers.

The programme is designed to help companies start, scale and compete globally while remaining rooted in Britain.

An initiative that combines direct investment with broader support, including fast-track visas, access to high-performance computing and assistance in navigating regulation and procurement.

Early backers target firms working on advanced AI infrastructure, life sciences and next-generation computing, reflecting a strategic focus on sectors with long-term economic and security implications.

A central feature is access to national supercomputing resources, addressing one of the most significant barriers to AI development.

By providing large-scale compute capacity and linking it to potential future investment, the programme aims to accelerate research, testing and deployment within the UK ecosystem.

Essentially, the policy signals a shift toward a more interventionist approach, positioning the state as an active investor rather than a passive regulator.

The objective is to anchor innovation domestically, ensuring that intellectual property, talent and economic value remain within the UK as global competition in AI intensifies.

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New India partnership targets AI innovation and digital transformation

Broadcast Engineering Consultants India Limited (BECIL) and the Centre for Development of Advanced Computing (C-DAC) have signed a Memorandum of Understanding to collaborate on advanced technologies and digital transformation. The agreement focuses on joint projects, consultancy, and technical support across sectors.

The partnership covers AI, machine learning, Internet of Things, cybersecurity, 5G, and cloud computing. It also includes the development of turnkey solutions, technology transfer, and the commercialisation of innovative products.

Capacity development is a key component of the collaboration. Both organisations will support workforce upskilling and skill development to strengthen technical capabilities.

Officials stated that the partnership aims to leverage complementary strengths to deliver technology solutions. It is also expected to support innovation and contribute to India’s broader digital development objectives.

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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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