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UK and Malaysia launch negotiations on digital trade agreement

The UK and Malaysia have launched negotiations on a digital trade agreement aimed at supporting economic growth, creating jobs and expanding cross-border digital services.

The UK government said the talks mark the next step in its effort to strengthen the country’s role as a global hub for services and digital trade. Digital trade encompasses the exchange of goods, services and data that are enabled or delivered through digital technologies.

The proposed agreement could support activities such as UK businesses selling software to overseas customers through online platforms or providing financial consultancy services remotely across borders.

The UK said standalone digital trade agreements can deliver benefits similar to digital trade chapters in traditional free trade agreements while remaining more agile, flexible and quicker to negotiate and implement.

The UK and Malaysia already maintain a growing trade relationship. The UK said bilateral trade was worth £6.4 billion in 2025, and that it exported £730 million in digitally delivered services to Malaysia in 2023. The UK also cited OECD estimates showing that exports to Malaysia supported 31,100 UK jobs in 2022.

The proposed digital trade agreement aims to make trade with Malaysia easier, cheaper, and more secure through cross-border data flows. Other potential benefits include reducing paperwork and border friction through digital systems.

The agreement could also include provisions on personal data protection, intellectual property rights, online consumer protection and cybersecurity cooperation. The UK said the deal aims to strengthen international digital and technology cooperation by supporting responsible innovation in areas such as AI and data.

The government said the agreement could create new partnerships that support more efficient supply chains, infrastructure, and global competitiveness.

UK Trade Minister Chris Bryant said launching negotiations with Malaysia marks an important step in strengthening the UK’s position as a global leader in digital trade.

Bryant said a UK-Malaysia digital trade agreement could unlock new opportunities for British businesses, support high-skilled jobs, and help firms compete in fast-growing, technology-driven markets.

Why does it matter?

Digital trade is becoming a central pillar of international economic policy as services, data flows and digital platforms play a growing role in global commerce. For economies such as the UK, which have strong services sectors, agreements that facilitate cross-border data flows and remote service delivery can create new opportunities for businesses while reducing regulatory and administrative barriers.

The negotiations also reflect a broader shift towards standalone digital trade agreements as a faster and more flexible alternative to traditional trade deals. Beyond commercial benefits, such agreements increasingly address issues including AI governance, cybersecurity, consumer protection and data regulation, making them important instruments for shaping the rules of the digital economy and strengthening international digital cooperation.

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OECD report highlights AI’s growing role in workforce training

AI is beginning to reshape how vocational education and training (VET) systems design qualifications, update curricula and respond to rapidly changing labour market demands, according to a new OECD report.

As economies undergo digital and green transitions, education authorities face growing pressure to ensure training programmes remain aligned with evolving workforce needs.

The report finds that AI is already being used across parts of the vocational education ecosystem to analyse labour market trends, identify emerging skills gaps, map competencies and support curriculum development.

Countries, including the Netherlands, Switzerland, Estonia and Germany, have launched pilot initiatives using AI tools to accelerate and improve qualification design and revision processes.

AI is also being explored as a mechanism for supporting modular learning pathways and micro-credentials in sectors experiencing rapid technological change.

Despite growing interest, the OECD stresses that AI adoption remains uneven and largely experimental. Most systems continue to rely on traditional governance structures involving employers, industry representatives, educators and public authorities.

Rather than replacing existing governance processes, AI is currently being used to support evidence gathering, stakeholder consultations and administrative functions. The organisation notes that countries with strong digital infrastructures and advanced labour market intelligence systems are better positioned to move from isolated pilots to broader implementation.

The report also warns that broader AI adoption could introduce new risks for vocational education systems. Concerns include biased outputs, poor data quality, reduced transparency, cybersecurity vulnerabilities and the possibility of weakening collaborative decision-making.

To address these challenges, the OECD argues that AI deployment must remain human-centred and operate within robust governance frameworks. Maintaining accountability, ensuring stakeholder participation and protecting data integrity will be critical as governments increasingly integrate AI into education and workforce development policies.

Why does it matter?

Vocational education systems play a critical role in preparing workers for changing labour markets. As digitalisation, automation and the green transition reshape skills demand, governments are looking for ways to update qualifications and training programmes more quickly. The OECD report suggests that AI could help education systems identify emerging workforce needs, improve labour market intelligence and make curriculum development more responsive.

At the same time, the report highlights that technological innovation alone is unlikely to solve skills challenges. The effectiveness of AI in vocational education will depend on strong governance, reliable data, stakeholder participation and human oversight. How governments balance efficiency gains with transparency, accountability and trust could shape the future of workforce development and lifelong learning policies.

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Bank of England drops stablecoin holding limits in revised framework

The Bank of England has revised its proposed regulatory approach for sterling-denominated systemic stablecoins, removing planned individual holding limits and introducing a temporary £40 billion issuance guardrail for each systemic stablecoin.

The policy statement and draft Code of Practice set out how the Bank intends to regulate stablecoin issuers that become systemic because their use in payments could pose risks to UK financial stability. The final Code of Practice is expected by the end of 2026.

The Bank said it had changed its approach following industry feedback on two key issues: backing asset composition and holding limits. Earlier proposals would have imposed individual limits of £20,000 per coin for individuals and £10 million for businesses, with possible exemptions.

Instead, the Bank now plans to use a temporary issuance guardrail, initially set at £40 billion per systemic stablecoin. The Bank said the approach would be simpler to implement while still managing credit risks as stablecoins scale.

Backing asset rules have also been adjusted. The Bank now proposes a steady-state backing asset composition of 70% short-term UK government debt and 30% unremunerated Bank of England deposits, compared with an earlier 60/40 proposal. It said the change should support more viable stablecoin business models while maintaining safeguards for financial stability.

The framework forms part of the UK’s wider stablecoin regime, under which the FCA will regulate qualifying stablecoin issuance, custody and trading, while systemic stablecoins recognised by HM Treasury will be regulated jointly by the Bank and the FCA.

The Bank said the approach is intended to support innovation and market entry while preserving trust in money, safeguarding financial stability and enabling sterling-denominated stablecoins to operate at scale.

Why does it matter?

The Bank of England’s revised approach shows the UK trying to make systemic stablecoin regulation more workable without abandoning financial stability safeguards. Removing individual holding limits addresses a major industry concern, while the £40 billion issuance guardrail keeps regulatory focus on systemic scale rather than day-to-day user holdings. The framework also matters because stablecoins are being treated as part of the UK’s future payments landscape, alongside bank deposits, tokenised deposits and potentially a retail CBDC.

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UNESCO launches consultation on fair compensation for news in the AI era

UNESCO has launched a global consultation on its Draft Guidance on Fair Compensation for News, seeking input on how journalism should be remunerated as digital platforms and AI systems increasingly rely on news content.

The draft guidance argues that the media sector is undergoing significant structural change, including declining funding for public-interest journalism and the contraction or closure of local and community news outlets.

According to UNESCO, a small number of major digital platforms and AI companies now play a central role in content discovery, audience access, and digital advertising markets. These developments have significantly altered the economic conditions in which journalism operates.

Governments, regulators, media organisations, civil society groups, academics and other stakeholders are invited to submit feedback until 30 July. UNESCO will also hold regional online roundtables to gather additional input.

The initiative builds on UNESCO’s 2023 Guidelines for the Governance of Digital Platforms and its broader work on AI governance and media sustainability. UNESCO expects to publish the final guidance, together with a summary of consultation contributions, later this year.

Why does it matter?

The consultation reflects growing international concern about the sustainability of journalism in a digital environment increasingly shaped by large technology platforms and AI systems. As news content is used to power search engines, recommendation systems and generative AI applications, policymakers and media organisations are debating how value created from journalistic work should be shared with the publishers and journalists who produce it.

The initiative also sits at the intersection of media policy, platform governance and AI regulation. Questions surrounding compensation, transparency and access to content are becoming increasingly important as AI systems change how people discover and consume news. UNESCO’s guidance could help inform future regulatory approaches and industry practices aimed at supporting independent journalism while preserving an open and innovative digital ecosystem.

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Cybercriminals exploit World Cup hype with phishing schemes

Cybercriminals are exploiting World Cup interest through fake streaming platforms, phishing campaigns, counterfeit online stores and betting-related scams, according to Kaspersky researchers.

The security company said it had identified more than 336 fake websites designed to imitate official World Cup pages. Many scams target fans looking for cheaper tickets, free match streams or tournament merchandise.

Some fake streaming sites ask users to register and pay for access to matches, sometimes using cryptocurrency. Others collect personal data that can later be used in further phishing attacks.

Kaspersky also identified counterfeit merchandise shops, fraudulent betting schemes and phishing emails promoting fake offers or paid predictions. Some scams rely on urgency, limited-time claims and professional-looking websites to pressure users into sharing payment or personal information.

The company warned that AI-generated websites and more polished scam designs are making fraudulent pages harder to distinguish from legitimate services during high-demand events.

Kaspersky advised fans to use official sources, check website addresses carefully and avoid offers that promise free access, unrealistic discounts or guaranteed betting results.

Why does it matter?

Major sporting events create ideal conditions for online fraud because demand, urgency and emotion are all high. World Cup scams show how criminals combine phishing, fake e-commerce, streaming fraud and social engineering to steal money and personal data. The use of polished or AI-generated websites also reflects a wider challenge for consumer protection: scams are becoming easier to create at scale and harder for users to recognise.

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EU selects EUROPA consortium to build multilingual frontier AI model

The European Commission has selected the EUROPA consortium, led by Italian company Domyn, as the winner of its Frontier AI Grand Challenge. The project will develop a large-scale open-source AI model capable of operating across all 24 official languages of the EU.

Launched in February 2026, the competition challenged European AI innovators to propose a frontier model exceeding 400 billion parameters, a scale typically associated with some of the world’s most advanced AI systems.

The Commission said the initiative demonstrates Europe’s capacity to develop advanced AI using its domestic talent, infrastructure and industrial capabilities.

The EUROPA model will be openly accessible and designed to support businesses, researchers, public institutions and developers across the EU. By covering every official EU language, the project aims to address Europe’s linguistic diversity while expanding access to advanced AI technologies.

The Commission views the project as a strategic step towards greater technological sovereignty, strengthening Europe’s AI ecosystem while promoting openness, trust and European values in AI development.

Why does it matter?

The EUROPA project reflects Europe’s growing determination to develop advanced AI capabilities within its own technological ecosystem. As AI becomes increasingly important for economic competitiveness, public services and scientific research, access to large-scale models is emerging as a strategic capability alongside semiconductors, cloud infrastructure and high-performance computing.

The initiative is also notable for its focus on linguistic diversity and open access. By developing a frontier model capable of operating across all 24 official EU languages and making it openly available, the project aims to broaden participation in AI innovation while reducing dependence on a small number of predominantly US-based providers. Its success could become an important test of Europe’s ability to combine technological sovereignty with open and collaborative AI development.

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EU introduces updated crypto anti-money laundering framework for 2027

The European Union has adopted new anti-money laundering (AML) rules that will prohibit regulated crypto-asset service providers from supporting privacy-focused cryptocurrencies from July 2027. The measures form part of a broader effort to strengthen oversight of financial activities considered vulnerable to money laundering and illicit finance.

Under the framework, crypto-asset service providers, including exchanges and custodians, will be required to apply enhanced customer due diligence measures to occasional crypto transactions valued at €1,000 or more. Anonymous crypto accounts and services designed to increase transaction anonymity will also be banned within the regulated sector.

Despite the stricter requirements, direct transfers between self-hosted crypto wallets will not be subject to mandatory identity verification obligations. Customer identification obligations will apply primarily when regulated intermediaries are involved, while peer-to-peer transactions conducted without such entities remain outside the scope of the rules.

Beyond digital assets, the regulation introduces a €10,000 cap on commercial cash payments across the EU and expands AML obligations to additional sectors, including professional football, crowdfunding platforms, luxury goods dealers, and investment migration businesses.

New beneficial ownership disclosure requirements will also apply to companies, trusts, and certain non-EU entities operating within the EU.

Why does it matter?

The reforms represent one of the EU’s most significant efforts to create a unified anti-money laundering framework across member states. By introducing common standards for crypto-assets, cash transactions, beneficial ownership transparency and customer due diligence, the rules aim to reduce regulatory fragmentation and strengthen the bloc’s ability to detect and prevent illicit financial activity.

The measures also signal the continued integration of crypto-assets into mainstream financial regulation. While the EU is imposing stricter requirements on regulated intermediaries and anonymity-enhancing services, it is maintaining a distinction between supervised financial activity and peer-to-peer transactions involving self-hosted wallets. The balance struck by the framework may influence future AML approaches in other jurisdictions seeking to regulate digital assets while preserving elements of decentralised finance.

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Apple expands app distribution options in Brazil

Apple will introduce changes to iOS in Brazil following an agreement with the country’s competition regulator, Conselho Administrativo de Defesa Econômica.

The changes, beginning with iOS 26.5, will give developers new options to distribute apps through alternative app marketplaces, operate those marketplaces and process payments for digital goods and services outside Apple’s In-App Purchase system.

Apple said the changes reflect a recent agreement with CADE and are intended to create new options for developers in Brazil. The agreement follows competition scrutiny of Apple’s App Store rules in the country.

The company warned that alternative app distribution and payment options may create new risks, including malware, fraud, scams and privacy and security concerns. It said it has worked with CADE on measures designed to reduce those risks, including app notarisation, marketplace authorisation and protections for children.

Apple also said all current members of the Apple Developer Program must agree to updated licence terms by 6 July 2026 to access the new options in Brazil. The company has made online appointments available for developers seeking more information.

Why does it matter?

The changes show how competition enforcement is reshaping closed app ecosystems beyond the EU. Brazil’s intervention adds pressure on Apple to allow alternative distribution and payment models while preserving security and privacy safeguards. The case also highlights a recurring policy tension: regulators want more competition and developer choice, while Apple argues that opening iOS can increase risks for users.

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Japanese retirement fund explores crypto diversification strategy

A Japanese corporate pension fund is reportedly planning to allocate around 1% of its assets to cryptocurrencies from fiscal 2026, in a small but notable step towards digital asset exposure in traditional investment portfolios.

The National Business Corporate Pension Fund, based in Okayama, manages about ¥21.3 billion in assets for roughly 1,200 small and medium-sized enterprises, according to local media reports cited by crypto industry outlets.

The planned allocation would reportedly be made through a passive crypto fund managed by a hedge fund. It forms part of a broader portfolio adjustment aimed at diversifying currency exposure and reducing reliance on yen-denominated assets.

Reported changes for fiscal 2026 include reducing yen holdings while increasing exposure to other currencies, gold and crypto assets.

The move comes as Japan’s financial sector explores a wider role for digital assets. Recent policy developments include legislative efforts to bring crypto assets under the Financial Instruments and Exchange Act, while major Japanese banks are preparing live commercial transactions using a jointly issued stablecoin during fiscal 2026.

The pension fund’s proposed allocation remains small, but it suggests that digital assets are beginning to enter some long-term investment discussions in Japan’s institutional finance sector.

Why does it matter?

The reported allocation is small, but it points to a gradual normalisation of crypto as a diversification tool among some institutional investors. For pension funds, even limited exposure raises questions about risk management, fiduciary duties, volatility, custody and regulatory clarity. In Japan, the story also fits a broader shift towards treating digital assets as part of the regulated financial system, rather than only as speculative retail products.

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Ireland strengthens AML framework with focus on crypto-asset risks

Ireland has launched a new National Risk Assessment and a 30-point action plan aimed at strengthening its response to money laundering, terrorist financing, and proliferation financing risks. The framework identifies crypto-assets as a significant emerging vulnerability, reflecting their increasing use in complex and cross-border financial crime schemes.

The action plan introduces enhanced safeguards for digital finance, including stricter due diligence requirements when crypto-assets are used as a source of funds. The Gambling Regulatory Authority of Ireland has been tasked with developing standards to ensure firms verify the legitimacy and origin of crypto-related funds, with implementation expected by 2027.

Authorities also plan to strengthen supervisory powers, improve transparency around beneficial ownership and enhance coordination between financial crime and tax enforcement bodies. The approach targets evolving criminal methods combining cash-based laundering with digital tools, including crypto-assets and cross-border layering techniques.

The initiative also forms part of Ireland’s preparation for its 2028 international anti-money laundering evaluation.

Why does it matter?

The new framework reflects a broader regulatory shift toward treating crypto-assets as embedded components of financial crime risk rather than isolated instruments. By integrating digital asset controls into its AML framework, Ireland is improving detection of hybrid laundering schemes combining cash flows with blockchain transfers and aligning with international assessments.

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