Economic Archives | Digital Watch Observatory

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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UK invests in technical colleges to address skills shortages and support industry growth

The UK Government has announced the expansion of Technical Excellence Colleges, with 19 new institutions aimed at strengthening high-level technical education across key sectors.

Backed by £175 million in public funding, the initiative targets industries such as advanced manufacturing, clean energy, defence and digital technologies.

The policy responds to projected labour shortages, with estimates indicating demand for hundreds of thousands of additional skilled workers by 2030.

By aligning training provision with regional economic needs, the colleges are designed to support local labour markets while contributing to national industrial priorities.

An initiative that forms part of a broader strategy to elevate technical education alongside university pathways, expanding access to higher-level learning and improving workforce readiness.

It also emphasises collaboration between institutions, with designated colleges expected to share expertise and raise standards across the system.

By strengthening skills pipelines and supporting sector-specific training, the programme in the UK aims to enhance economic resilience and ensure that workforce development keeps pace with technological and industrial change.

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Crypto banking ban ends in Pakistan as regulated market access opens

Pakistan has lifted its eight-year ban on crypto-related banking activity by allowing financial institutions to work with licensed virtual asset providers.

The State Bank of Pakistan (SBP) issued a circular on 14 April authorising regulated banks to open accounts for entities registered under the Pakistan Virtual Assets Regulatory Authority (PVARA), following the passage of the Virtual Assets Act 2026.

The new framework permits banks to provide access to the sector but bars them from using their own capital or customer deposits to trade, hold, or invest in digital assets.

To reduce risk, institutions must use segregated Client Money Accounts to prevent the mixing of operational and client funds, while also complying with foreign exchange, anti-money laundering, and counter-terrorism financing rules.

Banks are required to conduct thorough due diligence on licensed providers, including verifying regulatory status and monitoring activity.

Any suspicious transactions must be reported to the Financial Monitoring Unit, and financial institutions are expected to adjust internal risk models to reflect the volatility of digital assets.

The regulatory shift follows consultations with global industry players and aims to attract compliant trading platforms to Pakistan’s large crypto user base. Authorities are also exploring blockchain-based infrastructure and stablecoin use cases for improving cross-border payments.

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EU-backed financing boosts Bulgaria’s high-tech sector and innovation growth

The European Investment Fund (EIF) will manage a €210 million financing initiative to support high-tech businesses in Bulgaria, focusing on sectors such as AI, microelectronics and advanced technologies.

The programme operates within the JEREMIE Bulgaria framework, which aims to improve access to capital for small and medium-sized enterprises.

An initiative that reflects a broader EU strategy to strengthen innovation capacity and support sustainable economic growth through targeted investment mechanisms.

The EIF, a subsidiary of the EIB Group, will prioritise equity financing and scale-up support to address structural gaps that often limit the expansion of high-growth companies within national markets.

A programme that also aligns with wider efforts to retain technological talent and reduce reliance on external capital by reinforcing domestic innovation ecosystems.

By supporting dual-use technologies and strategic sectors, the measure contributes to both economic competitiveness and technological resilience.

Through its revolving funding model, reinvested capital is expected to sustain long-term financing capacity, reinforcing the position of Bulgaria within regional venture capital networks and supporting the development of a more mature innovation economy.

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ECB warns on liquidity pressures in digital fund structures

An analysis published by the European Central Bank highlights the rapid expansion of tokenised money market funds, while warning that familiar financial risks remain embedded in their structure.

Market size remains relatively small at around €7 billion, yet growth has accelerated, largely driven by activity in the digital asset ecosystem.

Hybrid design continues to define the sector. Fund shares are issued as blockchain-based tokens, but underlying assets and key operational processes often remain off-chain.

Such arrangements limit the efficiency gains associated with tokenisation, including continuous trading and real-time settlement, while maintaining reliance on traditional intermediaries and legal frameworks.

Potential advantages include faster settlement, improved transparency, and expanded use cases such as collateral in derivatives and repo transactions. Tokenised funds may also enhance liquidity access through peer-to-peer transfers and offer more precise, real-time yield calculations.

Realisation of these benefits, however, depends on deeper integration and more advanced infrastructure.

Financial stability risks remain a central concern in the ECB’s assessment. Liquidity mismatches between instantly tradable tokens and slower underlying assets may heighten the risk of investor runs during periods of stress.

Additional vulnerabilities arise from operational dependencies, smart contract risks, and growing interconnections between crypto markets and traditional finance. The overall impact will depend on regulatory responses and onhow effectively emerging risks are managed as the market evolves.

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Microsoft launches MPowerHer programme to upskill women in AI and tech in Singapore

Microsoft has launched the MPowerHer initiative in Singapore to support women in building AI and digital skills through training, mentorship, and career pathways. The programme is delivered with partners including SG Women in Tech, Mums@Work, and Code; Without Barriers.

The initiative was officially launched by Minister of State for the Ministry of Digital Development and Information, Rahayu Mahzam, at Microsoft Public Sector Solutions Day. It aims to support women across different life and career stages, including those returning to work after a career break.

MPowerHer combines foundational AI training with practical, team-based projects and career support. It also provides access to mentorship networks and community programmes designed to help participants move into employment or entrepreneurship.

The programme includes training in AI fundamentals, Microsoft Copilot, AI agents, and low-code and no-code tools. It is open to members of national communities such as SG Women in Tech, Mums@Work, and Code; Without Barriers, as well as other women across Singapore.

Microsoft Singapore Managing Director Wee Luen Chia said the initiative focuses on ensuring women are included in the AI-driven workforce. He added that it supports inclusive skills development and prepares participants for opportunities in the digital economy.

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Crypto gains official recognition in Argentina investor framework

Argentina’s securities regulator has officially recognised cryptocurrencies as part of an individual’s net worth when determining qualified investor status. The change is set out in CNV Resolution 1125/2026, which allows digital assets to be included in the financial threshold of roughly $479,000.

The measure defines virtual assets as transferable digital value, covering cryptocurrencies, tokenised assets, and stablecoins. Authorities stated that incorporating these assets reflects a broader view of financial capacity and aims to expand participation in investment markets.

A 2022 central bank ban still prevents banks from offering crypto services, though some institutions are testing blockchain-based settlement systems internally. The restriction is expected to ease as the government signals a more open stance towards digital assets.

The policy shift positions Argentina as gradually integrating crypto into its formal financial framework, with the potential to widen investor access and align regulation with evolving digital markets.

Financial systems are gradually adapting to digital assets, even in jurisdictions with strict restrictions, signalling a slow convergence between traditional banking infrastructure and blockchain-based settlement technologies.

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