Consumer protection

New UK regime targets systemic stablecoin issuers

The Bank of England and the Financial Conduct Authority have set out how they will jointly regulate stablecoin issuers whose activities could pose risks to UK financial stability.

The joint approach forms part of the UK’s emerging stablecoin regime. Under the planned framework, the FCA will regulate UK-issued qualifying stablecoins, while issuers recognised as systemic by HM Treasury will also be subject to Bank of England oversight.

The authorities said the two-part regime is intended to provide clarity for firms while supporting innovation, consumer protection, market integrity and financial stability.

Stablecoin issuers may become systemic if their coins are widely used in payments and could create risks for the UK financial system. In those cases, the Bank would supervise prudential and financial-stability risks, while the FCA would continue to oversee consumer protection, competition and market integrity issues.

The framework includes transition arrangements for firms moving from FCA-only supervision to joint regulation. The Bank and FCA said this should help issuers scale without facing conflicting or duplicative requirements.

The approach also allows for issuers to be recognised as ‘systemic at launch’ where they are not yet operating at systemic scale but are likely to do so. Such firms could enter a phased supervisory pathway while meeting both FCA and Bank requirements.

The Bank is separately consulting on draft rules for sterling-denominated systemic stablecoin issuers. It intends to finalise its Code of Practice by the end of 2026, with regulated stablecoins expected to operate in the UK from 2027.

Why does it matter?

The UK framework is important because it creates a pathway for stablecoins to move from crypto-market products towards regulated payment instruments. By scaling supervision as issuers grow, the UK aims to support innovation without allowing systemically important stablecoins to develop outside financial stability oversight. The model could influence how other jurisdictions regulate digital money, especially where stablecoins are expected to support retail payments, wholesale settlement or cross-border transactions.

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Central Bank of Azerbaijan submits draft crypto law for review

Azerbaijan has moved closer to regulating its cryptocurrency sector after the Central Bank completed a draft law on virtual assets and crypto markets and submitted it to state authorities for review.

Fidan Tofidi, Director of the Central Bank’s Financial Technologies and Innovations Department, said the legislation could be adopted before the end of the year. She described the framework as a major step for a sector that has so far remained unregulated in the country.

The proposed regime is expected to introduce licensing and supervision for virtual asset service providers operating in Azerbaijan. Regulators have previously said the framework should cover virtual asset markets and the activities of companies providing crypto-related services.

The initiative is part of Azerbaijan’s broader financial-sector development agenda, which includes work on virtual assets, shared know-your-customer mechanisms, supervisory technology and digital financial infrastructure.

Earlier Central Bank discussions on virtual assets focused on regulatory and supervisory approaches, market risks and opportunities, and the experience of countries such as Kazakhstan and Türkiye.

Azerbaijan has also tested crypto-related projects through its regulatory sandbox. One pilot involved a platform for buying, selling, exchanging and storing virtual assets, although the project was suspended after failing to achieve expected test results.

The Central Bank has maintained a cautious stance on a possible central bank digital currency, saying it is monitoring international developments before moving forward.

Why does it matter?

Azerbaijan’s draft law signals a shift from a legal grey area towards formal oversight of crypto markets and virtual asset service providers. Licensing and supervision could give regulators more visibility over market activity, strengthen consumer protection and help address money-laundering and terrorism-financing risks. The move also reflects a wider trend among emerging markets: rather than banning crypto outright, authorities are building frameworks to integrate digital assets into regulated financial systems.

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UK CMA consults on Apple App Store steering rules

The UK Competition and Markets Authority has opened a consultation on a proposed conduct requirement that would allow app developers to steer users outside Apple’s App Store to complete digital purchases.

The proposal applies to Apple’s Mobile Platform, which the CMA designated as having Strategic Market Status in October 2025. The consultation is part of the UK’s digital markets competition regime and closes on 28 July 2026.

The CMA said Apple’s App Store is a key gateway for developers distributing native apps in the UK. Its proposal focuses on apps that sell digital goods and services, where developers are generally restricted from directing users to alternative offers or purchases outside Apple’s in-app payment system.

Under the proposed steering conduct requirement, Apple would have to allow developers to communicate with UK users and include redirection mechanisms, such as links or buttons, that lead to external websites for purchases.

Apple could still impose restrictions where they are strictly necessary and objectively justified, including to address malware, fraud, scams, unlawful content or content harmful to children.

The proposal would also regulate how external purchasing options are presented. Apple could use a single interstitial screen to inform users that they are leaving its in-app purchase system, but the screen would need to use neutral language and must not discourage users from completing transactions elsewhere.

The CMA is also proposing that any fee Apple charges on steered transactions must be fair and reasonable. It would also prohibit Apple from discriminating against developers that use redirection mechanisms, including through app review, search ranking, platform functionality or access to interoperability features.

The CMA said effective steering could give developers more control over pricing, billing, refunds and customer support, while giving users more choice and potentially lower prices.

Why does it matter?

The consultation shows the UK’s digital markets regime moving from platform designation to targeted behavioural rules. If adopted, the requirement could weaken Apple’s control over in-app transactions for digital goods and services in the UK and give developers more room to offer alternative payment channels. It also tests how the CMA will balance competition, consumer choice, security, privacy and platform investment under the new Strategic Market Status framework.

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Australia’s ASIC extends digital asset licensing relief

Australia’s financial regulator, the Australian Securities and Investments Commission (ASIC), has extended its sector-wide no-action position for digital asset businesses until 30 September 2026, giving firms more time to apply for or vary an Australian Financial Services (AFS) licence. The extension is designed to support a smoother transition into the country’s evolving regulatory framework for digital assets.

The updated position also broadens the scope of relief to cover businesses operating under authorised representative arrangements or intermediary authorisations linked to AFS licence holders. ASIC said the changes are intended to provide greater regulatory certainty while maintaining investor protection and market integrity during the transition.

The extended timeline also applies to applications for Australian Market Licences and Clearing and Settlement facility licences. Firms must notify ASIC of their intention to apply and participate in a pre-application meeting before submitting an application.

ASIC said it has received around 30 licence applications since updating its guidance on digital assets and financial products in October 2025. According to the regulator, extending the no-action position gives firms additional time to adapt to Australia’s evolving Digital Asset Framework and clarified legal requirements.

Why does it matter?

The extension provides digital asset businesses with additional time to adapt to Australia’s evolving regulatory framework without disrupting existing operations. By pairing temporary regulatory flexibility with a clear licensing pathway, ASIC is seeking to encourage compliance while maintaining investor protection and market integrity.

The move also reflects a broader international trend in digital asset regulation. Rather than imposing immediate, sweeping requirements, regulators are increasingly using phased implementation and transitional relief to bring crypto businesses into established financial regulatory frameworks while reducing uncertainty for market participants.

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OpenAI upgrades GPT-5.5 Instant conversation skills

OpenAI has updated GPT-5.5 Instant to make ChatGPT conversations more natural, useful and responsive to user intent.

According to the company’s release notes, the update is designed to improve conversational quality, especially when users are making decisions, asking for advice, planning, researching options or shopping.

OpenAI said GPT-5.5 Instant is now better at identifying the underlying goal behind a question and carrying context across multiple turns. The company also said the model follows complex instructions more reliably, including requests with several constraints or requirements.

The update is intended to make the model more adaptive during ongoing conversations. When users add constraints or push back on an answer, GPT-5.5 Instant should adjust its approach more effectively, rather than simply repeating its original response.

The change reflects a wider shift in consumer AI systems from one-off answer generation towards more context-aware and interactive assistance.

Why does it matter?

The update shows how competition in AI assistants is moving beyond raw accuracy and benchmark performance towards conversational quality. For everyday users, the ability to understand intent, track context, follow multiple constraints and respond well to feedback can determine whether AI tools feel genuinely useful in education, work, shopping, planning and customer support.

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Digital trade agreement gains legal backing in Kyrgyzstan

Kyrgyz President Sadyr Japarov has signed a law ratifying the Digital Economy Partnership Agreement between member states of the Organisation of Turkic States.

The Jogorku Kenesh adopted the law on 3 June 2026 and approved the agreement signed in Bishkek on 6 November 2024. The presidential administration said it was the first law signed in a fully digital format in Kyrgyzstan.

The agreement aims to strengthen trade relations among Turkic states through e-commerce and broader digital-economy cooperation. It also seeks to increase consumer confidence in digital services and online transactions.

The partnership covers areas including electronic commerce, consumer protection in online trade, express delivery services, personal data protection and cooperation between business communities involved in e-commerce.

The move forms part of Kyrgyzstan’s wider digital transformation agenda and adds legal backing to a regional framework for digital trade cooperation among OTS members.

Why does it matter?

The ratification supports efforts to align digital trade rules among Turkic states and make cross-border e-commerce more predictable. The agreement is relevant because it links digital economy cooperation with consumer protection, data protection and delivery infrastructure, areas that are essential for trust in online trade. It also shows how regional organisations are developing their own digital trade frameworks alongside larger global and Asia-Pacific digital economy agreements.

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EU drops browser-based cookie consent proposal from Digital Omnibus

The European Commission had proposed replacing cookie banners with an automated browser-based privacy signal as part of its ‘Digital Omnibus’ package, a move that would have allowed devices to communicate users’ tracking preferences directly to websites. The plan, outlined in Article 88b of the GDPR, was intended to cut red tape and reduce the burden on consumers navigating consent requests across the web.

According to digital rights organisation noyb, cookie banners were not created by data protection law but emerged as a mechanism for the online advertising industry to obtain users’ consent for data sharing with third parties. Studies suggest only 3 to 10 per cent of users actually wish to be tracked, yet so-called dark patterns, such as hidden ‘no’ buttons and pre-ticked boxes, allow the industry to achieve consent rates of up to 90 per cent. Across more than 450 million EU citizens, this results in billions of unnecessary clicks each year.

According to noyb, a lobbying document submitted by Google argued that removing cookie banners would effectively halt all online advertising, citing figures that the European Commission has since described as highly exaggerated. The Commission had made clear that consent would still be possible on a per-website and per-purpose basis, meaning users could grant access to specific outlets while withholding it from others. Google’s paper also claimed that media outlets would be harmed, despite the fact that they are explicitly exempt from the proposed provision.

According to noyb, the lobbying campaign appears to have influenced the legislative process. In the Council’s position paper of 18 June 2026, Article 88b was removed entirely from the Digital Omnibus. Noyb added that Germany, France, and Poland were among the member states supporting the article’s removal following lobbying by the online advertising industry.

The outcome is particularly striking given that many of the same member states have long called on the EU to simplify regulation and cut red tape. noyb, the European digital rights organisation, has described the result as a victory for lobbying over public interest, noting that the majority of EU citizens have consistently expressed frustration with cookie banners.

The European Parliament has not yet taken a position on Article 88b, and negotiations between the Parliament and the Council are ongoing. Noyb has urged the European Parliament to support reinstating Article 88b during the next stage of negotiations.

Why does it matter?

The debate highlights the growing tension between digital simplification efforts, privacy protection and the economic interests of the online advertising ecosystem. Browser-based privacy signals have long been discussed as a way to reduce repetitive consent requests while preserving users’ ability to decide when and how their personal data may be used.

The proposal’s removal also illustrates the influence that industry stakeholders can have during the EU legislative process. Whether Article 88b is reinstated during negotiations with the European Parliament could shape the future of online consent management in Europe, affecting digital advertising, user experience and the practical implementation of data protection rules.

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Google expands financial ad verification across EU and EEA

Google has announced the expansion of its financial services advertiser verification programme to every country in the EU and European Economic Area, extending requirements aimed at reducing fraudulent financial advertising.

The rollout will cover 24 additional countries and builds on an existing programme already active in six EU member states and the United Kingdom.

Under the programme, advertisers seeking to promote financial products or services must complete an additional verification process showing that the relevant national regulator authorises them. Google said it will check credentials against official registries across the EU and EEA.

The requirements will be introduced in phases. Businesses will have 30 days to complete the process after notification, and unverified advertisers will have their financial services ads restricted until verification is completed.

Google said the additional requirements build on its wider advertiser identity verification programme, which it says already covers more than 98% of ads seen across the EU. The company also said its systems blocked or removed more than 1.6 billion ads in the EU last year.

The expansion comes amid continuing concern over online financial scams, including fraudulent ads that impersonate legitimate financial services providers or promote misleading investment products.

Why does it matter?

Financial scams increasingly rely on digital advertising to reach consumers at scale. Google’s expansion adds another gatekeeping layer for financial advertisers across Europe by linking ad eligibility to authorisation in official regulatory registers. The measure also shows how large platforms are being pushed, by regulators and reputational pressure, to take more responsibility for the trustworthiness of high-risk advertising categories such as finance.

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UK ICO warns against unauthorised access to patient records

The UK’s Information Commissioner’s Office (ICO) has warned that unauthorised access to patient records is a serious breach of trust and an ongoing concern across the healthcare sector. In a new blog, the regulator said medical records contain some of the most sensitive personal information and must only be accessed for legitimate reasons.

The ICO said inappropriate access remains rare and does not reflect the behaviour of most healthcare professionals. However, recent high-profile incidents suggest the problem is not confined to isolated cases and requires a stronger organisational response.

According to the regulator, personal curiosity is never a legitimate basis for accessing patient records. Deliberate or reckless access to personal data without authorisation is unlawful and may result in disciplinary measures, loss of professional registration and, in some cases, criminal prosecution.

The ICO called on healthcare leaders to strengthen organisational culture through clear communication, role-specific data protection training and technical safeguards, including role-based access controls and audit logging. Protecting patient privacy is fundamental to maintaining trust in the healthcare system in the UK.

Why does it matter?

Healthcare records contain some of the most sensitive categories of personal information, including medical histories, diagnoses and treatment details. Even isolated cases of unauthorised access can undermine public trust in healthcare institutions and raise concerns about privacy, confidentiality and professional accountability.

The warning also highlights the growing importance of data governance in healthcare. As health systems become increasingly digital and interconnected, organisations must combine technical safeguards, staff training and strong organisational culture to ensure sensitive information is accessed only when necessary and for legitimate purposes. Maintaining patient trust remains essential to the effective delivery of healthcare services.

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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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