EU crypto tax reporting rules take effect in January

The European Union’s new tax-reporting directive for crypto assets, known as DAC8, takes effect on 1 January. The rules require crypto-asset service providers, including exchanges and brokers, to report detailed user and transaction data to national tax authorities.

DAC8 aims to close gaps in crypto tax reporting, giving authorities visibility over holdings and transfers similar to that of bank accounts and securities. Data collected under the directive will be shared across EU member states, enabling a more coordinated approach to enforcement.

Crypto firms have until 1 July to ensure full compliance, including implementing reporting systems, customer due diligence procedures, and internal controls. After that deadline, non-compliance may result in penalties under national law.

For users, DAC8 strengthens enforcement powers. Authorities can act on tax avoidance or evasion with support from counterparts in other EU countries, including seizing or embargoing crypto assets held abroad.

The directive operates alongside the EU’s Markets in Crypto-Assets (MiCA) regulation, which focuses on licensing, customer protection, and market conduct, while DAC8 ensures the tax trail is monitored.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

EU credits DMA as Apple opens iOS 26.3 to third-party accessories

The European Commission has welcomed Apple’s latest interoperability updates in iOS 26.3, crediting the Digital Markets Act for compelling the company to open its ecosystem.

The new features are currently in beta and allow third-party accessories to integrate more smoothly with iPhones and iPads, instead of favouring Apple’s own devices.

Proximity pairing will let headphones and other accessories connect through a simplified one-tap process, similar to AirPods. Notification forwarding to non-Apple wearables will also become available, although alerts can only be routed to one device at a time.

Apple is providing developers with the tools needed to support the features, which apply only within the EU.

The DMA classifies Apple as a gatekeeper and requires fairer access for rivals, with heavy financial penalties for non-compliance.

Apple has repeatedly warned that the rules risk undermining security and privacy, yet the company has already introduced DMA-driven changes such as allowing alternative app stores and opening NFC access.

Analysts expect the moves to reduce ecosystem lock-in and increase competition across the EU market. iOS 26.3 is expected to roll out fully across Europe from 2026 following the beta cycle, while further regulatory scrutiny may push Apple to extend interoperability even further.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Japan investigates AI search services over news use

The Japan Fair Trade Commission (JFTC) announced it will investigate AI-based online search services over concerns that using news articles without permission could violate antitrust laws.

Authorities said such practices may amount to an abuse of a dominant bargaining position under Japan’s antimonopoly regulations.

The inquiry is expected to examine services from global tech firms, including Google, Microsoft, and OpenAI’s ChatGPT, as well as US startup Perplexity AI and Japanese company LY Corp. AI search tools summarise online content, including news articles, raising concerns about their effect on media revenue.

The Japan Newspaper Publishers and Editors Association warned AI summaries may reduce website traffic and media revenue. JFTC Secretary General Hiroo Iwanari said generative AI is evolving quickly, requiring careful review to keep up with technological change.

The investigation reflects growing global scrutiny of AI services and their interaction with content providers, with regulators increasingly assessing the balance between innovation and fair competition in digital markets.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Small businesses battle rising cyber attacks in the US

Many small businesses in the US are facing a sharp rise in cyber attacks, yet large numbers still try to manage the risk on their own.

A recent survey by Guardz found that more than four in ten SMBs have already experienced a cyber incident, while most owners believe the overall threat level is continuing to increase.

Rather than relying on specialist teams, over half of small businesses still leave critical cybersecurity tasks to untrained staff or the owner. Only a minority have a formal incident response plan created with a cybersecurity professional, and more than a quarter do not carry cyber insurance.

Phishing, ransomware and simple employee mistakes remain the most common dangers, with negligence seen as the biggest internal risk.

Recovery times are improving, with most affected firms able to return to normal operations quickly and very few suffering lasting damage.

However, many still fail to conduct routine security assessments, and outdated technology remains a widespread concern. Some SMBs are increasing cybersecurity budgets, yet a significant share still spend very little or do not know how much is being invested.

More small firms are now turning to managed service providers instead of trying to cope alone.

The findings suggest that preparation, professional support and clearly defined response plans can greatly improve resilience, helping organisations reduce disruption and maintain business continuity when an attack occurs.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Italy orders Meta to lift WhatsApp AI restrictions

Italy’s competition authority has ordered Meta to halt restrictions limiting rival AI chatbots on WhatsApp. Regulators say the measures may distort competition as Meta integrates its own AI services.

The Italian watchdog argues Meta’s conduct risks restricting market access and slowing technical development. Officials warned that continued enforcement could cause lasting harm to competition and consumer choice.

Meta rejected the ruling and confirmed plans to appeal, calling the decision unfounded. The company stated that WhatsApp Business was never intended to serve as a distribution platform for AI services.

The case forms part of a broader European push to scrutinise dominant tech firms. Regulators are increasingly focused on the integration of AI across platforms with entrenched market power.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

South Korea fake news law sparks fears for press freedom

A significant debate has erupted in South Korea after the National Assembly passed new legislation aimed at tackling so-called fake news.

The revised Information and Communications Network Act bans the circulation of false or fabricated information online. It allows courts to impose punitive damages up to five times the losses suffered when media outlets or YouTubers intentionally spread disinformation for unjust profit.

Journalists, unions and academics warn that the law could undermine freedom of expression and weaken journalism’s watchdog function instead of strengthening public trust.

Critics argue that ambiguity over who decides what constitutes fake news could shift judgement away from the courts and toward regulators or platforms, encouraging self-censorship and increasing the risk of abusive lawsuits by influential figures.

Experts also highlight the lack of strong safeguards in South Korea against malicious litigation compared with the US, where plaintiffs must prove fault by journalists.

The controversy reflects more profound public scepticism about South Korean media and long-standing reporting practices that sometimes rely on relaying statements without sufficient verification, suggesting that structural reform may be needed instead of rapid, punitive legislation.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Nomani investment scam spreads across social media

Fraudulent investment platform Nomani has surged, spreading from Facebook to YouTube. ESET blocked tens of thousands of malicious links this year, mainly in Czech Republic, Japan, Slovakia, Spain, and Poland.

The scam utilises AI-generated videos, branded posts, and social media advertisements to lure victims into fake investments that promise high returns. Criminals then request extra fees or sensitive personal data, and often attempt a secondary scam posing as Europol or INTERPOL.

Recent improvements make Nomani’s AI videos more realistic, using trending news or public figures to appear credible. Campaigns run briefly and misuse social media forms and surveys to harvest information while avoiding detection.

Despite overall growth, detections fell 37% in the second half of 2025, suggesting that scammers are adapting to more stringent law enforcement measures. Meta’s ad platforms earned billions from scams, demonstrating the global reach of Nomani fraud.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Meta restricts Congress AI videos in India

Meta has restricted access in India to two AI-generated videos posted by the Congress party. The clips depicted Prime Minister Narendra Modi alongside Gautam Adani, Chairman of the Adani Group.

The company stated that the content did not violate its community standards. Action followed takedown notices issued by Delhi Police under India’s information technology laws.

Meta warned that ignoring the orders could jeopardise safe harbour protections. Loss of those protections would expose platforms to direct legal liability.

The case highlights growing scrutiny of political AI content in India. Recent rule changes have tightened procedures for ordering online takedowns.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Chest X-rays gain new screening potential through AI

AI is extending the clinical value of chest X-rays beyond lung and heart assessment. Researchers are investigating whether routine radiographs can support broader disease screening without the need for additional scans. Early findings suggest existing images may contain underused diagnostic signals.

A study in Radiology: Cardiothoracic Imaging examined whether AI could detect hepatic steatosis from standard frontal chest X-rays. Researchers analysed more than 6,500 images from over 4,400 patients across two institutions. Deep learning models were trained and externally validated.

The AI system achieved area-under-curve scores above 0.8 in both internal and external tests. Saliency maps showed predictions focused near the diaphragm, where part of the liver appears on chest X-rays. Results suggest that reliable signal extraction can be achieved from routine imaging.

Researchers argue the approach could enable opportunistic screening during standard care. Patients flagged by AI could be referred for a dedicated liver assessment when appropriate. The method adds clinical value without increasing imaging costs or radiation exposure.

Experts caution that the model is not a standalone diagnostic tool and requires further prospective validation. Integration with clinical and laboratory data remains necessary to reduce false positives. If validated, AI-enhanced X-rays could support scalable risk stratification.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

South Korea tightens ID checks with facial verification for phone accounts

Mandatory facial verification will be introduced in South Korea for anyone opening a new mobile phone account, as authorities try to limit identity fraud.

Officials said criminals have been using stolen personal details to set up phone numbers that later support scams such as voice phishing instead of legitimate services.

Major mobile carriers, including LG Uplus, Korea Telecom and SK Telecom, will validate users by matching their faces against biometric data stored in the PASS digital identity app.

Such a requirement expands the country’s identity checks rather than replacing them outright, and is intended to make it harder for fraud rings to exploit stolen data at scale.

The measure follows a difficult year for data security in South Korea, marked by cyber incidents affecting more than half the population.

SK Telecom reported a breach involving all 23 million of its customers and now faces more than $1.5 billion in penalties and compensation.

Regulators also revealed that mobile virtual network operators were linked to 92% of counterfeit phones uncovered in 2024, strengthening the government’s case for tougher identity controls.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!