European Parliament calls for wider crypto regulation review

The European Parliament has adopted a policy position calling for a review of how emerging digital-asset activities should be regulated after the rollout of MiCA.

The report asks the European Commission to assess whether decentralised finance, staking, crypto lending and borrowing, NFTs and tokenised assets need clearer regulatory treatment.

The position does not amend MiCA or create immediate new obligations for crypto firms.

Instead, it signals Parliament’s view that the EU should examine activities that remain partly outside the current crypto-asset framework.

Lawmakers also warned that inconsistent national approaches could fragment the EU digital-asset market and weaken the single-market benefits of MiCA.

The report comes after MiCA’s transition period ended on 1 July 2026, requiring in-scope crypto-asset service providers to obtain authorisation to continue operating in the EU.

Parliament also takes a more supportive view of tokenisation and euro-denominated stablecoins, arguing that regulated digital assets could contribute to the competitiveness of the EU financial markets.

Any expansion of crypto regulation would require further Commission work and separate legislative steps.

Why does it matter?

The report points to the next phase of the EU crypto regulation after MiCA. DeFi, staking, crypto lending, NFTs and tokenised financial assets are increasingly important parts of the digital-asset market, but they do not all fit neatly inside MiCA’s current scope. A review could bring more legal certainty and consumer protection, but it could also raise compliance costs and shape Europe’s competitiveness in digital finance. The key issue is whether the EU can expand oversight without fragmenting innovation or creating divergent national rules.

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Viber brings ChatGPT into its messaging app

Rakuten Viber has launched ChatGPT-powered tools inside its messaging app through a new partnership with OpenAI.

The integration allows users to ask questions in a dedicated ChatGPT chat or tab, mention @ChatGPT in supported private and group chats, summarise conversations and shared links, polish draft messages, translate messages and remix images.

Viber said most tools are available after users update the app, without requiring ChatGPT registration.

Image Remix requires users to log in to ChatGPT within Viber or create a free account. OpenAI says availability may vary by region, app version, account and chat type.

The privacy model depends on the feature used. Viber says its core messaging features remain protected by end-to-end encryption, while ChatGPT-powered tools are activated only when users choose to use them.

When a ChatGPT-powered feature is used, Viber sends OpenAI the information needed to process that request. Depending on the feature, that may include selected messages, drafts, images, prompts, link content, messages that mention @ChatGPT, timestamps, approximate location and a Viber-generated hashed user ID.

OpenAI says data sent from ChatGPT-powered features in Viber personal and group chats is not used to train its models, except for conversations in the ChatGPT tab.

If a user connects a ChatGPT account, activity may be associated with that account and handled under OpenAI’s standard retention and data settings.

Why does it matter?

The launch brings generative AI into everyday messaging, moving ChatGPT from a separate assistant into conversations, links, drafts, translations and images. That makes AI tools more accessible, but also creates a more complex privacy model. Users need to understand when messages remain inside an end-to-end encrypted chat and when selected content is sent to OpenAI for processing. For messaging platforms, the key governance challenge is adding useful AI features while preserving user control, clear consent and transparent data handling.

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ESMA launches first crypto custody review under MiCA

The European Securities and Markets Authority has launched a Common Supervisory Action on the digital operational resilience of crypto-asset service providers, with a specific focus on custody services.

The exercise will assess the maturity of authorised CASPs’ digital operational resilience frameworks in relation to custody activities.

National competent authorities will conduct a risk-based review of a sample of authorised crypto-asset service providers.

The exercise will run from the second half of 2026 to the first half of 2027.

ESMA said the review will focus on risks linked to distributed ledger technology, including governance arrangements, key and storage management, transaction controls, incident detection and response, smart contract risks and dependencies on third-party providers.

The initiative reflects ESMA’s risk-based supervisory priorities, which identify both digital operational resilience and crypto-asset service providers as key risk areas.

The findings collected by national regulators will be consolidated into a final report and submitted to ESMA’s Board of Supervisors upon the exercise’s conclusion in the second half of 2027.

The action marks a shift from rule implementation towards coordinated supervision of crypto firms operating under the EU’s MiCA framework.

Why does it matter?

Crypto custody is a critical part of the digital-asset market because failures in private key management, storage, transaction controls or incident response can directly affect users’ assets. ESMA’s coordinated review shows that MiCA supervision is moving from authorisation towards testing how firms manage operational and technology risks in practice. It could also help align national supervisory approaches and reduce uneven standards across the EU crypto market.

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SEC advances Project Crypto to clarify digital asset rules

The US Securities and Exchange Commission is advancing its Project Crypto initiative as part of a broader effort to provide clearer rules for digital assets.

SEC Chair Paul Atkins has framed the initiative as a shift away from uncertainty over how federal securities laws apply to crypto assets and related transactions.

The agenda includes work on a token taxonomy anchored in the Howey investment-contract analysis, while recognising that not every crypto asset is itself a security.

In March 2026, the SEC issued an interpretation, joined by the Commodity Futures Trading Commission, clarifying the treatment of digital commodities, digital collectables, digital tools, stablecoins and digital securities.

The interpretation also addressed how non-security crypto assets may become subject to an investment contract and later cease to be subject to one.

It clarified the application of federal securities laws to airdrops, protocol mining, protocol staking and wrapping of non-security crypto assets.

Atkins has also directed SEC staff to develop proposals that could allow broker-dealers and alternative trading systems to offer crypto asset securities, non-security crypto assets, traditional securities, staking and lending services under a more efficient licensing structure.

The SEC says it will continue working with the CFTC, banking regulators and Congress as lawmakers consider a broader crypto market-structure framework.

Why does it matter?

Project Crypto signals a major shift in the SEC’s approach to digital assets, from enforcement-driven uncertainty towards taxonomy, interpretation and possible rulemaking. Clearer distinctions between securities, non-security crypto assets and tokenised securities could make it easier for firms to understand which rules apply. However, many elements remain dependent on future SEC action and congressional market-structure legislation, so the initiative should be treated as an evolving regulatory agenda rather than a completed framework.

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Inaugural UN Global Dialogue on AI Governance ends with call to turn principles into action before 2027

The inaugural United Nations Global Dialogue on AI Governance concluded in Geneva with a clear message from governments, industry, civil society, and international organisations: the success of global AI governance will depend not on the principles adopted, but on the concrete actions taken before participants reconvene in New York in 2027. Speakers repeatedly argued that narrowing the widening AI divide, strengthening international cooperation, and embedding human rights into AI governance will require practical implementation rather than new declarations alone.

From principles to practice

Iceland’s President Halla Tómasdóttir opened the closing plenary by arguing that AI’s future will be shaped not by technological capability but by human choices about power, accountability, and inclusion. Drawing on Iceland’s experience of harnessing natural resources for the public good, she said AI should likewise serve society rather than narrow interests.

‘Access without agency is not inclusion,’ she said, warning that communities furthest from today’s centres of technological power must become co-authors of the AI future rather than passive recipients of it. She also cautioned that ‘principles without practice can inspire false comfort’, arguing that AI governance should ultimately be judged by whether it increases people’s dignity, opportunity, and hope.

Microsoft Vice Chair and President Brad Smith echoed those concerns, presenting new data showing that AI adoption has reached 27% of the working-age population in the Global North, compared with just 15% in the Global South. Without intervention, he warned, that gap is likely to widen further over the coming year. Smith identified four priorities for more equitable AI adoption: expanding access to electricity, completing global internet connectivity, supporting multilingual AI models, and making digital skills widely available. He also acknowledged that AI capabilities have advanced much faster than governance frameworks over the past year, calling interoperability between national governance approaches essential to avoid a fragmented regulatory landscape.

Building an inclusive global governance system

Several speakers underlined that no country or institution can govern AI alone and that the UN remains uniquely positioned to convene an inclusive international process.

Guy Ryder, UN Under-Secretary-General for Policy, described the organisation’s greatest strength as its ability to bring together all 193 UN member states alongside businesses, researchers, and civil society. He acknowledged the need for stronger coordination across UN agencies while arguing that the Global Dialogue should become a recurring platform connecting AI governance efforts across international organisations and forums.

Civil society representative Raman Jit Singh Chima of the Association for Progressive Communications urged policymakers to build on existing digital governance mechanisms such as the World Summit on the Information Society (WSIS) and the Internet Governance Forum (IGF), rather than replacing them with entirely new structures. He also warned that AI governance must be firmly grounded in human rights and informed by the experiences of women, girls, and marginalised communities, who are often disproportionately affected by AI systems while remaining underrepresented in governance discussions.

Namibia’s Minister of Information and Communications Technology Emma Theofelus shifted the discussion towards implementation, calling on the international community to help countries translate global AI principles into national legislation, invest in digital infrastructure, and strengthen scientific and technical capacity in developing economies. She argued that meaningful participation requires recognising countries’ different starting points rather than assuming all governments have equal resources and capabilities.

Dialogue identifies common priorities

The closing session also reflected on the discussions held across the Dialogue’s four thematic tracks, which collectively identified recurring governance gaps around infrastructure, funding, skills, trust, and participation.

Gaia Marcus, Director of the Ada Lovelace Institute, argued that public participation should become a source of evidence rather than a symbolic consultation exercise. Those most affected by AI systems, including workers facing automation and vulnerable communities, should have clear channels to influence policy decisions, she said, adding that trust depends on accountability rather than public relations.

Jaan Tallinn, co-founder of the Future of Life Institute, offered one of the session’s starkest warnings, arguing that AI capabilities are now advancing on a quarterly basis while governance processes typically evolve over years. He cautioned that frontier AI companies are pursuing increasingly capable systems despite acknowledging significant safety challenges, making international cooperation more urgent than ever.

Rapporteurs from the four thematic clusters highlighted broad convergence across the dialogue. Participants repeatedly called for stronger AI capacity building, practical interoperability between governance frameworks, greater support for local adaptation and multilingual AI, stronger human rights safeguards, and wider participation from developing countries and civil society. Rather than competing to build the most powerful AI systems, several speakers argued that countries should focus on developing the institutions, skills, and governance mechanisms needed to deploy AI responsibly.

Geneva lays the foundation for New York

Closing the event, co-chair Rein Tammsaar said the inaugural dialogue had brought together more than 4,200 registered participants from nearly 170 member states, alongside representatives of industry, academia, civil society, and international organisations. He argued that the discussions demonstrated the world’s challenge is no longer a lack of AI principles, but the absence of practical mechanisms to implement them.

Tammsaar said participants had moved beyond abstract debates towards discussions on national AI strategies, legal safeguards, teacher training, and public-sector capacity building. He also reiterated that the AI divide is about far more than access to technology, it is also about the ability to shape, govern, and benefit from AI.

Co-chair Egriselda López concluded that the Global Dialogue is intended not to replace existing AI governance initiatives but to connect them, strengthen cooperation, and help countries learn from one another. Recalling a remark from a representative of a small country who said, ‘We are here not to be a footnote,’ López said the statement captured the spirit of the inaugural dialogue.

Both co-chairs agreed that Geneva should be viewed not as the end of a process but as its beginning. They urged participants to return home with concrete commitments and practical actions so that, when the second UN Global Dialogue on AI Governance convenes in New York in May 2027, progress can be measured not by new principles but by tangible improvements in inclusion, capacity, and international cooperation.

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AI governance must serve all countries, ministers tell UN Global Dialogue

Ministers and senior officials from around the world used the third high-level governmental plenary of the UN Global Dialogue on AI Governance to outline national priorities for AI, while calling for stronger international cooperation to ensure AI benefits are shared more equitably. Although countries differed on regulatory approaches, participants broadly agreed that AI governance must be inclusive, human-centric and grounded in multilateral cooperation if it is to narrow rather than deepen global inequalities.

Throughout the session, speakers highlighted AI’s transformative potential for healthcare, education, agriculture and public services, while repeatedly warning that unequal access to computing power, infrastructure, talent and financing risks leaving many developing countries behind.

Europe pushes safety-by-design and evidence-based governance

Germany and the European Union placed safety, trust and evidence-based policymaking at the centre of their interventions.

Germany’s Federal Minister for Digital Transformation and Government Modernisation, Karsten Wildberger, described AI as ‘an entirely new paradigm’ developing at unprecedented speed and argued that governments must actively shape its future rather than react to it.

‘We must shape AI because otherwise AI will shape us,’ he said, urging countries to embed safety, security and respect for human values into AI systems from the outset instead of attempting to add safeguards later.

Wildberger also announced Germany’s new National AI Safety and Security Institute, which will evaluate advanced AI systems and contribute to international cooperation alongside industry, academia and civil society.

Representing the European Union, Director-General of DG CONNECT Roberto Viola similarly highlighted AI’s enormous promise, pointing to advances in biotechnology, drug discovery and robotics that could accelerate scientific progress and economic growth. At the same time, he warned that AI could also be used to manipulate children, attack critical infrastructure or amplify other societal risks if left without appropriate safeguards.

Viola stressed that governance should remain grounded in scientific evidence rather than political assumptions, praising the work of the Independent International Scientific Panel on AI as an important source of objective expertise for policymakers.

Developing countries call for ‘capacity before compliance’

If Europe focused on governance principles, developing countries focused on the practical barriers that prevent them from participating fully in the AI economy.

A recurring message throughout the plenary was that AI divides extend far beyond access to technology, encompassing shortages of computing power, electricity, broadband connectivity, quality datasets, skilled professionals and financial resources.

Indonesia’s Minister of Communications and Digital Affairs, Meutya Viada Hafid, argued that AI governance should support development rather than simply regulate risks. She introduced the principle of ‘capacity before compliance,’ warning that expecting countries with limited digital infrastructure to meet the same governance obligations as advanced AI economies would neither be realistic nor equitable.

Pakistan’s Minister of Information Technology and Telecommunication, Shaza Fatima Khawaja, similarly warned that the global ‘capability divide is real and it is widening.’ She urged countries to move beyond discussions of principles towards concrete investments in shared computing infrastructure, open-source models, regulatory sandboxes and a proposed global AI fund to help developing nations build sovereign AI capabilities.

Uganda highlighted that Africa currently possesses less than 1% of global AI computing capacity despite ambitious plans to use AI to support economic transformation, while Malawi described facing what it called an ‘impossible choice’ between accepting unacceptable risks or being left behind altogether.

Other speakers from Chad, Mozambique, Somalia and Mali echoed these concerns, arguing that AI governance should recognise different national circumstances while ensuring countries become active contributors to AI development rather than remaining dependent consumers of technologies designed elsewhere.

National strategies offer practical governance lessons

Alongside calls for greater international support, several governments presented national initiatives that they hope could contribute to future global governance models.

Thailand proposed serving as an international AI governance sandbox where global principles could be tested through practical implementation rather than remaining solely the subject of international discussions. Minister Chaichanok Chidchob warned that fragmented governance risks undermining trust itself and invited UN partners to develop scalable governance models through real-world experimentation.

Singapore shared lessons from its own AI governance experience, identifying reliable digital infrastructure, trusted access to high-quality data and strong public confidence as the three foundations of successful AI adoption. The country also highlighted its work on AI safety research and international technical standards.

Rwanda pointed to its national AI policy, newly established AI agency and broader Africa Declaration on Artificial Intelligence adopted by dozens of African countries as examples of regional cooperation designed to harmonise governance approaches.

Other governments showcased complementary initiatives. Chile proposed creating a multilateral network of AI sandboxes operating under common rules, while the Maldives argued that AI can only deliver meaningful public value when built on secure digital public infrastructure, trusted data systems and clear accountability mechanisms. Zimbabwe highlighted its recently launched National Artificial Intelligence Strategy and called for an international AI capacity-building fund alongside mutual recognition of AI ethics standards.

Interoperability emerges as a common governance goal

Although countries presented diverse national strategies, many converged around the idea that AI governance frameworks should be interoperable rather than identical.

Ireland argued that AI governance requires a shared international language built around transparency, accountability and human oversight, while the Netherlands described interoperability, not a single global rulebook, as the organising principle for the next phase of AI governance. Different jurisdictions, Dutch representatives argued, should be able to develop compatible systems based on common standards without sacrificing national flexibility.

Thailand echoed this concern, warning that fragmented governance could ultimately fragment trust itself. Indonesia similarly argued that trustworthy AI depends on interoperability rather than uniformity, while Singapore stressed the importance of internationally recognised technical standards that enable cooperation across borders.

This emphasis on compatibility reflected broader concerns that increasingly divergent national AI regulations could create unnecessary barriers to innovation, investment and international collaboration.

Cooperation remains the defining challenge

The closing interventions highlighted both the broad consensus and the remaining differences over how global AI governance should evolve.

India called on countries to choose ‘consensus over conflict’ before technological progress outpaces diplomacy, arguing that AI governance should provide every nation with a meaningful voice regardless of its level of technological development. Senegal promoted the Global Network for Cooperation on AI Capacity Building and welcomed proposals for a global AI fund to strengthen infrastructure and expertise in developing countries. Bahrain announced exploratory work on a potential global AI treaty initiative, while the United Kingdom highlighted partnerships helping countries across Africa develop local-language AI tools and strengthen domestic AI ecosystems.

The United States, meanwhile, emphasised voluntary cooperation with industry and a pro-innovation regulatory environment rather than binding international rules, illustrating one of the clearest policy differences to emerge during the session.

Despite these differing approaches, participants broadly agreed that AI’s future cannot be shaped by any country acting alone. As ministers repeatedly argued, the success of AI governance will ultimately be measured not by the sophistication of frontier models, but by whether countries of every size and level of development can safely use AI to improve the lives of their citizens.

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China and Denmark expand cooperation on AI and innovation

Chinese Foreign Minister Wang Yi has expressed China’s readiness to strengthen cooperation with Denmark in areas including the green economy, innovation and AI during a visit to Copenhagen. Wang made the remarks in a meeting with Danish King Frederik X, alongside separate talks with Danish Foreign Minister Lars Lokke Rasmussen.

During a meeting with King Frederik X, Wang highlighted the longstanding relationship between China and the Danish royal family, noting previous state visits and describing them as a symbol of mutual respect and friendship.

King Frederik X said bilateral relations continue to develop positively, highlighting active trade and people-to-people exchanges. He added that the Danish royal family is ready to support closer cooperation, including in AI and other areas of mutual interest.

Wang also stressed the importance of people-to-people exchanges as the foundation of bilateral friendship during his visit to Copenhagen.

Why does it matter?

The discussions illustrate how AI is becoming a regular feature of bilateral diplomacy alongside trade, innovation and green technologies. Governments are increasingly treating cooperation on emerging technologies as part of broader economic and strategic partnerships rather than as a standalone technology issue.

The talks also reflect China’s continued effort to strengthen relations with individual EU member states despite broader tensions between Beijing and the European Union over trade, technology and economic security. Cooperation in areas such as AI and innovation offers a channel for engagement even as wider geopolitical differences persist.

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France enforces new EU crypto rules under MiCA

France has entered a new phase of crypto regulation as the transitional period between its national Pacte law framework and the EU’s Markets in Crypto-Assets (MiCA) Regulation has ended. Since 2 July 2026, crypto-asset service providers operating in France must comply with MiCA requirements and obtain authorisation to offer services across the European Union.

The Autorité des Marchés Financiers (AMF) has supported firms throughout the transition while reviewing MiCA authorisation applications. France has authorised 31 crypto-asset service providers, making it the EU’s second-largest jurisdiction for approved firms.

MiCA introduces stricter requirements on investor protection, security, market integrity and the custody of crypto-assets. The AMF will continue supervising authorised providers and assessing new applications.

The regulator will also work with the European Securities and Markets Authority (ESMA) and other national authorities to oversee the orderly withdrawal of firms that failed to obtain MiCA authorisation. It has urged investors to use only authorised crypto-asset service providers operating under the new European framework.

Why does it matter?

France’s transition marks another step in MiCA‘s move from legislation to implementation. As national transitional regimes end, crypto firms across the EU must comply with a single regulatory framework, replacing fragmented national approaches with common licensing and supervisory standards.

The new regime is also intended to strengthen consumer confidence by introducing harmonised rules on investor protection, market integrity and operational resilience. Its long-term success will depend on whether it can provide effective oversight while allowing compliant firms to innovate and compete across the EU’s single market.

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South Korea opens antitrust proceedings over Google app market practices

South Korea’s Fair Trade Commission has begun formal deliberation procedures over allegations that Google abused its dominant position in the Android app market.

The case follows an examiner’s report submitted to the Commission, which outlines suspected violations of the country’s Fair Trade Act.

According to the report, Google used its Games/Google Velocity Program, known internally as Project Hug, to provide financial support for services such as Google Cloud, Google Ads and YouTube.

In return, participating game developers were allegedly required to launch games on Google’s app marketplace on terms at least as favourable as those offered to rival platforms.

The examiner concluded that the programme reduced incentives for developers to distribute games through competing app marketplaces, including ONE store, while strengthening Google’s position in the Android app ecosystem.

The allegedly affected revenue was estimated at 14.16 trillion won, or about $9.1 billion. If violations are confirmed, potential penalties could reach up to 6% of that amount.

Google will have an opportunity to respond before the Commission reaches a final decision.

The case adds to wider global scrutiny of app-store competition and the ways dominant platforms use developer incentives, contracts and ecosystem services to shape market access.

Why does it matter?

The case shows how antitrust scrutiny of app stores is expanding beyond commission fees and payment systems into developer incentive programmes and platform-service bundles. If KFTC confirms the allegations, the decision could influence how dominant platforms structure support packages for developers and whether such programmes are treated as loyalty-inducing conduct. It also reinforces South Korea’s role as an active jurisdiction in digital-platform competition enforcement.

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ECB researchers use LLMs to measure geoeconomic tension

The European Central Bank (ECB) researchers have published a working paper introducing a Large Language Model-based method for measuring geopolitical and geoeconomic tensions in the euro area.

The paper develops the LLM Geoeconomic and Geopolitical Tension index, or LGPT, using a large dataset of European newspaper articles in local languages.

Researchers analysed almost 20 million articles from newspapers in France, Germany, Italy and Spain, covering the period from 1999 to 2025.

The methodology combines a fine-tuned multilingual BERT model with GPT-4o in a two-stage classification process.

BERT is used to filter articles likely to relate to geopolitical or geoeconomic tension, while GPT-4o classifies relevant articles and extracts structured information.

The index distinguishes narrower geopolitical tensions from geoeconomic tensions, including economic policy or the use of resources for geopolitical purposes.

It also breaks geoeconomic tension into four sources: trade, energy, finance and technology.

The authors argue that the multilingual LLM approach can capture nuance that dictionary-based methods may miss, while providing more granular data for economic analysis.

They also show how the index can be integrated into macroeconomic modelling to assess the effects of geoeconomic tensions on output and inflation in the euro area.

Why does it matter?

The paper shows how LLMs can be used as analytical tools for economic policymaking, not only as chatbots or productivity software. Measuring geoeconomic tension more precisely matters because trade conflict, energy security, financial fragmentation and technology restrictions can affect inflation, output and financial stability in different ways. A multilingual approach is especially relevant for the euro area because it captures local-language reporting from major member states rather than relying only on English-language media or keyword lists.

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