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Kenya proposes new taxes on digital payments and fintech services

Kenya’s Finance Bill 2026 proposes expanded tax reporting and compliance requirements for virtual asset service providers and digital payment platforms. According to the proposal, the measures are intended to strengthen oversight of digital financial activity and broaden the country’s tax base.

The bill would require virtual asset service providers to submit annual transaction and user activity reports to the Kenya Revenue Authority. The framework also includes provisions enabling information sharing with foreign tax authorities.

Additional measures would affect the broader digital payments sector, including taxation changes related to card transactions and selected fintech services. Analysts cited by KPMG Kenya said the reforms could increase compliance obligations for cryptocurrency firms and digital payment providers.

The proposal also expands enforcement powers available to the Kenya Revenue Authority during tax disputes. It also shortens filing deadlines and broadens disclosure obligations for businesses. The measures form part of broader efforts to modernise tax administration and improve revenue collection.

Why does it matter?

The proposed reforms signal a broader shift in how governments are adapting tax systems to the rapid expansion of digital finance and crypto markets. By formalising reporting obligations and increasing transaction-based taxation, Kenya is moving towards tighter integration of virtual asset activity within traditional fiscal frameworks.

At the same time, stronger enforcement powers and cross-border data sharing reflect a global trend towards greater regulatory coordination in digital assets. While this may improve transparency and revenue collection, it could also raise compliance costs and reshape how crypto platforms and fintech companies operate in emerging markets.

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India summit boosts inclusive AI for development

India’s Ministry of Electronics and Information Technology and the Indian School of Business have convened the Governance Summit 2026, focusing on inclusive AI under the country’s Viksit Bharat development vision.

The one-day summit, held on 23 May 2026 at the ISB Mohali Campus, was organised in collaboration with the Bharti Institute of Public Policy. The event focused on AI-powered approaches to digital commerce, online safety, healthcare, governance, job creation, and digital entrepreneurship.

MeitY Secretary S. Krishnan said AI offers India an opportunity to improve productivity, governance, and access across sectors, including healthcare, education, manufacturing, and financial inclusion. He also said India is positioned to use AI for inclusive growth, while acknowledging concerns about its impact on cognitive jobs.

The programme included four thematic panels on AI in digital commerce, online safety for women and children, healthcare access and affordability, and job creation and digital entrepreneurship. A parallel roundtable examined how AI could support last-mile public service delivery, from state governments to gram panchayats.

Ashwini Chhatre, Associate Professor and Executive Director at the Bharti Institute of Public Policy, said AI should be treated as a long-term national mission. He highlighted inequality, leapfrogging opportunities, and the future of jobs as key issues in India’s emerging AI landscape, and called for equitable access through safeguards, social security mechanisms, and affirmative action.

The summit brought together government officials, industry leaders, academics, and civil society representatives. Participants included Reliance Retail, Mastercard, Apollo Hospitals, IIT Madras, UNICEF India, Punjab Police, and central and state government ministries.

Why does it matter?

The summit reflects India’s effort to frame AI as part of a broader development and public service agenda, rather than solely as an industrial or innovation policy issue. Its focus on last-mile service delivery, online safety, healthcare access, jobs, and digital entrepreneurship points to the governance questions India will need to address as AI systems are deployed across public and economic sectors.

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European Commission delays tech sovereignty package again

The European Commission has postponed the presentation of its tech sovereignty package until 3 June, following several earlier delays. The publication had previously been scheduled for 25 March, 15 April and 27 May.

According to Euractiv, the package is expected to include the proposed Cloud and AI Development Act and Chips Act 2. The initiatives are intended to support digital infrastructure development and strengthen Europe’s semiconductor sector. The measures are also expected to encourage data centre investment and semiconductor manufacturing within the EU.

The latest postponement follows comments from the US ambassador to the EU concerning potential trade implications of European digital regulation. Euractiv additionally reported uncertainty regarding a proposed EU open-source strategy previously linked to the package.

The European Commission did not comment publicly on the latest delay.

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Canada backs AI adoption across Toronto businesses

Canada has announced nearly C$16.5 million in funding for 13 businesses and organisations in the Greater Toronto Area to support AI adoption and help bring new AI technologies to market.

The investment was announced by Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario. The funding will support projects in healthcare, energy management, legal services, construction, finance, transportation, sensitive data infrastructure, and enterprise software.

Several projects focus on healthcare and life sciences. Cosm Medical will accelerate the clinical and commercial rollout of an AI-driven platform for patient-specific gynaecological devices, while Future Fertility will commercialise AI-powered technology for assessing endometrial receptivity. MarkiTech will advance an AI healthcare solution for clinical workflows, and ProteinQure will bring to market an AI-powered targeted drug delivery solution.

Other recipients will use AI to improve business operations and sector-specific workflows. DMD Building Systems will integrate robotics, automation, and AI software for engineering workflows, while Edgecom Energy will commercialise its AI Energy Co-Pilot platform for energy management. Trax will develop an AI-assisted platform for building permit compliance checks, and VisFuture will deliver a natural-language AI tool for small and medium-sized enterprises.

The funding also includes C$2 million for Private AI, operating as Limina, to scale a sensitive data infrastructure platform for regulated sectors such as healthcare, financial services, and insurance. MinuteBox will add advanced AI capabilities to its legal services platform, while Stratosphere Technology, operating as Fiscal.ai, will develop an AI-powered platform for structuring corporate filing data.

The Vector Institute will receive C$4 million to launch and deliver a programme helping start-ups improve data readiness, develop models, and deploy AI products. The Government of Canada said the investment is intended to support AI adoption, commercialisation, productivity, competitiveness, and Ontario’s wider AI ecosystem.

Why does it matter?

The funding shows how Canada is using regional development programmes to push AI from research and experimentation into sector-specific commercial deployment. The mix of recipients also points to a broader policy priority: supporting domestic AI capacity while encouraging adoption in regulated and productivity-sensitive sectors such as healthcare, finance, construction, energy, and legal services.

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EU and Mexico strengthen cooperation against crypto-related money laundering

Mexico and the European Union have agreed to expand cooperation on addressing money laundering involving cryptocurrencies and digital assets. The announcement was made during the 8th EU-Mexico summit, where both sides also advanced discussions on a modernised trade agreement.

Officials highlighted concerns regarding the use of digital assets in cross-border illicit financial activities linked to organised crime. The discussions focused on improving coordination related to identifying and disrupting suspected illicit financial flows.

The cooperation forms part of broader EU-Mexico engagement covering trade, investment, security, and digital policy. Both parties said they intend to continue dialogue and cooperation on evolving financial crime risks linked to the digital economy.

Why does it matter?

The agreement reflects a broader shift towards coordinated international enforcement against crypto-enabled financial crime, where illicit flows are increasingly moving across multiple jurisdictions with limited friction.

Strengthened cooperation between major regions like the EU and Mexico is intended to reduce enforcement gaps that criminal networks have been able to exploit.

It also signals how digital assets are becoming a central focus in global security and trade diplomacy, not just financial regulation. By linking anti-money laundering efforts with wider economic and strategic agreements, both sides are treating crypto-related crime as part of the broader challenge of safeguarding the integrity of the digital financial system.

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Consumer groups file DSA complaints against Meta, TikTok and Google

Consumer organisations have filed complaints against Meta, TikTok, and Google over alleged failures to address financial scam advertising on their platforms.

The complaints were submitted by the European Consumer Organisation (BEUC) and partner organisations to the European Commission and national authorities under the Digital Services Act. According to research cited by the organisations, nearly 900 suspected fraudulent advertisements were identified across 13 countries between December 2025 and March 2026.

The groups said a relatively small proportion of reported content was removed, while many notices were allegedly rejected or received no response. Consumer organisations argued that the reported moderation response may leave users exposed to large volumes of potentially fraudulent advertising content.

BEUC and partner organisations are calling for investigations into whether the platforms are complying with Digital Services Act obligations related to systemic risks and harmful content.

The organisations also urged regulators to consider enforcement measures if non-compliance is identified, arguing that current moderation efforts are insufficient to mitigate systemic risks linked to online financial fraud.

Why does it matter?

The case highlights a broader issue of how effectively large online platforms can be held accountable for systemic risks such as financial scams. When reported fraudulent ads remain online at scale, it raises questions about whether existing regulatory tools are strong enough to protect consumers in practice.

It also puts pressure on enforcement bodies to move beyond complaint handling and ensure meaningful, consistent compliance across the digital advertising ecosystem.

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Canada launches AI learning initiative for federal public servants

Canada’s School of Public Service is organising the Learning Week on Artificial Intelligence, an initiative aimed at strengthening AI understanding across the federal public service.

The programme is linked to the Government of Canada’s AI Strategy for the Federal Public Service 2025–2027.

The AI learning programme is open to public servants at all levels and across the country. The initiative includes live events, virtual sessions, self-paced learning tools, and practical demonstrations related to AI technologies.

According to organisers, the programme aims to improve awareness of AI-related opportunities, challenges, and skills within the public service.

The initiative also aligns with broader public service priorities involving digital transformation, productivity, and process modernisation.

Sessions will examine potential applications of AI in areas including policy development, service delivery, and internal administrative functions.

The programme is intended to support responsible AI adoption and prepare public servants in Canada for organisational and operational changes linked to AI technologies.

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German lawmakers reject proposal to increase crypto taxation

A proposal by Germany’s Green Party to revise taxation rules for cryptocurrency investments has failed to advance in the Bundestag’s Finance Committee. The proposal aimed to remove the existing tax exemption on gains from digital assets held for more than one year.

Under current rules, profits from cryptocurrencies such as Bitcoin and Ethereum remain tax-free if assets are held beyond 12 months. Supporters of the proposal argued that current crypto tax treatment differs from broader capital gains taxation rules.

The initiative received limited parliamentary support, with concerns raised about potential legal inconsistencies and implementation challenges. Other parties, including those in the governing coalition, raised concerns that the reform could introduce new legal inconsistencies and fail to resolve perceived loopholes in the existing system.

At the same time, Germany continues to expand oversight of digital asset markets through new EU reporting requirements under the DAC8 directive. New reporting obligations under the EU’s DAC8 directive require service providers to supply detailed transaction data to tax authorities. The measures are intended to improve transparency and reporting related to cryptocurrency transactions.

Why does it matter?

The vote reflects a broader policy tension in Germany over how far governments should go in tightening taxation on digital assets without discouraging investment and innovation in the sector. It also signals that, for now, regulators are prioritising transparency measures like DAC8 reporting over immediate increases in tax burdens on crypto holders.

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Europol concludes major operation targeting criminal assets and crypto laundering

Europol has concluded the third operational phase of Project A.S.S.E.T., an international initiative focused on criminal asset tracing and money laundering investigations.

The operational phase took place between 19 and 22 May 2026 at Europol headquarters in The Hague and involved law enforcement agencies from 31 countries. More than 40 law enforcement agencies participated, including Asset Recovery Offices, Financial Intelligence Units, and specialised anti-money laundering teams from 31 countries.

The initiative also involved cooperation with Eurojust, INTERPOL, the European Public Prosecutor’s Office, and private-sector financial and cryptocurrency partners.

According to Europol, investigators identified bank accounts, cryptocurrency wallets, companies, vehicles, and real estate assets allegedly linked to criminal activities. Authorities additionally located two suspected criminals, with one arrested through the European Network of Fugitive Active Search Teams.

Europol said the operation generated intelligence related to emerging money laundering techniques and cross-border financial structures associated with organised crime networks. Investigators also reported identifying operational patterns involving cryptocurrencies and international asset concealment practices.

The operation followed an earlier cryptocurrency-focused enforcement phase conducted in October 2025.

European Commissioner for Internal Affairs and Migration Magnus Brunner said online fraud and crypto-related crime have become increasingly significant revenue sources for organised criminal groups. Europol officials additionally emphasised that international cooperation and financial intelligence increasingly play a central role in disrupting organised crime ecosystems and recovering illicit proceeds.

Europol said investigations are ongoing and that the full value of identified assets remains under assessment. Follow-up investigations are continuing across participating jurisdictions.

Why does it matter?

The operation reflects growing international focus on financial intelligence, cryptocurrency tracing, and cross-border asset recovery as organised crime groups increasingly rely on digital financial infrastructures. Furthermore, it demonstrates how law enforcement agencies and private-sector financial actors are strengthening cooperation to combat money laundering, online fraud, and illicit cryptocurrency operations across multiple jurisdictions simultaneously.

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Singapore launches new AI, cybersecurity and quantum-readiness programmes

Singapore has announced new initiatives aimed at supporting enterprise AI adoption, strengthening cybersecurity, and preparing digital infrastructure for future quantum-related risks.

The measures were announced at ATxEnterprise 2026 by Senior Minister of State for Digital Development and Information Tan Kiat How. They include new partnerships under the Digital Enterprise Blueprint, an AI adoption playbook for enterprises, SME awards recognising AI impact, and a pilot on quantum-safe technologies.

According to IMDA’s Singapore Digital Economy Report 2025, AI adoption among SMEs increased significantly during 2024.

IMDA and the Singapore Business Federation will introduce SME AI Impact Awards recognising enterprises using AI technologies in business operations. Up to 30 winners will be recognised across categories for proprietary AI tools and adoption of ready-to-use AI solutions.

The Digital Enterprise Blueprint is being expanded through partnerships involving AI training, digital skills development, and cybersecurity support for SMEs. One programme led by Grab will provide AI-related training and courses for SMEs in sectors including retail, e-commerce, and food services.

RSM Stone Forest IT will also launch cybersecurity initiatives involving phishing simulations, awareness webinars, and tabletop exercises for SMEs. With the two partnerships, IMDA aims to reach 12,000 more SMEs, contributing to its target of supporting 50,000 SMEs by 2029.

IMDA, SkillsFuture Singapore, and Workforce Singapore have also developed an AI for Enterprise Impact Playbook to help digitally progressive enterprises assess readiness, identify support, and plan next steps for AI adoption.

Singapore additionally announced a pilot initiative focused on quantum-safe technologies for telecommunications infrastructure. IMDA signed a Memorandum of Intent with Singtel, Ericsson, and NCS Singapore to test and validate quantum-safe migration approaches.

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