Economic Archives | Page 401 of 708 | Digital Watch Observatory

Crypto exchanges expand into Wall Street territory as synergy with TradFi increases

Cryptocurrency firms are increasingly merging with traditional finance (TradFi), reflecting a growing synergy between the two sectors. Gracy Chen, CEO of Bitget, noted that both crypto exchanges and TradFi players are seeking to bridge the gap between the two sectors.

As more investors desire flexibility in their financial products, the lines between crypto and traditional finance are blurring.

In line with this trend, platforms like Kraken are expanding into TradFi offerings, launching access to stocks and ETFs. The move follows similar efforts from other companies, including Coinbase. The exchange aims to modernise the global financial system and increase crypto adoption across the world.

Both sectors recognise the potential of combining blockchain’s speed and transparency with TradFi’s trust, scale, and compliance. The convergence promises to unlock new opportunities for investors and accelerate institutional adoption of cryptocurrency.

Traditional investment platforms like eToro and Robinhood are also entering the crypto space, further cementing the connection between the two industries.

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US lawmaker aims to end Puerto Rico’s crypto tax haven status

New York MP Nydia Velázquez introduced the Fair Taxation of Digital Assets in Puerto Rico Act. The bill aims to require crypto investors in Puerto Rico to pay both local and federal taxes on capital gains.

Bill seeks to amend Puerto Rico’s tax laws, making income from digital assets subject to federal taxation.

Velázquez criticised the tax incentives for crypto investors. She claimed they have driven up housing costs, displaced residents, and strained the island’s economy, which has a poverty rate of nearly 40%.

Puerto Rico has been a tax haven since 2012, attracting investors, but this has cost the US government billions in lost tax revenue.

Puerto Rico’s Governor Jenniffer González-Colón proposed extending Act 60 until 2055, but with a 4% capital gains tax, far lower than the typical US rate.

It’s unclear if Velázquez’s bill will gain enough support, as both the House and Senate are expected to review crypto-related proposals soon.

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OpenAI partners with major news outlets

OpenAI has signed multiple content-sharing deals with major media outlets, including Politico, Vox, Wired, and Vanity Fair, allowing their content to be featured in ChatGPT.

As part of the deal with The Washington Post, ChatGPT will display summaries, quotes, and links to the publication’s original reporting in response to relevant queries. OpenAI has secured similar partnerships with over 20 news publishers and 160 outlets in 20 languages.

The Washington Post’s head of global partnerships, Peter Elkins-Williams, emphasised the importance of meeting audiences where they are, ensuring ChatGPT users have access to impactful reporting.

OpenAI’s media partnerships head, Varun Shetty, noted that more than 500 million people use ChatGPT weekly, highlighting the significance of these collaborations in providing timely, trustworthy information to users.

OpenAI has worked to avoid criticism related to copyright infringement, having previously faced legal challenges, particularly from the New York Times, over claims that chatbots were trained on millions of articles without permission.

While OpenAI sought to dismiss these claims, a US district court allowed the case to proceed, intensifying scrutiny over AI’s use of news content.

Despite these challenges, OpenAI continues to form agreements with leading publications, such as Hearst, Condé Nast, Time magazine, and Vox Media, helping ensure their journalism reaches a wider audience.

Meanwhile, other publications have pursued legal action against AI companies like Cohere for allegedly using their content without consent to train AI models.

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New EU guidelines aim to regulate blockchain data storage

The European Data Protection Board (EDPB) has introduced draft guidelines aimed at regulating the storage and sharing of personal data on blockchains. These proposals aim to align blockchain with existing privacy standards, especially the GDPR.

The guidelines, ratified by the EDPB this month, are open for public comment until 9 June.

Under the new rules, access to personal blockchain data would be strictly limited to comply with GDPR protections. The EDPB highlighted the need for ‘Data Protection by Design and by Default.’

It advised organisations to implement early technical and structural measures to ensure transparency and data erasure.

The guidelines also emphasise that personal data should not be stored on a blockchain if it conflicts with privacy principles.

Data privacy experts have diverse opinions on the role of blockchain in privacy. Some see decentralisation as incompatible with regulation. Others argue that blockchain should prioritise privacy as a core component, not an afterthought.

One expert warned against putting personal data on blockchains, calling it a potential violation of privacy and a move towards authoritarianism.

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Jamaica tests AI tools to aid teachers

The Jamaican Ministry of Education is testing AI tools in schools to assist teachers with marking and administrative duties.

Portfolio Minister Senator Dana Morris Dixon announced this during the Jamaica Teachers’ Association (JTA) Education Conference 2025, emphasising that AI would allow teachers to focus more on interacting with students, while AI handles routine tasks like grading.

The Ministry is also preparing to launch the Jamaica Learning Assistant, an AI-powered tool that personalises learning to fit individual students’ preferences, such as stories, humour, or quizzes.

Morris Dixon highlighted that AI is not meant to replace teachers, but to support them in delivering more effective lessons. The technology will allow students to review lessons, explore topics in more depth, and reinforce their understanding outside the classroom.

Looking ahead, the Government plans to open Jamaica’s first state-of-the-art AI lab later this year. The facility will offer a space where both students and teachers can develop technological solutions tailored for schools.

Additionally, the Ministry is distributing over 15,000 laptops, 600 smart boards, and 25,000 vouchers for teachers to subsidise the purchase of personal laptops to further integrate technology into the education system.

JTA President Mark Smith acknowledged the transformative potential of AI, calling it one of the most significant technological breakthroughs in history.

He urged educators to embrace this new paradigm and collaborate with the Ministry and the private sector to advance digital learning initiatives across the island.

The conference, held under the theme ‘Innovations in Education Technology: The Imperative of Change,’ reflects the ongoing push towards modernising education in Jamaica.

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The EU Commission hits Apple and Meta with draconian fines

The European Commission has fined tech giants Apple and Meta a combined €700 million, marking the first penalties under the EU’s Digital Markets Act (DMA).

The act, designed to rein in the dominance of the world’s largest online platforms, targets practices that the EU considers harmful to consumer choice and digital competition.

Apple case

Apple received a €500 million fine for its App Store’s restrictive ‘steering terms,’ which the Commission found fail to allow users to discover better offers on other marketplaces.

Apple defended its position, calling the EU’s decision an unfair attack on its business model and pledging to appeal.

Meta case

Meta was fined €200 million for its controversial ‘pay or consent’ model introduced on Facebook and Instagram in the EU in late 2023.

The Commission argued that Meta’s practice of forcing users to accept the combination of their data for targeted advertising breaches privacy rights under the DMA.

Meta responded sharply, accusing the EU of targeting successful American firms while giving a pass to their European and Chinese counterparts.

Larger context:

The fines come when transatlantic tensions over trade and regulation escalate.

Although the European Commission insists the sanctions are unrelated to US-EU trade disputes, the White House has previously warned that such actions would face scrutiny and could prompt retaliatory tariffs.

Both Apple and Meta now have 60 days to comply with the rulings or face additional penalty payments.

Despite the regulatory significance of the decision, the announcement was delivered via press release, with key EU officials overseeing the DMA absent.

Their absence sparked questions about political coordination and timing, especially given recent US visits by EU leaders and ongoing diplomatic friction over digital regulation.

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SEC targets crypto executive in $198 million Ponzi case

Ramil Palafox, CEO of PGI Global, has been charged by the US Securities and Exchange Commission. He is accused of orchestrating a $198 million crypto-based Ponzi scheme.

According to the SEC, Palafox marketed unregistered ‘membership packages’ between 2020 and 2021. He promised returns of up to 200% through a fake AI-driven trading platform.

Investor funds were reportedly diverted to finance an extravagant lifestyle, including a $1.7 million Las Vegas home, luxury cars, and high-end jewellery.

SEC alleges PGI Global manipulated user dashboards and faked trading activity to deceive investors. The company, also known as PGI Global UK Ltd, was shut down by the UK High Court in 2022.

The case marks the first crypto enforcement action under new SEC Chair Paul Atkins. Prosecutors filed a related criminal case and seek a permanent ban on Palafox’s crypto involvement. Several family members are named to receive assets linked to the scheme.

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OpenAI eyes Chrome in bid to boost ChatGPT

OpenAI has expressed interest in acquiring Google’s Chrome browser if it were to be made available, viewing it as a potential boost for its AI platform, ChatGPT.

The remarks, made by Nick Turley, head of product for ChatGPT, surfaced during the US Department of Justice’s antitrust trial against Google. The case follows a 2023 ruling that found Google had maintained an illegal monopoly in online search and advertising.

Although Google has shown no intention to sell Chrome and plans to appeal, the DoJ has suggested the move as a remedy to restore competition.

Turley disclosed that OpenAI previously approached Google to use its search technology within ChatGPT, after facing limitations with Microsoft Bing, its current provider.

An email from OpenAI presented in court showed the company proposed using multiple partners, including Google’s search API, to improve the chatbot’s performance. Google, however, declined the request, citing fears of empowering rivals.

Turley confirmed there is currently no partnership with Google and noted that ChatGPT remains years away from answering most queries using its own search system.

The testimony also highlighted OpenAI’s distribution challenges. Turley voiced concerns over being shut out of key access points controlled by major tech firms, such as browsers and app stores.

While OpenAI secured integration with Apple’s iPhones, it has struggled to achieve similar placements on Android devices. Turley argued that forcing Google to share search data with competitors could instead speed up ChatGPT’s development and improve user experience.

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ING eyes Euro stablecoin as MiCA opens door for banks

Dutch banking giant ING is preparing to launch a Euro-based stablecoin. It is teaming up with other financial institutions to form a consortium, according to sources cited by CoinDesk.

The group is reportedly awaiting regulatory approval to set up a joint entity, slowing down immediate progress. The move aligns with the European Union’s Markets in Crypto Assets (MiCA) regulation, which has introduced strict rules for stablecoin issuance.

These standards have led to the retreat of some dominant players such as Tether, creating room for banks to develop regulated alternatives. Société Générale’s digital arm, SG FORGE, has already released its own Euro stablecoin on the Stellar blockchain.

The European Central Bank continues to face hurdles in advancing its Digital Euro project. In the meantime, traditional banks are offering private solutions for cross-border payments.

In the United States, similar efforts are underway with the proposed STABLE Act. The bill is already drawing attention from firms like Visa and World Liberty Financial, though the latter has come under scrutiny due to its political ties.

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New hiring platform tries to puts personality before paperwork

Two brothers and USC students, Raihan and Azam Dadabhoy, have launched an AI-powered job marketplace called Sensiply to foster more human-centred hiring.

They developed a platform where job seekers can introduce themselves via video, showcasing personality alongside experience.

Users upload personal and professional details before recording a ‘Sensipitch’ a video pitch that the AI analyses for traits like ambition or communication skills.

The tool then matches candidates with roles based on qualifications and inferred personality, helping employers connect with talent beyond a CV.

Despite concerns about algorithmic bias, the brothers designed the platform to delay access to demographic data until after a match is made.

While the service remains free for applicants, Sensiply plans to introduce a subscription model for employers.

The founders, driven by real-world struggles and over 100 research calls, hope their innovation makes hiring more equitable and personal.

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