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Stricter rules for WhatsApp after EU designation

WhatsApp has officially met the threshold set by the EU’s Digital Services Act (DSA), marking its designation as a Very Large Online Platform.

The messaging app, owned by Meta Platforms, reported an average of 46.8 million monthly users in the EU during the latter half of 2024, surpassing the 45-million-user threshold established by the DSA.

The new classification requires WhatsApp to strengthen efforts in tackling illegal and harmful online content.

The platform must assess system risks related to public security, fundamental rights, and protecting minors within four months to comply with the DSA. Violations could result in fines reaching up to 6% of global annual revenue.

Meta’s Instagram and Facebook are already subject to the same rules. While complying with the stricter regulations, Meta leadership, including Mark Zuckerberg, has expressed concerns about the growing impact of EU tech laws.

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EU grants €920 million to Infineon for new semiconductor facility

The European Commission has approved a €920 million German state aid package for Infineon to build a new semiconductor manufacturing plant in Dresden. This funding will support the company’s MEGAFAB-DD project, which aims to produce a wide variety of chips. The new facility, expected to reach full capacity by 2031, will play a key role in strengthening Europe’s technological autonomy and security of supply in semiconductor technologies, aligning with the European Chips Act’s goals.

This move is part of a global trend where chipmakers are investing heavily in new plants, taking advantage of subsidies from the US and the EU to maintain the West’s edge in semiconductor technology over China. The European Commission has allocated €15 billion for public and private semiconductor projects by 2030, further reinforcing the region’s commitment to securing its position in the industry.

Infineon’s €3.5 billion investment, the largest in its history, will help address the growing demand for semiconductors used in industrial, automotive, and consumer applications. The company has committed to ensuring the plant benefits the wider EU semiconductor value chain, including research and development for the next generation of chips. The plant will also contribute to crisis preparedness by prioritising orders in case of supply shortages.

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Dutch companies to launch first regulated digital euro

Three Dutch firms have joined forces to launch EURQ, a blockchain-based digital euro designed to merge decentralised technology with traditional financial systems. The collaboration, involving Quantoz Payments, NPEX, and Dusk, marks the first time a licensed stock exchange will integrate electronic money tokens into its operations. The initiative, fully compliant with European regulations, aims to provide businesses and individuals with a secure, regulated digital euro.

EURQ is built to meet the Markets in Crypto-Assets Regulation (MiCA) requirements, allowing the seamless trading of real-world assets on-chain via the Dusk and NPEX networks. Quantoz Payments will establish a regulatory-compliant framework, enabling faster and more efficient cross-border transactions. The initiative is expected to set a new standard in financial innovation, demonstrating how blockchain can enhance existing monetary systems.

The project’s leaders stress that EURQ is more than just a stablecoin—it is a true digital representation of the euro, fully approved by regulators. They see it as a significant step towards integrating digital assets into mainstream finance, promoting greater transparency and trust within the financial sector. This development highlights the evolving role of blockchain in regulated markets, paving the way for further advancements in digital finance.

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iPhone 16e features Apple-designed C1 subsystem

Apple has introduced its first custom-designed modem chip, marking a significant step towards reducing reliance on Qualcomm. The new chip, a part of Apple’s C1 subsystem, debuts in the $599 iPhone 16e and will eventually be integrated across other products.

The C1 subsystem includes advanced components like processors and memory, offering better battery life and enhanced artificial intelligence features.

Apple has ensured the modem is globally compatible, testing it with 180 carriers in 55 countries. Executives highlight its ability to prioritise network traffic for smoother performance, setting it apart from competitors.

Modem development is highly complex, with few companies achieving global compatibility. Apple previously relied on Qualcomm but resolved to design its own platform after legal disputes and challenges with alternative suppliers.

The C1 subsystem represents Apple’s strategy to tightly integrate modem technology with its processors for long-term product differentiation.

Apple’s senior hardware executives described the C1 as their most complex creation, combining cutting-edge chipmaking techniques. The new platform underscores Apple’s focus on control and innovation in core technologies.

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Binance restores US dollar services after 18-month freeze

Binance.US has reinstated US dollar deposit and withdrawal services for its customers, ending nearly 18 months of restrictions. This move comes after regulatory clarity, allowing users to link their bank accounts for USD deposits and withdrawals via ACH. The exchange announced on 19 February that the services would gradually be rolled out to eligible customers.

The suspension of USD services in June 2023 followed a lawsuit filed by the US Securities and Exchange Commission (SEC), accusing Binance and its founder Changpeng Zhao of regulatory violations and mishandling user funds. In response, Binance.US had initially shifted towards a ‘crypto-only exchange’ model, removing support for USD transactions.

Binance has faced additional legal challenges, including an Anti-Money Laundering violation settlement in November 2023, resulting in a historic $4.3 billion fine. Despite these hurdles, the return of USD services signals a shift towards regulatory compliance, allowing Binance to rebuild its operations in the US market.

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X discusses a new financing round at $44 billion

Elon Musk’s social media company X is currently in discussions to raise funds from investors at a $44 billion valuation, according to Bloomberg News. Musk purchased the platform, formerly known as Twitter, for the same price in 2022.

The financing talks are still ongoing, with the potential for details to change or even for the discussions to be abandoned altogether, the report added. The US company has not yet responded to requests for comment on the matter.

In related news, last month, it was reported that Morgan Stanley, Bank of America, and Barclays were preparing to sell up to $3 billion in debt holdings in X.

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Trump discusses TikTok sale with China

President Donald Trump confirmed on Wednesday that he was in active discussions with China over the future of TikTok, as the US seeks to broker a sale of the popular app. Speaking to reporters aboard Air Force One, Trump revealed that talks were ongoing, underscoring the US government’s desire to address national security concerns tied to the app’s ownership by the Chinese company ByteDance. The move comes amid growing scrutiny over TikTok’s data security practices and potential links to the Chinese government.

The Trump administration has expressed concerns that TikTok could be used to collect sensitive data on US users, raising fears about national security risks. As a result, the US has been pushing for ByteDance to sell TikTok’s US operations to an American company. This would be part of an effort to reduce any potential influence from the Chinese government over the app’s data and operations. However, the process has faced complexities, with discussions involving multiple stakeholders, including potential buyers.

While the negotiations continue, the future of TikTok remains uncertain. If a sale is not agreed upon, the US has indicated that it could pursue further actions, including a potential ban of the app. As these talks unfold, the outcome could have significant implications for TikTok’s millions of American users and its business operations in the US, with both sides working to find a solution that addresses the security concerns while allowing the app to continue its success.

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Hong Kong explores new virtual asset regulations

Hong Kong is considering approving derivatives and margin lending for virtual assets, aiming to strengthen its position as a global hub for digital assets, according to the Securities and Futures Commission (SFC). This move is part of the city’s broader strategy, initiated in 2022, to become a leading virtual asset trading centre, particularly after China’s cryptocurrency ban in 2021. The SFC’s CEO, Julia Leung, announced the potential inclusion of derivative products and margin lending for professional investors, highlighting ongoing efforts to enhance Hong Kong’s competitiveness in the sector.

As part of its regulatory push, the city has already issued nine virtual asset trading platform licences, with more applications under review. One such licence was granted to Bullish Group, the parent company of CoinDesk. Additionally, financial secretary Paul Chan noted that the government is working on advancing regulations for stablecoins, further solidifying Hong Kong’s ambitions in the digital asset space.

The city will soon release a detailed roadmap for virtual asset growth, which will outline future plans. Meanwhile, Hong Kong competes with cities like Singapore and Dubai, also striving to become leading centres for digital finance. The latest developments come amid a broader global shift in the cryptocurrency market, which has seen significant interest from institutional investors following regulatory changes in the US under President Trump.

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AI’s rapid rise sparks innovation and concern

AI has transformed everyday life, powering everything from social media recommendations to medical breakthroughs. As major tech companies and governments compete to lead in AI development, concerns about ethics, bias, and environmental impact are growing.

AI systems, while capable of learning and processing vast amounts of data, lack human reasoning and empathy. Generative AI, which creates text, images, and music, has raised questions about misinformation, copyright issues, and job displacement.

AI’s influence is particularly evident in the workplace, education, and creative industries. Some experts fear it could worsen financial inequality, with automation threatening millions of jobs.

Writers, musicians, and artists have criticised AI developers for using their work without consent. Meanwhile, AI-generated misinformation has caused controversy, with major companies halting or revising their AI features after errors.

The technology also presents security risks, with deepfakes and algorithmic biases prompting urgent discussions about regulation.

Governments worldwide are introducing policies to manage AI’s risks while encouraging innovation. The European Union has imposed strict controls on AI in sensitive sectors with the AI Act, while China enforces rules ensuring compliance with censorship laws.

The United Kingdom and the United States have formed AI Safety In s titutes to evaluate risks, though concerns remain over AI’s environmental impact. The rise of large data centres, which consume vast amounts of energy and water, has sparked debates about sustainability.

Despite these challenges, AI continues to advance, shaping the future in ways that are still unfolding.

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Resonac plans to pursue acquisitions after reducing borrowing

Resonac Holdings, a leading chip materials maker in Japan, is positioning itself to make strategic acquisitions after reducing its borrowing, according to CEO Hidehito Takahashi. Speaking to Reuters, Takahashi expressed the company’s intention to take an aggressive approach this year, particularly eyeing opportunities when a state-backed fund exits its competitor JSR, a photoresist maker recently taken private.

Resonac, formed by Showa Denko’s acquisition of Hitachi Chemical, has been divesting assets, including a planned partial spin-off of its petrochemical business. Takahashi sees JSR’s potential exit as a key opportunity for Resonac to expand its footprint in the semiconductor materials sector. Japan’s semiconductor market remains competitive, despite the country’s reduced role in chip manufacturing, and companies like Resonac must scale up to remain viable.

In addition to its expansion efforts, Resonac is establishing an R&D centre in Silicon Valley to strengthen its ties with firms in the region. However, Takahashi made it clear that the company is not currently considering manufacturing materials in the US, though future demand could prompt a reassessment of such plans.

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