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Crypto market faces MiCA implementation in 2025

The European crypto market is on the verge of a major transformation as the Markets in Crypto-Assets Regulation (MiCA) takes centre stage. The comprehensive framework aims to enhance transparency, anti-money laundering measures, and consumer protection, setting new standards for the industry. However, with the 2025 deadline approaching, concerns over readiness are mounting. Recent findings reveal that less than 5% of crypto businesses in countries like Poland, Czechia, and the Baltics are fully prepared, leaving many at risk of non-compliance.

While nations such as Malta, France, and Liechtenstein benefit from existing laws closely aligned with MiCA, others face steeper challenges. Poland, for example, must harmonise its lenient regulatory environment to meet the demands, impacting over 1,500 registered VASPs. On the other hand, Estonia stands out as a proactive leader, with fewer firms needing to adapt due to its stringent crypto regulations. The disparity in readiness underscores the urgent need for a cohesive effort across Europe.

For crypto companies, compliance is no longer optional but imperative. Non-compliance could mean losing access to the EU market or facing operational shutdowns, especially for smaller firms. Yet, embracing MiCA offers a significant upside, including greater consumer trust and competitive advantage. Companies like Kyrrex are stepping in to provide solutions, enabling a smoother business transition through sublicensing and advanced regulatory tools.

With 2025 drawing closer, the focus shifts to how quickly the industry can adapt to unlock MiCA’s potential. For Europe’s crypto market, this is not just about surviving regulatory changes but thriving in a future defined by transparency and innovation.

US regulator escalates complaint against Snap

The United States Federal Trade Commission (FTC) has referred a complaint about Snap Inc’s AI-powered chatbot, My AI, to the Department of Justice (DOJ) for further investigation. The FTC alleges the chatbot caused harm to young users, though specific details about the alleged harm remain undisclosed.

Snap Inc defended its chatbot, asserting that My AI operates under rigorous safety and privacy measures and criticised the FTC for lacking concrete evidence to support its claims. Despite the company’s reassurances, the FTC stated it had uncovered indications of potential legal violations.

The announcement impacted Snap’s stock performance, with shares dropping by 5.2% to close at $11.22 on Thursday. The US FTC noted that publicising the complaint’s transfer to the DOJ was in the public interest, underscoring the gravity of the allegations.

Donald Trump rebrings TikTok online

TikTok began restoring its services in the US on Sunday after President-elect Donald Trump announced plans to revive the app upon taking office on Monday. Speaking at a rally ahead of his inauguration, Trump assured his supporters that TikTok, a platform used by 170 million Americans, would be brought back online through a joint venture that protects national security. Hours earlier, TikTok users had received a message crediting Trump for the app’s restoration efforts.

TikTok ceased operations late Saturday after a law banning the platform on national security grounds came into effect. The shutdown sparked a frenzy among users and businesses dependent on the app, with web searches for VPNs surging and concerns mounting over disruptions to TikTok Shop transactions. The app’s temporary return relieves millions, but important questions remain about its long-term future in the US.

Trump’s pledge to extend the ban’s enforcement period to facilitate a deal marks a shift from his stance in 2020 when he sought to ban TikTok over concerns that its Chinese parent company, ByteDance, was sharing user data with Beijing. Trump now calls for a joint venture, proposing a 50% US ownership stake while guaranteeing that service providers would not face penalties for restoring TikTok.

Despite Trump’s assurances, the law mandating TikTok’s divestiture remains contentious. Republican lawmakers, including Senators Tom Cotton and Pete Ricketts, have criticised any attempt to circumvent the law, insisting that ByteDance sever all ties with China to meet the divestiture requirements. Meanwhile, TikTok’s ongoing connection to China continues to fuel tensions in US-China relations, with Beijing accusing Washington of unfairly targeting Chinese companies.

TikTok’s temporary return has reignited debates over its valuation, reportedly as high as $50 billion, and potential suitors, including former Los Angeles Dodgers owner Frank McCourt and billionaire Elon Musk. While Beijing has reportedly discussed a possible sale, ByteDance denies such plans. Separately, US startup Perplexity AI has proposed merging with TikTok’s US operations to create a new entity.

The platform’s restoration signals its cultural and economic significance, but it also highlights the geopolitical complexities of its existence. Whether TikTok ultimately secures a deal or faces renewed legal battles, its journey reflects the growing and complicated intersection of technology, digital policies, cyber diplomacy, politics, and global commerce.

New Nvidia microservices address key security concerns in AI agents

Nvidia has launched three new NIM microservices designed to help enterprises control and secure their AI agents. These services are part of Nvidia NeMo Guardrails, a collection of software tools aimed at improving AI applications. The new microservices focus on content safety, restricting conversations to approved topics, and preventing jailbreak attempts on AI agents.

The content safety service helps prevent AI agents from generating harmful or biased outputs, while the conversation filter ensures discussions remain on track. The third service works to block attempts to bypass AI software restrictions. Nvidia’s goal is to provide developers with more granular control over AI agent interactions, addressing gaps that could arise from broad, one-size-fits-all policies.

Enterprises are showing growing interest in AI agents, though adoption is slower than anticipated. A recent Deloitte report predicts that by 2027, half of enterprises will be using AI agents, with 25% already implementing or planning to do so by 2025. Despite widespread interest, the pace of adoption remains slower than the rapid development of AI technology.

Nvidia’s new tools are designed to make AI adoption more secure and reliable. The company hopes these innovations will encourage enterprises to integrate AI agents into their operations with greater confidence, but only time will tell whether this will be enough to accelerate widespread usage.

Indian startups join US space and defence program

Seven Indian startups have been selected for a groundbreaking India-US space and defence collaboration program, opening doors to the world’s largest defence and space market. The program, launched in September 2024 by Indian investor Indusbridge Ventures and US-based FedTech, focuses on defence and dual-use technologies. Among the selected companies are space imaging firm KaleidEO, rocket manufacturer EtherealX, and AI-driven Shyam VNL, all of which will explore opportunities with US agencies like the Defense Innovation Unit and the Department of Defense.

The initiative offers Indian startups access to resources, mentorship, and collaborations with US industry leaders such as Northrop Grumman, Lockheed Martin, and RTX. According to sources, these partnerships could provide a competitive advantage in the $1.5 billion annual market for niche technologies and potentially generate revenues between $500 million and $1 billion annually. Discussions are already underway on specific projects, although details remain under wraps.

This development aligns with recent diplomatic efforts to strengthen India-US ties in defence and space technology. Indian National Security Advisor Ajit Doval and US counterpart Jake Sullivan recently met in New Delhi to discuss enhancing collaboration between the US Defense Innovation Unit and India’s Innovations for Defense Excellence. The program is a significant step toward fostering innovation and boosting private-sector cooperation between the two nations in strategic sectors.

TSMC’s US expansion struggles with costs and regulations

Taiwan Semiconductor Manufacturing Co (TSMC) is facing significant challenges in bringing its most advanced chip technology to its new Arizona plant, the company’s CEO, C.C. Wei, said. Complex regulatory hurdles, labour shortages, and supply chain gaps have slowed progress, making it unlikely for the U S factory to match Taiwan’s production timeline for cutting-edge chips. Wei noted that the Arizona project has already taken twice as long as similar facilities in Taiwan.

TSMC is investing $65 billion in three massive factories in Arizona, with support from the US government, including a $6.6 billion grant. However, Wei highlighted the high costs of compliance, including $35 million spent on establishing regulatory guidelines, as well as the logistical strain of shipping essential chemicals like sulfuric acid from Taiwan. Labour shortages have further complicated the project, requiring the relocation of workers from Texas and driving up costs.

Despite the obstacles, Wei expressed confidence in the factory’s ability to deliver high-quality chips, pointing to recent progress in producing advanced 4-nanometer chips for US clients. While most of TSMC’s cutting-edge manufacturing will remain in Taiwan, the Arizona plant marks a critical step in the US’s effort to diversify its semiconductor supply chain and reduce dependence on Asia.

China denies forcing firms to share user data

The Chinese government “has never and will never” require companies or individuals to collect or transfer data in ways that violate the law, China’s foreign ministry declared on Friday. The statement was issued in response to a privacy complaint filed by Austrian advocacy group Noyb, which accuses six Chinese companies, including TikTok, Shein, and Xiaomi, of unlawfully sending European Union user data to China.

Noyb, an organisation focused on data protection and privacy rights, alleges that the companies breached the EU’s General Data Protection Regulation (GDPR) by transferring user data without proper safeguards. The complaint has sparked concerns in Europe about how personal information is handled by Chinese firms operating within the EU. If proven, the violations could result in significant fines and further scrutiny of these companies.

In defending the nation’s stance, a foreign ministry spokesperson emphasised that China operates within the bounds of international laws and rejects any claims of illegal data practices. “China strictly upholds its legal and regulatory framework and will never engage in or endorse actions that violate laws regarding data collection or transfer,” the spokesperson said. The spokesperson also criticised what they described as “unfounded accusations” aimed at tarnishing Chinese businesses.

This case is the latest in a series of global concerns about data privacy and the practices of technology firms. It underscores the growing tension between nations over data security, cross-border data flows, and regulatory compliance, particularly as Chinese companies expand their presence in foreign markets. The outcome of Noyb’s complaint could have far-reaching implications for data governance and corporate practices in both Europe and China.

Swiss bank expands crypto offerings with Ether staking

Swiss government-owned bank PostFinance is now offering Ether staking to its 2.7 million customers, representing about a quarter of the country’s population. With a minimum requirement of just 0.1 Ether, the service is accessible to retail investors and integrates staking rewards into customers’ asset statements for a seamless experience. The 12-week fixed term allows users to sell credited rewards after maturity.

PostFinance’s foray into Ether staking marks another step in its expanding cryptocurrency services. In April 2023, it launched crypto trading and custody in partnership with Sygnum, following its earlier initiatives in crypto custody platforms and digital stamp collectables. The bank plans to add more cryptocurrencies to its staking programme in the future.

According to the Beacon Chain, this development comes as Ether grows, with over 33 million Ether staked globally. Liquid staking platforms like Lido Finance and Coinbase currently dominate the market, but PostFinance’s native Ethereum staking could appeal to those seeking traditional banking options in the crypto space.

Trump administration poised to boost crypto influence in US policy

The incoming Trump administration is set to shape the future of cryptocurrency and blockchain technology in the United States with a wave of key appointments and nominations. As President-elect Donald Trump prepares to take office, crypto advocates are hopeful that the new leadership will take a friendlier stance toward the industry, marking a departure from years of lawsuits and enforcement actions.

Among the prominent appointees, billionaire hedge fund manager Scott Bessent, slated to be Treasury Secretary, has voiced strong support for crypto, calling it “about freedom.” Commerce Secretary nominee Howard Lutnick, who leads Cantor Fitzgerald, is an active bitcoin proponent, while Elon Musk, heading the new Department of Government Efficiency (DOGE), has a well-documented history of championing cryptocurrencies like bitcoin and dogecoin. Vivek Ramaswamy, a former presidential candidate, will work alongside Musk at DOGE, with a focus on integrating bitcoin into broader investment portfolios.

David Sacks, a former PayPal executive and crypto investor, was named the administration’s AI and crypto czar, tasked with creating a long-sought legal framework for digital assets. Vice President-elect J.D. Vance and members of the Trump family, including Eric Trump, Donald Trump Jr., and Barron Trump, have also signalled strong support for cryptocurrency, further solidifying the administration’s pro-crypto stance. With SEC Chair nominee Paul Atkins advocating for deregulation, the industry is optimistic about a more innovation-friendly approach.

The Trump administration’s apparent focus on fostering a robust US crypto industry has already garnered attention, including a sold-out crypto-themed ball in Washington. While critics voice concerns about conflicts of interest and regulatory gaps, supporters believe these appointments could position the US as a global leader in cryptocurrency and blockchain technology.

Coinbase offers crypto loans for Bitcoin holders

Coinbase has reintroduced crypto-backed loans, allowing US customers to borrow against their Bitcoin. The service, currently unavailable in New York, uses the decentralised finance (DeFi) protocol Morpho to handle lending operations. Customers can borrow USDC while Coinbase facilitates the process, removing the need to interact directly with complex DeFi systems.

The new programme marks a significant step in bridging traditional crypto exchanges with the DeFi world. By integrating a sleek, consumer-friendly interface, Coinbase makes over-collateralised loans more accessible, concealing the intricate mechanics of DeFi from users. The loans use cbBTC, a DeFi-compatible version of Bitcoin issued by Coinbase, as collateral.

The move follows the discontinuation of Coinbase’s previous loan offering in 2023 after regulatory challenges and waning demand. With this streamlined approach, Coinbase hopes to attract more users to DeFi lending, tapping into the billions of dollars worth of Bitcoin held by its customers.