Kraken operator fined millions by Australian court

Bit Trade, the operator of Kraken in Australia, has been fined $8 million for offering an unapproved margin lending product to over 1,100 customers. The Federal Court of Australia ruled that the company breached financial regulations by failing to assess customer suitability and neglecting to provide a Target Market Determination (TMD), a document essential for ensuring products are appropriately matched to consumers’ needs.

The Australian Securities and Investments Commission (ASIC) revealed that customers lost $7.85 million due to the product, with one individual losing $6.3 million. Justice John Nicholas criticised Bit Trade’s actions as “serious” and profit-driven, calling out the company for its delayed response to compliance issues. In addition to the fine, Bit Trade was ordered to cover ASIC’s legal costs.

Kraken was disappointed with the ruling, arguing that Australia’s regulatory framework lacks clarity and calls for tailored cryptocurrency laws. However, ASIC Chair Joe Longo described the decision as a turning point for consumer protection, urging digital asset firms to meet compliance obligations. The regulator is currently consulting with the crypto industry on updates to its guidance, though critics claim the government’s inaction has left the sector in “regulatory limbo.”

Meta resolves Australian privacy dispute over Cambridge Analytica scandal

Meta Platforms, the parent company of Facebook, has settled a major privacy lawsuit in Australia with a record A$50 million payment. This settlement concludes years of legal proceedings over allegations that personal data of 311,127 Australian Facebook users was improperly exposed and risked being shared with consulting firm Cambridge Analytica. The firm was infamous for using such data for political profiling, including work on the Brexit campaign and Donald Trump’s election.

Australia’s privacy watchdog initiated the case in 2020 after uncovering that Facebook’s personality quiz app, This is Your Digital Life, was linked to the broader Cambridge Analytica scandal first revealed in 2018. The Australian Information Commissioner Elizabeth Tydd described the settlement as the largest of its kind in the nation, addressing significant privacy concerns.

Meta stated the agreement was reached on a “no admission” basis, marking an end to the legal battle. The case had already secured a significant victory for Australian regulators when the high court declined Meta’s appeal in 2023, forcing the company into mediation. This outcome highlights Australia’s growing resolve in holding global tech firms accountable for user data protection.

Bitcoin smashes $107,000 while MicroStrategy bets big

Bitcoin prices have reached a new record, surpassing $107,000 amid speculation that President-elect Donald Trump might establish a Bitcoin strategic reserve. The milestone came shortly after prices broke through $106,000, reflecting growing optimism in the cryptocurrency market.

Meanwhile, MicroStrategy announced a $1.5 billion bitcoin purchase, adding 15,350 bitcoins at an average price of $100,386 each. The company now holds 439,000 bitcoins, worth $47 billion, and has seen its market cap soar from $1.1 billion in 2020 to nearly $100 billion. The firm’s shares have surged by 527% this year, boosted by Bitcoin’s rally and its forthcoming inclusion in the Nasdaq 100 index.

Despite its impressive growth, analysts suggest MicroStrategy may face challenges in joining the S&P 500 due to concerns over profitability. Current accounting rules restrict how gains from bitcoin holdings are recorded, although new standards expected in January 2025 could help the company more accurately reflect its bitcoin-related gains.

Monad aims to expand the ecosystem with a new Foundation

The Monad blockchain project, compatible with Ethereum’s virtual machine, has introduced the Monad Foundation to advance the network’s growth and decentralisation. The Foundation will focus on validator-led governance, community improvement proposals, and ecosystem expansion, providing essential resources to developers while promoting adoption.

Amid speculation of a potential token launch, the Monad Foundation aims to ensure transparency in governance processes. Leadership includes Keone Hon and Eunice Giarta, alongside team members from Monad Labs, now renamed Category Labs, which will concentrate on software development and research under new CEO James Hunsaker.

This restructuring mirrors trends in blockchain projects, dividing governance and ecosystem efforts from technical development. With EVM compatibility, Monad is positioned to attract developers familiar with Ethereum tools, accelerating innovation and adoption.

Bitget secures Bitcoin service licence in El Salvador

Bitget has secured a Bitcoin Service Provider licence from El Salvador’s Central Reserve Bank, allowing the platform to offer Bitcoin-to-fiat exchanges, payments, and custody services in the country. This licence is part of Bitget’s strategy to strengthen its global regulatory position and expand its presence in Latin America.

El Salvador, which made Bitcoin legal tender in 2021, has become a hub for cryptocurrency adoption. With this new licence, Bitget aims to tap into the country’s growing crypto market, which serves as a gateway to the wider region. The company is also pursuing a Digital Assets Service Provider licence from El Salvador’s National Commission of Digital Assets to extend its services to other cryptocurrencies.

In addition to its progress in Latin America, Bitget has secured Virtual Asset Service Provider licences in Poland and Lithuania and recently re-entered the UK market through a partnership with Archax. The company also plans to set up a dedicated team in El Salvador to strengthen its local presence.

Ripple’s RLUSD stablecoin debuts globally

Ripple has confirmed that its RLUSD stablecoin, backed by the US dollar, will begin trading globally on 17 December. The launch follows approval from the New York Department of Financial Services (NYDFS) on 10 December. Ripple’s RLUSD stablecoin is 100% supported by US dollar deposits, short-term government Treasurys, and other cash equivalents. Initially, it will be available on major crypto platforms such as Uphold, MoonPay, and Archax, with plans for further listings in the coming weeks.

Ripple aims to target global adoption of RLUSD, with its partner network facilitating its use across regions including the Americas, Asia-Pacific, the UK, and the Middle East. The company plans to integrate RLUSD into its Ripple Payments protocol by early 2025 to support cross-border settlement and treasury remittance. Ripple also envisions RLUSD playing a role in decentralized finance protocols and trading tokenized real-world assets on-chain.

As part of the RLUSD launch, Ripple has appointed former banking officials, including Raghuram Rajan, former governor of the Reserve Bank of India, and Kenneth Montgomery, former vice president of the Federal Reserve Bank of Boston, to its advisory board. These appointments are aimed at strengthening the stablecoin’s regulatory and operational strategy. Ripple’s focus on compliance and reliability aims to position RLUSD as a leading player in the future of global payments.

Revitalising trust with AI: Boosting governance and public services

AI is reshaping public governance, offering innovative ways to enhance services and restore trust in institutions. The discussion at the Internet Governance Forum (IGF) in Riyadh, moderated by Brandon Soloski of Meridian International, focused on using AI to streamline services like passport processing and tax systems, while also addressing privacy and data sovereignty concerns. Open-source AI was highlighted as a critical tool for democratising access and fostering innovation, particularly in developing nations.

Global regulatory frameworks were a central theme, with panellists underscoring the need for harmonisation to avoid fragmentation and ensure seamless interoperability across borders. Economist and policy analyst at the OECD, Lucia Russo, discussed regulatory approaches such as the EU AI Act, which aims to create a comprehensive legal framework. Brandon Soloski and Sarim Aziz from Meta pointed to the benefits of principle-based frameworks in other regions, which provide flexibility while maintaining oversight. Pellerin Matis, Vice President of Global Government Affairs at Oracle, emphasised the importance of public-private partnerships, which allow governments to leverage private sector expertise and startup innovation for effective AI implementation.

The panellists explored how AI can enhance public services, highlighting its role in healthcare, agriculture, and public safety. Examples included AI-driven tools that improve patient care and streamline food production. However, challenges like data protection, trust in AI systems, and the balance between innovation and regulation were also discussed. Anil Pura, an audience member from Nepal, contributed valuable perspectives on the need for education and transparency to foster public trust.

Transparency and education were recognised as fundamental for building trust in AI adoption. Panellists agreed that ensuring citizens understand how AI technologies work and how their data is protected is essential for encouraging adoption. They called for governments to work closely with civil society and academia to create awareness and promote responsible AI use.

The discussion concluded with a call to strengthen collaborations between governments, private companies, and startups. Brandon Soloski highlighted how partnerships could drive responsible AI innovation, while Pellerin Matis stressed the importance of ethical and regulatory considerations to guide development. The session ended on an optimistic note, with panellists agreeing on AI’s immense potential to improve government efficiency and enhance public trust.

All transcripts from the Internet Governance Forum sessions can be found on dig.watch.

IGF 2024 panellists highlight infrastructure, literacy, and fair digital access

The Internet Governance Forum 2024 (IGF) brought together global stakeholders to discuss the implementation of the Global Digital Compact (GDC), aiming to address digital inequalities and foster cross-sector partnerships. The session spotlighted key challenges such as funding gaps, cultural adaptation of digital initiatives, and sustainability concerns in infrastructure development.

Isabel De Sola from the Office of the Tech Envoy emphasised stakeholder collaboration and revealed plans for an upcoming GDC implementation roadmap. Roy Eriksson, Finland‘s Ambassador for Global Gateway, shared successes from AI strategy projects in African nations, illustrating how capacity-building partnerships can close technology gaps. Kevin Hernandez of the Universal Postal Union presented the Connect.Post programme, which aims to connect global post offices to digital networks by 2030.

Discussions also underscored energy efficiency and sustainability in digital infrastructure. Nandipha Ntshalbu highlighted the need to balance technological growth with environmental considerations. Data governance and cybersecurity frameworks were identified as critical, with Shamsher Mavin Chowdhury stressing the importance of inclusive frameworks to protect the interests of developing countries.

Innovative projects demonstrated local impact, such as Damilare Oydele’s Library Tracker for African libraries and Patricia Ainembabazi’s efforts promoting regional knowledge-sharing platforms. However, Alisa Heaver of the Dutch Ministry of Economic Affairs raised concerns about aligning GDC objectives with existing frameworks to avoid redundancy.

The IGF session concluded with a unified call for continued collaboration. Despite challenges, there was optimism that effective partnerships and targeted initiatives can ensure secure, inclusive, and sustainable digital progress worldwide.

Challenges and opportunities in Africa’s digital transformation: Data governance and sharing under scrutiny

The ongoing digital transformation across Africa has put data governance and sharing at the forefront of economic growth and innovation. In an Internet Governance Forum session titled ‘Data Without Borders? Navigating Policy Impacts in Africa’, experts emphasised the importance of harmonised data policies to support the African Union’s (AU) Data Policy Framework.

Souhila Amazouz from the African Union Commission highlighted the framework’s principles of transparency and cooperation, while Thelma Quaye of Smart Africa stressed the urgency of aligning national policies to ensure seamless cross-border data flows. Lillian Nalwoga noted the need for robust national data strategies, noting that two-thirds of African countries have data protection laws, though challenges remain in unifying national and continental interests.

The conversation revealed critical hurdles to effective data governance, including gaps in legal frameworks, limited institutional capacities, inadequate infrastructure, and cybersecurity risks. Souhila Amazouz discussed efforts to address these gaps through regional data centres and capacity-building initiatives.

Meanwhile, the concept of data localisation sparked debate. Vincent Olatunji from the Nigeria Data Protection Commission argued for practical data categorisation over full localisation, which Paul Baker (International Economics Consulting Limited) warned could burden businesses with high costs.

The balance between localisation and cross-border data sharing remains a contentious issue, particularly with the African Continental Free Trade Area (AfCFTA) aiming to boost trade and integration across the continent.

The panellists also highlighted the importance of trust and collaboration between governments and businesses. Transparent data practices and inclusive policy development were essential to fostering confidence in data-sharing initiatives. Paul Baker noted the vital role of cross-border data flows for Micro, Small, and Medium Enterprises (MSMEs), though an audience member pointed out that many countries still rely on manual systems, hampering digital progress.

Ultimately, the discussion underscored the need for a unified approach to data governance, with capacity development, infrastructure investment, and multistakeholder collaboration as key priorities. While challenges like the digital divide and data fragmentation persist, the dialogue demonstrated a collective commitment to advancing Africa’s digital transformation through effective data governance strategies.  

All transcripts from the Internet Governance Forum sessions can be found on dig.watch.

Britain enforces new online safety rules for social media platforms

Britain‘s new online safety regime officially took effect on Monday, compelling social media platforms like Facebook and TikTok to combat criminal activity and prioritise safer design. Media regulator Ofcom introduced the first codes of practice aimed at tackling illegal harms, including child sexual abuse and content encouraging suicide. Platforms have until March 16, 2025, to assess the risks of harmful content and implement measures like enhanced moderation, easier reporting, and built-in safety tests.

Ofcom’s Chief Executive, Melanie Dawes, emphasised that tech companies are now under scrutiny to meet strict safety standards. Failure to comply after the deadline could result in fines of up to £18 million ($22.3 million) or 10% of a company’s global revenue. Britain’s Technology Secretary Peter Kyle described the new rules as a significant shift in online safety, pledging full support for regulatory enforcement, including potential site blocks.

The Online Safety Act, enacted last year, sets rigorous requirements for platforms to protect children and remove illegal content. High-risk sites must employ automated tools like hash-matching to detect child sexual abuse material. More safety regulations are expected in the first half of 2025, marking a major step in the UK’s fight for safer online spaces.