Coinbase is preparing to delist stablecoins in Europe that fail to meet the EU’s Markets in Crypto-Assets Regulation (MiCA) by the end of 2024. However, uncertainty surrounds the regulatory status of Tether’s USDT, the world’s largest stablecoin. While Coinbase has yet to confirm whether USDT will be affected, there are reports that Tether could struggle to comply with MiCA’s requirements.
The European Securities and Markets Authority (ESMA) has not provided clear guidance on USDT’s compliance. Tether has raised concerns over MiCA’s reserve management rules, which the company believes could disrupt its business model and introduce risks to both local banking systems and stablecoins.
Tether CEO Paolo Ardoino hinted that the company might shift its focus towards developing markets, like Argentina, rather than navigating the regulatory complexities of the European Union.
China is calling on the United States to lift sanctions on Chinese companies in semiconductors and intelligent connected vehicles, aiming to create a more stable business environment. In a recent conversation with US Secretary of Commerce Gina Raimondo, China’s Minister of Commerce, Wang Wentao, expressed serious concerns over US trade restrictions and emphasised the need to clarify national security policies.
He argued that clear guidelines would protect the stability of global supply chains, which are essential for electronics, automotive, and pharmaceutical industries. Analysts and business leaders emphasise that strong U.S.-China trade relations reduce production delays and disruptions. Despite upcoming election challenges, experts believe cooperation is likely. US companies may advocate for balanced trade policies due to their reliance on China, underscoring the need for a stable and cooperative trade relationship.
Moreover, China’s growing appeal as an investment destination is underscored by its third-place ranking on the 2024 Kearney FDI Confidence Index. Consequently, businesses increasingly view China as a vital market and innovation hub, with companies like Dun & Bradstreet and Skechers expanding their operations in response to its strategic supply role and vast consumer base. In addition, business leaders advocate for deeper US-China trade relations, recognising collaboration’s competitive advantages.
Furthermore, recent trade data reveals that the US remains China’s third-largest trading partner, with a trade volume of 3.15 trillion yuan ($446.21 billion) in the first eight months of 2024. This robust trade relationship highlights the critical need for ongoing cooperation between the two economies, especially in an increasingly competitive global landscape.
Google is pushing back against a federal judge’s recent order that would force it to allow more competition in its Play Store. In a court filing, the tech giant requested that US District Judge James Donato’s injunction, set to take effect on 1 November, be paused. Google argues that the ruling could introduce significant security, privacy, and safety risks to the Android ecosystem and is seeking time to pursue an appeal.
The injunction stems from a lawsuit initiated by Epic Games, the creator of ‘Fortnite,’ which argued that Google monopolised app distribution and in-app payment processes on Android devices. A jury sided with Epic, and the judge’s order now requires Google to allow users to download apps from third-party platforms and use alternative payment methods for in-app purchases.
In addition, the ruling prevents Google from paying manufacturers to preinstall its Play Store on devices and from sharing revenue generated through the Play Store with other distributors. These measures aim to reduce Google’s control over the app marketplace, opening up more space for competitors.
If Judge Donato denies Google’s request to delay the order, the company can take its case to the 9th US Circuit Court of Appeals, based in San Francisco. Google has already filed its notice of appeal and is preparing to challenge the injunction and the antitrust verdict that underpins it.
As the appeal process unfolds, the court will ultimately decide whether Google must comply with the ruling or if the tech giant can maintain its current app store policies while reviewing the case.
The legal battle has significant implications for app distribution on Android devices.
The European Commission has set a deadline of October 21 for the Chinese online marketplace Temu to respond to inquiries regarding its compliance with the Digital Services Act (DSA). The Commission is seeking detailed information about Temu’s efforts to combat the sale of illegal products on its platform and the measures it has implemented to ensure consumer protection, public health, and user wellbeing.
Temu, founded in 2022 by PDD Holdings, was classified as a Very Large Online Platform due to its user base exceeding 45 million monthly average users in the EU. It was previously required to meet DSA standards by the end of September, including addressing systemic risks and preventing the sale of counterfeit goods. This latest inquiry marks the second time the Commission has sought clarification from Temu, following questions in June about its compliance with the “Notice and Action mechanism” for reporting illegal products.
The European Consumer Organisation (BEUC) has also raised concerns about Temu’s practices, filing complaints against the platform for failing to protect consumers and employing manipulative tactics. These complaints, supported by representatives from 17 EU member states, allege that Temu does not provide essential seller information, hindering consumers’ ability to verify product safety compliance. The DSA has been in effect since February, and the EU has initiated several investigations into other major platforms for similar compliance issues.
Dutch economy minister Dirk Beljaarts revealed a plan to form a ‘coalition of the willing’ within the EU to strengthen the bloc’s computer chip industry and compete globally with the US and China. At a G7 industry ministers’ meeting in Rome, he stressed the importance of EU nations working together to set up production, assembly, and packaging facilities. While the Netherlands is home to leading chip tool maker ASML, Beljaarts emphasised that other EU countries must also build their semiconductor industries.
Beljaarts expressed the Netherlands’ readiness to lead this initiative, collaborating with Italian Industry Minister Adolfo Urso to bring the plans to life. Although the Netherlands is not a G7 member, its influence in the tech sector, as the world’s 18th largest economy, secured its invitation to the meeting. The EU’s chip strategy has recently faced challenges, particularly after the departure of Thierry Breton, the former EU Commission industry chief and architect of the EU Chips Act. The act, valued at €43 billion, aims to boost Europe’s share of the global chip market to 20% by 2030.
In a separate meeting, Beljaarts spoke with US Secretary of Commerce Gina Raimondo, discussing potential areas of cooperation. This discussion took place amid anticipated US export restrictions on advanced semiconductor equipment to China, which could impact ASML. However, Beljaarts clarified that the talks focused on collaboration rather than export limitations.
Bitcoin’s bullish trajectory remains strong, with the cryptocurrency expected to reach $100,000 soon, regardless of the upcoming US election, according to Dan Tapiero of 10T Holdings. Speaking at a conference in Salt Lake City, Tapiero explained that Bitcoin’s rise is inevitable, driven by global trends and growing institutional interest.
The presidential race between Donald Trump and Kamala Harris highlights different attitudes towards crypto, with Trump promising to make the US a crypto hub and remove SEC Chair Gary Gensler. Harris, though quieter on the issue, recently emphasised blockchain’s importance. Despite these political shifts, industry experts believe Bitcoin will benefit from the election either way, citing concerns over US debts and deficits as a potential driver.
With the April Bitcoin halving boosting prices historically, the fourth quarter looks promising. The election may pass, but blockchain technology’s role in reshaping finance remains far more significant than any political outcome, Tapiero noted.
Industry ministers from the G7 advanced democracies have agreed that non-market practices in the semiconductor industry pose an urgent challenge that requires collective action. This consensus was announced by the Italian presidency and is a response to growing concerns about China’s influence in the sector. During the G7 summit in June, leaders had previously pledged to address what they called unfair business practices by China, particularly as the country aggressively advances its semiconductor manufacturing capabilities.
The majority of global semiconductor production takes place in South Korea and Taiwan, with Taiwan’s closeness to mainland China heightening concerns about potential military conflicts that could disrupt global supply chains. Due to Taiwan’s leadership in advanced chip manufacturing, major economies such as the US and European nations have enacted legislation to enhance domestic semiconductor production. Initiatives like the US CHIPS Act and corresponding European measures have allocated substantial funding to incentivise companies to set up chip production facilities within their countries.
Alongside semiconductor issues, the newly established G7 task force will also focus on undersea cable connectivity, which has grown increasingly critical. Recent outages in major undersea cables have underscored the necessity for a stable and secure global internet infrastructure. This expansion of the G7’s agenda aims to address broader technological stability, moving beyond semiconductor concerns to encompass essential aspects of digital connectivity.
Brazil‘s government has proposed a reform to its competition law that would empower the antitrust authority, CADE, to designate certain digital platforms as systemically relevant, imposing new obligations on them as needed. The Finance Ministry emphasises the importance of equipping local legislation with tools to tackle the challenges posed by large tech firms that inhibit competition due to their size and market influence. This reform targets practices like exclusivity agreements, ‘killer acquisitions,’ and self-preferencing in search results.
The proposed changes would require digital platforms to submit pre-merger notifications and follow transparency rules concerning service and product usage. They would also need to disclose any modifications to their terms of service. The government seeks to find a balance between the regulatory frameworks of the US and the EU while taking inspiration from practices in Japan, the UK, and Germany.
The next steps for the Brazilian government include deciding whether to present these recommendations as a new bill to Congress or to integrate them into existing legislative proposals. Economic Reforms Secretary Marcos Pinto highlighted that the goal of the proposal is to promote competition while avoiding hindrances to innovation or unnecessary bureaucracy, underscoring the need to maintain a competitive economic environment.
In 2019, Irish authorities seized $380 million worth of Bitcoin from convicted drug dealer Clifton Collins, who had accumulated the funds through his cannabis business. However, the Irish Criminal Assets Bureau has been unable to access the digital currency because Collins lost the access codes, which were written on a piece of paper stored in a fishing rod case. The case was lost following a break-in at one of his properties, leaving the authorities unable to unlock the 12 wallets containing the funds.
Originally valued at $58 million, the Bitcoin has significantly increased in value due to market growth, but remains inaccessible. Despite ongoing efforts, the digital keys have not been recovered. Authorities hope that future technological developments could provide a way to unlock the funds.
Meanwhile, Ireland is strengthening its cooperation with EU countries to ensure unified enforcement of cryptocurrency regulations under the Markets in Crypto-Assets Regulation (MiCA).
Singtel has introduced RE:AI, a cloud service that makes AI more accessible, scalable, and affordable. Leveraging the company’s 5G MEC orchestration platform, it simplifies AI deployment, management, and scalability for enterprises and the public sector. The service is designed to reduce costs and complexity, further enabling widespread AI adoption.
At the launch event, the Deputy Prime Minister of Singapore, Gan Kim Yong, highlighted AI’s potential to drive future economic growth. Singtel also signed five key partnerships to support the advancement of AI across research, manufacturing, and tech development. These collaborations provide vital access to advanced GPU technology and training for the workforce.
RE:AI seeks to empower startups, global companies, and research institutions, fostering an innovative AI ecosystem. Singtel’s partnerships with companies such as AlphaSense and Hive will help deliver AI-driven solutions, addressing challenges such as deepfake detection and virtual healthcare.
Singtel is also investing in AI education through initiatives like the AI Acceleration Academy, aimed at training over 10,000 individuals. The company’s efforts align with Singapore’s National AI Strategy 2.0, which includes a significant government investment in AI over the next five years.
