Italy is exploring ways to strengthen its digital services tax as part of its 2025 budget, according to officials. The tax, which currently generates around €400 million annually, targets large tech firms like Meta, Google, and Amazon. Proposed changes include expanding the number of companies affected or increasing the rate for those already taxed.
The potential move comes amid concerns of US retaliation, as Washington has previously threatened tariffs against European countries that implement unilateral digital taxes. Despite an earlier agreement that froze these threats, the US has not ruled out future action. Italy’s decision is driven by the need to increase fiscal revenue as the government prepares to widen its budget deficit and introduce tax cuts in 2025.
US Commerce Secretary Gina Raimondo is set to meet Italian Prime Minister Giorgia Meloni this week, with digital taxation expected to be a key discussion point. Meanwhile, Italy continues to push for global tax reforms, which have stalled due to international disagreements.
The International Monetary Fund (IMF) has urged El Salvador to limit its exposure to Bitcoin and to narrow the scope of its Bitcoin law. Julie Kozack, the IMF’s director of communications, stated that recommendations include strengthening the regulatory framework and enhancing oversight of the Bitcoin ecosystem. The IMF has consistently raised concerns about the financial risks associated with Bitcoin, particularly regarding transparency and its potential impact on the country’s financial stability.
Despite projecting a 3% growth for El Salvador’s economy this year, the IMF remains critical of the current Bitcoin programme, which has been linked to risks that could undermine fiscal stability. The organisation has called for further efforts to improve transparency and address potential risks related to Bitcoin, highlighting the need for ongoing discussions in key areas.
El Salvador is currently negotiating a new loan with the IMF, owing the organisation approximately 107.7 million in special drawing rights. This loan aims to stabilise the country’s macroeconomic situation while the government is willing to implement economic reforms. The IMF is working with El Salvador to enhance liquidity reserves, improve public finances, and ensure good governance amid concerns about Bitcoin risks. The government currently holds over $360 million in Bitcoin.
A US judge has ruled that Google must make significant changes to its Play Store, allowing Android users to access third-party app stores and payment methods for three years. The ruling comes after a jury sided with ‘Fortnite’ creator Epic Games, which accused Google of monopolising app access and in-app payments on Android devices.
The order, issued by Judge James Donato, prevents Google from blocking alternative payment options or pre-installing its app store through deals with device makers. The decision is set to take effect on 1 November 2024, giving Google time to comply. However, Google plans to appeal the ruling, arguing that it could harm consumers, developers, and device makers.
Epic Games CEO Tim Sweeney called the decision “big news” and said it could lead to a more competitive Android ecosystem by 2025. Meanwhile, Google is also facing antitrust cases over its dominance in web search and ad technology.
El Salvador’s President Nayib Bukele has met with Argentina’s President Javier Milei in Buenos Aires to discuss shared economic and security challenges. Their discussions included Milei’s zero-deficit budget strategy and Bukele’s experiences with debt management. Both leaders found common ground in their political journeys, particularly Bukele’s struggle with parliamentary opposition when he first took office.
During the visit, Bukele also met with Argentine senators and Vice President Victoria Villarruel to advise on cryptocurrency matters. Villarruel expressed significant interest in Bitcoin and El Salvador’s innovative use of Volcano Bonds for financing. These discussions signal Argentina’s growing interest in digital assets as part of its financial future.
Meanwhile, Uruguay has taken a major step in regulating cryptocurrency, passing a law that creates a clear framework for digital asset use. The law grants the central bank oversight of virtual asset service providers, ensuring compliance with anti-money laundering regulations whilst paving the way for new opportunities in the crypto sector.
The UAE has introduced amendments to its VAT regulations, exempting the transfer and conversion of digital assets, including cryptocurrencies, from VAT. This change, which applies retroactively from January 2018, will also benefit companies involved in managing investment funds. Businesses dealing with virtual assets are urged to review their past VAT positions to ensure proper input tax recovery, which enables them to claim back VAT paid on eligible purchases.
Virtual assets in the UAE are defined as representations of value used for digital trading or investment, excluding fiat currencies or financial securities. Meanwhile, regulators in the UAE have stepped up efforts to refine crypto regulations. Dubai’s VARA and the SCA have agreed to supervise virtual asset service providers jointly, allowing VASPs licensed in Dubai to operate across the wider UAE.
Additionally, the Virtual Asset Regulatory Authority has tightened rules on marketing, requiring firms to include disclaimers highlighting the volatility and potential loss in the value of digital assets. This move aims to ensure greater transparency in the rapidly growing crypto market.
TSMC is advancing its 2nm chip production, but a significant challenge is emerging regarding power supply. A report from S&P indicates that the foundry’s electricity consumption could nearly triple by 2030, potentially accounting for 24% of Taiwan‘s total electricity usage. In 2023, TSMC consumed nearly 250 GW of electricity, representing 8% of the island’s total power and 16% of the industrial sector’s demand.
The slow growth in Taiwan’s power generation could hinder TSMC’s production, which relies heavily on energy. Projections suggest that by 2030, TSMC’s power consumption could rise to 794 GW, driven by a 90% increase in wafer shipments. The report highlights that advanced manufacturing processes, such as extreme ultraviolet (EUV) lithography, require significantly more power than older systems.
Taiwan’s electricity reserve margin is falling short of the government’s target, currently below 15%. The Economic Daily News warns that if it drops below 10%, power supply stability could be compromised. Furthermore, Taiwan’s transition from coal and nuclear energy to natural gas and renewable sources might result in higher electricity prices, adding further pressure on the power supply.
LEGO Group’s website was briefly compromised on 5 October, with a scam promoting a fake ‘LEGO Coin’ token appearing on the homepage. The message encouraged users to purchase the token in exchange for ‘secret rewards’ but redirected them to a phishing site. The scam was removed after about 75 minutes, and LEGO confirmed that no user accounts had been compromised.
LEGO has since assured customers that the issue has been resolved and steps are being taken to prevent future incidents. Despite earlier hints in 2021 about entering the NFT space, LEGO has not officially pursued any crypto-related ventures.
This incident highlights the ongoing threat of cryptocurrency scams, which saw $127 million stolen from victims in the third quarter of 2024, with September alone accounting for $46 million in losses.
Atos, the French IT firm, is pushing forward with efforts to sell its most strategic assets, including cybersecurity and supercomputing units, to the French government. The company, which supports the country’s military and secret services, announced that despite the expiration of an initial offer, discussions remain open, with a new proposal already submitted.
The company has been undergoing financial restructuring, having secured an agreement with key creditors earlier this year. The government in France, keen to retain control over critical technology, intends to continue negotiations and has promised a revised acquisition plan soon.
Atos shares have experienced a severe decline, falling 0.6% in early Paris trading and down 90% overall this year. Concerns over the country’s budget deficit, expected to reach 6.1% of GDP this year, may affect the government’s ability to mobilise the necessary funds for the acquisition.
The strategic assets at stake include Atos’ Advanced Computing, Critical Systems, and Cyber Products units. These divisions employ around 4,000 people and generate nearly €900 million in annual revenue. Any deal would require approval from the Nanterre Commercial Court, with a decision expected later this month.
Coinbase announced on Friday that it will delist certain stablecoins in the European Economic Area (EEA) by the end of the year as the cryptocurrency industry prepares for stricter regulations in the region. The EU‘s new Markets in Crypto-Assets (MiCA) regulation, introduced in early 2023, will be fully implemented by December. This framework mandates that stablecoin issuers adhere to stringent transparency, liquidity, and consumer protection standards.
In line with its commitment to compliance, Coinbase intends to restrict services for EEA users concerning stablecoins that do not comply with MiCA requirements by 30 December 2024. The exchange will provide affected customers with options to switch to authorised stablecoins, including USDC and EURC from fintech firm Circle, which are pegged to the US dollar and euro, respectively.
Stablecoins have gained significant popularity in recent years, particularly as major financial institutions like PayPal adopt them. This growth reflects the increasing integration of the once-nascent digital assets sector into mainstream finance.
Samsung Electronics has announced the mass production of its PM9E1, a PCIe 5.0 SSD that boasts the highest performance and largest capacity in the industry. Built on a 5nm controller and eighth-generation V-NAND technology, the PM9E1 offers enhanced power efficiency and powerful performance, making it an ideal choice for on-device AI PCs. Compared to its predecessor, the PM9A1, key attributes like speed, storage capacity, and security have all seen significant improvements.
The new SSD features an eight-channel PCIe 5.0 interface, enabling sequential read speeds of up to 14.5 gigabytes per second (GB/s) and write speeds of 13GB/s, more than doubling the capabilities of the previous generation. This impressive performance facilitates rapid data transfer for demanding AI applications, allowing large models to be transferred from the SSD to DRAM in less than a second.
Available in multiple storage options—512GB, 1 terabyte (TB), 2TB, and a market-leading 4TB—the PM9E1 is particularly suited for users needing high-capacity storage for large files, including AI-generated content and high-resolution videos. Its improved power efficiency, exceeding 50%, also supports longer battery life for on-device applications.
To enhance security, Samsung has implemented Security Protocol and Data Model (SPDM) v1.2, which includes features like secure channels and device authentication to prevent data manipulation during production or distribution. With the PM9E1, Samsung aims to expand its advanced SSD offerings to global PC manufacturers and plans to introduce additional PCIe 5.0-based consumer products to strengthen its position in the on-device AI market.
