American personal genomics and biotechnology company 23andMe has agreed to a $30 million settlement after a data breach exposed the personal information of 6.9 million users. The breach, which occurred last year, compromised sensitive data, including DNA Relatives profiles and Family Tree information. Affected users will receive financial compensation and three years of security monitoring under the Privacy & Medical Shield + Genetic Monitoring program.
The lawsuit also accused 23andMe of failing to inform customers of Chinese and Ashkenazi Jewish descent that they were specifically targeted in the breach. The stolen information was later found for sale on the dark web. A federal judge must now approve the proposed settlement, which the company considers fair and beneficial for its users.
Despite its financial challenges, the company expects to cover $25 million of the settlement with cyber insurance. The breach, which began in April 2023 and lasted five months, affected nearly half of the company’s 14.1 million customers at the time. 23andMe disclosed the incident in an October 2023 blog post.
The company, led by co-founder Anne Wojcicki, is also facing financial difficulties. It posted a significant quarterly loss and has been attempting to go private. Shares of 23andMe have been trading below $1 since December 2023, a sharp drop from its original public offering price.
Apple’s ‘Visual Intelligence’ feature is exciting and seems to set the stage for future AR glasses. Allowing users to scan and identify objects, copy text, and gather information on the go gives them a glimpse into what could be an integral part of AR glasses.
The idea of using AR glasses to receive real-time information about your surroundings without taking out your phone is very appealing. It could be a significant advantage if Apple successfully integrates Visual Intelligence into future AR glasses.
Given that Apple is known for refining technology before launching it, the Visual Intelligence feature on the iPhone could be an essential part of a broader strategy for AR. It’s a smart move to build and perfect this technology now so that when AR glasses do arrive, they can offer a seamless and polished experience.
The potential for AR glasses is enormous. Other companies like Meta and Google have already invested in this space, so Apple will need to ensure they can compete with a standout product. Hopefully, by the time those glasses are ready, Visual Intelligence will be a well-developed feature that enhances the overall user experience.
According to a court filing on Thursday, Kraken faces accusations similar to those levelled against other major crypto exchanges, Binance and Coinbase, by the SEC. The US federal regulator contends that these companies failed to register as brokers, clearinghouses, or exchanges, as mandated by law.
In November last year, the SEC initiated legal action against Kraken in the Northern District of California, asking the court to permanently enjoin the exchange from committing further securities violations. The agency also seeks to disgorge Kraken’s ‘ill-gotten gains’ and other civil penalties. The SEC has specifically listed 11 tokens claiming these as unregistered securities, arguing that Kraken’s failure to register these securities directly violates federal law.
Kraken asserts it was not required to register with the SEC as it does not classify itself as an exchange, broker-dealer, or clearing agent within the meaning of the Exchange Act. The exchange argues that digital assets should not be considered investment contracts as they lack the rights and obligations associated with traditional financial instruments like stocks or bonds. Additionally, Kraken accuses the SEC of acting without due process and fair notice, suggesting the regulator’s enforcement actions are punitive rather than corrective.
By demanding a jury trial, Kraken is poised to challenge the SEC’s regulatory authority, potentially setting a legal precedent that could influence future digital asset regulation in the United States and beyond.
Elon Musk’s social media platform, X, is likely to avoid being subjected to the EU’s stringent new tech regulations aimed at curbing the power of Big Tech. The company is expected to fall outside the scope of the Digital Markets Act (DMA), which imposes strict rules on firms that act as key intermediaries between businesses and consumers.
The European Commission investigated X in May, exploring whether the platform met the criteria to be classified as a ‘gatekeeper’ under the DMA. To qualify, a company must have over 45 million active users and a market capitalisation of at least €75 billion. Gatekeepers must open their messaging apps to rival services, allow users more control over pre-installed apps, and avoid giving preferential treatment to their products.
X has argued that it does not serve as a critical gateway between businesses and consumers, distancing itself from the obligations set by the DMA. While the investigation remains ongoing, the Commission has not provided further comment on its findings.
However, X faces more pressing issues under the EU’s newly implemented Digital Services Act (DSA), which requires large platforms to actively combat harmful or illegal content or face significant fines—up to 6% of their global turnover. X is under scrutiny as part of several ongoing investigations related to its compliance with the DSA.
A new bill introduced by US Representative John Rose aims to foster cooperation between two major financial regulators, the SEC and CFTC, in overseeing the cryptocurrency industry. The ‘Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets’ Act (BRIDGE Act) seeks to create a Joint Advisory Committee to draw expertise from agencies and private crypto industry professionals. The committee would meet twice yearly to help shape a regulatory framework that encourages innovation without compromising investor safety.
Representative Rose criticised the current enforcement-driven approach, which he believes has stifled innovation. Instead, he advocates for a more collaborative effort between regulators and private stakeholders to explore how blockchain technology can enhance traditional financial sectors. His proposal includes appointing 20 industry experts to the advisory committee, serving two-year terms.
The latest legislative move is part of a broader effort by US lawmakers to clarify how digital assets should be regulated. The SEC and CFTC have historically clashed over whether cryptocurrencies like Ethereum should be classified as securities or commodities, leading to ongoing legal disputes. While some crypto bills, like the Financial Innovation and Technology for the 21st Century Act, have faced opposition from the White House, negotiations on regulatory frameworks for digital assets are ongoing.
A new task force has been launched by the White House to address the growing demands of AI infrastructure. Led by the National Economic Council and the National Security Council, the group aims to balance AI development with national security, economic, and environmental goals. Senior US officials and executives from major technology companies, including OpenAI and Google, took part in the meeting on Thursday.
The focus of the discussion was on the power requirements for advanced AI systems. Leaders explored how to meet clean energy targets and infrastructure needs, particularly in the face of increasing demand from data centres. AI has raised both hopes for efficiency gains and concerns over potential misuse, with its energy consumption being a significant challenge.
The Biden administration is pushing tech firms to invest in eco-friendly power solutions. The AI industry’s energy needs could complicate the government’s ambition to decarbonise the power grid by 2035. Representatives from major agencies, including Energy Secretary Jennifer Granholm, were part of the conversation on tackling these issues.
AI infrastructure plays a crucial role in the future of the US economy, according to OpenAI. The company emphasised the importance of expanding data centres domestically, not only to support industrial growth but also to ensure that AI’s benefits reach all corners of society.
Grayscale Investments has launched a new investment trust tied to XRP, offering accredited investors exposure to the cryptocurrency. The Grayscale XRP Trust operates similarly to the firm’s other single-asset investment vehicles and is aimed at institutional and individual investors. Although this is not an exchange-traded fund (ETF), the trust’s creation is seen as a potential stepping stone towards the eventual approval of an XRP ETF by the US Securities and Exchange Commission (SEC).
Grayscale has outlined a four-phase product life cycle for the XRP Trust, which could ultimately lead to the trust being converted into an ETF. While a trust faces fewer regulatory hurdles, an ETF requires SEC approval and is aimed at retail investors. The potential for an XRP ETF has generated interest, particularly given XRP’s role in cross-border payments and its transformative potential for the global financial system.
Grayscale’s head of product and research, Rayhaneh Sharif-Askary, highlighted XRP’s real-world applications, specifically in making international payments more efficient. The XRP Ledger, a decentralised blockchain, plays a key role in enabling fast and cost-effective cross-border transactions, which Grayscale believes could revolutionise outdated financial systems.
Hawaii’s new cryptocurrency regulations are attracting major Web3 firms, including MetaMask and Transak, which are now establishing operations in the state. As of July 2024, crypto companies in Hawaii will no longer be required to obtain a money transmitter licence to operate, a significant departure from the strict regulations seen in most other US states. That regulatory shift is expected to transform Hawaii into a growing hub for the cryptocurrency industry, making it an appealing destination for businesses looking to expand within the United States.
The change comes after Hawaii’s four-year Digital Currency Innovation Lab initiative, which offered a regulated sandbox for crypto firms. With the end of this programme and the introduction of the new regulations, Hawaii is now poised to take on a larger role in the global crypto ecosystem. Companies like Transak view this as an opportunity to enhance their services without the challenges of third-party involvement, positioning Hawaii as a key player in the Web3 sector.
The relaxed regulatory environment is especially advantageous for smaller crypto businesses, which often face difficulties obtaining a money transmitter licence in the US. With Hawaii’s more flexible approach, the state is likely to attract even more crypto companies, cementing its position as a strategic market for innovation in the industry.
The Central Bank of the United Arab Emirates (CBUAE) has approved a new product offering custodial risk insurance for digital asset platforms, developed by Hong Kong-based OneDegree in partnership with Dubai Insurance. Available under the brand “OneInfinity,” this insurance aims to protect Web3 exchanges, asset managers, and custodians from the risk of losing customer funds, including through hacking, internal fraud, or damage to storage systems.
According to Robin Scott, general manager of OneDegree in the Middle East, the introduction of custodial risk insurance brings a layer of protection similar to deposit protection schemes in traditional banking. It allows crypto platforms to offer peace of mind to clients by ensuring their assets are safeguarded. Many global regulators, including those in the UAE, are making such insurance mandatory to prioritise consumer protection.
The CBUAE’s approval marks the first time UAE-based companies can obtain custodial risk insurance locally, which is expected to draw significant interest as more firms seek licences to operate in the region. OneDegree and Dubai Insurance have already started issuing policies to UAE clients and anticipate high demand for the product.
An Indian antitrust investigation has concluded that Amazon and Walmart’s Flipkart breached competition laws by favouring select sellers on their platforms. The probe, initiated by the Competition Commission of India (CCI), revealed that both companies created an ecosystem that prioritised certain sellers, making it harder for other retailers to compete.
Reports found that these preferred sellers were given an unfair advantage, appearing higher in search results and receiving additional services, leading to deep discounting practices. The findings highlighted that these practices harmed smaller retailers and stifled competition, especially in the mobile phone sector.
Both Amazon and Flipkart are expected to review the reports and submit objections before any fines are imposed. These companies have consistently denied any wrongdoing and argued that their operations comply with Indian regulations.
The investigation stemmed from complaints by traditional retailers and follows growing concerns about the dominance of e-commerce giants in India. Both Amazon and Flipkart remain major players in a market projected to be worth $160 billion by 2028.
