Latvia’s central bank has announced that is offering free pre-licensing consultations for crypto-asset service providers (CASPs) to ensure they are well-prepared for the phased implementation of MiCA across the EU. These consultations will provide comprehensive guidance on regulatory requirements, necessary documentation, and initial compliance assessments, aiding companies in navigating the complex regulatory landscape.
Starting from January 2025, the central bank will accept applications and issue licences for CASPs in accordance with MiCA. In the meantime, unlimited pre-licensing consultations will be available, reflecting the bank’s commitment to fostering a robust and compliant crypto-asset ecosystem.
This proactive measure forms part of Latvia’s broader strategy to position itself as an attractive location for CASPs within the EU. Latvia’s efforts are further highlighted by its introduction of the “Crypto Asset Services Law” and substantial financial commitments toward digitalisation and innovation, underscoring its ambition to become a hub for blockchain and crypto companies.
Latvia is following a trend seen in other EU countries, such as France, which has also begun accepting CASP applications ahead of the official enforcement date. These proactive steps by EU nations underscore the importance of regulatory preparedness in the evolving crypto landscape, positioning themselves as favourable destinations for crypto-asset service providers.
A US federal judge has rejected Coinbase’s attempt to dismiss a class-action lawsuit from shareholders. The lawsuit claims that Coinbase, the largest US cryptocurrency exchange, misled investors by downplaying the chances of facing legal action from the US Securities and Exchange Commission (SEC). The ruling comes 15 months after the SEC sued Coinbase for allegedly operating as an unregistered securities exchange, leading to a significant drop in the company’s stock price.
The shareholders argue that Coinbase and its top executives falsely portrayed the company’s position, emphasising that the crypto assets it listed were not securities and thus unlikely to attract regulatory action. Additionally, they allege that the company misled investors about the risks customers faced regarding their assets in the event of bankruptcy. Coinbase’s share price fell sharply after revealing disappointing earnings and adding new disclosures in May 2022.
While the judge dismissed claims that Coinbase falsely denied engaging in proprietary trading, some allegations can proceed, including those about misrepresenting risks to customer assets. Coinbase remains confident in its legal standing and is prepared to defend its case in court.
OpenAI announced on Thursday that it now has over 1 million paying users across its ChatGPT business products, including Enterprise, Team, and Edu. The increase from 600,000 users in April highlights CEO Sam Altman’s success in driving enterprise adoption of the AI tool.
Recent reports suggest OpenAI executives are discussing premium subscriptions for upcoming large-language models, such as the reasoning-focused Strawberry and a new flagship model called Orion. Subscription prices could reach as high as $2,000 per month for these advanced AI tools.
ChatGPT Plus currently costs $20 per month, while the free tier continues to be used by hundreds of millions every month. OpenAI is also working on Strawberry to enable its AI models to perform deep research, refining them after their initial training.
The discussion around premium pricing follows news that Apple and Nvidia are in talks to invest in OpenAI, with the AI company expected to be valued at over $100 billion. ChatGPT currently has more than 200 million weekly active users, doubling its user base since last autumn.
Google’s refusal to include Enel’s e-mobility app, JuicePass, on its Android Auto platform may violate competition rules, according to an adviser to Europe’s top court. The Italian antitrust authority previously fined Google €102 million ($113.2 million) in 2021 for blocking the app, which helps drivers navigate and manage messages from their dashboards.
Court Advocate General Laila Medina supported Italy’s stance, arguing that Google’s actions could breach competition laws by unfairly excluding third-party apps and harming consumers. Google had cited security concerns and the lack of a specific template for the app, but it has since taken steps to address these issues, adding the necessary template for compatibility with Android Auto.
The Court of Justice of the European Union (CJEU) will make the final decision, which is expected to rule in the coming months. Google has stated it is working to resolve the issue and is already offering similar apps globally on Android Auto.
Israel’s Tower Semiconductor and India’s Adani Group will invest $10 billion (839.47 billion rupees) in a semiconductor project in Maharashtra, India. That investment aligns with India’s efforts to boost its semiconductor manufacturing capabilities, despite previous setbacks such as Foxconn’s withdrawal from a major joint venture and delays in another semiconductor project.
The new plant in Maharashtra will initially produce 40,000 wafers and is part of a broader initiative by Indian Prime Minister Narendra Modi to establish the country as a global chipmaker. The state of Maharashtra also announced additional investments totalling 1.17 trillion rupees, which will create 29,000 jobs. This includes new electric vehicle manufacturing units, with Skoda-Volkswagen and Toyota-Kirloskar investing significant amounts to produce electric and hybrid vehicles.
Why does this matter?
The semiconductor and electric vehicle manufacturing expansion reflects India’s growing role in these sectors, aiming to capitalize on its rapidly developing technology landscape.
The United States has announced new export controls targeting advanced technologies, including quantum computing and GAAFET chip technology, aligning with similar measures by international partners. The updated regulations cover quantum computing equipment, advanced semiconductor production, and additive manufacturing technologies.
Commerce official Alan Estevez emphasised that these controls aim to keep pace with technological advancements and enhance their effectiveness through international cooperation. The most notable changes involve stringent reporting requirements for foreign national employees working on quantum computing in the US, while GAAFET controls will focus on production rather than design.
Trade lawyer Kevin Wolf highlighted that while these measures are intended to safeguard technological advancements, they might impact hiring in the quantum sector. Celia Merzbacher from the Quantum Economic Development Consortium expressed concern that these reporting requirements could deter small companies from hiring foreign talent, potentially limiting their access to skilled professionals crucial for innovation.
Qualcomm is exploring the possibility of acquiring parts of Intel’s design business to enhance its product lineup, according to sources familiar with the discussions. The mobile chipmaker is particularly interested in Intel’s client PC design business but also considers other segments. Intel, currently facing financial difficulties and seeking to offload assets, has not been approached by Qualcomm and has stated its commitment to its PC business.
Qualcomm, known for its smartphone chips and a major Apple customer, has been contemplating the acquisition for several months. However, the company’s plans remain uncertain and could evolve. Intel recently reported a significant drop in PC business revenue and has implemented cost-cutting measures, including staff reductions and a dividend pause, as it struggles to fund its manufacturing operations.
Intel’s board will meet next week to review options for trimming operations, which may include selling its programmable chip unit, Altera. Meanwhile, Intel recently launched a new AI-focused PC chip called Lunar Lake, signalling its continued push to innovate despite financial challenges.
European Union regulators will gather feedback next week on Google’s latest proposals to comply with competition rules aimed at curbing the dominance of Big Tech. The process could determine whether formal charges will be brought against the company.
The European Commission initiated an investigation in March to examine whether Google unfairly favours its own vertical search services, including Google Shopping, Flights, and Hotels, over rivals. Competitors have raised concerns that Google has not fully complied with the EU’s Digital Markets Act (DMA), which seeks to level the playing field for smaller competitors.
In response, Google has offered a proposal that would display a separate box for competitors below its product listings in search results. It also suggested adding two adjacent boxes to show intermediaries alongside direct suppliers like airlines and hotels. Regulators will hold workshops in September to hear from stakeholders, though Google will not participate.
Failure to address the regulators’ concerns could result in formal charges and a potential fine of up to 10% of Google’s global annual turnover. Google stated that it will continue to engage with the European Commission and the industry in the coming months.
A major super political action committee (PAC) supporting US Vice President Kamala Harris in her presidential campaign, Future Forward PAC, will now accept cryptocurrency donations. Coinbase confirmed that the PAC has partnered with its commerce platform to facilitate crypto contributions ahead of the upcoming election in November, where Harris faces former President Donald Trump in a closely contested race.
Although Harris has not yet publicly taken a stance on cryptocurrencies, her campaign team has engaged with leading crypto firms like Coinbase and Ripple. Trump’s campaign, meanwhile, has been courting crypto donors by promising policies friendly to the sector, while Harris’ adviser, Brian Nelson, hinted at support for emerging technologies, a positive signal for the crypto industry.
Crypto companies are making contributions to pro-crypto candidates across both political parties through super PACs, focusing on congressional races. Meanwhile, a Washington fundraiser is set to raise $100,000 for Harris, with the crypto community calling for a softer regulatory approach.
Super PACs are allowed to raise unlimited funds to support candidates but are prohibited from directly contributing to campaigns or political parties, positioning Future Forward PAC as a key player in Harris’ electoral bid.
Robinhood’s cryptocurrency platform has agreed to pay $3.9 million to settle claims it blocked customers from withdrawing crypto assets between 2018 and 2022. The California Attorney General’s office announced that Robinhood Crypto had violated state laws by preventing customers from accessing cryptocurrencies they had purchased, forcing them to sell their assets to leave the platform.
The platform was also accused of misleading customers regarding where their assets were held and falsely advertising competitive pricing through multiple trading venues. As part of the settlement, Robinhood will allow customers to withdraw their crypto assets to personal wallets and honour its commitments regarding trading practices.
Robinhood did not admit wrongdoing but expressed satisfaction with the settlement. The company aims to make cryptocurrency more accessible and affordable, according to a statement from its general counsel.
California’s Attorney General Rob Bonta emphasised that the settlement serves as a warning that all companies, including those in the cryptocurrency space, must comply with consumer protection laws. Robinhood shares rose slightly after the news.
