Concerns grow over planned EU-US biometrics deal

The EU has agreed to open talks with the US on sharing sensitive traveller data. The discussions aim to preserve visa-free travel for European citizens.

The proposal is called ‘Enhanced Border Security Partnership‘, and it could allow transfers of biometric data and other sensitive personal information. Legal experts warn that unclear limits may widen access beyond travellers alone.

EU governments have authorised the European Commission to negotiate a shared framework. Member states would later settle details through bilateral agreements with Washington.

Academics and privacy advocates are calling for stronger safeguards and transparency. EU officials insist data protection limits will form part of any final agreement.

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UK considers regulatory action after Grok’s deepfake images on X

UK Prime Minister Keir Starmer is consulting Canada and Australia on a coordinated response to concerns surrounding social media platform X, after its AI assistant Grok was used to generate sexualised deepfake images of women and children.

The discussions focus on shared regulatory approaches rather than immediate bans.

X acknowledged weaknesses in its AI safeguards and limited image generation to paying users. Lawmakers in several countries have stated that further regulatory scrutiny may be required, while Canada has clarified that no prohibition is currently under consideration, despite concerns over platform responsibility.

In the UK, media regulator Ofcom is examining potential breaches of online safety obligations. Technology secretary Liz Kendall confirmed that enforcement mechanisms remain available if legal requirements are not met.

Australian Prime Minister Anthony Albanese also raised broader concerns about social responsibility in the use of generative AI.

X owner Elon Musk rejected accusations of non-compliance, describing potential restrictions as censorship and suppression of free speech.

European authorities requested the preservation of internal records for possible investigations, while Indonesia and Malaysia have already blocked access to the platform.

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Indonesia and Malaysia restrict access to Grok AI over content safeguards

Malaysia and Indonesia have restricted access to Grok, the AI chatbot available through the X platform, following concerns about its image generation capabilities.

Authorities said the tool had been used to create manipulated images depicting real individuals in sexually explicit contexts.

Regulatory bodies in Malaysia and Indonesia stated that the decision was based on the absence of sufficient safeguards to prevent misuse.

Requests for additional risk mitigation measures were communicated to the platform operator, with access expected to remain limited until further protections are introduced.

The move has drawn attention from regulators in other regions, where online safety frameworks allow intervention when digital services fail to address harmful content. Discussions have focused on platform responsibility, content moderation standards, and compliance with existing legal obligations.

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Tether and UN join to boost digital security in Africa

Tether has joined the UN Office on Drugs and Crime to enhance cybersecurity and digital asset education across Africa. The collaboration aims to reduce vulnerabilities to cybercrime and safeguard communities against online scams and fraud.

Africa, emerging as the third-fastest-growing crypto region, faces increasing threats from digital asset fraud. A recent Interpol operation uncovered $260 million in illicit crypto and fiat across Africa, highlighting the urgent need for stronger digital security.

The partnership includes several key initiatives. In Senegal, youth will participate in a multi-phase cybersecurity education programme featuring boot camps, mentorship, and micro-grants to support innovative projects.

Civil society organisations across Africa will receive funding to support human trafficking victims in Nigeria, DRC, Malawi, Ethiopia, and Uganda. In Papua New Guinea, universities will host competitions to promote financial inclusion and prevent digital asset fraud using blockchain solutions.

Tether and UNODC aim to create secure digital ecosystems, boost economic opportunities, and equip communities to prevent organised crime. Coordinated action across sectors is considered vital to creating safer and more inclusive environments for vulnerable populations.

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xAI plans $20 billion data centre investment in Mississippi

The US AI company, xAI, plans to establish a large-scale data centre in Southaven, Mississippi, representing an investment of more than $20 billion. The project is expected to create several hundred permanent jobs across DeSoto County.

xAI has acquired an existing facility that will be refurbished to support data centre operations, located near additional energy and computing infrastructure already linked to xAI.

Once operational, the Southaven site in the US is expected to expand the company’s overall computing capacity significantly.

State and local authorities approved incentive measures for the project, including tax exemptions available to certified data centres.

Officials indicated that the investment is expected to contribute to local tax revenues supporting public services and infrastructure, while operations are scheduled to begin in February 2026.

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UK outlines approval process for crypto firms

The UK’s Financial Conduct Authority has confirmed that all regulated crypto firms must obtain authorisation under the Financial Services and Markets Act. Both new market entrants and existing operators will be required to comply.

No automatic transition will be available for firms currently registered under anti-money laundering rules. Companies already authorised for other financial services must apply to extend permissions to cover crypto activities and ensure compliance with upcoming regulations.

Pre-application meetings and information sessions will be offered to help firms understand regulatory expectations and enhance the quality of their applications.

An official application window is expected to open in September 2026 and remain active for at least 28 days. Applications submitted during that period are intended to be assessed before the regime formally begins, with further procedural details to be confirmed by the FCA.

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Wegmans faces backlash over facial recognition in US stores

Supermarket chain Wegmans Food Markets is facing scrutiny over its use of facial recognition technology. The issue emerged after New York City stores displayed signs warning that biometric data could be collected for security purposes.

New York law requires businesses to disclose biometric data collection, but the wording of the notices alarmed privacy advocates. Wegmans later said it only uses facial recognition, not voice or eye scans, and only in a small number of higher-risk stores.

According to the US company, the system identifies individuals who have been previously flagged for misconduct, such as theft or threatening behaviour. Wegmans says facial recognition is just one investigative tool and that all actions are subject to human review.

Critics argue the signage suggests broader surveillance than the company admits. Wegmans has not explained why the notices mention eyes and voice if that data is not collected, or when the wording might be revised.

Lawmakers in Connecticut have now proposed a ban on retail facial recognition. Supporters say grocery shopping is essential and that biometric monitoring weakens meaningful customer consent.

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AI sovereignty test in South Korea reaches a critical phase

South Korea’s flagship AI foundation model project has entered a decisive phase after accusations that leading participants relied on foreign open source components instead of building systems entirely independently.

The controversy has reignited debate over how ‘from scratch’ development should be defined within government-backed AI initiatives aimed at strengthening national sovereignty.

Scrutiny has focused on Naver Cloud after developers identified near-identical similarities between its vision encoder and models released by Alibaba, alongside disclosures that audio components drew on OpenAI technology.

The dispute now sits with the Ministry of Science and ICT, which must determine whether independence applies only to a model’s core or extends to all major components.

An outcome that is expected to shape South Korea’s AI strategy by balancing deeper self-reliance against the realities of global open-source ecosystems.

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EU faces pressure to strengthen Digital Markets Act oversight

Rivals of major technology firms have criticised the European Commission for weak enforcement of the Digital Markets Act, arguing that slow procedures and limited transparency undermine the regulation’s effectiveness.

Feedback gathered during a Commission consultation highlights concerns about delaying tactics, interface designs that restrict user choice, and circumvention strategies used by designated gatekeepers.

The Digital Markets Act entered into force in March 2024, prompting several non-compliance investigations against Apple, Meta and Google. Although Apple and Meta have already faced fines, follow-up proceedings remain ongoing, while Google has yet to receive sanctions.

Smaller technology firms argue that enforcement lacks urgency, particularly in areas such as self-preferencing, data sharing, interoperability and digital advertising markets.

Concerns also extend to AI and cloud services, where respondents say the current framework fails to reflect market realities.

Generative AI tools, such as large language models, raise questions about whether existing platform categories remain adequate or whether new classifications are necessary. Cloud services face similar scrutiny, as major providers often fall below formal thresholds despite acting as critical gateways.

The Commission plans to submit a review report to the European Parliament and the Council by early May, drawing on findings from the consultation.

Proposed changes include binding timelines and interim measures aimed at strengthening enforcement and restoring confidence in the bloc’s flagship competition rules.

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Telegram bonds frozen amid ongoing international sanctions framework

Around $500 million in bonds issued by Telegram remain frozen within Russia’s financial settlement system following the application of international sanctions.

The situation reflects how global regulatory measures can continue to affect corporate assets even when companies operate across multiple jurisdictions.

According to reports, the frozen bonds were issued in 2021 and are held at Russia’s National Settlement Depository.

Telegram said its more recent $1.7 billion bond issuance in 2025 involved international investors, with no participation from Russian capital, and was purchased mainly by institutional funds based outside Russia.

Telegram stated that bond repayments follow established international procedures through intermediaries, meaning payment obligations are fulfilled regardless of whether individual bondholders face restrictions.

Financial results for 2025 also showed losses, linked in part to a decline in cryptocurrency valuations, which reflected broader market conditions rather than company-specific factors.

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