European tech regulators have fined social media platform X 120 million euros ($140 million) for not doing enough to tackle illegal and harmful material under the Digital Services Act (DSA). The blue check marks on Elon Musk’s platform were also deemed deceiving, impacting users’ ability to make informed decisions. TikTok avoided a fine through concessions. The DSA will also apply to crypto platforms, DeFi frontends, and NFT marketplaces as they grow in size, influencing how they handle ads, user-directed content, and financial instruments.
A group of 10 European banks, including BNP Paribas, plans to launch a stablecoin backed by the euro by the second half of 2026 as part of the Qivalis project. The European Commission proposed expanding the powers of the European Securities and Markets Authority (ESMA) to supervise crypto-assets and other financial infrastructures. France, Italy, and Austria have requested ESMA to take over crypto regulations to ensure consistent enforcement of MiCA standards.
The Commodity Futures Trading Commission (CFTC) in the US has approved spot cryptocurrency products to trade on futures markets, following recommendations from the White House’s Working Group on Digital Asset Markets. Acting CFTC Chair Caroline Pham is expected to step down once Michael Selig is approved. South Africa’s central bank warned of crypto risks due to lack of comprehensive regulations, especially concerning stablecoins. The bank is working on new rules to monitor cross-border crypto transactions and bring exchange control laws under regulatory scrutiny.
The International Monetary Fund (IMF) published a report warning of stablecoin risks, including volatility, disintermediation of banks, and currency substitution. Stablecoins could potentially undermine monetary sovereignty and create first-mover advantages during crises. However, they also offer benefits like faster transactions, digital payments, and reduced counterparty risk. Indian investors are exploring beyond Bitcoin, while Japan plans to soften crypto tax regulations.
Read more at Cointelegraph: EU Consolidates Crypto Regs, IMF Stablecoin Risk: Global Express