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Australia Orders AI Chatbot Firms to Reveal Child Protection Measures

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Australia’s internet regulator has ordered four AI chatbot companies to disclose what steps they are taking to protect children from harmful and sexual content, in the country’s latest move to tighten oversight of artificial intelligence.

The eSafety Commissioner said it sent legal notices to Character Technologies — the creator of the celebrity chatbot platform Character.ai — along with Glimpse.AI, Chai Research, and Chub AI, demanding detailed reports on how they prevent child sexual exploitation, exposure to pornography, and content promoting suicide or eating disorders.

“There can be a darker side to some of these services,” said Commissioner Julie Inman Grant, warning that many chatbots can engage in sexually explicit conversations with minors and even encourage self-harm or disordered eating.

Under Australia’s Online Safety Act, the regulator can compel companies to disclose their internal safety protocols or face fines of up to A$825,000 ($536,000) per day.

The crackdown follows growing concern about AI companions forming emotional or sexual bonds with teenagers. Some Australian schools have reported students as young as 13 spending more than five hours daily interacting with chatbots, sometimes in explicit exchanges.

The most prominent firm targeted, Character.ai, faces a lawsuit in the U.S. after a mother alleged her 14-year-old son died by suicide following interactions with an AI companion. The company has denied wrongdoing, saying it added pop-up safety warnings and links to suicide prevention hotlines for users expressing self-harm thoughts.

The eSafety office said it did not include OpenAI in this round of inquiries, as ChatGPT is covered under a separate industry code that takes effect in March 2026.

Australia, already known for its strict digital regulation, will introduce new rules in December requiring social media firms to block or deactivate accounts of users under 16 or risk penalties of up to A$49.5 million.

The move positions Australia at the forefront of AI child safety regulation, as governments worldwide race to address the unintended dangers of increasingly lifelike AI companions.

Qantas Confirms Customer Data Released by Hackers Months After Cyber Breach

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Australia’s national airline, Qantas Airways, has confirmed that customer data stolen during a July cyberattack has now been released online by cybercriminals. The airline said it was one of several companies targeted globally in the breach, which compromised the personal information of millions of passengers.

In the July incident, Qantas revealed that over one million customers had sensitive data — including phone numbers, dates of birth, and home addresses — accessed by hackers. An additional four million customers had their names and email addresses stolen, marking one of the largest data breaches in Australia’s recent history.

Qantas said the data was stolen through a third-party platform and has since been published by the hacker group known as Scattered Lapsus$ Hunters after the company missed a ransom deadline. “With the help of specialist cybersecurity experts, we are investigating what data was part of the release,” Qantas said in a statement.

The airline also confirmed that an injunction remains in place to prevent the use or further distribution of the stolen information. The July attack is among the most serious since cyber incidents targeting telecom firm Optus and health insurer Medibank in 2022, which led to tighter cybersecurity laws in Australia.

Gemini launches Australian arm to expand crypto exchange services

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Gemini, the New York-based cryptocurrency exchange founded by Tyler and Cameron Winklevoss, has launched its Australian division, marking a major expansion into one of the world’s fastest-growing crypto markets.

The new entity, Gemini Intergalactic Australia, will operate locally after securing registration with the Australian Transaction Reports and Analysis Centre (AUSTRAC) as a digital currency provider. Previously, Australian users accessed Gemini’s global platform remotely.

“We think there’s enough market opportunity for us to build a local platform,” said Saad Ahmed, Gemini’s head of APAC, during the TOKEN2049 crypto conference in Singapore. He noted that growing institutional demand and a need for localized services make Australia a key market for Gemini’s Asia-Pacific strategy.

Crypto adoption in Australia has climbed to 31% this year, up from 28% in 2023, according to the Independent Reserve Cryptocurrency Index. The launch comes as global exchanges compete for regulatory footholds and investor trust amid renewed optimism in the digital asset sector.

Gemini, which went public on Nasdaq last month after raising $425 million, aims to provide a secure and compliant exchange tailored for Australian users.