Yazılar

European Securities Regulator Warns Crypto Firms Against Misleading Customers on Regulation

/in /tarafından

Europe’s securities regulator, the European Securities and Markets Authority (ESMA), issued a warning on Friday to crypto companies about misleading customers regarding the regulatory status of their products. The caution comes as European authorities intensify efforts to curb risks associated with crypto assets.

Under the EU’s new crypto regulation framework, known as MiCA, a series of investor protections are in place, including rules on safeguarding client assets and managing complaints. However, ESMA highlighted concerns over crypto asset service providers (CASPs) offering both regulated and unregulated products on the same platform, which poses risks to investors who may not clearly understand which products fall under MiCA’s protections.

ESMA pointed out that some CASPs might exploit their regulated status as a marketing tool, potentially confusing customers about which services are regulated. The regulator stressed that firms must not use their MiCA licensing as a promotional device or suggest that all crypto offerings are covered by the EU’s rules when they are not.

Products outside MiCA’s regulatory scope include direct investments in commodities like gold and crypto lending services.

The move follows global regulatory concerns about crypto investor risks, especially after the collapse of major crypto platforms such as FTX in 2022, which resulted in significant investor losses.

MiCA requires companies offering crypto services to obtain a license from national regulators, enabling them to operate across the EU. ESMA also issued guidance on the knowledge and competence standards that staff should meet to properly assess crypto companies.

ESMA’s warning coincides with the release of a peer review on Malta’s licensing process for crypto firms. The review found that while Malta’s Financial Services Authority has sufficient expertise and resources, its authorization procedures only “partially” met expected standards. Malta defended its role as an early adopter of digital asset regulation but did not directly respond to ESMA’s critique.

Concerns have been raised behind closed doors about the rapid pace at which some EU member states grant crypto licenses, according to previous Reuters reports.

EU’s Top Court Adviser Supports Italy in Meta Platforms Copyright Dispute

/in /tarafından

An adviser to the European Union’s highest court stated on Thursday that EU member states have the right to implement their own measures to strengthen the position of news publishers in negotiations with large online platforms, provided these do not infringe on freedom of contract.

The dispute under review by the Court of Justice of the European Union (CJEU) involves Meta Platforms, owner of Facebook, and Italy’s communications regulator AGCOM. The case centers on a fee that Meta must pay Italian publishers for using snippets of their news articles.

Meta challenged whether national measures like Italy’s are compatible with rights granted to publishers under EU copyright law. However, CJEU Advocate General Maciej Szpunar argued that EU copyright rules aim not only to protect publishers from unpaid use of their content but also to ensure they receive a fair share of revenue generated by platforms.

Szpunar emphasized the public interest behind these rules, describing them as efforts to support the economic viability of the press, which he called “a key pillar of democracy.”

Meta said it will await the court’s final ruling but expressed concerns that Italy’s implementation of the directive undermines the goal of copyright harmonization in Europe. A Meta spokesperson warned that inconsistent legislation can hinder innovation and create uncertainty.

The adviser also noted that Italy’s regulator must respect contractual freedom. Szpunar said AGCOM’s powers—such as setting remuneration benchmarks, resolving disputes, and monitoring information—are acceptable if they serve only to assist and do not restrict the parties’ freedom to contract.

The CJEU is expected to issue its decision in the coming months, and it often aligns with the advocate-general’s recommendations.

EU Unveils Draft AI Code of Practice Focusing on Copyright and Safety for Companies

/in /tarafından

The European Commission revealed a draft code of practice on Thursday aimed at helping companies comply with the European Union’s evolving artificial intelligence regulations. The voluntary code emphasizes safeguarding copyright-protected content and implementing measures to reduce systemic risks linked to AI technologies.

Developed by 13 independent experts, the code is part of the broader EU AI regulatory framework. While signing up is optional, companies that do not join will miss out on the legal certainty offered to adherents. The rules will apply to major AI providers including Alphabet (Google), Meta (Facebook), OpenAI, Anthropic, Mistral, and others.

Under the code, signatories must publish summaries detailing the data sources used to train their general-purpose AI models. They are required to ensure that copyright-protected materials are only used appropriately, especially when employing web crawlers, and must take steps to prevent outputs that infringe copyright.

To address systemic risks, companies will also need to establish frameworks to identify and analyze potential hazards. While transparency and copyright guidelines apply to all general-purpose AI providers, specific safety and security provisions target providers of advanced models like OpenAI’s ChatGPT, Meta’s Llama, Google’s Gemini, and Anthropic’s Claude.

The EU’s AI Act, effective since last June, imposes strict transparency rules on high-risk AI systems and lighter obligations for general-purpose AI models. It also regulates AI use in military, crime, and security contexts. The new AI rules for large language models will become legally binding on August 2, with enforcement beginning a year later for new models. Existing models will have until August 2, 2027, to comply.

Henna Virkkunen, the EU’s technology commissioner, encouraged AI stakeholders to adopt the code, highlighting its collaborative design and its role in simplifying compliance with the EU AI Act. The code’s final approval by EU member states and the Commission is expected by the end of the year.