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Google has announced measures to restrict election-related queries on its Gemini chatbot, initially implemented in the U.S. and India ahead of their respective polls. This decision reflects Google's commitment to avoiding potential missteps in deploying AI technology, following controversies surrounding its AI image generation tool last month. The move aims to address concerns about misinformation and fake news, particularly in light of advancements in generative AI, which governments are considering regulating to curb potential misuse. Countries like India have mandated government approval for the public release of AI tools, emphasizing the need for accountability and accuracy. Similarly, the U.S. Senate Intelligence Committee has expressed concerns about election fraud in the context of deepfakes and misinformation. In Europe, regulatory bodies like the European Commission have issued guidelines to combat AI-driven misinformation, prompting tech giants like Meta to devise...

The European Union (EU) is poised to enact the most comprehensive legislation on Artificial Intelligence (AI) to date, with the AI Act aimed at harmonizing innovation and protecting fundamental human rights. This landmark legislation, scheduled for approval today, represents a significant step forward in global AI governance. Crafted since 2021, the Act gains significance amid the rise of powerful AI models like OpenAI’s ChatGPT, backed by industry giants such as Microsoft. European officials emphasize the Act's role in positioning Europe as a global leader in trustworthy AI, with a risk-based approach focusing on stringent requirements for high-risk AI systems while fostering compliance and innovation. While hailed as a milestone, the AI Act faces scrutiny over potential loopholes and industry influence, particularly from tech giants like Google and Microsoft. Despite assurances from EU executive Breton, concerns linger over potential weakening through corporate lobbying,...

The National Tax Service of South Korea is gearing up to introduce a virtual asset tax system to effectively monitor cryptocurrency transactions and prevent tax evasion. With the assistance of consulting firm GTIC, the agency aims to develop a platform capable of analyzing data received from cryptocurrency holders to ensure compliance with tax regulations. This move comes amidst the growing popularity of cryptocurrencies as investment assets, prompting authorities to bolster efforts in regulating and taxing virtual assets. The implementation of the virtual asset tax system is expected to enhance the National Tax Service's ability to detect and prevent cryptocurrency tax evasion. By leveraging automated analysis of transaction data, the agency established fair tax practices and combat illegal activities such as money laundering and irregular inheritance gifting. The initiative aligns with broader efforts in South Korea to strengthen regulation on virtual asset service providers...

The U.S. Patent and Trademark Office (USPTO) and the U.S. Copyright Office jointly released a report acknowledging both the benefits and obstacles present in the non-fungible token (NFT) space. After analyzing public comments and key details, the Offices concluded that existing statutory enforcement mechanisms are adequate to address prevalent infringement concerns in the NFT arena. They cautioned against making any amendments to intellectual property (IP) laws at the present time, stating it is not advisable. The report was commissioned following a request from former Senator Patrick Leahy and Ranking Member Thom Tillis. Kathi Vidal, Under Secretary of Commerce for IP and Director of the USPTO, highlighted the unique opportunities NFTs offer creators to leverage their IP rights while addressing the new challenges in keeping their work secure. Vidal assured continued efforts to identify and address these issues in collaboration with industry and government collaborators. Similarly,...

The Securities and Exchange Commission (SEC) announced that the spot Bitcoin ETF application submitted by First Trust Advisors and SkyBridge Capital has been deemed "abandoned." The decision was based on the failure of the applicants to respond to prior communications from the regulatory body. The joint registration statement, filed under the Securities Act of 1933, had been pending for nine months without becoming effective, prompting the SEC to issue a notification indicating potential abandonment if no action was taken. Despite warnings, no response was received from First Trust SkyBridge, leading to the abandonment of the ETF application. Had the First Trust SkyBridge Bitcoin ETF been launched, it could have significantly impacted fund flows, potentially resulting in a 15% increase. However, the abandonment of the application reflects ongoing challenges faced by applicants seeking approval for Bitcoin ETFs in the US market. This development contrasts with the recent success of...

Coinbase, a leading U.S. cryptocurrency exchange, has taken legal action against the Securities and Exchange Commission (SEC), filing its opening brief in a lawsuit over the lack of clear regulatory guidelines for the crypto industry. The exchange argues that the SEC's refusal to consider its rulemaking petition violates administrative norms, leaving the industry in a state of uncertainty due to undefined definitions and regulations. This legal battle highlights the pressing need for transparent and collaborative rulemaking to address the complexities of the rapidly evolving crypto landscape. The outcome of this legal battle could significantly impact the regulatory landscape for digital assets in the U.S., shaping the future direction of crypto regulations and enforcement practices. As the debate over crypto regulation continues, finding a balance between fostering innovation and maintaining regulatory oversight remains a critical challenge for policymakers and industry stakeholders.

The Bank of Israel has announced plans to introduce a central bank digital currency (CBDC), dubbed the digital shekel, with innovative features such as the potential for interest accrual. Set to revolutionize payment systems, the digital shekel will operate on a two-tier model, offering instant transactions, support for multiple payments, and offline functionality, while also incorporating limitations on balances. The introduction of the digital shekel is a significant step towards modernizing Israel's financial infrastructure, offering both efficiency and privacy. By prioritizing user privacy and introducing interest-bearing capabilities, the Bank of Israel aims to strike a balance between transparency and user-centric design. However, the cautious approach to implementation underscores the complexities involved in launching a CBDC, highlighting the need for careful planning and consideration of various factors before full-scale adoption.

The Financial Conduct Authority (FCA) in the United Kingdom has announced its approval of crypto-based exchange-traded notes (ETNs) for professional investors. These ETNs, defined as bonds tracking the performance of underlying assets, will be available exclusively for professional investors due to concerns about their suitability and potential risks for retail investors. The FCA's decision to allow crypto ETNs for professional investors reflects the growing interest in digital assets within institutional circles. However, the regulator maintains its stance against offering such products to retail consumers, citing concerns about their high risk and lack of regulation. This move underscores the ongoing efforts to balance innovation and investor protection in the evolving crypto landscape, highlighting the importance of comprehensive regulatory frameworks to safeguard market participants.

A coalition of Bitcoin developers has established the Layer 1 Foundation to formalize the BRC-20 fungible token standard, responding to the surge in popularity of Bitcoin Ordinals and meme coins on the blockchain. Led by pseudonymous BRC-20 creator Domo, the foundation aims to ensure transparency and trust in the protocol's governance, emphasizing simplicity in technical architecture and a safety-first approach to protocol changes. With key industry players like Unisat and Ordinals aggregator Best in Slot onboard, the foundation seeks to prevent potential conflicts and hard forks by fostering mutual discussions and open-source protocol-level changes. By uniting major players under a common set of operating principles, the foundation aims to mitigate risks associated with protocol updates and ensure the interests of users remain paramount. While disputes over protocol changes are inevitable, the foundation's commitment to transparency and community involvement sets a positive...

The London Stock Exchange's acceptance of applications for Bitcoin and Ether Exchange-Traded Notes (ETNs) marks a significant step in integrating cryptocurrencies into mainstream finance. By allowing investors to track digital asset price movements during London trading hours, crypto ETNs provide a regulated and accessible avenue for participation in the crypto market. This development underscores the growing recognition of cryptocurrencies as a legitimate asset class by both financial institutions and regulators, catering to the increasing demand for secure and regulated investment options in the digital currency space. It has the potential to enhance liquidity and stability in the digital asset market, attracting institutional investors seeking regulated avenues for exposure to cryptocurrencies. Moreover, this move may pave the way for the listing of a broader range of crypto products on the LSE, further cementing the integration of digital assets into the global financial...

Sam Altman has been reinstated to the board of OpenAI along with three new members, marking a significant turn of events following his abrupt dismissal from the company in November 2023. Altman's return comes after a period of turmoil triggered by his removal and subsequent protests from OpenAI employees. The decision to bring Altman back follows an investigation by law firm WilmerHale, which highlighted the unintended consequences of his initial dismissal on the company's stability. Despite the controversy, Altman, along with Greg Brockman, retains the trust of the OpenAI board as preferred leaders for the organization's future. Altman's return to the OpenAI board underscores the complexities inherent in leadership transitions within tech organizations. His reinstatement suggests a recognition by the board of Altman's value and leadership qualities, despite the initial reasons for his removal. The rapid reversal of Altman's dismissal also highlights the importance of employee...

Affluent residents of London are embracing cryptocurrencies for rent payments, marking a significant shift in the capital city's real estate landscape. According to a report by CityAM, wealthy individuals are opting to settle their rent using digital currencies, citing the asset class's growing appeal and convenience. Real estate firm Knightsbridge Prime Property has partnered with virtual currency service provider Bitcashier to facilitate such transactions, catering to the needs of their high-net-worth clientele. One notable instance involved a luxury apartment tenant paying £45,000 per week in Bitcoin, illustrating the increasing acceptance of cryptocurrencies in high-value transactions. The adoption of cryptocurrencies for rent payments in London's property market signifies a departure from traditional payment methods, driven by the asset class's flexibility and borderless nature. Renters benefit from real-time settlements and reduced processing fees, while maintaining anonymity...