European tech regulators have fined social media platform X 120 million euros ($140 million) for breaching EU rules on online content.
The fine follows a two-year investigation under the Digital Services Act (DSA), which reportedly found that X was not doing enough to tackle illegal and harmful content.
Regulators also said the blue checkmarks on Elon Musk’s platform were misleading. They did not follow industry decisions and negatively impacted users’ ability to make informed decisions about the authenticity of an account.
The fine is part of a broader crackdown on big tech companies, particularly social media. TikTok said it avoided a fine by making concessions.
Actions against X are sure to create tensions with the United States. Vice President JD Vance said European regulators should not “attack” American companies.
The DSA will also apply to crypto platforms, DeFi frontends, and NFT marketplaces if they grow to a large enough size. This may influence how these platforms manage advertisements, user-directed content and financial market instruments.
EU banks launch euro-stablecoin company as EU eyes ESMA crypto oversight
A group of 10 European banks, including institutional heavyweights like BNP Paribas, plans to launch a euro-backed stablecoin by the second half of 2026.
BNP Paribas partnered with Danish bank Danske, Dutch company ING, Austrian bank Raiffeisen Bank International and others to create and integrate the project under the name Qivalis. The company will be based in Amsterdam.
Jan-Oliver Sell, CEO of Qivalis, said stablecoins offer both convenience and monetary autonomy “in the digital age.” He said this would provide “new opportunities for European businesses and consumers to interact with blockchain payments and digital asset markets in their own currencies.”
The new plan was announced days before the European Commission proposed expanding the powers of the EU’s main financial regulator, the European Securities and Markets Authority (ESMA).
The proposal, published on Thursday, would transfer supervision “over important market infrastructures such as certain trading platforms, central counterparties (CCPs), CSDs and all crypto-asset service providers (CASPs)” to ESMA.
The move is part of a broader effort to streamline regulation of the European market. Three countries – France, Italy and Austria – have asked ESMA to take over crypto regulation. This followed concerns about the uneven application of Markets in Crypto-Asset (MiCA) standards across member states.
Spot Crypto Assets to Start Trading in the Futures Market, CFTC Says
In the United States, the Commodity Futures Trading Commission (CFTC) has approved the trading of spot cryptocurrency products on futures markets.
Acting President Caroline Pham said the move would bring these products overseas to “safe U.S. markets.” She said the approval followed recommendations from the White House Task Force on Digital Asset Markets and engagement with the Securities and Exchange Commission (SEC).
Earlier this year, the SEC and CFTC launched the “Crypto Sprint” initiative to share recommendations and consult on best practices.
Pham became interim president earlier this year. She is expected to resign once the Trump administration’s nominee, Michael Selig, is approved by Congress.
South Africa Reports Crypto Risks; new rules in preparation
The South African Reserve Bank, the country’s central bank, issued a warning on November 25 regarding the perceived risks associated with stablecoins and cryptocurrencies. These include the lack of comprehensive regulations.
The bank was concerned that the global and borderless nature of cryptocurrencies made them ideal for circumventing financial regulations.
Herco Steyn, the bank’s chief macroprudential specialist, was quoted as saying that the risk came from “the absence of a complementary and comprehensive regulatory framework, which is not possible at the moment.”
In 2023, he wrote: “Regulatory influence over stablecoin issuers – whether domiciled domestically or overseas – may result in spillovers from the crypto asset ecosystem into the traditional financial system, particularly if South African regulators are unable to impose prudential requirements on stablecoin issuers. »
To address this, the Reserve Bank would work on new rules with the National Treasury to monitor cross-border crypto transactions and amend exchange control laws so that they are subject to regulatory review.
IMF warns stablecoins could upend fragile financial systems
On Thursday, the International Monetary Fund (IMF) released a report on stablecoins outlining a number of risks, including:
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Volatility of value and races
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Disintermediation of banks
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Interconnection with the financial system
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Currency substitution.
He said that “the use of foreign currency-denominated stablecoins, particularly in cross-border contexts, could lead to currency substitution and potentially compromise monetary sovereignty, particularly in the presence of unhosted wallets.”
The IMF also noted that many large stablecoin issuers do not offer or offer any redemption rights to their holders. “The uncertainty of treatment in the event of insolvency of the stablecoin issuer may also accelerate races,” he said.
The selloffs would also create a first-mover advantage in the event of a crisis of confidence, which could lead investors to sell their holdings at a significantly discounted price.
The IMF has recognized the possible benefits of stablecoins, including faster transactions than bank transfers, particularly in the context of cross-border transactions and remittances. They can also facilitate digital payment in remote areas and reduce counterparty risk when integrated with smart contracts.
