TECH REVIEW

Q2 2024
A report on key regulatory and non-
regulatory developments

PRESENTED BY SPONSORED BY
 JULY 2024

TECH REVIEW
Q2 2024
A report on key regulatory and
non-regulatory developments

AUTHORS
DIOGO PEREIRA COELHO
ALBERTO JOSÉ FIGUEIREDO
MANUEL QUELHAS POÇAS

PRESENTED BY SPONSORED BY
Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

PRELIMINARY NOTES
I. CREDITS

This report was produced by Sypar in collaboration with Sypar Distributed Ledger Laboratory
(Sypar DLT - Lab), Sypar Metaverse Laboratory (Sypar Metaverse - Lab), Sypar Artificial
Intelligence Laboratory (Sypar AI - Lab) and sponsored by DPC – Legal Services.

A. ABOUT SYPAR

Sypar is a Web 3.0 & Web 4.0 multidisciplinary professional services firm at
the forefront of the digital & artificial revolution, specializing in three essential
areas: FinTech, Metaverse, and Artificial Intelligence. As part of Europe's
Digital Decade (until 2030), the ways in which people, work, create, share
and even how companies innovate, operate and interact with their customers
and business partners will be completely transformed. In this Digital and Artificial Era, in which
technology is revolutionizing our society, Sypar constitutes the guiding light that leads companies
and individuals through the complex ecosystem of Web 3.0 & Web 4.0 technologies.

B. ABOUT SYPAR DISTRIBUTED LEDGER LABORATORY

Sypar Distributed Ledger Laboratory (Sypar DLT - Lab) serves as the

knowledge hub for decentralized technologies. Devoted to DLT, tokenization,
blockchain and other DeFi technologies, this lab curates and shares in-depth
insights and reports.

C. ABOUT SYPAR METAVERSE LABORATORY

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

Sypar Metaverse Laboratory (Sypar Metaverse - Lab) welcomes readers to

explore the forefront of immersive experiences. Specializing in metaverse,
virtual worlds and digital realities, this lab serves as a go-to source for cutting-
edge insights and reports.

D. ABOUT SYPAR ARTIFICIAL INTELLIGENCE LABORATORY

Sypar Artificial Intelligence Laboratory (Sypar AI - Lab) invites readers to

delve into the expansive realm of artificial intelligence. This dedicated hub
disseminates crucial insights and reports on AI, GPAI, LLMs, GenAI and its
related technologies.

E. ABOUT DPC – LEGAL SERVICES

DPC – Legal Services is the private practice office of Diogo Pereira

Coelho, Lawyer and Sypar’s Founding Partner. Active since August
2022, it focuses mainly on matters related to Digital and Technology
Law, Criminal Law, Tax Law and Administrative Offense Law.

II. AUTHORS

This report was written and edited by:

Diogo Pereira Coelho: a Founding Partner at Sypar, brings a wealth of

legal expertise to the firm. He has a robust background in IT & Digital
Law, Tax Law, Criminal Law and Administrative Offences Law,
Regulation & Compliance. With a diverse range of academic studies,
Diogo combines his legal acumen with a deep understanding of Web3,
FinTech, DeFi, Blockchain, DAOs, NFTs, Tokenization, CBDCs, Metaverse, and Artificial
Intelligence. His multifaceted experience makes him a driving force in Sypar's mission to navigate
the complexities of the digital landscape.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

Alberto José Figueiredo: a Founding Partner at Sypar, blends his

expertise as a licensed economist to shape the firm's strategic vision.
With a background in Economics, Business Management, Bioethics and
Health Law, Alberto brings a unique perspective to Sypar. As a dedicated
educator, he shares his knowledge as a guest lecturer and certified
trainer. Additionally, his entrepreneurial journey underscores his practical approach to problem-
solving. Alberto's commitment to fostering innovation defines his role in shaping Sypar's future.

Manuel Quelhas Poças: in the role of External Advisor, carries a rich

academic tapestry in Law & Management, Political Science &
International Relations. His studies explore the transformative potential
of blockchain in fostering social development, digital market
consolidation, and the emergence of novel property paradigms within the
digital jurisdictions. His forward-thinking approach to digital economies and property rights make
him an invaluable architect in our mission to shape the evolving digital & artificial landscape.

III. DISCLAIMER

This report is for informational purposes only and does not constitute any type of legal advice, nor
does it establish a client/ representative relationship between the reader and the authors or the
publisher. The web addresses referenced in this report were live and correct at the time of the
report’s publication but may be subject to change. This first version was published by Sypar on July
22, 2024. For any questions or comments please contact [email protected].

@2024 SYPAR | All rights reserved

No part or paragraph may be reproduced, published, represented, rented, copied, be transmitted

through signal, sound, and/ or image transmission including wired/ wireless broadcast or digital
transmission, be stored for later use, be used, allowed to be used and distributed for commercial
purposes, be used and distributed, in whole or in part or summary in any form, without the prior
permission of Sypar. Requests for permission should be directed to [email protected].

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

EXECUTIVE SUMMARY
Throughout the second quarter of 2024 we had the opportunity to follow the latest regulatory and
non-regulatory developments in the web 3.0 and web 4.0 sectors, especially in the fintech,
metaverse and artificial intelligence sectors. Within the scope of these sectors, we carry out daily
monitoring of: (i) research carried out by individuals, companies, associations and universities; (ii)
reports, guidelines, recommendations and other documents released by regulatory and supervisory
authorities, international organizations, and other public institutions or agencies; (iii) legislation,
regulations and other legislative instruments; (iv) and also litigation and jurisprudence. Additionally,
we made a selection of all the elements collected, and organized them by subject, source,
geographic area and chronological order. The elements collected are divided into 4 chapters. The
first chapter explores the Fintech sector, specifically matters related to DeFi, DLTs, blockchain,
Tokenization, Digital Assets, Crypto-Assets, Stablecoins, NFTs, and CBDCs. The second chapter
deals with the metaverse and virtual worlds. The third chapter focuses on artificial intelligence and
the main associated areas, namely GPAI, foundation models, LLMs and GenAI. The fourth and
final chapter also explores other areas or technologies related to web 3.0 & web 4.0, such as data
and big data, digital identity, digital markets and services, quantum technologies, cybercrime,
cybersecurity, among others. In this sense, this report aims to serve as a guide for regulatory and
non-regulatory developments relating to the second quarter of 2024 and, above all, contribute to
the understanding of fintech, metaverse, artificial intelligence and other areas associated with web
3.0 and web 4.0.

DIOGO PEREIRA COELHO ALBERTO JOSÉ FIGUEIREDO

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

INDEX
Preliminary notes………..………………………………………………………………………………..4

Executive summary………………….…………………………………………………………………...9

Index…...…………..………………………………………………………………………………………10

I. Financial Technology………………………………………………………………………….23
A. Financial technology (FinTech)……………...……………………………………...………….24
1. Research conducted by individuals, companies, associations and universities…………...24
1.1. April………………………………………………………………………………………………24
1.1.1. International……………………………………………………………………………...24
1.2. May…………………………………………………………..…………………………………..25
1.2.1. International…………...…………………………………..……………………………..25
B. Decentralized finance (DeFi)…………………….…………………………………………..….26
1. Research conducted by individuals, companies, associations and universities……...……26
1.1. April………………………………………………………………………………………………26
1.1.1. International……………………………………………………………………………...26
1.2. May…………………………………………………………..…………………………………..26
1.2.1. International…………………………………………………………..………...………..26
1.3. June…………………………………………………………..………………………………….27
1.3.1. International…………………………………………………………..………...………..27
1.3.2. Asia………………………………………………………………………………………..27
1.3.2.1. Hong Kong……………………………………………………………………………...27
2. Reports, guidelines, recommendations and other documents published by regulatory and
supervisory authorities, international organizations, and other public institutions and
agencies…………………………………………………………………………………………..28
2.1. April………………………………………………………………………………………...........28
2.1.1. International……………………………………………………..………………….........28
2.2. June…………………………………………………………..…………………………............29
2.2.1. Europe…………………………………………………………..………...……………...29

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

2.2.1.1. European Union…………………………………………………………………….….29

C. Distributed ledger technologies (DLTs) & blockchain…….……………………………....29
1. Research conducted by individuals, companies, associations and universities…………..29
1.1. May………………………………………………………………………………………………29
1.1.1. International……………………………………………………………………………...29
1.2. June…………………………………………………………..……………...…………………..30
1.2.1. International…………...…………………………………..……………………………..30
2. Reports, guidelines, recommendations and other documents published by regulatory and
supervisory authorities, international organizations, and other public institutions and
agencies…………………………………………………………………………………………..30
2.1. April………………………………………………………………………………………………30
2.1.1. Europe……………………………………………………..……………………………..30
2.1.1.1. European Union……………………………………………..……………………...….30
2.1.2. Asia………………………………………………………………………………………..31
2.1.2.1. Hong Kong……………………………………………………………………………...31
2.2. May………………………………………………………………………………………………31
2.2.1. Europe…………………………………………………………………………………….31
2.2.1.1. European Union………………………………………………………………………..31
2.3. June……………………………………………………………………………………………...32
2.3.1. International………………………………………………………………………………32
3. Legislations, regulations, other legislative instruments………………………………………33
3.1. May…………………………………………..…………………………………………………..33
3.1.1. North America……………………………………………………..……………………..33
3.1.1.1. USA……………..…………………………………………..…………………………..33
D. Tokenization…………………………………………………………………………………….....33
1. Research conducted by individuals, companies, associations and universities…………..33
1.1. April………………………………………………………………………………………………33
1.1.1. International……………………………………………………………………………...33
1.1.2. Asia…………………………………………..……………………………………………34
1.1.2.1. Singapore…………………………………………..…………………………………..34

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

1.2. May…………………………………………..…………………………………………………..34
1.2.1. International………….…………………………………………..………………………34
1.3. June……………………………………………………………………………………………...36
1.3.1. International………………………………..…………………………………………….36
E. Digital assets………………………………………………………………………………………37
1. Research conducted by individuals, companies, associations and universities…………..37
1.1. April………………………………………………………………………………………………37
1.1.1. International……………………………………………………………………………...37
1.2. May…………………………………………..………………………………………...………..37
1.2.1. International…………………………………………..………………………………….37
1.3. June…………………………………………………………..………………………………….38
1.3.1. Europe…………………………………………………………..………...……………...38
1.3.1.1. European Union………………………………………………………………………..38
2. Reports, guidelines, recommendations and other documents published by regulatory and
supervisory authorities, international organizations, and other public institutions and
agencies……………………………..…………………………………………..………………..38
2.1. April………………………………………………………………………………………………38
2.1.1. Europe……………………………………………………..……………………………..38
2.1.1.1. United Kingdom………………………………………………………………………..38
2.2. June…………………………………………..………………………………………………….39
2.2.1. Europe…………………………………………..………………………………………..39
2.2.1.1. Switzerland……………………………………………..………………………………39
F. Crypto-assets, stablecoins, non-fungible tokens (NFTs)……………………………..…..39
1. Research conducted by individuals, companies, associations and universities…………..39
1.1. April………………………………………………………………………………………………39
1.1.1. International……………………………………………………………………………...39
1.2. May………………………………………………………………………………………………40
1.2.1. International………………………………………………………………………………40
1.3. June…………………………………………………………………………………………...…40
1.3.1. Europe…………………………………………..………………………………………..40

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

1.3.1.1. United Kingdom…………………………………..……………………………………40

2. Reports, guidelines, recommendations and other documents published by regulatory and
supervisory authorities, international organizations, and other public institutions and
agencies……………………………..…………………………………………..………………..41
2.1. April………………………………………………………………………………………...........41
2.1.1. International……………………………………………..……………………………….41
2.1.2. Europe…………………………………………………………………………………….41
2.1.2.1. European Union…………………………………………..…………………………....41
2.1.2.2. Portugal…………………………………………………………………………………41
2.2. May………………………………………………………………………………………………42
2.2.1. Europe…………………………………………..………………………………………..42
2.2.1.1. European Union……………………………………………..………………………...42
2.3. June……………………………………………………………………………………………...45
2.3.1. Europe………………………………..…………………………………………………..45
2.3.1.1. European Union……………………………..………………………………………...45
3. Legislations, regulations, other legislative instruments………………………………………49
3.1. May…………………………………………..…………………………………………………..49
3.1.1. Europe……………………………………………………..……………………………..49
3.1.1.1. European Union……………………………………..…………………………………49
G. Digital money, deposit tokens, & central bank digital currencies (CBDCs)…………..50
1. Research conducted by individuals, companies, associations and universities…………..50
1.1. April………………………………………………………………………………………………50
1.1.1. International……………………………………………………………………………...50
1.1.2. Europe…………………………………………………………………………………….50
1.1.2.1. European Union………………………………………………………………………..50
1.2. June…………………………………………………………..………………………………….51
1.2.1. International…………………………………………………………..………...………..51
2. Reports, guidelines, recommendations and other documents published by regulatory and
supervisory authorities, international organizations, and other public institutions and
agencies……………………………..…………………………………………..………………..52

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

2.1. April………………………………………………………………………………………………52
2.1.1. Asia……………………………………………………..…………………………………52
2.1.1.1. Thailand……………………………………………..………………………………….52
2.1.2. Australia (& Oceania)……………………………………………………………………53
2.1.2.1. New Zealand……………………………………………………………………………53
2.2. May…………………………………………..…………………………………………………..54
2.2.1. International…………………………………………..………………………………….54
II. Metaverse……………………………………………………………………………………….56
A. Metaverse…….………………….…………………………………………………......………….57
2. Research conducted by individuals, companies, associations and universities…………..57
2.1. April…………………………………………………………..…………………………………..57
2.1.1. International…………...…………………………………..……………………………..57
2.1.2. Europe…………………………………………………..………………………………..57
2.1.2.1. European Union………………………………………………………………………..57
2.2. June……………………………………………………………………………………………...58
2.2.1. International………………………………………………………………………………58
B. Virtual worlds…………………..………………….….………………………………………..….58
1. Reports, guidelines, recommendations and other documents published by regulatory and
supervisory authorities, international organizations, and other public institutions and
agencies…...……………………………………………………………………………………...58
1.1. April………………………………………………………………………………………………58
1.1.1. Europe……………………………………………………………………………............58
1.1.1.1. European Union……………………………………………..………...……………….58
1.1.2. North America……………………………………………………………………………60
1.1.2.1. USA……………………………………………………………………………………..60
1.2. May……………………….…………………………………..………………………………….60
1.2.1. Europe…………………………………………………………..………...……………...60
1.2.1.1. European Union………………………………………………………………………..60
III. Artificial Intelligence…………………………………………………………………………..62
A. Artificial intelligence (AI), robotics, autonomous systems & intelligent automation…63

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1. Research conducted by individuals, companies, associations and universities……….....63

1.1. April……………………………………………………………..……………………………….64
1.1.1. International……………………………………………………………………………...64
1.1.2. Europe…………………………………………………..………………………………..67
1.1.2.1. United Kingdom…………………………………………………..……………………67
1.2. May………………………………………………..………………………………………...…..67
1.2.1. International…………………………………………..………………………………….67
1.2.2. Europe…………………………………………………..………………………………..70
1.2.2.1. European Union…………………………………………………..………………...…70
1.2.3. South America…………………………………………………..……………………….72
1.2.3.1. Brazil…………………………………………………..………………………………..72
1.3. June...…………………………………………………………..………………………………..72
1.3.1. International…………………………………………………………..………...………..72
1.3.2. Europe…………………………………………………..………………………………..75
1.3.2.1. European Union………………………………………………………………..………75
1.3.2.2. United Kingdom…………………………………………………..……………………76
2. Reports, guidelines, recommendations and other documents published by regulatory and
supervisory authorities, international organizations, and other public institutions and
agencies……………………………..…………………………………………..………………..77
2.1. April………………………………………………………………………………………………77
2.1.1. International……………………………………………………..……………………….77
2.1.2. Europe…………………………………………………..……………………………..…78
2.1.2.1. European Union…………………………………………………..…………………...78
2.1.2.2. United Kingdom…………………………………………………..……………………79
2.1.2.3. Italy…………………………………………………..………………………………….79
2.1.2.4. Netherlands…………………………………………………..………………………...79
2.1.3. North America…………………………………..………………..………………………80
2.1.3.1. USA…………………………………………………..…………………………………80
2.1.4. Asia………..…………………………………………………..………………………….81
2.1.4.1. Japan…………………………………………………..……………………………….81

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

2.2. May…………………………………………………..…………………………………………..82
2.2.1. International…………………………………………………..………………………….82
2.2.2. Europe…………………………………………………..………………………………..84
2.2.2.1. European Union…………………………………………………..…………………...84
2.2.2.2. Spain…………………………………………………..………………………………..86
2.2.2.3. United Kingdom…………………………………………………..……………………87
2.2.3. North America…………………………………………………..………………………..87
2.2.3.1. USA…………………………………………………..………………………………....87
2.2.4. Australia (& Oceania)…………………………………………………..………………..89
2.2.4.1. Australia…………………………………………………..…………………………….89
2.2.5. Asia………………………………………………………………………………………..89
2.2.5.1. Singapore…………………………………………………..…………………………..89
2.3. June…………………………………………..………………………………………………….90
2.3.1. International…………………………………………..………………………………….90
2.3.2. Europe…………………………………………………..………………………………..91
2.3.2.1. European Union…………………………………………………..…………………...91
2.3.2.2. Germany…………………………………………………..……………………………92
2.3.3. North America…………………………………………………..………………………..92
2.3.3.1. USA…………………………………………………..…………………………………93
2.3.4. Asia…………………………………………………..……………………………………93
2.3.4.1. Hong Kong…………………………………………………..………………………….93
2.3.5. Australia (& Oceania)…………………………………………………..………………..93
2.3.5.1. Australia…………………………………………………..…………………………….93
3. Legislations, regulations, other legislative instruments………………………………………94
3.1. April…………………………………………………..…………………………………….........94
3.1.1. North America…………………………………………..………………………………..94
3.1.1.1. USA…………………………………………………..…………………......................94
3.1.2. South America………………………………………………..………………………….94
3.1.2.1. Peru…………………………………………………..…………………………………94
3.2. May…………………………………………………..…………………………………………..95

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3.2.1. International…………………………………………..………………………………….95
3.2.2. Europe…………………………………………………………………………………….95
3.2.2.1. European Union…………………………………………………..…………………....95
3.2.3. North America…………………………………………………..………………………..96
3.2.3.1. USA…………………………………………………..…………………………………96
B. General-purpose artificial intelligence (GPAI), foundation models (FMs), & large
language models (LLMs)…..…………………………………………………………………….96
1. Research conducted by individuals, companies, associations and universities…………..96
1.1. May………………………………………………………………………………………………96
1.1.1. International……………………………………………………………………………...96
1.2. June…………………………………………………..…………………………………………97
1.2.1. Europe…………………………………………………..………………………………..97
1.2.1.1. European Union…………………………………………………………………….....97
2. Reports, guidelines, recommendations and other documents published by regulatory and
supervisory authorities, international organizations, and other public institutions and
agencies……………………………..…………………………………………..………………..97
2.1. April………………………………………………………………………………………………97
2.1.1. Europe……………………………………………………..……………………………..97
2.1.1.1. United Kingdom…………………………………………………..……………………97
2.2. May…………………………………………………..…………………………………………..98
2.2.1. Europe…………………………………………………..………………………………..98
2.2.1.1. United Kingdom…………………………………………………..……………………98
2.3. June…………………………………………………..………………………………………….98
2.3.1. North America…………………………………………………..………………………..98
2.3.1.1. USA…………………………………………………..…………………………………98
C. Generative artificial intelligence (GenAI)……………………………………………………..99
1. Research conducted by individuals, companies, associations and universities…………..99
1.1. April………………………………………………………………………………………………99
1.1.1. International……………………………………………………………………………...99
1.1.2. Europe…………………………………………………..………………………………101

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1.1.2.1. European Union…………………………………………………..…………………..101

1.1.3. North America…………………………………………………..………………………102
1.1.3.1. USA…………………………………………………..………………………………..102
1.2. May…………………………………………………..…………………………………………102
1.2.1. International…………………………………………………..………………………...102
1.3. June…………………………………………………..………………………………………...104
1.3.1. International…………………………………………………..………………………...104
1.3.2. Europe…………………………………………………..………………………………105
1.3.2.1. European Union…………………………………………………..………………….105
1.3.3. North America…………………………………………………..………………………106
1.3.3.1. USA…………………………………………………..………………………………..106
2. Reports, guidelines, recommendations and other documents published by regulatory and
supervisory authorities, international organizations, and other public institutions and
agencies……………………………..…………………………………………..………………106
2.1. April………………………………………………………………………………………….....106
2.1.1. Europe……………………………………………………..……………………………106
2.1.1.1. France…………………………………………………..……………………………..106
2.1.1.2. Germany………………………………………………………………………………107
2.1.2. North America……………………………………..……………………………………107
2.1.2.1. USA…………………………………………………..……………………................107
2.2. May…………………………………………………..…………………………………………107
2.2.1. International…………………………………………………..………………………...107
2.2.2. Europe…………………………………………………..………………………………108
2.2.2.1. European Union…………………………………………………..………………….108
2.2.2.2. United Kingdom…………………………………………………..…………………..108
2.2.3. Asia…………………………………………………..………………………………….109
2.2.3.1. Singapore…………………………………………………..…………………………109
2.3. June…………………………………………………..………………………………………...109
2.3.1. Europe…………………………………………………..………………………………109
2.3.1.1. European Union…………………………………………………..…………………..109

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3. Litigation & case-law…………………………………………………..………………………..110

3.1. April…………………………………………………..…………………………………………110
3.1.1. North America…………………………………………………..………………………110
3.1.1.1. USA…………………………………………………..………………………………..110
3.2. May…………………………………………………..…………………………………………111
3.2.1. North America…………………………………………………..………………………111
3.2.1.1. USA…………………………………………………..………………………………..111
3.3. June…………………………………………………..……………………………………...…112
3.3.1. North America…………………………………………………..………………………112
3.3.1.1. USA…………………………………………………..………………………………..112
IV. Other areas related to web3 & web4………………………………………………………114
A. Web 3.0, web 4.0 & digital transformation…………………………………………………..115
1. Research conducted by individuals, companies, associations and universities………….115
1.1. April……………………………………………………………………………………………..115
1.1.1. International…………………………………………………………………………….115
1.1.2. Asia………………………………………………………………………………………116
1.1.2.1. Hong Kong…………………………………………………………………………….116
1.2. May……………………………………………………………………………………………..116
1.2.1. International…………………………………………………………………………….116
1.2.2. South America………………………………………………………………………….118
1.3. June…………………………………………………………………………………………….118
1.3.1. International…………………………………………………………………………….118
1.3.2. Europe…………………………………………………………………………………..119
1.3.2.1. European Union………………………………………………………………………119
2. Reports, guidelines, recommendations and other documents published by regulatory and
supervisory authorities, international organizations, and other public institutions and
agencies……………………………..…………………………………………..………………119
2.1. April……………………………………………………………………………………….........120
2.1.1. Europe……………………………………………………..……………………………120
2.1.1.1. European Union…………………………………………………..…………………..120

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2.1.2. Australia (& Oceania)…………………………………………………………………..121

2.1.2.1. Australia……………………………………………………………………………….121
2.2. May…………………………………………..…………………………………………………122
2.2.1. Europe…………………………………………..………………………………………122
2.2.1.1. European Union…………………………………………..…………………………..122
2.3. June…………………………………………..………………………………………………...123
2.3.1. Europe…………………………………………..………………………………………123
2.3.1.1. European Union…………………………………………..…………………………..123
B. Data & big data…………………………………………..……………………………………….124
1. Research conducted by individuals, companies, associations and universities………….124
1.1. April.…………………………………………………………………………………………….124
1.1.1. International……………………………………………………………………............124
1.2. June…………………………………………………………………………………………….125
1.2.1. Europe…………………………………………………………………………………..125
1.2.1.1. European Union………………………………………………………………………125
2. Reports, guidelines, recommendations and other documents published by regulatory and
supervisory authorities, international organizations, and other public institutions and
agencies……………………………..…………………………………………..………………125
2.1. April……………………………………………………………………………………………..125
2.1.1. Europe……………………………………………………..……………………………125
2.1.1.1. European Union…………………………………………………..…………………..125
C. Digital identity…………………………………..………………………………………………..126
1. Research conducted by individuals, companies, associations and universities………….126
1.1. April……………………………………………………………………………………………..126
1.1.1. Europe…………………………………………………………………………………..126
1.1.1.1. European Union………………………………………………………………………126
1.2. May……………………………………………………………………………………………..126
1.2.1. International…………………………………………………………………………….126

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

2. Reports, guidelines, recommendations and other documents published by regulatory and

supervisory authorities, international organizations, and other public institutions and
agencies……………………………..…………………………………………..………………126
2.1. June…………………………………………………………………………………………….127
2.1.1. Europe……………………………………………………..……………………………127
2.1.1.1. European Union…………………………………………………..…………………..127
D. Digital markets & services…………………………………..…………………………………127
1. Reports, guidelines, recommendations and other documents published by regulatory and
supervisory authorities, international organizations, and other public institutions and
agencies……………………………..…………………………………………..………………127
1.1. April……………………………………………………………………………………….........127
1.1.1. Europe……………………………………………………..……………………………127
1.1.1.1. European Union…………………………………………………..………………….127
1.2. May……………………………………………………………………………………………..128
1.2.1. Europe…………………………………………………………………………………..128
1.2.1.1. European Union………………………………………………………………………130
1.2.2. United Kingdom…………………………………………..…………………………….130
E. Quantum technologies…………………………………..……………………………………..130
1. Research conducted by individuals, companies, associations and universities…………130
1.1. April……………………………………………………………………………………………..130
1.1.1. International……………………...……………………………………………………..130
2. Reports, guidelines, recommendations and other documents published by regulatory and
supervisory authorities, international organizations, and other public institutions and
agencies……………………………..…………………………………………..………………131
2.1. April……………………………………………………………………………………….........131
2.1.1. Europe……………………………………………………..……………………………131
2.1.1.1. European Union…………………………………………………..…………………..131
F. Fincrime, AML, cybercrime & cybersecurity…………………………………..……………131
1. Research conducted by individuals, companies, associations and universities….……...132
1.1. April……………………………………………………………………………………….........132

21
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

1.1.1. International…………………………………………………………………………….132
1.2. May……………………………………………………………………………………………..133
1.2.1. International.……………………………………………………………………………133
1.3. June…………………………………………………………………………………………….133
1.3.1. International.……………………………………………………………………………133
2. Reports, guidelines, recommendations and other documents published by regulatory and
supervisory authorities, international organizations, and other public institutions and
agencies……………………………..…………………………………………..………………133
2.1. April……………………………………………………………………………………….........134
2.1.1. Europe……………………………………………………..……………………………134
2.1.1.1. European Union…………………………………………………..…………………..134
2.1.2. North America……………………………………………..……………………………134
2.1.2.1. USA……………………………………………..……………………………………..134
2.2. May……………………………………………..………………………………………………135
2.2.1. International…………………………………………………………………………….135
2.2.2. North America……………………………………………..……………………………135
2.2.2.1. USA……………………………………………..……………………………………..135
2.3. June……………………………………………..……………………………………………...136
2.3.1. International…………………………………………………………………………….136
2.3.2. Europe……………………………………………..……………………………………136
2.3.2.1. European Union………………………………..……………………………………..136
3. Litigation & case-law…………………………………………………..………………………..137
3.1. May…………………………………………………..…………………………………………137
3.1.1. North America…………………………………………………..………………………137
3.1.1.1. USA…………………………………………………..………………………………..137

22
Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

I. FINANCIAL TECHNOLOGY

23
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

offers practical insights and a

standardized taxonomy to improve
decision-making, supervision, and the
achievement of financial inclusion goals.
• «Finternet: the financial system for the
future», paper authored by Agustín
Carstens and Nandan Nilekani, and
published in April 2024 by the Bank for
International Settlements – BIS2. In this
paper, the authors present a framework
designed to assist public authorities and
A. FINANCIAL TECHNOLOGY
private institutions in initiating the
(FINTECH) development of the Finternet. It outlines
1. RESEARCH CONDUCTED BY the envisioned concept of the Finternet
INDIVIDUALS, COMPANIES, and discusses how recent
advancements in digital technology could
ASSOCIATIONS AND
facilitate its realization. Additionally, it
UNIVERSITIES
explores the economic rationale behind
1.1. APRIL
unified ledgers, which are seen as a
1.1.1. INTERNATIONAL
crucial mechanism to actualize the
• «FinTech and Digital Financial Services
envisioned future financial system.
Ecosystem Data for Supervision and
Finally, the authors propose eight
Market Intelligence», guideline note
essential design principles that they
published in April 2024 by the Alliance for
believe should be integral to the
Financial Inclusion (AFI)1. This report
Finternet. However, they acknowledge
provides guidance for regulators and
that each jurisdiction must devise its own
central banks on adopting ecosystem-
strategy to develop the Finternet,
based data collection approaches. It

1See: https://www.afi-global.org/publications/fintech- 2 See: https://www.bis.org/publ/work1178.htm.

and-digital-financial-services-ecosystem-data-for-
supervision-and-market-intelligence/.

24
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

considering its specific legal, regulatory 1.2.1. INTERNATIONAL

frameworks, and the current state of its • «FinTech Legal Compass - A Ready
financial system. Reckoner For FinTech Licensing», report
• «Stablecoins: regulatory responses to published in May 2024 by KARM Legal
their promise of stability», paper Consultants in collaboration with WH
authored by Juan-Carlos Crisanto, Partners, TBL & Travers Smith4. This
Johannes Ehrentraud & Denise Garcia report offers an in-depth analysis of the
Ocampo, and published in April 2024 by fintech regulatory environments in the
the Bank for International Settlements – United Arab Emirates, Kingdom of Saudi
BIS3. This paper evaluates the regulatory Arabia, Bahrain, and Turkey, comparing
responses to issuers of single fiat- them to those of the European Union and
pegged stablecoins. These stablecoins the United Kingdom. The study examines
are characterized by a face value the regulatory frameworks of each
denominated in a singular monetary unit, country, then delves into promising
such as the US dollar, and are supported subsectors such as stored value
by traditional financial assets. These facilities, merchant acquiring, payment
features enable their use as a means of aggregation services, buy now, pay later
payment. The analysis compares (BNPL), and open banking. It also
regulatory frameworks from 11 explores how each region is adapting to
authorities across seven geographically these subsectors.
diverse jurisdictions to identify trends and • «A Comprehensive Analysis of Bank-
commonalities in their approaches. In FinTech M&A: How Bank-FinTech
summary, the paper provides a detailed Synergy Can Drive M&A Success»,
description of stablecoins and examines report published in May 2024 by Oliver
the various regulatory frameworks. Wyman5. This report examines a decade
of transformation through the lens of
1.2. MAY mergers and acquisitions (M&A)

3 See: https://www.bis.org/fsi/publ/insights57.htm. 5See: https://www.oliverwyman.com/our-

4 See: https://karmadv.com/. expertise/insights/2024/may/bank-fintech-synergy-
can-drive-m-a-success.html.

25
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

between banks and fintechs. It combines 1.1. APRIL

transaction analysis with expert insights 1.1.1. INTERNATIONAL
from startup founders, bank corporate • «Disruptive Technology Views - Why
development executives, and fintech public—not private—blockchains truly
investment bankers. The paper enable Web3 and decentralized
highlights key considerations for both finance», published in April 2024 by
banks and fintechs as they navigate Franklin Templeton6. The latest issue of
through an evolving landscape. Disruptive Technology Views provides
an extensive analysis of the blockchain
ecosystem and explores the capabilities
of a particular DeFi application. The first
article delves into the public versus
private blockchain debate, highlighting
the benefits of public blockchains and the
shortcomings of private blockchains,
which share many problems with the
traditional Web2 model. The second
article discusses how DeFi could
revolutionize the securities lending
markets, proposing a shift from a
B. DECENTRALIZED FINANCE predominantly institutional framework to
(DEFI) a more inclusive, broad-based asset
lending ecosystem accessible to all
1. RESEARCH CONDUCTED BY
participants.
INDIVIDUALS, COMPANIES,

ASSOCIATIONS AND
1.2. MAY
UNIVERSITIES 1.2.1. INTERNATIONAL

6See:
https://www.franklintempleton.ch/articles/2024/institut
e/public-blockchains-and-defi.

26
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

• «Why DeFi lending? - Evidence from DeFi and aim to demystify some
Aave V2», paper authored by Giulio frequently used terms. They then take a
Cornelli, CFA, FRM, Leonardo closer look at several key driving forces
Gambacorta, Rod Garratt & Alessio in the DeFi domain. Finally, the paper
Reghezza, and published in May 2024 by considers what lies in store for the
Bank for International Settlements – institutional financialservices community
BIS7. This article explores the on the road to institutional DeFi.
motivations behind investors'
participation in DeFi lending protocols, 1.3.2. ASIA
using transaction-level data from AAVE. 1.3.2.1. HONG KONG
Findings indicate that yield-seeking • «Decentralised Finance Current
drives liquidity provision, while Landscape and Regulatory
speculative and governance motives Developments», report published in June
influence borrowing activity. Both retail 2024 by the Hong Kong Institute for
and large investors pursue high returns Monetary and Financial Research
through price speculation, with the latter (HKIMR) in collaboration with the Hong
engaging more in borrowing to influence Kong Academy of Finance (AoF)9. This
protocol decisions and gain significant report presents an extensive analysis of
governance rights. the opportunities and challenges posed
by DeFi activities, alongside the
1.3. JUNE regulatory strategies proposed by
1.3.1. INTERNATIONAL international organizations and individual
• «The road to institutional DeFi», jurisdictions for managing crypto-asset
whitepaper published in June 2024 by and DeFi markets. It includes insights
the Deutsche Bank in collaboration with from a survey and a series of interviews
Northern Trust8. In this whitepaper, the conducted by the Hong Kong Institute for
authors reflect on the recent history of Monetary and Financial Research

7 See: https://www.bis.org/publ/work1183.htm. 9See: https://www.aof.org.hk/docs/default-

8 See: https://www.northerntrust.com/middle- source/hkimr/applied-research-report/defirep.pdf.
east/insights-research/2024/asset-servicing/the-road-
to-institutional-defi.

27
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

(HKIMR). These were aimed at gathering potential impact of DeFi on transaction

perspectives from key stakeholders in fees and ownership structure is explored,
Hong Kong, such as financial institutions particularly in comparison to TradFi. By
and VASPs, regarding the present and examining the automated transaction
potential future uses of virtual assets. technology of DeFi, the aim is to
The document concludes by proposing determine whether it will lead to lower
considerations to support the fees for users and if its decentralized
advancement of DeFi in Hong Kong. ownership structure can effectively
redistribute decision-making power to
2. REPORTS, GUIDELINES, users.

RECOMMENDATIONS AND • «Concentration of DeFi’s liquidity:

Evidence from Decentralised Exchanges
OTHER DOCUMENTS PUBLISHED
(DEXs) and Automated Market Makers
BY REGULATORY AND
(AMMs)», report published in April 2024
SUPERVISORY AUTHORITIES,
by the OECD - OCDE11. This working
INTERNATIONAL paper explores the characteristics of
ORGANIZATIONS, AND OTHER DEXs and identifies potential areas of

PUBLIC INSTITUTIONS AND concentration in their activities, along

with the associated risks. To support the
AGENCIES
analysis, it utilizes an original on-chain
2.1. APRIL
dataset that covers the largest DEXs.
2.1.1. INTERNATIONAL
The paper discloses an increased
• «Making Sense of Decentralized Finance
concentration in DeFi trading within the
What is DeFi? And how does it differ from
observed sample, which could intensify
traditional finance?», published in April
vulnerabilities already present in DeFi
2024 by the Federal Reserve Bank of
markets.
Philadelphia10. In this article, the

10See: https://www.philadelphiafed.org/- 11 See: https://www.oecd.org/finance/concentration-

/media/frbp/assets/economy/articles/economic- of-defi-s-liquidity-4ed08440-en.htm.
insights/2024/q1/eiq124-making-sense-of-
decentralized-finance.pdf.

28
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

2.2. JUNE
2.2.1. EUROPE
2.2.1.1. EUROPEAN UNION
• «Principles for the assessment of
decentralisation in the markets for
crypto-assets», guidance published in
June 2024 by Finanstilsynet12. This
report highlights the impact of MiCAR
regulation on crypto-asset markets,
emphasizing the criteria for determining
decentralization. The Danish
C. DISTRIBUTED LEDGER
Finanstilsynet provides essential
guidance to assess when services
TECHNOLOGIES (DLTS) &
qualify as completely decentralised BLOCKCHAIN
under MiCA exceptions, crucial for 1. RESEARCH CONDUCTED BY
compliance to avoid unlawful provision of
INDIVIDUALS, COMPANIES,
regulated services without a license.
ASSOCIATIONS AND

UNIVERSITIES

1.1. MAY
1.1.1. INTERNATIONAL
• «Reinventing asset servicing with
distributed ledger technology», paper
published in May 2024 by HSBC13. This
paper discusses HSBC's creation of its
proprietary tokenization platform, HSBC
Orion, and its involvement in initiatives

12 See: https://www.dfsa.dk/news/2024/jun/crypto- insights/reinventing-asset-servicing-with-distributed-

assets_250624. ledger-technology.
13 See: https://www.gbm.hsbc.com/en-

gb/insights/market-and-regulatory-

29
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

like the Hong Kong Monetary Authority operational mechanisms, and various
(HKMA)'s tokenized green bond types of blockchains like public, private,
issuance. It outlines key considerations and hybrid. The document assesses
for developing DLT-based solutions and blockchain's transformative potential
forecasts the evolution of digital assets. across industries, evaluating its real
• «From Crypto Adoption to a Tokenised impacts versus its perceived hype.
Future: Exploring Blockchain’s Impact on
Asset Management and Traditional 2. REPORTS, GUIDELINES,
Finance», Worldwide Business RECOMMENDATIONS AND
Research (WBR) Insights published in
OTHER DOCUMENTS PUBLISHED
May 202414. This report explores
BY REGULATORY AND
blockchain's transformative impact on
SUPERVISORY AUTHORITIES,
asset management and TradFi. It delves
into cryptocurrency adoption by asset INTERNATIONAL

managers, blockchain's efficiency ORGANIZATIONS, AND OTHER

benefits, and the tokenization of illiquid PUBLIC INSTITUTIONS AND
assets.
AGENCIES

2.1. APRIL
1.2. JUNE
2.1.1. EUROPE
1.2.1. INTERNATIONAL
2.1.1.1. EUROPEAN UNION
• «What is blockchain?», article published
• «Ref: DLT Pilot Regime
in June 2024 by McKinsey & Company15.
Implementation», published in April 2024
This report delves into blockchain
by the European Securities and Markets
technology, a distributed ledger system
Authority (ESMA)16. This letter explains
that enhances secure information
that according to Article 15 of the
sharing. It covers the fundamentals,
Regulation, the ESMA is obligated to

14 See: 16 See:
https://digitalassets.wbresearch.com/downloads/digia https://www.esma.europa.eu/sites/default/files/2024-
ssets-2024-report. 04/ESMA75-117376770-460_DLT_Pilot_Regime_-
15 See: https://www.mckinsey.com/featured- _Letter_to_EU_Institutions.pdf.
insights/mckinsey-explainers/what-is-blockchain.

30
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

issue annual interim reports for various the essential risk management
purposes, including providing market considerations that the Hong Kong
participants with insights into market Monetary Authority (HKMA) focuses on
functioning and addressing incorrect when evaluating proposals from
behavior by operators of DLT market authorized institutions (AIs) that involve
infrastructures. The first report was due the use of distributed ledger technology
by March 24, 2024. However, since no (DLT).
DLT market infrastructures have been
authorized as of the DLT Pilot Regime's 2.2. MAY
implementation on March 23, 2023, 2.2.1. EUROPE
ESMA has decided not to release the 2.2.1.1. EUROPEAN UNION
report. Nonetheless, following • «Ethical Guidelines for Blockchain
discussions with the European Systems», published in May 2024 by the
Commission, ESMA wishes to provide an European Blockchain Center in
update on the status of submitted collaboration with the ETICS Advisory
applications and highlight key challenges Panel - European Commision &
observed during interactions with European Blockchain Services
national competent authorities and Infrastructure (EBSI)18. These
potential applicants. guidelines, introduced by the Expert
Group on Blockchain Ethics, aim to
2.1.2. ASIA represent a landmark achievement for
2.1.2.1. HONG KONG blockchain technology within the
• «Risk management considerations European Union. Developed to ensure
related to the use of distributed ledger that blockchain systems embody and
technology», letter published in April advance European values, the document
2024 by the Hong Kong Monetary is the culmination of a year-long
Authority (HKMA)17. This letter outlines endeavor. The guidelines cover several

17 See: https://www.hkma.gov.hk/media/eng/doc/key- 18 See: https://www.ebcc.eu/ethics/.

information/guidelines-and-
circular/2024/20240416e1.pdf.

31
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

critical themes, including fairness, by the EU Blockchain Observatory and

privacy, security, economic Forum20. This guide is designed to
accountability, and societal provide novice learners with an
responsibility. This comprehensive introductory understanding of blockchain
framework aims to guide the ethical technology, covering its fundamental
integration of blockchain technologies in principles, various applications, and
a manner that aligns with the core emerging trends.
principles and expectations of the
European Union. 2.3. JUNE
• «EU Blockchain Ecosystem 2.3.1. INTERNATIONAL
Developments 3», report published in • «Global Layer One - Foundation Layer
May 2024 by the EU Blockchain for Financial Networks», report published
Observatory and Forum19. This report in June 2024 by the Monetary Authority
provides an in-depth analysis of the of Singapore (MAS) with contributions
development of the blockchain from BNY, Citi, MUFG Bank, ONYX
ecosystem across Europe in its 2024 Insight by J.P. Morgan, & Societe
edition. Covering 32 countries, including Generale - FORGE21. This report
all EU Member States, Liechtenstein, introduces the GL1 initiative and
Norway, Switzerland, the United explores a shared ledger infrastructure
Kingdom, and Ukraine, it details the compliant with regulations and governed
significant advancements in blockchain by common technological standards. It
technology and the adoption of highlights the necessity for public and
cryptocurrencies. private sector collaboration to ensure the
• «Blockchain for beginners - basic guiding infrastructure meets regulatory
principles», guide published in May 2024 requirements and international standards

19See: https://blockchain- 20 See: https://blockchain-

observatory.ec.europa.eu/news/eu-blockchain- observatory.ec.europa.eu/news/blockchain-
ecosystem-developments-3-published-eu-blockchain- beginners-basic-guiding-principles-2024-05-17_en.
observatory-and-forum-2024-05-21_en. 21 See: https://www.mas.gov.sg/-/media/mas-media-

library/development/fintech/guardian/gl1---
whitepaper.pdf.

32
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

while addressing market needs for

deploying tokenized assets.

3. LEGISLATIONS, REGULATIONS,

OTHER LEGISLATIVE

INSTRUMENTS

3.1. MAY
3.1.1. NORTH AMERICA
3.1.1.1. USA
• The Deploying American Blockchain Act
of 2023 was passed in the U.S. House of D. TOKENIZATION
Representatives with a vote of 334-7922. 1. RESEARCH CONDUCTED BY
This Act is designed to enhance the INDIVIDUALS, COMPANIES,
competitiveness of the US in the fields of
ASSOCIATIONS AND
blockchain, other DLTs, applications,
UNIVERSITIES
and tokenization. It also creates advisory
1.1. APRIL
committees and a Blockchain
1.1.1. INTERNATIONAL
Deployment Program to facilitate
adoption. • «Tokenization: Realizing the vision of a
future financial ecosystem», published in
April 2024 by Deloitte23. This report
delves into the burgeoning enthusiasm
among business and thought leaders
within the financial services sector for the
transformative potential that tokenization
holds for the industry.

22 See: https://www.congress.gov/bill/118th- cuments/financial-services/us-bda-steering-

congress/house-bill/6572/text. tokenized-assets-pov.pdf.
23 See:

https://www2.deloitte.com/content/dam/Deloitte/us/Do

33
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

• «Beyond Token Issuance: How tokenization safeguards data and

Interoperability and Real-World Data enhances the efficiency of data
Unlock the True Value of Tokenized management across various
Assets», report published in April 2024 applications.
by Chainlink, with contributions from
Boston Consulting Group (BCG), 1.1.2. ASIA
21Shares, Paxos, and Backed24. This 1.1.2.1. SINGAPORE
report offers asset managers vital • «The Asset Tokenisation C-Suite
insights into the tokenized asset Playbook», playbook published in April
landscape. It covers the advantages of 2024 by KPMG in collaboration with the
tokenization, provides a taxonomy for Singapore Fintech Association (SFA)26.
clearer classification and understanding, This playbook delves into asset
details the tokenization process, and tokenization, emphasizing its role in
includes case studies to showcase the democratizing investment and enhancing
potential of this emerging asset class. portfolio management. It provides a
Additionally, it addresses the risks strategic framework for C-suite
associated with tokenized assets, executives and outlines challenges in the
offering perspectives and guidance on evolving landscape, heralding a
identifying and managing the technology- significant shift in asset management
related risks, including essential security and ownership paradigms.
and programmability considerations.
• «What is tokenization», article published 1.2. MAY
in April 2024 by McKinsey & Company25. 1.2.1. INTERNATIONAL
This article explores the concept of • «The Tokenizer’s Who’s Who 2024 -
tokenization, which involves creating a Your Guide to the Asset Tokenization
digital representation of a real-world Industry», report published in May 2024
entity. The article delves into how

24 See: https://blog.chain.link/definitive-guide-to- 26 See:

tokenized-assets/. https://kpmg.com/sg/en/home/insights/2024/02/the-
25 See: https://www.mckinsey.com/featured- asset-tokenization-c-suite-playbook.html.
insights/mckinsey-explainers/what-is-tokenization#/.

34
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

by The Tokenizer27. This report explores the tokenization of real-world

enumerates all the major players in the assets (RWAs) through the use of
industry across various categories, such blockchain technology. It specifically
as exchanges, issuance platforms, focuses on the tokenization of securities
custodians, law firms, and other service and their application in yield-bearing
providers. Over 60 exchanges, 45 stablecoins. The document delves into
custodians, 70 law firms, 85 token the latest trends, technological
issuance platforms, 110 service developments, and market dynamics
providers, and 55 institutions are listed. associated with this innovative financial
• «Digital Asset Tokenisation Guide», strategy.
published in May 2024 by Future of • «Tokenizing Banking - Tokenization of
Finance (FOF)28. This guide offers a traditional assets holds potential to
detailed tokenization analysis, using data transform banking», whitepaper
from the Future of Finance (FOF) published in May 2024 by the USDF
database, to illustrate the current state of Consortium30. This report explores the
digital asset tokenization. The guide integration of blockchain technology in
reveals that the issuance of fund and banking, highlighting its unique value and
security tokens is notably limited, applications. It focuses on its potential to
predominantly asset-backed rather than enhance operations in community banks,
native, and there is a significant providing an overview of promising
reluctance to integrate with the pivotal applications and practical advice for
equity market. navigating future challenges and
• «Tokenisation of RWAs & Yield-Bearing opportunities in banking.
Stablecoins», working report published in • «Guidance for memorandum of law
May 2024 by Crypto.com29. This report examining the validity and enforceability

27 See: https://thetokenizer.io/2024/05/01/industry- 29 See: https://contenthub-

overview-navigate-the-asset-tokenization-landscape- static.crypto.com/wp_media/2024/05/Crypto.com-
with-the-tokenizers-2024-whos-who-guide/. Tokenisation-of-RWA-Yield-Bearing-Stablecoins.pdf.
28 See: https://futureoffinance.biz/the-digital-asset- 30 See: https://usdfconsortium.com/wp-

tokenisation-guide/. content/uploads/2024/05/USDF-Tokenization-White-
Paper-1.pdf.

35
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

of collateral arrangements using the stakeholders, which may not yield clear
ISDA model provisions for tokenized advantages in already efficient markets
collateral», published in May 2024 by like equity.
ISDA31. This guidance outlines how to • «Real-world asset tokenisation: A game
assess the enforceability of ISDA changer for global trade», published in
collateral agreements involving June 2024 by Standard Chartered33. This
tokenized securities and stablecoins. It report explores the transformative power
provides a taxonomy of tokenization of real-world asset tokenisation of trade
structures and a list of critical issues to finance assets, demonstrating its
consider, aiming to inform legal opinions potential to enhance liquidity, divisibility,
across various jurisdictions. and accessibility. It outlines the benefits,
opportunities, and necessary actions for
1.3. JUNE investors, banks, governments, and
1.3.1. INTERNATIONAL regulators to adopt and scale
• «Demystifying Tokenisation: Embracing tokenisation, driving innovation and
the Future», paper published in June inclusivity in the financial ecosystem.
2024 by the World Federation of
Exchanges32. This paper explores
tokenization as a progressive
development in finance, succeeding
dematerialization. It argues that while
tokenization offers potential benefits,
they warrant critical scrutiny.
Furthermore, it also argues that
transitioning to a tokenized system
demands significant investment from

31 See: https://www.isda.org/2024/05/21/isda- 33See: https://www.sc.com/en/corporate-investment-

tokenized-collateral-guidance-note/. banking/transaction-banking/trade-finance-asset-
32 See: https://www.world-exchanges.org/our- tokenisation/.
work/articles/demystifying-tokenisation-embracing-
future.

36
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

fundamental advantages and important

considerations. It offers insights into
established use cases for stablecoins
and tokenized deposits, their global
impact, and future expectations.
• «Digital Asset Custody: Navigating
Regulatory Landscapes in APAC - with
Compliance, Operational Efficiency and
Selecting the Right Qualified Custodian»,
whitepaper published in April 2024 by
Rakkar Digital35. This whitepaper aims to
E. DIGITAL ASSETS
inform and guide compliance with the
1. RESEARCH CONDUCTED BY
recent regulatory developments in the
INDIVIDUALS, COMPANIES,
Asia–Pacific (APAC) region concerning
ASSOCIATIONS AND digital asset custody.
UNIVERSITIES

1.1. APRIL 1.2. MAY

1.1.1. INTERNATIONAL 1.2.1. INTERNATIONAL

• «The Functional Evolution of Digital • «Capturing the multitrillion-dollar Digital

Assets», report published in April 2024 Asset market - Strategies to win the
by Ripple in collaboration with mateco race», article published in May 2024 by
GmbH34. This whitepaper explores the Roland Berger36. This article examines
development of digital assets, analyzing what executives need to consider to
their influence on finance, regulation, and position their companies for success in
humanitarian aid. It also discusses their the digital assets space, capture

34 See: 36 See:
https://www.metaco.com/whitepaper/functional- https://www.rolandberger.com/en/Insights/Publication
evolution-digital-assets/. s/Capturing-the-multitrillion-dollar-Digital-Asset-
35 See: https://www.linkedin.com/posts/rakkar- market.html.
digital_digital-asset-custody-navigating-regulatory-
activity-7184128069345898497-g_AE/.

37
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

upcoming growth opportunities, and cryptocurrency's role in conflicts, and

establish a solid competitive advantage. education and culture. It includes
• «Building the Digital Asset Securities exclusive interviews and top industry
Ecosystem - Digital Asset Securities data.
Control Principles: A Framework For
Adoption», whitepaper produced by The 2. REPORTS, GUIDELINES,
Depository Trust & Clearing Corporation RECOMMENDATIONS AND
(DTCC), Clearstream, & Euroclear, in
OTHER DOCUMENTS PUBLISHED
collaboration with Boston Consulting
BY REGULATORY AND
Group (BCG), and published in May
SUPERVISORY AUTHORITIES,
202437. This whitepaper introduces the
Digital Asset Securities Control INTERNATIONAL

Principles (DASCP). It serves as a guide ORGANIZATIONS, AND OTHER

to address the prevailing challenges and PUBLIC INSTITUTIONS AND
promote operational excellence in
AGENCIES
financial markets influenced by DLT.
2.1. APRIL
2.1.1. EUROPE
1.3. JUNE
2.1.1.1. UNITED KINGDOM
1.3.1. EUROPE
• «Legal Statement on Digital Assets and
1.3.1.1. EUROPEAN UNION
English Insolvency Law», published in
• «The state of digital assets in Europe»,
April 2024 by LawtechUK (Ministry of
report published in June 2024 by DL
Justice UK)39. This Legal Statement aims
Research38. This report offers a
to address areas of perceived legal
comprehensive analysis of Europe's
uncertainty and clarify the application of
digital assets landscape, covering
certain aspects of English insolvency law
economic impacts, sector innovation,
to digital assets.
regulatory developments,

37See: https://www.dtcc.com/dtcc- 38 See: https://www.dlnews.com/research/the-state-

connection/articles/2024/may/29/building-the-digital- of-digital-assets-in-europe/.
assets-ecosystem. 39 See: https://lawtechuk.io/our-reports/.

38
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

2.2. JUNE
2.2.1. EUROPE
2.2.1.1. SWITZERLAND
• «Swiss Digital Asset Custody Report
2024», published in June 2024 by Home
of Blockchain.swiss in collaboration with
CMTA, Asset Management Association
Switzerland, Zurich Banking Association,
& Swiss Financial Innovation Desk40.
This report highlights the accelerating
trend of private and state-owned banks
F. CRYPTO-ASSETS,
offering digital assets and crypto services
to retail and private clients. Additionally,
STABLECOINS & NON-

it notes the emergence of an innovative FUNGIBLE TOKENS (NFTS)

network of custody and technology 1. RESEARCH CONDUCTED BY
providers, facilitating faster adoption and
INDIVIDUALS, COMPANIES,
lowering entry barriers for new market
ASSOCIATIONS AND
entrants.
UNIVERSITIES

1.1. APRIL
1.1.1. INTERNATIONAL
• «The Chainalysis Crypto Spring Report»,
published in April 2024 by Chainalysis41.
This report provides research and
analysis on various aspects of the
cryptocurrency industry. It explores the
impact of ETFs and institutional
adoption, discussing how these factors

40 See: https://homeofblockchain.swiss/reports. 41See: https://go.chainalysis.com/crypto-spring-

report.html.

39
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

influence the broader industry. The document examines avenues for

report also examines ecosystem establishing a responsible global crypto-
development and scaling efforts, asset ecosystem.
particularly through layer-2s and other
initiatives that enhance major 1.3. JUNE
blockchains. Additionally, it delves into 1.3.1. EUROPE
emerging trends such as the integration 1.3.1.1. UNITED KINGDOM
of real-world assets (RWAs) and DePIN, • «Travel Rule Good Practices Guide»,
which are set to shape the future financial authored by the CryptoUK Travel Rule
infrastructure. Working Group, and published in June
2024 by CryptoUK43. This guide
1.2. MAY examines key aspects of counterparty
1.2.1. INTERNATIONAL VASP due diligence, explores UK
• «Pathways to the Regulation of Crypto- regulatory obligations, and outlines
Assets: A Global Approach», whitepaper approaches for operationalizing
published in May 2024 by the World withdrawal and deposit flows. It also
Economic Forum42. This whitepaper delves into the regulatory framework for
aims to explore and elucidate the unhosted wallets, discussing associated
requirements and obstacles involved in risks and potential mitigation strategies.
forming a worldwide strategy for crypto- Providing a comprehensive overview of
asset regulation. It investigates the how entities are navigating compliance
diverse regulatory frameworks being amidst regulatory disharmony, this guide
implemented across various offers valuable insights and practical
jurisdictions. Emerging from advice for addressing the associated
multistakeholder consultations that challenges.
included experts from the Digital
Currency Governance Consortium, the

42 See: 43See: https://cryptouk.io/wp-

https://www.weforum.org/publications/pathways-to- content/uploads/2024/06/CryptoUK-Travel-Rule-
crypto-asset-regulation-a-global-approach/. Good-Practice-Guide_May24_v5.pdf.

40
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

2. REPORTS, GUIDELINES, 2.1.2. EUROPE

RECOMMENDATIONS AND 2.1.2.1. EUROPEAN UNION

• «Crypto-assets: Market structures and
OTHER DOCUMENTS PUBLISHED
EU relevance», published in April 2024
BY REGULATORY AND
by the European Securities and Markets
SUPERVISORY AUTHORITIES,
Authority (ESMA)45. The article offers an
INTERNATIONAL in-depth analysis of trends within
ORGANIZATIONS, AND OTHER secondary markets for crypto-assets,

PUBLIC INSTITUTIONS AND aiming to enhance the collective

comprehension of trading practices in the
AGENCIES
crypto realm and how they align with or
2.1. APRIL
diverge from established financial market
2.1.1. INTERNATIONAL
behaviors. It further explores existing and
• «A Primer on Bitcoin - Cross-Border
prospective risk factors that affect not
Flows Measurement and Drivers»,
only individual investors but also the
published in April 2024 by the
broader market integrity and financial
International Monetary Fund44. This
stability. Ultimately, the insights derived
working paper provides a comprehensive
from the article contribute to guiding and
description of available methodologies
reinforcing the application of the
and datasets, exploring the essential
European Union's MiCAR framework.
assumptions underlying the
quantification of crossborder Bitcoin
2.1.2.2. PORTUGAL
flows. It also introduces new stylized
• «Consulta Pública - Regulamento
facts about Bitcoin crossborder flows and
relativo aos mercados de criptoativos -
examines their global and domestic
Regulamento MiCA» («Public
influences.
Consultation - Regulation on crypto-

44 See: 45 See:
https://www.imf.org/en/Publications/WP/Issues/2024/ https://www.esma.europa.eu/sites/default/files/2024-
04/05/A-Primer-on-Bitcoin-Cross-Border-Flows- 04/ESMA50-524821-
Measurement-and-Drivers-547429. 3153_risk_article_crypto_assets_market_structures_
and_eu_relevance.pdf.

41
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

assets markets - MiCA Regulation»), in the context of the Markets in Crypto

published in April 2024 by the CMVM - Assets (MiCA) Regulation», published in
Comissão do Mercado de Valores May 2024 by European Securities and
Mobiliários46. The CMVM has launched Markets Authority (ESMA)47. In this
this public consultation to identify entities advice, the Securities and Markets
interested in operating in Portugal under Stakeholder Group (SMSG) provides its
the MiCAR framework. The consultation perspectives on the specific questions
aims to understand if entities are posed by European Securities and
supervised CASPs, their intended Markets Authority (ESMA) in the
activities under MiCAR (such as consultation paper on reverse
issuance or offering of crypto-assets), solicitation48 and in the consultation
whether Portugal is their originating paper on the qualification of crypto
Member State, and their willingness to assets as financial instruments49. It also
collaborate. offers comments on broader issues
associated with the topics covered.
2.2. MAY • «Call for Evidence - On the review of the
2.2.1. EUROPE UCITS Eligible Assets Directive»,
2.2.1.1. EUROPEAN UNION published in May 2024 by the European
• «Advice to ESMA SMSG advice to Securities and Markets Authority
ESMA on its consultation papers on (ESMA)50. This call for evidence is
reverse solicitation and the qualification soliciting comments on various topics
of crypto-assets as financial instruments regarding UCITS eligible assets,

46 See: 01/ESMA35-1872330276-
https://cmvm.pt/PInstitucional/Content?Input=0185BA 1619_Consultation_Paper_on_the_draft_guidelines_
443221FD82CE4D7AB0A8A281602BE67908836692 on_reverse_solicitation_under_MiCA.pdf.
1E027D2D31B8C7FD09A9731B88AC6A96A77321D 49 See:

B0294048418. https://www.esma.europa.eu/sites/default/files/2024-
47 See: 01/ESMA75-453128700-
https://www.esma.europa.eu/sites/default/files/2024- 52_MiCA_Consultation_Paper_-
05/ESMA24-229244789- _Guidelines_on_the_qualification_of_crypto-
4738_SMSG_Advice_on_MiCA_CPs_on_RS_and_FI assets_as_financial_instruments.pdf.
s.pdf. 50 See: https://www.esma.europa.eu/press-
48 See: news/consultations/call-evidence-review-ucits-
https://www.esma.europa.eu/sites/default/files/2024- eligible-assets-directive.

42
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

including the exposure of UCITS to templates, and procedures to ensure

crypto-assets and crypto-based ETFs. consistency across the European Union.
• «Draft Regulatory Technical Standards The development of the RTS was a
on information for application for collaborative effort with the European
authorisation to offer to the public and to Securities and Markets Authority (ESMA)
seek admission to trading of asset- and the European Central Bank (ECB),
referenced tokens and Draft while the ITS was formulated in close
Implementing Technical Standards on cooperation with European Securities
standard forms, templates and and Markets Authority (ESMA). The
procedures for the information to be interconnected nature of these standards
included in the application, under Article has led to their inclusion in the same
18(6) and (7) of Regulation (EU) Consultation Paper to facilitate a
2023/1114», published in May 2024 by cohesive approach. The draft Regulatory
the European Banking Authority (EBA)51. Technical Standards (RTS) and the
Under the mandates of Article 18, Implementing Technical Standards (ITS)
paragraphs (6) and (7) of MiCAR, the are slated for submission to the
European Banking Authority (EBA) is European Commission for endorsement.
tasked with developing two key technical After endorsement, the RTS will undergo
standards concerning the application further examination by the European
process for authorization of entities Parliament and the Council of the
within the European Union that aim to European Union before publication in the
publicly offer or seek trading admission Official Journal of the European Union.
for asset-referenced tokens (ART). The ITS, after endorsement, will be
These include Regulatory Technical directly published in the Official Journal
Standards (RTS) that specify the of the European Union.
information required in such applications • «Draft Regulatory Technical Standards
and Implementing Technical Standards on the detailed content of information
(ITS) that establish standard forms, necessary to carry out the assessment of

See: https://www.eba.europa.eu/publications-and-
51 technical-standards-under-markets-crypto-assets-
media/press-releases/eba-publishes-final-draft- regulation.

43
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

a proposed acquisition of qualifying nature of the shareholders' control over

holdings in issuers of asset-referenced the target entity. They allow for a
tokens under Article 42(4) of Regulation simplified information submission
(EU) 2023/1114», published in May 2024 process in cases where the acquirer has
by the European Banking Authority previously been vetted by the same
(EBA)52. The European Banking competent authority or is regulated by
Authority (EBA), in close collaboration that authority. This streamlined approach
with the European Securities and aims to facilitate efficient regulatory
Markets Authority (ESMA), is tasked with reviews without compromising
creating draft Regulatory Technical thoroughness. The finalized RTS will be
Standards (RTS) to outline the specific forwarded to the European Commission
information required for notifications by June 30, 2024, for endorsement and
concerning direct or indirect acquisitions will subsequently undergo scrutiny by the
or increases in qualifying holdings of European Parliament and the Council of
issuers of asset-referenced tokens the European Union before publication in
(ARTs). This information is essential for the Official Journal of the European
the prudential assessments that Union.
competent authorities need to conduct • «Draft Regulatory Technical Standards
under MiCAR, specifically following on the approval process for whitepapers
Article 41(4) of the regulation. The for ARTs issued by credit institutions
assessments will evaluate various under Article 17(8) of Regulation (EU)
criteria, including the reputation and 2023/1114 on Markets in Crypto-
financial stability of the acquirer, as well Assets», published in May 2024 by the
as their compliance with prudential European Banking Authority (EBA)53.
requirements. The draft RTS incorporate The European Banking Authority (EBA),
the principle of proportionality, tailoring in collaboration with the European
information requirements based on the Securities and Markets Authority (ESMA)

52See: https://www.eba.europa.eu/publications-and- 53See: https://www.eba.europa.eu/publications-and-

media/press-releases/eba-publishes-final-draft- media/press-releases/eba-publishes-final-draft-
technical-standards-under-markets-crypto-assets- technical-standards-under-markets-crypto-assets-
regulation. regulation.

44
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

and the European Central Bank, is service providers under the Markets in
tasked with developing draft Regulatory Crypto Assets Regulation (MiCA)», final
Technical Standards (RTS) to define the report published in May 2024 by the
approval procedures for crypto-asset European Securities and Markets
whitepapers. These draft RTS are Authority (ESMA)54. This report details
designed to standardize the various the European Securities and Markets
steps and timeframes involved in the Authority (ESMA)'s regulatory
approval process to ensure clear development process under MiCAR.
expectations and transparency for credit Published after a public consultation that
institutions that wish to issue asset- concluded on September 20, 202355, it
referenced tokens (ARTs). The aim is to compiles stakeholder feedback on
facilitate a quick and efficient approval proposed regulatory and implementing
process for crypto-asset whitepapers, technical standards concerning conflict
making the process as proportionate as of interest management by CASPs. The
possible by also harmonizing logistical report includes a cost/ benefit analysis,
aspects of the procedure. These draft the Securities and Markets Stakeholder
RTS are scheduled to be submitted to the Group’s advice, and the draft technical
European Commission for endorsement standards themselves. It is now awaiting
by 30 June 2024, after which they will the European Commission's decision on
undergo scrutiny by the European adoption within the stipulated three-
Parliament and the Council of the month period.
European Union before being published
in the Official Journal of the European 2.3. JUNE
Union. 2.3.1. EUROPE
• «Draft technical Standards specifying 2.3.1.1. EUROPEAN UNION
certain requirements in relation to • «Final Report - Draft Regulatory
conflicts of interest for crypto-asset Technical Standards specifying the

54 See: 55 See:
https://www.esma.europa.eu/sites/default/files/2024- https://www.esma.europa.eu/sites/default/files/2023-
05/ESMA35-1872330276- 07/ESMA74-449133380-
1670_MiCA_Final_report_on_RTS_on_CoIs.pdf. 425_MiCA_Consultation_Paper_1st_package.pdf.

45
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

requirements for policies and procedures • «Final Report - Draft Regulatory

on conflicts of interest for issuers of Technical Standards on the minimum
asset-referenced tokens under Article content of the governance arrangements
32(5) of Regulation (EU) 2023/1114», on the remuneration policy under Article
published in June 2024 by the European 45 of Regulation (EU) 2023/1114»,
Banking Authority (EBA)56. This report published in June 2024 by the European
delves into the requirements set by Banking Authority (EBA)57. This report
MiCAR for asset-referenced token (ART) examines the regulatory obligations
issuers to establish robust policies for under MiCAR, focusing on the
identifying, managing, and disclosing remuneration policies for issuers of
conflicts of interest. It outlines the significant asset-referenced (ARTs) and
European Banking Authority (EBA)’s task e-money tokens (EMTs). It highlights
to develop RTS that detail these policies, Article 45(1)'s requirement for such
alongside methodologies for effective issuers to develop remuneration policies
conflicts of interest disclosure. that encourage prudent risk
Highlighting parallel developments for management without incentivizing the
CASPs by the European Securities and relaxation of risk standards. Additionally,
Markets Authority (ESMA), the report the report discusses the European
emphasizes the need for coherence Banking Authority (EBA)'s role, in
between the two. Special attention is collaboration with the European
given to remuneration and asset Securities and Markets Authority
management practices to prevent (ESMA), to draft RTS detailing the
conflicts of interest, aiming to enhance essential elements of these policies,
transparency and protect stakeholders including governance arrangements and
within the European Union’s financial liquidity management. The scope may
landscape. extend to smaller e-money institutions if
mandated by national authorities,

56See: https://www.eba.europa.eu/publications-and- 57See: https://www.eba.europa.eu/publications-and-

media/press-releases/eba-publishes-governance- media/press-releases/eba-publishes-governance-
regulatory-products-under-markets-crypto-assets- regulatory-products-under-markets-crypto-assets-
regulation. regulation.

46
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

enhancing overall financial stability and consider proportionality and aim to

compliance. maintain operational continuity and
• «Final report on EBA Guidelines on the protect consumers and investors.
minimum content of the governance • This press release, published in June
arrangements for issuers of asset- 2024, details the European Banking
referenced tokens», published in June Authority (EBA)'s release of a
2024 by the European Banking Authority comprehensive package of technical
(EBA)58. This report details the regulatory standards and guidelines under the
guidelines established under MiCAR for MiCAR, marking the completion of its
issuers of asset-referenced tokens obligations under this regulation59. The
(ARTs). It emphasizes the essential role release includes four key components:
of management in instituting robust - Regulatory Technical Standards
governance frameworks, including (RTS) for Asset-Referenced Tokens
effective risk strategies and compliance (ARTs) and Electronic Money
mechanisms. Mandated by the European Tokens (EMTs): These standards
Banking Authority (EBA), in cooperation focus on the methodology issuers
with the European Securities and must use to estimate the number and
Markets Authority (ESMA) and the value of transactions for these
European Central Bank, the guidelines tokens when used as a means of
address the management duties, exchange, specifically for ARTs and
organizational structure, and risk EMTs denominated in non-European
management across three lines of Union currencies. This aims to
defense: operational management, monitor and mitigate any risks to
independent risk compliance, and European Union monetary policy
internal audit. Tailored to the ART and sovereignty60.
business model, these guidelines also

58See: https://www.eba.europa.eu/publications-and- 59 See: https://www.eba.europa.eu/publications-and-

media/press-releases/eba-publishes-governance- media/press-releases/eba-publishes-regulatory-
regulatory-products-under-markets-crypto-assets- products-under-markets-crypto-assets-regulation-0.
regulation. 60 See:

https://www.eba.europa.eu/sites/default/files/2024-
06/4befe99b-36d3-4b92-96b1-

47
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

- Implementing Technical Standards helping to identify and mitigate

(ITS) for Reporting Obligations: liquidity risks under various stress
These standards provide detailed scenarios62.
templates and instructions for - RTS on Supervisory Colleges: This
issuers of ARTs and EMTs, as well component outlines the criteria for
as CASPs, to facilitate compliance determining the relevance of various
with reporting obligations under entities like custodians and trading
MiCAR, enhancing transparency and platforms, and the conditions for
regulatory oversight61. large-scale use of significant ARTs
- Guidelines on Liquidity Stress and EMTs, facilitating coordinated
Testing: These guidelines establish oversight and information sharing
the parameters for liquidity stress among regulators63.
tests that issuers must conduct,

13a0f47e039a/Final%20Report%20on%20RTS%20o 1fb7a976fb2a/ANNEX%20III%20%20Reporting%20f
n%20use%20of%20ARTs%20and%20EMTs%20as% or%20crypto-
20a%20means%20of%20exchange%20under%20MI asset%20service%20providers%20%20templates.xls
CAR.pdf. x; (iv) ANNEX IV Reporting for crypto-asset service
61 See: providers – instructions:
https://www.eba.europa.eu/sites/default/files/2024- https://www.eba.europa.eu/sites/default/files/2024-
06/a7bb4083-f886-4a44-8b03- 06/e1724776-9a8d-450d-946a-
3810155248a7/Final%20Report%20on%20draft%20I 44ec0f64366c/ANNEX%20IV%20%20Reporting%20f
TS%20on%20reporting%20on%20asset- or%20crypto-asset%20service%20providers%20-
referenced%20tokens%20under%20MiCAR.pdf; See %20instructions.pdf; (iv) ANNEX V - DPM and
also the annexes, namely: (i) ANNEX I Reporting for validation rules:
issuers of asset-referenced token templates: https://www.eba.europa.eu/sites/default/files/2024-
https://www.eba.europa.eu/sites/default/files/2024- 06/744b9126-7324-45c1-a25a-
06/d721fe94-cc70-4896-ba9f- 1eb1a1597ab7/ANNEX%20V%20-
df4a4276e3af/ANNEX%20I%20%20Reporting%20for %20DPM%20and%20validation%20rules.pdf.
%20issuers%20of%20asset- 62 See:

referenced%20token%20%20templates.xlsx; (ii) https://www.eba.europa.eu/sites/default/files/2024-

ANNEX II Reporting for issuers of asset-referenced 06/2bd7add3-35b1-40d7-9c45-
token – instructions: 67c8cccbe97a/Final%20report%20on%20Guidelines
https://www.eba.europa.eu/sites/default/files/2024- %20on%20liquidity%20stress%20testing%20under%
06/84aed9a5-634c-413f-9b7c- 20MiCAR.pdf.
6bc2053a672a/ANNEX%20II%20%20Reporting%20f 63 See:

or%20issuers%20of%20asset- https://www.eba.europa.eu/sites/default/files/2024-
referenced%20token%20-%20instructions.pdf; (iii) 06/a4ac65e2-fd2c-45a3-98d3-
ANNEX III Reporting for crypto-asset service 1f9aa5ac608b/Final%20Report%20on%20RTS%20o
providers templates: n%20colleges%20under%20MiCAR.pdf.
https://www.eba.europa.eu/sites/default/files/2024-
06/0793ca04-6f8b-43fe-8f44-

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

• «Final report - on joint EBA and ESMA 3. LEGISLATIONS, REGULATIONS,

Guidelines on the suitability assessment OTHER LEGISLATIVE
of members of management body of
INSTRUMENTS
issuers of asset-referenced tokens and
3.1. MAY
of crypto-asset service providers, and on
3.1.1. EUROPE
Joint EBA and ESMA Guidelines on the
3.1.1.1. EUROPEAN UNION
suitability assessment of shareholders
• A corrigendum to the MiCAR was
and members, whether direct or indirect,
published by the Official Journal of the
with qualifying holdings in issuers of
European Union65. In this update, an
asset-referenced tokens and in crypto-
entirely new sentence has been
asset service providers», published in
appended to Article 92(2): «Power is
June 2024 by the European Securities
delegated to the Commission to
and Markets Authority (ESMA) & the
supplement this Regulation by adopting
European Banking Authority (EBA)64.
the regulatory technical standards
This report focuses on the suitability of
referred to in the first subparagraph of
management body members and
this paragraph in accordance with
assessment of shareholders in ART
Articles 10 to 14 of Regulation (EU) No
issuers and CASPs. Aimed at enhancing
1095/2010». Additional amendments
market transparency and security, these
include changes to references in Article
guidelines establish criteria for assessing
45(4), which now cites Article 36(4)
governance arrangements, including
instead of Article 36(6). In Article 81(15),
knowledge, skills, and integrity of
point (a), «knowledge and competence in
management. They also outline methods
accordance with paragraph 7» replaces
for evaluating shareholders' influence on
the outdated «client’s knowledge and
entities, crucial for regulatory
competence in accordance with
gatekeeping.
paragraph 2». Lastly, the third

64See: https://www.eba.europa.eu/publications-and- 65See: https://eur-lex.europa.eu/legal-

media/press-releases/eba-and-esma-publish- content/EN/TXT/HTML/?uri=OJ%3AL_202490275.
guidelines-suitability-management-body-members-
and-shareholders-entities-under.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

subparagraph of Article 111(1) extends • «Modernizing Financial Markets with

the deadline for Member States' Wholesale Central Bank Digital Currency
notifications to 30 June 2025, from the (wCBDC)», report published in April
previous deadline of 30 June 2024. 2024 by the World Economic Forum in
collaboration with Accenture66. This
report provides current insights for
leaders in the public and private sectors
who are assessing the potential role of
wholesale Central Bank Digital
Currencies (wCBDC) within their
jurisdictions. It strongly supports the idea
of collaboration among central banks,
commercial banks, and financial market
infrastructures to leverage wCBDC for
enhancing interbank payment systems
and securities transaction processes.
G. DIGITAL MONEY, DEPOSIT Highlighting the importance of secure
TOKENS, & CENTRAL BANK and efficient settlement infrastructures,
the report advocates for extensive public-
DIGITAL CURRENCIES
private cooperation to effectively manage
(CBDCS) the changing landscape of digital
1. RESEARCH CONDUCTED BY finance.
INDIVIDUALS, COMPANIES,

ASSOCIATIONS AND 1.1.2. EUROPE

1.1.2.1. EUROPEAN UNION
UNIVERSITIES
• «CBDC and banks: Disintermediating
1.1. APRIL
fast and slow», discussion paper
1.1.1. INTERNATIONAL

66 See:
https://www.weforum.org/publications/modernizing-
financial-markets-with-wcbdc/.

50
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

authored by Rhys Bidder, Timothy published in June 2024 by the

Jackson & Matthias Rottner, and Technology & Innovation Lab (ITSI) &
published in April 2024 by the Deutsche The World Bank Group68. This report
Bundesbank67. This paper analyzes the examines CBDC interoperability with fast
impact of CBDC on banks and the payment systems (FPS). Two scenarios
broader economy, offering both empirical were tested: settling FPS obligations in
and theoretical contributions. Empirically, wholesale CBDC and interoperability
it presents new evidence from a survey between FPS and retail CBDC users,
of German households on their utilizing DLT for seamless fund transfers
anticipated use of a prospective digital and messaging.
euro. Theoretically, it develops a • «Leonidas - Project Report
quantitative macroeconomic model that Experimenting benefits of a digital form
includes CBDC and potential bank runs. of Central bank money based on DLT in
This model, which is informed by the interbank transactions», published in
survey data and data from the euro area, June 2024 by ABI Lab69. This report
examines the implications of CBDC on presents an overview of Project
welfare, the banking sector, and policy LEONIDAS, a collaboration involving ABI
design. Lab, R3, NTT DATA, and 17 banks,
which was showcased at the 2022
1.2. JUNE Milano Hub Call for Proposals. The
1.2.1. INTERNATIONAL project explored the use of wholesale
• «Interoperability Between Central Bank Central Bank Digital Currency (wCBDC)
Digital Currency Systems and Fast within a DLT environment.
Payment Systems: A Technical
Perspective», interesting report

67 See: reports/documentdetail/099607406262426195/idu187
https://www.bundesbank.de/resource/blob/931090/be 26d4e913edd14b8a1adcf1671ab7d8ebac.
2be8b2c5324245e4147d6306689312/mL/2024-04- 69 See:

29-dkp-15-data.pdf. https://www.abilab.it/documents/20124/1610406/ABI+
68 See: Lab+-+Leonidas+Project+Report.pdf/cb8542fb-1270-
https://documents.worldbank.org/en/publication/docu 6371-c619-0c65f7f59a1c?t=1717517686718.
ments-

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

2. REPORTS, GUIDELINES, its issuance, addressing inefficiencies in

RECOMMENDATIONS AND current payment systems through

CBDCs, understanding the potential
OTHER DOCUMENTS PUBLISHED
impacts on financial stability and central
BY REGULATORY AND
bank operational risks, and exploring
SUPERVISORY AUTHORITIES, how the design of a CBDC can both fulfill
INTERNATIONAL policy objectives and reduce associated
ORGANIZATIONS, AND OTHER risks.

PUBLIC INSTITUTIONS AND

2.1.1.1. THAILAND
AGENCIES
• «Retail CBDC Pilot Program –
2.1. APRIL
Conclusion Report», published in April
2.1.1. ASIA
2024 by the Bank of Thailand71. The
• «Central Bank Digital Currencies in the
report summarizes the Retail CBDC Pilot
Middle East and Central Asia», paper
Program in Thailland, detailing its use
published in April 2024 by the
cases and key findings. The pilot
International Monetary Fund70. This
occurred from late 2022 to October 2023
paper serves as a resource for Middle
within a pre-defined environment,
East & Central Asia policymakers to
involving selected financial service
scrutinize vital considerations in the
providers (FSPs), users, and merchants.
potential adoption of a CBDCs. It does
The pilot's design and scope were guided
not offer direct recommendations for
by four primary objectives: assessing the
issuing of a CBDC, but rather, it sets the
technological readiness and basic
stage for a critical discussion on several
functions of Retail CBDC, evaluating its
essential topics. These include defining
potential for driving financial innovation
what a CBDC is, identifying the goals
by exploring use cases beyond current
policymakers intend to achieve through

70 See: 71See: https://www.bot.or.th/en/financial-

https://www.imf.org/en/Publications/Departmental- innovation/digital-finance/central-bank-digital-
Papers-Policy-Papers/Issues/2024/04/26/Central- currency/_/Pilot-CBDC-2024.html.
Bank-Digital-Currencies-in-the-Middle-East-and-
Central-Asia-543566.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

payment infrastructure capabilities, digital cash design approach, supporting

examining the CBDC infrastructure's the «Digital cash in New Zealand»
ability to securely facilitate open access Consultation Paper mentioned in the
for both bank and non-bank entities, and previous point. According to the
determining if Retail CBDC can function consultation note, a top-down design
as an alternative payment infrastructure approach has been adopted, with no
in the retail sector for individuals and hands-on technical development or
businesses. experimentation conducted at this stage.
Instead, preparatory work has been
2.1.2. AUSTRALIA (& OCEANIA) completed to lay the foundation for
2.1.2.1. NEW ZEALAND progressing the design of digital cash
• «Digital cash in New Zealand», that aligns with the specified objectives,
consultation paper published in April outcomes, and policy principles. The
2024 by the Reserve Bank of New approach involved identifying all
Zealand72. This consultation paper components of a digital cash ecosystem
outlines the Reserve Bank's exploration and understanding how they interrelate,
of digital cash, addressing its features, as well as the design choices and trade-
benefits, and potential impact on the off decisions necessary to establish an
payments landscape and economy. It optimal digital cash ecosystem model.
highlights the need for feedback on • «Central Bank Digital Currency», insights
strategic design and issuing dossier published in April 2024 by the
considerations. Reserve Bank of New Zealand in
• «Designing a digital cash ecosystem», collaboration with Accenture74. This
consultation note published in April 2024 insights dossier aims to mark a further
by the Reserve Bank of New Zealand73. advancement in the multi-stage
This consultation note expands on the approach to policy development in New

72 See: https://consultations.rbnz.govt.nz/money-and- zealand/user_uploads/ecosystem-design-note_final-

cash/digital-cash-in-new-zealand/. 1.pdf.
73 See: https://consultations.rbnz.govt.nz/money-and- 74 See: https://consultations.rbnz.govt.nz/money-and-

cash/digital-cash-in-new- cash/digital-cash-in-new-zealand/user_uploads/cbdc-
insights-dossier-for-public-1.pdf.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

Zealand. It includes the exploration of • «Digital money: market perspectives

strategic choices a CBDC might offer and from across the digital assets
the design options that need to be ecosystem», report published in May
understood. This dossier does not 2024 by KPMG76. This report explores
represent any decisions made by the market perspectives on the future of
Reserve Bank of New Zealand on the monetary systems, focusing on digital
case for a CBDC, but it aims to inform money's transformative potential. It
discussions and future efforts to discusses widespread trials, strategic
establish one. positioning within regulatory landscapes,
and the anticipated impacts of DLT on
2.2. MAY financial markets. Detailed analysis
2.2.1. INTERNATIONAL provides insights into expected market
• «Cross-Border Payments with Retail shifts and opportunities.
Central Bank Digital Currencies - Design
and Policy Considerations», note
authored by André Reslow, Gabriel
Söderberg, & Natsuki Tsuda, and
published in May 2024 by the
International Monetary Fund75. This note
extracts insights from current
experimentation and research to pinpoint
design and policy factors for developing
retail CBDC systems that are compatible
with cross-border payments. It centers
on retail CBDC while deferring
considerations of wholesale CBDC to
future discussions.

75See: https://www.imf.org/en/Publications/fintech- 76 See:

notes/Issues/2024/05/15/Cross-Border-Payments- https://kpmg.com/uk/en/blogs/home/posts/2024/05/di
with-Retail-Central-Bank-Digital-Currencies-547195. gital-money-market-perspectives-from-across-the-
digital-assets-ecosystem.html.

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Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

55
Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

II. METAVERSE
56
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

regulatory framework that ensures legal

certainty and protection for all
participants. It highlights the metaverse's
potential to significantly impact the
economy and society by 2030.

1.1.2. EUROPE
1.1.2.1. EUROPEAN UNION
• «Unleashing European Innovations for
the Metaverse», report published in April
2024 by the London School of
A. METAVERSE
Economics and Political Science (LSE)78.
1. RESEARCH CONDUCTED BY
This report initiates with an examination
INDIVIDUALS, COMPANIES, of metaverse deployment, drawing on
ASSOCIATIONS AND existing literature and interviews with

UNIVERSITIES early adopters. It considers macro and

firm-level impacts across various
1.1. APRIL
industrial sectors. The report then
1.1.1. INTERNATIONAL
surveys Europe’s strengths and identifies
• «Creating certainty for the metaverse -
potential barriers to deployment, as
Position Paper of the Swiss Metaverse
discussed among European Union firms
Association on Legal, Tax & Regulation
and research technology organizations
in the Metaverse», report published in
(RTOs). Based on the gaps identified,
April 2024 by the Swiss Metaverse
the authors conclude with actionable
Association77. This report explores the
policy recommendations on how Europe
integration of the metaverse into
can develop innovation leadership.
business, government, and social
sectors, emphasizing the need for a

77See: https://metassociation.ch/wp- 78 See:

content/uploads/2024/04/Creating-Certainty-for-the- https://www.lse.ac.uk/business/consulting/reports/unl
Metaverse_EN.pdf. eashing-european-innovations-for-the-metaverse.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

1.2. JUNE
1.2.1. INTERNATIONAL
• «The Metaverse - Opportunities and
Challenges for the Financial Services
Industry», report published in June 2024
by the Hong Kong Institute for Monetary
and Financial Research (HKIMR) in
collaboration with the Hong Kong
Academy of Finance (AoF)79. This report
provides a fresh perspective on how the
metaverse could shape the future of the
B. VIRTUAL WORLDS
financial services’ industry. It begins by
1. REPORTS, GUIDELINES,
exploring the fundamental elements and
technological foundations of the RECOMMENDATIONS AND

metaverse. Key components driving the OTHER DOCUMENTS PUBLISHED

metaverse, including network and BY REGULATORY AND

computing infrastructure, sensing SUPERVISORY AUTHORITIES,
technologies, and artificial intelligence,
INTERNATIONAL
are discussed in relation to their
ORGANIZATIONS, AND OTHER
integration into the financial services
industry. The report pays special PUBLIC INSTITUTIONS AND

attention to compliance, supervision, and AGENCIES

the protection of the overall financial 1.1. APRIL
system. 1.1.1. EUROPE
1.1.1.1. EUROPEAN UNION
• «Protecting children in virtual worlds (the
metaverse)», briefing published in April

See: https://www.aof.org.hk/news-and-
79

media/news/20240625/.

58
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

2024 by the European Parliament80. This individual ownership rights, freedom of

briefing examines the dual aspects of expression, and the capability for users
virtual worlds, highlighting their potential to move freely and interact across
to enhance children's creativity and various virtual platforms. The historical
learning motivation, and even assist in progression of virtual worlds, including
healing from diseases. It also addresses proto-virtual worlds, is explored,
the significant challenges these beginning with text-based environments
environments pose, particularly of the 1970s, such as multi-user
concerning privacy and exposure to dungeons (MUDs), and extending to
harmful or illegal content. The document contemporary virtual worlds. The
discusses the measures already taken development of open virtual worlds is
by the European Union and the private identified as a result of technological
sector to protect children in virtual advancements, particularly in virtual
worlds. However, it emphasizes that reality and augmented reality, which
substantial efforts are still required to have enhanced the immersive
prevent exploitation and harm to children experience within these worlds. The
in these settings. report delves into the political, economic,
• «Blockchain-Enabled Virtual Worlds», social, technological, legal, and
report published in April 2024 by EU environmental aspects to assess the
Blockchain Observatory and Forum81. viability of open virtual worlds from these
The report examines open virtual worlds, diverse perspectives, highlighting the
emphasizing the significance of open significant challenges that need to be
standards and interoperability in the addressed. A comprehensive overview
context of virtual environments. This of the legal considerations is also
concept envisions a decentralized provided. Issues such as interoperability,
network that operates independently of privacy, data security, the influence of big
any single controlling entity. It promotes tech companies, and the digital divide

80 See: 81See: https://blockchain-

https://www.europarl.europa.eu/thinktank/pt/documen observatory.ec.europa.eu/publications/blockchain-
t/EPRS_ATA(2024)762294. enabled-virtual-worlds_en.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

are discussed as substantial obstacles gaming publishers, including location,

that need to be surmounted to realize the social media, and behavioral
full potential of virtual worlds. interactions. It raises concerns about the
potential harm to gamers when their data
1.1.2. NORTH AMERICA is commercially exchanged, especially
1.1.2.1. USA for non-gaming purposes.
• «Banking in video games and virtual
worlds», report published in April 2024 by 1.2. MAY
Consumer Financial Protection 1.2.1. EUROPE
Bureau82. This report examines the 1.2.1.1. EUROPEAN UNION
dynamics of asset flow within gaming • «Trend Report of Virtual Worlds
marketplaces and their significant value. (Metaverse) - Virtual Worlds & the EC
It highlights how financial products and Communication on Virtual Worlds and
services, including payment processing, Web 4.0 (July 2023)», report published in
money transmission, and loans, are May 2024 by the EU Blockchain
increasingly being integrated into Observatory and Forum83. This report
gaming. The report also notes a rise in delves into the burgeoning concept of
the value of gaming assets accompanied Virtual Worlds, or Metaverses,
by heightened incidents of users losing highlighting their role as immersive, with
access due to hacking, account theft, multidimensional spaces for various
scams, and unauthorized transactions. It activities. It outlines the evolution of the
points out that unlike traditional banking internet from Web1 to the anticipated
and payment systems, operators of Web4, characterized by interconnected,
gaming and virtualworlds often lack AI-driven, immersive networks. Key
adequate customer protections. technologies include XR, AI, blockchain,
Furthermore, the report discusses the and IoT. The report emphasizes the
extensive surveillance data collected by European Union's strategic approach,

82See: https://www.consumerfinance.gov/data- 83 See: https://blockchain-

research/research-reports/issue-spotlight-video- observatory.ec.europa.eu/publications/trend-report-
games/. virtual-worlds-metaverse_en?prefLang=pt.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

focusing on empowering talent, fostering

industrial ecosystems, enhancing public
services, and shaping global standards.

61
Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

62
Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

III. ARTIFICIAL INTELLIGENCE

63
 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

McKinsey & Company84. This article

discusses the increasingly blurred lines
between digital and physical systems
and their implications for public sector
procurement. It also expands the
perspective to include private sector
companies and highlights the surge of
digital innovation in product
development, prompting organizations to
consider whether they will harness this
tsunami wave or be overwhelmed by it.
A. ARTIFICIAL INTELLIGENCE
• «Chapter 3: Responsible AI - Artificial
(AI), MACHINE LEARNING Intelligence Index Report 2024»,
(ML), DEEP LEARNING (DP), published in April 2024 by Stanford
University85. This chapter investigates
ROBOTICS, AUTONOMOUS
prominent trends in responsible AI
SYSTEMS & INTELLIGENT through the analysis of metrics, research,
AUTOMATION and benchmarks across four principal
areas of responsible AI: privacy and data
1. RESEARCH CONDUCTED BY
governance, transparency and
INDIVIDUALS, COMPANIES,
explainability, security and safety, and
ASSOCIATIONS AND
fairness. This chapter also includes a
UNIVERSITIES dedicated section on AI's role in elections
1.1. APRIL and broadly examines the possible
1.1.1. INTERNATIONAL effects of AI on political processes.
• «The AI revolution will be ‘virtualized’», • «Chapter 7: Policy and Governance -
article published in April 2024 by Artificial Intelligence Index Report 2024»,

84 See: 85 See: https://aiindex.stanford.edu/report/.

https://www.mckinsey.com/capabilities/operations/our
-insights/the-ai-revolution-will-be-virtualized.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

published in April 2024 by Stanford development of Artificial General

University86. This chapter initiates an Intelligence (AGI).
examination of global AI governance by • «Successful and timely uptake of artifcial
presenting a timeline of significant AI intelligence in science in the EU», report
policymaking events in 2023. It proceeds published in April 2024 by the SAPEA -
to analyze both global and US AI Science Advice for Policy by European
legislative efforts, studies mentions of AI Academies (Scientific Advice
legislation, and explores the perceptions Mechanism)88. This evidence review
and discussions of AI by lawmakers report contributes to the ongoing debate
worldwide. The chapter then profiles on how AI can be harnessed for scientific
national AI strategies and regulatory advancement, while addressing potential
efforts in the US and the European challenges and risks associated with its
Union. It concludes with an analysis of adoption. It examines the issue of
public investment in AI within the US. responsible and timely AI uptake in
• «The Digital World towards 2040: the rise science across Europe. Specifically, the
of AI & Intelligent Autonomy», report report analyzes the current landscape,
published in April 2024 by the European examines existing challenges and
Internet Forum. This report offers a view opportunities associated with AI adoption
of the future87. It is structured into three in science, analyzes the impact of AI on
main sections: technology, society, and researchers’ work environments and
economy. Two additional sections skills, and proposes policy options to
provide insights into the impact on address the challenges identified.
Europe and the challenges facing • «The Model Artificial Intelligence Law»,
policymakers. The report identifies published in April 2024 on Zenodo89. This
GenAI as one of the foundational draft proposal focuses on establishing
technologies leading towards the key principles for AI governance and
regulation. It proposes frameworks that

86 See: https://aiindex.stanford.edu/report/. 88 See: https://zenodo.org/records/10849580.

87 See: 89 See: https://zenodo.org/records/10974163.
https://www.internetforum.eu/topics/publications.html.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

promote innovation, along with a streamline administrative tasks, and be

licensing and registry system based on a integrated into curricula.
negative list approach. The document • «What is AI (artificial intelligence)?»,
outlines specific responsibilities for AI article published in April 2024 by
developers and providers, detailing their McKinsey & Company91. This article
liabilities and the mechanisms for explores AI concepts and defines it as a
enforcement. Additionally, it explores the machine's capability to execute cognitive
creation of regulatory bodies functions typically linked to human
characterized by technical flexibility, and minds.
addresses the roles of open-source and • «Digitizing Risk and Compliance: How AI
intellectual property frameworks. The Can Help Manage a Growing
proposal also aims to enrich the global Challenge», whitepaper published in
conversation on AI governance by April 2024 by the Harvard Business
clarifying terminologies and highlighting Review in collaboration with PwC92. This
institutional differences. It offers a paper explores the primary trends
roadmap and considerations for AI shaping current GRC (Governance, Risk
compliance to a broad array of Management, and Compliance)
stakeholders. strategies, highlights deficiencies in
• «Shaping the Future of Learning: The existing risk management frameworks,
Role of AI in Education 4.0», report and discusses the application of machine
published in April 2024 by the World learning, AI, and other emerging
Economic Forum90. This report technologies to enhance fundamental
investigates the potential benefits of AI GRC tasks. It further details how
for educators, students, and teachers. It executives responsible for risk and
includes case studies that illustrate how compliance can offer strategic guidance,
AI can personalize learning experiences, establish essential controls, and guide

90 See: 92 See: https://hbr.org/sponsored/2024/04/digitizing-

https://www.weforum.org/publications/shaping-the- risk-and-compliance-how-ai-can-help-manage-a-
future-of-learning-the-role-of-ai-in-education-4-0/. growing-challenge.
91 See: https://www.mckinsey.com/featured-

insights/mckinsey-explainers/what-is-ai.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

their organizations in the ethical implementation, highlighting AI's

deployment of AI. potential to significantly enhance the
• «Humanoid robots on the rise from social economy.
science fiction to reality: How to
participate in the potential revolution», 1.1.2. EUROPE
report published in April 2024 by Roland 1.1.2.1. UNITED KINGDOM
Berger93. This report explores the market • «AI Update», report published in April
for humanoid robots, highlighting their 2024 by the Financial Conduct
human-like appearance and abilities, and Authority95. This report provides an
recent advancements making them overview of the organization's role and
viable for various industries. It analyzes objectives within the field of AI. It reviews
market drivers, potential future the work completed so far and the
scenarios, challenges, competitive methodologies that have been
developments, and strategies for employed, detailing the achievements
stakeholders interested in this emerging and strategic approaches taken.
market. Additionally, the report outlines the
• «AI for Impact: The Role of Artificial organization's plans for the upcoming 12
Intelligence in Social Innovation», months, highlighting the steps they
whitepaper published in April 2024 by the intend to take to continue progress and
World Economic Forum94. This meet their goals in AI development and
whitepaper explores the ethical adoption implementation.
of AI by social innovators. It examines
300 examples of AI deployment in social 1.2. MAY
enterprises, mapping the current 1.2.1. INTERNATIONAL
landscape and providing a foundation for • «AI for social good: Improving lives and
future thought leadership and practical protecting the planet», report published

93 See: 94 See: https://www.weforum.org/publications/ai-for-

https://www.rolandberger.com/en/Insights/Publication impact-artificial-intelligence-in-social-innovation/.
s/Humanoid-robots-From-science-fiction-to- 95 See: https://www.fca.org.uk/publications/corporate-

reality.html. documents/artificial-intelligence-ai-update-further-
governments-response-ai-white-paper.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

in May 2024 by McKinsey & Company96. Anderson & Daniel Mendez Delgado,
This report explores AI's broad potential and published in May 2024 by the
across various sectors and its capability Institute of International Finance98. This
to drive positive social change. paper examines the complex interplay
• «Moving past gen AI’s honeymoon between AI, data, and cloud technologies
phase: Seven hard truths for CIOs to get within the financial services sector. It
from pilot to scale», article published in discusses the intertwined nature of these
May 2024 by McKinsey & Company97. components and their collective impact
This article discusses the transition on enhancing value across the
challenges organizations face with ecosystem. According to the paper, the
GenAI technologies. Initially, building rise of GenAI is not only accelerating the
impressive GenAI pilots seems adoption of AI tools but also introducing
straightforward, yet scaling these significant governance and oversight
innovations proves much more complex. challenges. It highlights the financial
The article highlights that only 11 percent industry's extensive experience in
of companies have successfully adopted managing third-party risks related to
GenAI at scale. This significant disparity complex AI services, which provides key
is underscored by recent tech trends insights into potential integration
research, illustrating the hurdles in strategies for GenAI. The paper also
evolving from pilot projects to full-scale explores the crucial roles of underlying AI
implementation. infrastructure and cloud services,
• «AI, Data, and the Cloud – Connectivity, emphasizing their importance in
Innovation, and Generating Value in business and policy deliberations.
Financial Services», paper authored by Additionally, it underscores the financial
Jessica Renier, Conan French, Hannah sector's position as a custodian of
sensitive data and a user of cloud

96 See: phase-seven-hard-truths-for-cios-to-get-from-pilot-to-
https://www.mckinsey.com/capabilities/quantumblack scale.
/our-insights/ai-for-social-good. 98 See: https://www.iif.com/Publications/ID/5777/AI-
97 See: Data-and-the-Cloud-Connectivity-and-Value-
https://www.mckinsey.com/capabilities/mckinsey- Creation-in-Finance.
digital/our-insights/moving-past-gen-ais-honeymoon-

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

technology, making it a pivotal player in revealing their true identities or

shaping transparency and trust-building intentions. OpenAI's commitment to
policies in this rapidly evolving combating these threats is highlighted,
landscape. emphasizing the need for collaboration
• «Responsible AI Transparency Report», across disciplines and organizations.
published in May 2024 by Microsoft99. The report surveys various campaigns,
This report provides an overview of how some well-known and others newly
the organization builds and deploys discovered, and finds that while AI was
GenAI applications, supports customer used to generate content and boost
development, and promotes responsible productivity, it did not significantly
AI practices. It details the company's enhance audience engagement or reach
approach to managing AI risks, offers for these deceptive operations.
case studies on policy implementation, • «Science in the age of AI - How artificial
and describes efforts to empower intelligence is changing the nature and
customers and advance AI research. method of scientific research», report
Highlighting the ongoing commitment to published in May 2024 by The Royal
responsible AI, the report invites Society101. This report examines the
collaboration to enhance global AI integration of AI technologies in scientific
practices and benefits. research, based on the experiences of
• «AI and Covert Influence Operations: over 100 scientists. It details how AI,
Latest Trends», report published in May including deep learning and large
2024 by OpenAI100. This report examines language models, is transforming
the misuse of AI models in covert scientific methods and notions of
influence operations aimed at research integrity, skills, and ethics. The
manipulating public opinion and political report advocates for a balanced
outcomes. It details how threat actors approach that acknowledges AI's
exploit AI to deceive audiences, without potential while addressing its challenges.

99 See: https://blogs.microsoft.com/on-the- 100 See: https://openai.com/index/disrupting-

issues/2024/05/01/responsible-ai-transparency- deceptive-uses-of-AI-by-covert-influence-operations/.
report-2024/. 101 See: https://royalsociety.org/news-

resources/projects/science-in-the-age-of-ai/.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

Recommendations focus on leveraging exposed to AI. These AI-exposed roles,

open science principles, enabling reliable where AI can be effectively applied to
AI-driven contributions, fostering certain tasks, include financial analysts,
resource sharing and collaboration, and customer service agents, and software
promoting ethical AI. It underscores the developers.
importance of equitable access to AI • «The AI-Driven OMS - Exploring
benefits and maintaining public trust in intelligent automation (Part 1)»,
scientific research. whitepaper published in May 2024 by
• «A Roadmap for AI Governance: Quod Financial104. This whitepaper
Lessons from G20 National Strategies», examines how AI is poised to
published in May 2024 by Observer revolutionize Order Management
Research Foundation102. This report Systems (OMS). It highlights the
examines the transformative impact of AI transformation from static, spreadsheet-
on society and geopolitics, highlighting like systems to dynamic, efficient, and
the role of the G20 in addressing the AI innovative solutions.
divide and promoting ethical governance.
It discusses the strategic approaches of 1.2.2. EUROPE
both Global North and South nations in 1.2.2.1. EUROPEAN UNION
leveraging AI for equitable and • «EU AI Act: Navigating a Brave New
responsible outcomes. World The Act establishes the world’s
• «PwC’s 2024 AI Jobs Barometer - How first comprehensive regulatory
will AI affect jobs, skills, wages, and framework for AI, and is expected to
productivity?», report published in May shape the future of AI regulation and
2024 by PwC103. This report explores the governance both within and beyond the
transformation of jobs within industry EU», report published in May 2024 by
sectors and specific occupations that are Latham & Watkins105. This report

102 See: https://www.orfonline.org/research/a- 104 See: https://www.quodfinancial.com/ai-driven-

roadmap-for-ai-governance-lessons-from-g20- oms/.
national-strategies. 105 See:
103 See: https://www.pwc.com/gx/en/issues/artificial- https://www.lw.com/admin/upload/SiteAttachments/E
intelligence/ai-jobs-barometer.html. U-AI-Act-Navigating-a-Brave-New-World.pdf.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

analyzes the European Union's AI Act. It by AI & Partners107. This report evaluates
examines the Act's structure, the GDPR's effectiveness, focusing on
implications, and potential global data transfer rules to third countries and
influence, comparing it with previous the cooperation among European Union
legislative efforts like the GDPR. data protection authorities. It draws
• «EU AI Act Compliance Matrix», parallels between GDPR and the
published in May 2024 by the IAPP - upcoming AI Act, highlighting lessons for
International Association of Privacy implementing the latter based on a risk-
Professionals106. This document aims to based approach to regulation.
assist organizations in complying with • «Risks and controls for artificial
the European Union AI Act by offering a intelligence and machine learning
high-level summary of its essential systems», report published in May 2024
requirements. The tables presented by Cybernetica (co-funded by the
below categorize the articles of the AI Act European Union & the European
according to their applicability to various Cybersecurity Competence Centre -
operators across three main categories: ECCC)108. The report is designed for a
high-risk AI systems, AI systems, and wide audience, including small and
GPAI models. Specific requirements are medium-sized organizations as well as
designated for certain operators, private individuals who may lack legal,
including providers, deployers, product information security, or AI expertise on
manufacturers, authorized their teams. These users can benefit
representatives, importers, and from the quick-reference guide included
distributors, while other requirements at the end of the report for assessing
may pertain to multiple or all operators risks associated with AI systems and
involved. selecting appropriate measures. The aim
• «EU AI Act Implementation: What can we is to ensure that everyone uses AI
expect?», report published in May 2024

106 See: https://iapp.org/resources/article/eu-ai-act- 108See:

compliance-matrix/. https://www.ria.ee/sites/default/files/documents/2024-
107 See: https://www.ai-and-partners.com/media. 05/Risks-and-controls-for-artificial-intelligence-and-
machine-learning-systems.pdf.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

lawfully, safely, and without causing • «AI in Finance - Bot, Bank & Beyond»,
harm to society and the environment. report published in June 2024 by Citi110.
This report examines how AI, as a
1.2.3. SOUTH AMERICA general-purpose technology, is set to
1.2.3.1. BRAZIL transform the financial sector by the
• «Inteligência Artificial (IA): Inquietações 2030s. It explores AI's impact on jobs,
Sociais, Propostas Éticas e Orientações firm structures, and finance mechanisms,
Políticas» («Artificial Intelligence (AI): focusing on emerging trends and future
Social Concerns, Ethical Proposals, and scenarios, including the rise of bot-to-bot
Policy Guidelines»), whitepaper transactions.
published in May 2024 by the Conselho • «Global index (on) Responsible AI»,
Nacional de Ética para as Ciências da published in June 2024 by Global Index
Vida109. This whitepaper proposes a five- On Responsible AI in partnership with
pronged approach to structuring AI Government of Canada, IDRC Alumni |
interventions in the healthcare sector. Les Anciens du CRDI, AI4Diversity,
The five areas are biomedical research, USAID & the Global Center on AI
clinical care, hospital management, Governance111. This report outlines the
public health administration, and health Global Index on responsible AI, detailing
education. The paper highlights the most key findings, methodologies, and country
prominent mode of AI intervention in rankings across 138 nations. It offers
each area, while acknowledging that any insights into responsible AI practices
AI application in healthcare operates globally, trends, and future outlooks,
across all five areas. supplemented by online access to
comprehensive data and methodology at
1.3. JUNE global-index.ai.
1.3.1. INTERNATIONAL • «Artificial Intelligence – Intelligent Art?
Human-Machine Interaction and

109See: 110 See:

https://www.cnecv.pt/pt/publicacoes/monografias/livro https://www.citigroup.com/global/insights/citigps/ai-in-
-branco-inteligencia-artificial-ai-inquietacoes-sociais- finance-bank-to-the-future.
pro. 111 See: https://global-index.ai/.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

Creative Practice», e-book authored by playbook for balancing immediate and

Eckart Voigts, Robin Markus Auer, long-term AI strategies.
Dietmar Elflein, Sebastian Kunas, Jan • «AI Governance in Practice Report
Röhnert, Christophe Seelinger, and 2024», published in June 2024 by IAPP -
published in June 2024 by transcript International Association of Privacy
Verlag112. This e-book explores the Professionals in collaboration with FTI
integration of algorithmic data processing Consulting114. This report explores the
in art, literature, and music, highlighting profound impacts of AI's rapid
its impact on creativity and artistic development on society, detailing the
practice. Featuring interdisciplinary dual nature of its risks and benefits. It
contributions from cultural studies, emphasizes the necessity for robust AI
musicology, media studies, and more, it governance, integrating principles, laws,
offers a comprehensive analysis of the and best practices to ensure safe and
creative transformations driven by AI. responsible utilization of AI technologies.
• «Responsable AI Playbook for • «The Anatomy of AI Rules - A systematic
Investors», whitepaper published in June comparison of AI rules across the
2024 by World Economic Forum113. This globe.», published in June 2024 by
whitepaper examines the pivotal role of Digital Policy Alert115. This report offers a
investors in promoting responsible AI comprehensive comparative analysis of
(RAI). It suggests collaboration with AI regulations globally, highlighting
corporate boards and partners to divergences in prioritization,
establish ethical AI (EAI) standards, implementation, and requirements of the
highlighting RAI's benefits in risk OECD AI Principles. It provides detailed
mitigation, regulatory compliance, and interoperability analysis and clarity on
brand enhancement. It also provides a current rules, aiding governments in

112 See: https://www.transcript-publishing.com/978-3- 114 See: https://iapp.org/resources/article/ai-

8376-6922-0/artificial-intelligence-intelligent- governance-in-practice-report/.
art/?number=978-3-8394-6922-4. 115 See: https://digitalpolicyalert.org/ai-rules/the-
113 See: anatomy-of-AI-rules.
https://www.weforum.org/publications/responsible-ai-
playbook-for-investors/.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

developing effective AI regulations and the importance of quality data, along

through shared learning and with a glossary and additional resources.
transparency. • «Framework Convention on Global AI
• «‘Moving Horizons’: A Responsive and Challenges - Accelerating international
Risk-Based Regulatory Framework for cooperation to ensure beneficial, safe
A.I.», report published in June 2024 by and inclusive AI», authored by Duncan
Observer Research Foundation116. This Cass-Beggs, Stephen Clare, Dawn Idiodi
checklist calls for dynamic AI governance Dimowo, & Zaheed Kara, and published
that anticipates, recognizes, assesses, in June 2024 by the Centre for
and manages evolving risks. It International Governance Innovation
emphasizes harmonizing national (CIGI)118. This report addresses global AI
competencies and fostering global challenges by proposing the
standards for responsible AI deployment, development of an international
addressing AI's complex socio-economic Framework Convention on Global AI
and legal implications beyond simple Challenges with supporting protocols.
optimization and risk mitigation. Drawing on extensive research, policy
• «CIOB Artificial Intelligence (AI) efforts, and broad feedback, it offers
Playbook 2024», published in June 2024 preliminary recommendations to foster
by The Chartered Institute of Building dialogue, reflection, and actionable
(CIOB)117. This report explores the steps.
practical implementation of AI in • «Code & Conduct - How to create third-
construction. It also includes insights party auditing regimes for AI systems»,
from industry experts on AI discussion paper published in June 2024
fundamentals, machine learning by Ada Lovelace Institute119. This report
opportunities, legal aspects, digital twins, advocates for rigorous pre- and post-

116 See: https://www.orfonline.org/research/moving- 118 See:

horizons-a-responsive-and-risk-based-regulatory- https://www.cigionline.org/publications/framework-
framework-for-a-i. convention-on-global-ai-challenges/.
117 See: https://www.ciob.org/industry/research/AI- 119 See:

Playbook. https://www.adalovelaceinstitute.org/report/code-
conduct-ai/.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

deployment testing of AI systems, similar published in June 2024 by The World

to safety standards in other critical Bank121. This report highlights AI-driven
sectors. It proposes algorithm audits to advancements transforming education
address risks and ensure AI's safety, by personalizing learning, supporting
effectiveness, and legality, highlighting daily tasks, and optimizing management.
the need for a regulatory framework to It addresses the region's learning crisis
build public trust and safeguard society. with innovative digital solutions,
• «Artificial intelligence and the challenge providing necessary tools to enhance
for global governance - Nine essays on student knowledge and skills effectively.
achieving responsible AI», report
published in June 2024 by Chatham 1.3.2. EUROPE
House120. This report explores innovative 1.3.2.1. EUROPEAN UNION
AI regulation and governance • «The European Union Artificial
approaches, evaluating proposals for Intelligence Act - Impact in the FinTech
responsible AI, including European Industry», report published in June 2024
Union-style regulations, open-source by AI & Partners122. This report analyzes
governance, treaties, and publicly owned the impact of the European Union AI Act
corporations. It emphasizes the on the FinTech industry, detailing key
importance of protecting openness, risks, use cases, and compliance
ensuring inclusivity and fairness, and approaches.
establishing ethical frameworks and • «Truly Risk-Based Regulation of Artificial
cooperation between states and Intelligence - How to Implement the EU’s
technology companies. AI Act», paper authored by Martin Ebers,
• «Artificial Intelligence Revolution in published in June 2024 on SSRN123. This
Education: What You Need to Know», paper evaluates the European Union's AI

120 See: nnovaciones-digitales-para-la-educacion-en-america-

https://www.chathamhouse.org/2024/06/artificial- latina.
intelligence-and-challenge-global-governance. 122 See: https://www.ai-and-partners.com/media.
121 See: 123 See:

https://www.worldbank.org/en/region/lac/publication/i https://papers.ssrn.com/sol3/papers.cfm?abstract_id=
4870387.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

Act, arguing that while it ostensibly experiences to propose solutions for

adopts a risk-based approach to avoid anticipated challenges and to enhance
over-regulation, it falls short in practice. It global AI compliance strategies.
suggests ways to align the Act with its
intended principles and discusses the 1.3.2.2. UNITED KINGDOM
potential for sector-specific legislation to • «Responsible Data Stewardship in
enhance its efficacy globally. Practice», workbook published in June
• «EU Artificial Intelligence Act Deep 2024 by The Alan Turing Institute126. This
Dive», report published in June 2024 by workbook offers resources and training
Deloitte124. This checklist outlines the AI for ethical data management throughout
Act's role within the European Union's the AI project lifecycle. It guides teams on
digital regulation framework. It details the data planning, curation, usage, and
Act's risk-based approach to AI system decommissioning while emphasizing
regulation, its categorization of AI data integrity, quality, and privacy. The
applications, and the forthcoming workbook includes Data Factsheets to
guidelines for compliance. ensure best practices and highlights the
• «The EU AI Act’s First Six Months - importance of stakeholder engagement
Forward Looking Report at Potential and transparency. It supports the UK’s
Impacts, Likely Implementation National AI Strategy by promoting ethical
Challenges, and Recommendations for AI development, aligning with principles
Improvement», report published in June such as accountability and fairness, and
2024 by AI & Partners125. This report is part of the institute's broader Public
evaluates the impending European Policy Programme to enhance public
Union AI Act, detailing its potential service delivery.
impacts, benefits, and implementation
hurdles. It draws on independent
research, expert discussions, and past

124 See: https://www2.deloitte.com/ro/en/pages/about- 126See:

deloitte/articles/eu-artificial-intelligence-act-deep- https://www.turing.ac.uk/sites/default/files/2024-
dive.html. 06/aieg-ati-5-datastewardshipv1.2.pdf.
125 See: https://www.ai-and-partners.com/insights.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

2. REPORTS, GUIDELINES, challenges», paper published in April

RECOMMENDATIONS AND 2024 by the OECD - OCDE128. This

paper investigates the economic
OTHER DOCUMENTS PUBLISHED
implications of AI, highlighting its
BY REGULATORY AND
potential as a transformative General-
SUPERVISORY AUTHORITIES, Purpose Technology poised to
INTERNATIONAL significantly enhance economic
ORGANIZATIONS, AND OTHER productivity and societal wellbeing. It

PUBLIC INSTITUTIONS AND explores AI's distinctive capability for

autonomy and self-improvement, which
AGENCIES
could catalyze innovation and potentially
2.1. APRIL
rejuvenate stagnant productivity growth
2.1.1. INTERNATIONAL
across multiple sectors. However, the
• «Artificial intelligence and the changing
paper also recognizes the uncertainties
demand for skills in the labour market»,
related to the long-term productivity
paper published in April 2024 by the
effects of AI. It addresses the
OECD – OCDE127. This paper analyzes
concentration of AI advancements within
the impact of AI on skill demand in non-
major tech corporations, disparate
specialized AI jobs, revealing a shift
adoption rates, and broader societal
towards management and business
issues like inequality, discrimination, and
skills. While demand for emotional,
security threats. The authors advocate
cognitive, or digital skills has initially
for a thorough policy framework to
increased, recent evidence suggests a
facilitate AI’s positive development and
beginning decline in these areas due to
widespread adoption, proposing
AI exposure.
strategies to foster competition, improve
• «The impact of Artificial Intelligence on
accessibility, and tackle challenges
productivity, distribution and growth - Key
mechanisms, initial evidence and policy

127 See: https://www2.oecd.org/publications/artificial- 128 See: https://www.oecd.org/digital/the-impact-of-

intelligence-and-the-changing-demand-for-skills-in- artificial-intelligence-on-productivity-distribution-and-
the-labour-market-88684e36-en.htm. growth-8d900037-en.htm.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

related to job displacement and clarifies its stance on open source

inequality. software. Initially causing confusion, the
AI Act suggested exemptions for open
2.1.2. EUROPE source software under specific
2.1.2.1. EUROPEAN UNION articles131. However, a recent
• «EU-U.S. Trade and Technology Council corrigendum, notably Article 2(12),
Working Group 1: Technology Standards specifies that the AI Act does not apply to
Subgroup on AI Taxonomy & AI systems under free and open-source
Terminology EU-U.S. Terminology and licenses, unless categorized as high-risk
Taxonomy for Artificial Intelligence - or prohibited under Articles 5 and 50.
Second Edition», published in April 2024 Recitals also clarify that open source AI
by the European Commission129. In line systems are subject to regulation if
with the commitments specified in the involved in monetized transactions or
initial edition of the EU-U.S. Terminology posing systemic risks. Merely hosting AI
and Taxonomy for AI130, a second edition components in open repositories does
has been formulated by EU and U.S. AI not qualify as monetization under the
experts belonging to the EU-US Trade updated AI Act.
and Technology Council (TTC) Working • «Securing Artificial Intelligence TC (SAI);
Group 1 (WG1) sub-group on AI Privacy aspects of AI/ML systems»,
Taxonomy and Terminology. This published in April 2024 by the European
second edition was developed in Telecommunications Standards Institute
conjunction with the Sixth EU-U.S. TTC (ETSI)132. The AI Act presumes
Ministerial (TTC6). compliance when AI providers adhere to
• A update to the AI Act, published in April European Union-harmonised standards,
2024 by the European Parliament, which are established by recognized

129 See: https://digital- 131 See:

strategy.ec.europa.eu/en/library/eu-us-terminology- https://www.europarl.europa.eu/doceo/document/TA-
and-taxonomy-artificial-intelligence-second-edition. 9-2024-0138-FNL-COR01_EN.pdf.
130 See: https://digital- 132 See:

strategy.ec.europa.eu/en/library/eu-us-terminology- https://cdn.standards.iteh.ai/samples/70027/a93f9da2
and-taxonomy-artificial-intelligence. f7174365ac5c80b10365fef3/ETSI-TR-104-225-V1-1-
1-2024-04-.pdf.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

European Standards Organizations such Regulation Whitepaper134 and the

as the European Committee for government's guidance on implementing
Standardization and the European these principles135.
Committee for Electrotechnical
Standardization (CEN and CENELEC), 2.1.2.3. ITALY
or ETSI. This report details the initiatives • «Strategia Italiana per l’Intelligenza
by ETSI's Technical Committee Securing Artificiale 2024-2026 - Executive
Artificial Intelligence (TC SAI) to develop Summary» («Italian Strategy for Artificial
technical specifications mitigating threats Intelligence 2024-2026 - Executive
from AI deployment and external Summary»), published in April 2024 by
sources. It covers the recent launch of the Dipartimento per la trasformazione
ETSI TR 104 225, focusing on the digitale in collaboration with the AGID -
privacy aspects of AI/ ML systems. Agenzia per l'Italia Digitale136. This report
presents a vision aimed at establishing
2.1.2.2. UNITED KINGDOM Italy as a frontrunner in AI-driven
• «Regulating AI: The ICO’s strategic innovation. The strategy is structured
approach», report published in April 2024 around four key directions: Research,
by the Information Commissioner's Public Administration, Enterprises, and
Office133. This document outlines the Education.
ICO's strategic approach to AI regulation,
as requested by the UK Secretary of 2.1.2.4. NETHERLANDS
State of the Department for Science, • «The impact of AI on the financial sector
Innovation and Technology. It describes and supervision», report published in
the organization's efforts to advance the April 2024 by the De Nederlandsche
principles established in the AI

133 See: https://ico.org.uk/about-the- 135 See:

ico/consultations/regulating-ai-the-icos-strategic- https://assets.publishing.service.gov.uk/media/65c0b
approach-a-response-to-the-dsit-secretary-of-state/. 6bd63a23d0013c821a0/implementing_the_uk_ai_reg
134 See: ulatory_principles_guidance_for_regulators.pdf.
https://www.gov.uk/government/publications/ai- 136 See:

regulation-a-pro-innovation-approach/white-paper. https://www.notizie.ai/pathal/uploads/2024/04/Dpd_E
xecutive_Summary.pdf.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

Bank in collaboration with AFM137. This building on traditional quantitative

report develops criteria for AI analysis methods. Additionally, the report
supervision, highlighting the need for the addresses the complex interplay
De Nederlandsche Bank and the AFM to between innovation and existing financial
broaden their expertise to evaluate AI regulations, which are often described as
utilization in financial institutions technology neutral. It considers the
effectively. It addresses the adaptation of perspectives of both industry
regulatory methods and procedures to stakeholders and regulators who are
accommodate new technologies and cautious about AI potentially
intensifies focus on risk management circumventing established regulations.
related to AI applications. As AI's The report concludes with
significance grows, the report details recommendations for US Congress on
plans to enhance oversight of its risks crafting a legislative framework that
within the sector. balances the benefits of AI/ ML
innovation in finance against the risks
2.1.3. NORTH AMERICA and challenges posed, ensuring that both
2.1.3.1. USA industry needs and consumer
• «Artificial Intelligence and Machine protections are met.
Learning in Financial Services», • «Report and Recommendations of the
published in April 2024 by the New York State Bar Association Task
Congressional Research Service of the Force on Artificial Intelligence»,
US Congress138. This report explores the published in April 2024 by the Task Force
evolving landscape of AI and ML on Artificial Intelligence of the New York
adoption within the financial sector. It State Bar Association139. This Report
highlights how financial firms are explores the legal, social, and ethical
integrating advanced technologies and effects of AI and GenAI on the legal
automation to enhance service delivery, profession. It also evaluates AI-based

137See: https://www.dnb.nl/media/gepbbikm/ai.pdf. 139See: https://nysba.org/app/uploads/2022/03/2024-

138See: April-Report-and-Recommendations-of-the-Task-
https://crsreports.congress.gov/product/pdf/R/R47997 Force-on-Artificial-Intelligence.pdf.
.

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software, GenAI technology, and other Additionally, the paper highlights that
machine learning tools that could banking organizations must consider
improve the profession, yet also present applicable existing laws when deploying
risks. These include challenges for AI, ensuring that these regulations are
individual attorneys who need to adapt to integrated into the evaluation of different
new, unfamiliar technology, and AI use cases.
concerns for courts regarding the • «Supercharging Research: Harnessing
integrity of the judicial process. Artificial Intelligence to Meet Global
Additionally, the Report proposes Challenges», report published in April
recommendations for the New York State 2024 by the Executive Office of the
Bar Association to adopt, including President141. This report examines the
guidelines for responsible use of AI. potential applications of AI in research to
• «Navigating Artificial Intelligence in tackle significant societal and global
Banking - Governance and Risk challenges. It presents a vision where the
Management Frameworks», paper responsible use of AI empowers
published in April 2024 by the Bank scientists and engineers to capitalize on
Policy Institute140. This paper explores the opportunities provided by this
the application of AI within various transformative technology, while also
frameworks, emphasizing that AI risk addressing and mitigating its inherent
management requires a tailored weaknesses. The document provides
approach rather than a universal insights into how AI can be effectively
solution. It discusses how risk integrated into various research domains
management practices must be adapted to enhance outcomes and promote
according to the specific AI technology, sustainable development.
its application, the context of its use,
anticipated outputs, and the unique risks 2.1.4. ASIA
pertinent to each organization. 2.1.4.1. JAPAN

140 See: https://bpi.com/navigating-artificial- 141See: https://www.whitehouse.gov/wp-

intelligence-in-banking/. content/uploads/2024/04/AI-
Report_Upload_29APRIL2024_SEND-2.pdf.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

• «AI Guidelines for Business Ver1.0», 2.2. MAY

published in April 2024 by the Japanese 2.2.1. INTERNATIONAL
Ministry of Economy, Trade and • «Recommendation of the Council on
Industry142. This guidelines establish OECD Legal Instruments Artificial
unified principles for AI governance in Intelligence», updated recommendations
Japan to enhance the safe and secure published in May 2024 by the OECD -
application of AI technology. They are OCDE143. This documment outlines the
designed to assist individuals across OECD - OCDE's recommendation on AI,
various industries to thoroughly adopted at the Ministerial-level meeting
understand the risks associated with AI, on May 22, 2019, as the first
reflecting both global trends and intergovernmental standard promoting
stakeholder concerns. By encouraging responsible AI stewardship while
voluntary action, these guidelines help ensuring human rights and democratic
address potential issues throughout the values. The recommendation was
AI lifecycle. Furthermore, the guidelines embraced at the G20 Osaka Summit as
advocate for the collaborative the G20 AI Principles144. To maintain
development of a framework that technical accuracy amid evolving
balances the promotion of innovation technologies like GenAI, the OECD -
with risk reduction. According to the OCDE Council revised the definition of
guidelines, this is achieved through an «AI System» on November 8, 2023145.
cooperative efforts among all relevant A further revision occurred at the May 3,
parties, ensuring adherence to shared 2024 Ministerial meeting following the
principles and specific considerations 2024 Report to Council to reflect recent
relevant to each AI business actor, along technological and policy developments
with comprehensive AI governance.

142 See: 144 See:

https://www.meti.go.jp/english/press/2024/0419_002. https://www.mofa.go.jp/policy/economy/g20_summit/
html. osaka19/pdf/documents/en/annex_08.pdf.
143 See: 145 See: https://www.oecd.org/science/explanatory-

https://legalinstruments.oecd.org/en/instruments/oecd memorandum-on-the-updated-oecd-definition-of-an-
-legal-0449. ai-system-623da898-en.htm.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

and enhance implementation146. This • «Artificial intelligence, data and

report provides a comprehensive competition - Background Note»,
overview of the updated AI standards published in May 2024 by the OECD -
aimed at fostering innovation and public OCDE148. The note begins by introducing
trust in AI while promoting the key concepts in AI, highlighting the most
responsible use of this technology. significant current market dynamics. It
• «Defining AI incidents and related then delves into potential competition
terms», paper published in May 2024 by issues in the AI supply chain, also
the OECD - OCDE147. This report discussing the necessity of special
discusses the escalating use of AI and attention to these issues. Following this,
the accompanying increase in both its the document examines the tools
benefits and risks. It highlights the available to competition authorities and
distinction between actual harms, policymakers in addressing these
referred to as «AI incidents», and challenges. Additionally, the paper briefly
potential dangers, termed «AI hazards». discusses two further topics: how AI
Emphasizing the necessity of clear usage could impact competition in other
definitions to manage and mitigate these markets, and the potential role of AI in
risks effectively, the report proposes assisting competition authorities with
specific definitions for AI incidents and their duties.
related terms. These definitions are • «Artificial intelligence and democracy»,
designed to enhance international report published in May 2024 by
interoperability and allow jurisdictions the UNESCO149. This report analyzes how
flexibility to define the scope of AI digitalization reshapes collective
incidents and hazards they aim to decision-making and citizen interaction,
address. particularly noting the effects on civil
discourse due to social media's

146 See: 148 See: https://www.oecd.org/competition/artificial-

https://one.oecd.org/document/C/MIN(2024)11/en/pdf intelligence-data-and-competition.htm.
. 149 See: https://www.unesco.org/en/articles/artificial-
147 See: https://www.oecd.org/publications/defining- intelligence-and-democracy.
ai-incidents-and-related-terms-d1a8d965-en.htm.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

immediacy and space constraints. It within the AI sector, enabling

highlights concerns about disinformation stakeholders to understand market
and manipulation in electoral contexts, dynamics and facilitate informed
exacerbated by recent advances in decision-making regarding the
GenAI. The report emphasizes the development and application of AI
urgent need to address key challenges inventions.
such as climate change and escalating
social dynamics. This report calls for a 2.2.2. EUROPE
global, multidisciplinary dialogue to 2.2.2.1. EUROPEAN UNION
tackle these issues, aiming to foster a • «EU Artificial intelligence ambition –
more democratic and peaceful world. Stronger governance and increased,
• «Artificial Intelligence Related Inventions more focused investment essential going
- Artificial Intelligence Patent forward», report published in May 2024
Landscape», report published in May by the European Court of Auditors151.
2024 by The Royal Society150. This This report recommends that the
guidance outlines the objectives of a European Commission should reassess
patent landscape analysis commissioned the European Union investment target for
for AI related inventions. It aims to AI and collaborate with Member States
provide essential information and context on their potential contributions. It advises
to bolster the project's main goals. the evaluation of a potential European
Through the analysis of key trends, areas Union-funded capital support instrument
of invention, and relevant case studies, dedicated to AI-innovative small and
this document will offer end users a medium-sized enterprises (SMEs).
comprehensive overview of the current Furthermore, the report suggests
commercialization state of AI ensuring that European Union-funded AI
technologies. It will identify leading infrastructure operates in a coordinated
innovations and emerging opportunities manner. It proposes tagging research

150 See: https://royalsociety.org/- 151See:

/media/policy/projects/science-in-the-age-of- https://www.eca.europa.eu/en/publications/SR-2024-
ai/science-ai-related-inventions-report.pdf. 08.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

and innovation spending on AI across the ecosystem and ensuring the deployment
European Union budget, establishing of trustworthy AI technologies across the
performance targets and indicators, and European Union.
regularly monitoring their progress. • «Public Statement - On the use of
Lastly, the report emphasizes the need to Artificial Intelligence (AI) in the provision
enhance efforts to support the of retail investment services», published
exploitation of European Union-funded in May 2024 by the European Securities
AI research results. and Markets Authority (ESMA)153. This
• «Replies of the European Commission to public statement highlights the
the European Court of Auditors’ Special transformative potential of AI in retail
Report - EU Artificial intelligence investment services. It acknowledges
ambition - Stronger governance and AI's ability to enhance efficiency,
increased, more focused investment innovation, and decision-making but also
essential going forward», published in notes the associated risks such as
May 2024 by the European algorithmic biases, data quality issues,
Commission152. This report outlines the and potential opacity. As AI's integration
European Commission's response to the is still emerging and varies across firms
European Court of Auditors’ Special and Member States, European
Report on Artificial Intelligence policy Securities and Markets Authority (ESMA)
(mentioned in the previous point). provides initial guidance to investment
Highlighting recent technological firms on adhering to MiFID II obligations
breakthroughs in AI, this reponse while emphasizing the management's
discusses the European Commission's responsibility to prioritize client interests
initiatives such as the AI Startups and in decisions made by AI-driven solutions.
Innovation Package and the European AI • In May 2024, the European Commission
Office, aimed at fostering a robust AI unveiled the AI Office, which has been

152 See: 05/ESMA35-335435667-

https://www.eca.europa.eu/en/publications/SR-2024- 5924__Public_Statement_on_AI_and_investment_se
08. rvices.pdf.
153 See:

https://www.esma.europa.eu/sites/default/files/2024-

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

established within the European European Parliament intervention to

Commission itself154. The AI Office is ensure AI advancements do not
designed to facilitate the future compromise freedoms, urging robust
development, deployment, and utilization policies and international cooperation to
of AI in a manner that promotes societal counter misuse.
and economic benefits as well as
innovation, while also mitigating risks. 2.2.2.2. SPAIN
This office aims to play a pivotal role in • «Estrategia de Inteligencia Artificial
the implementation of the AI Act, 2024», report published in May 2024 by
particularly concerning GPAIs. the Ministerio de Economía, Comercio y
Additionally, it will support efforts to Empresa of the Gobierno de España156.
advance research and innovation in This report outlines Spain's strategic
trustworthy AI and position the European approach to AI framed around three key
Union as a frontrunner in global elements to bolster national capabilities
discussions. in response to the growing demand for AI
• «Artificial intelligence (AI) and human products and services. The first element
rights: Using AI as a weapon of emphasizes enhancing the country's
repression and its impact on human ability to accommodate the escalating
rights», in-depth analysis requested by demand. It identifies critical areas for
the DROI subcommittee and published in capability enhancement:
May 2024 by the European supercomputing, cloud infrastructure,
Parliament155. This analysis examines foundational datasets and models for AI
key actors and cases of algorithmic development, and skilled talent. These
authoritarianism, emphasizing the risks sectors are deemed essential for
AI poses to human rights amid digital maximizing benefits in productivity,
transformation. It highlights the need for innovation, and economic growth,

154 See: 156 See: https://portal.mineco.gob.es/es-

https://ec.europa.eu/commission/presscorner/detail/e es/digitalizacionIA/Documents/Estrategia_IA_2024.p
n/IP_24_2982. df.
155 See:

https://www.europarl.europa.eu/committees/en/droi/s
upporting-analyses/latest-documents.

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highlighting the opportunity for well- • «Governance of artificial intelligence

designed public policies to increase the (AI)», report published in May 2024 by
likelihood of successfully leveraging AI the UK Department for Science,
expansion. The second element focuses Innovation and Technology (House of
on promoting AI adoption, particularly Commons)157. This report revisits the
within the public sector and among small governance and regulation of AI,
and medium-sized enterprises (SMEs), discussing both domestic and
as these entities require the most support international developments. It
for transformation. The public sector is reevaluates the Twelve Challenges of AI
also envisioned as a catalyst and role Governance identified in the previous
model for AI integration in the private report158, offering recommendations for
sector, enhancing service delivery to policymakers.
citizens and fostering private sector
advancements. The final element 2.2.3. NORTH AMERICA
addresses the need for broad consensus 2.2.3.1. USA
on AI usage, encompassing debates • «Responsable Artificial Intelligence in
over autonomy, transparency, and Financial Markets: Opportunities, Risks
reliability in AI technologies. According to & Recommendations», report published
the report, this involves establishing clear in May 2024 by the U.S. Commodity
and socially agreed-upon guidelines for Futures Trading Commission (prepared
decision-making processes and by the Subcommittee on Emerging and
interactions between humans and AI Evolving Technologies of the Technology
systems. Advisory Committee)159. This report
provides insights into the impact and
2.2.2.3. UNITED KINGDOM implications of AI's evolution on financial

157 See: 159See:

https://publications.parliament.uk/pa/cm5804/cmselec https://www.cftc.gov/PressRoom/PressReleases/890
t/cmsctech/38/report.html. 5-24.
158 See.

https://committees.parliament.uk/publications/41130/
documents/205611/default/.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

markets, summarizing five approach aims to safeguard financial

recommendations by the Committee for markets while fostering innovation.
the CFTC's strategic approach. First, the • «Driving U.S. Innovation in Artificial
CFTC should host a public roundtable Intelligence: A Roadmap for Artificial
and engage directly with registered Intelligence Policy in the United States
entities to gain insights into prevalent AI Senate», published in May 2024 by the
technologies. Second, the CFTC should Bipartisan Senate AI Working Group of
consider developing an AI Risk the United States Senate161. The report
Management Framework (RMF) based outlines several recommendations
on National Institute of Standards and regarding funding priorities, the creation
Technology (NIST) guidelines160 to of new legislation, and areas needing
evaluate AI models and consumer further investigation. It also urges the
protection. Third, the CFTC should executive branch to consistently and
create an inventory of existing AI promptly share information about its AI
regulations and conduct a gap analysis priorities, along with any AI-related
to identify compliance risks and areas Memorandums of Understanding with
needing staff guidance or rulemaking. other nations and outcomes from AI-
Fourth, the CFTC should align its AI related studies. This is suggested as a
policies with other federal agencies, way to enhance the legislative process
including the U.S. Securities and by providing more comprehensive
Exchange Commission and U.S. information.
Department of the Treasury. Lastly, the • «The United States Artificial Intelligence
CFTC should participate in international Safety Institute: Vision, Mission, and
AI dialogues and bolster internal Strategic Goals», report published in
expertise through budgetary May 2024 by the National Institute of
supplements. This comprehensive

160See: 161See:
https://airc.nist.gov/AI_RMF_Knowledge_Base/AI_R https://cdn.sanity.io/files/3tzzh18d/production/f8329e
MF. 56072d547dc061060f367ae7cabd0d0e8a.pdf.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

Standards and Technology (NIST)162. document is crafted to support

This report outlines the vision of the individuals engaged in litigation at the
Artificial Intelligence Safety Institute Supreme Court of Victoria, catering to
(AISI) for a future where safe AI both legal practitioners and self-
innovation fosters a thriving world. It represented litigants. It addresses the
emphasizes that beneficial AI hinges on recognized use and rapidly growing
robust AI safety measures, which in turn capacity of GenAI tools in legal settings,
depend on rigorous scientific methods. providing users with essential
The report details AISI’s strategic goals, information and protocols for integrating
which include advancing AI safety these technologies into their legal
science through research on testing, practices effectively and responsibly.
evaluation, validation, and verification of
AI models and systems. It also covers the 2.2.5. ASIA
development and dissemination of AI 2.2.5.1. SINGAPORE
safety practices and the support of • «Artificial Intelligence For The
institutions, communities, and Accountancy Industry - What Lies Ahead
coordination efforts around AI safety, - AI Whitepaper», published in May 2024
making the vision not only possible and by Institute of Singapore Chartered
actionable, but also sustainable. Accountants (ISCA) in collaboration with
the Singapore Institute of Technology
2.2.4. AUSTRALIA (& OCEANIA) (SIT)164. This report presents findings
2.2.4.1. AUSTRALIA from studies exploring the impact of AI on
• Guidelines for Litigants - Responsible the accountancy sector. It addresses
Use of Artificial Intelligence in Litigation», industry sentiments, readiness for AI
published in May 2024 by the Supreme integration, and identifies specific
Court of Victoria163. This guidelines challenges. The research particularly

162 See: guidelines/guideline-responsible-use-of-ai-in-

https://www.nist.gov/system/files/documents/2024/05/ litigation.
21/AISI-vision-21May2024.pdf. 164 See: https://isca.org.sg/resource-
163 See: https://www.supremecourt.vic.gov.au/forms- library/digitalisation/artificial-intelligence-for-the-
fees-and-services/forms-templates-and- accountancy-industry---what-lies-ahead.

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focuses on how AI could augment critical • «Governing with Artificial Intelligence:

functions in assurance, financial Are governments ready?», paper
accounting, and management published in June 2024 by OECD -
accounting, with potential enhancements OCDE166. This policy paper reviews the
in 60-100% of these areas. Highlighting development, use, and deployment of AI
that AI's introduction may not lead to job within the public sector, highlighting both
losses, the report suggests that the potential benefits and risks. It examines
accountancy field will likely experience AI's role in enhancing productivity,
significant opportunities for professional responsiveness, and accountability in
growth through reskilling and positive job governmental operations. Additionally,
transformation. the paper explores key policy challenges
and showcases how various OECD -
2.3. JUNE OCDE countries are tackling these
2.3.1. INTERNATIONAL issues.
• «Artificial Intelligence: from imagination • «A new dawn for public employment
to investment», report published in June services - Service delivery in the age of
2024 by New York Life165. This report artificial intelligence», report published in
explores the impact of ChatGPT and AI June 2024 by OECD - OCDE167. This
since the 1950s, highlighting its potential report examines the integration of AI in
to revolutionize industries through public employment services (PES)
advancements like accelerated across OECD - OCDE countries,
pharmaceutical discoveries and highlighting its role in job matching,
personalized education. It discusses the vacancy design, and career
societal and economic implications, management. It emphasizes the need for
including potential labor shifts and the transparency, governance, and active
necessity of navigating the AI S-curve to involvement of end-users to manage AI's
realize these transformations. impacts effectively.

165See: 166 See: https://www.oecd.org/gov/governing-with-

https://www.newyorklifeinvestments.com/insights/202 artificial-intelligence-26324bc2-en.htm.
4-megatrends. 167 See: https://www.oecd.org/digital/a-new-dawn-for-

public-employment-services-5dc3eb8e-en.htm.

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• «AI and the Holocaust: rewriting history? systems that uphold and enhance
The impact of artificial intelligence on privacy.
understanding the Holocaust», paper
published in June 2024 by UNESCO168. 2.3.2. EUROPE
This report examines the impact of AI 2.3.2.1. EUROPEAN UNION
advancements on Holocaust education, • «Addressing AI risks in the workplace:
highlighting risks, challenges, and Workers and algorithms», briefing
opportunities. It offers guidance for published in June 2024 by the European
policymakers, online platforms, and Parliament170. This briefing explores
educators on maintaining the integrity of algorithmic management in workplaces,
Holocaust facts and suggests strategic particularly regarding AI data and its
responses to adapt to these regulation. It analyzes the European
technological developments. Union's top-down approach, the
• «AI, Data Governance, and Privacy: European Parliament's insights, and the
Synergies and Areas of International potential of collective bargaining to
Cooperation», paper published in June complement AI deployment. It examines
2024 by OECD - OCDE169. This report «sleeping clauses» within the European
examines the privacy risks and Union framework and highlights ongoing
opportunities arising from recent AI debates from both employer and union
developments. It aligns the principles of perspectives.
the OECD - OCDE Privacy Guidelines • In June 2024, the Council of the
with the OECD AI Principles, reviews European Union adopted an amendment
national and regional initiatives, and to the regulation concerning the
identifies potential collaboration areas. It European High-Performance Computing
aims to guide the development of AI (EuroHPC) joint undertaking, expanding
its objectives to encompass the

168 See: https://www.unesco.org/en/articles/ai-and- 170See:

holocaust-rewriting-history-impact-artificial- https://www.europarl.europa.eu/thinktank/pt/documen
intelligence-understanding-holocaust. t/EPRS_BRI(2024)762323.
169 See: https://www.oecd.org/publications/ai-data-

governance-and-privacy-2476b1a4-en.htm.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

development and operation of AI • «AI Auditing - Checklist for AI Auditing»,

factories171. These AI factories are published in June 2024 by European
defined as entities that provide an AI Data Protection Board173. This checklist,
supercomputing service infrastructure. developed under the European Data
The revised regulation will enhance the Protection Board's Support Pool of
availability of the European Union’s Experts initiative by the Spanish Data
supercomputing capacity for innovative Protection Authority, aims to evaluate the
European startups and SMEs, enabling GDPR compliance of AI systems. It
them to train their AI models and develop provides a methodology for auditing
their projects. This action marks the final algorithms and proposes tools to
step in the decision-making process. enhance transparency, aiding parties in
• «Targeted consultation on artificial understanding and assessing data
intelligence in the financial sector», protection safeguards under the AI Act.
published in June 2024 by the European
Commission172. This consultation 2.3.2.2. GERMANY
explores the expanding role of AI in • OECD Artificial Intelligence Review of
financial services, aiming to pinpoint key Germany», published in June 2024 by
use cases, benefits, and challenges. It OECD - OCDE174. This report
aligns with the AI Act, Europe's benchmarks Germany's AI ecosystem,
pioneering law to ensure AI's safe, rights- analyzing the implementation of its
respecting deployment while boosting national AI strategy using data from
investment and innovation, without OECD AI and interviews. It evaluates
imposing redundant or stifling strengths, weaknesses, opportunities,
regulations. and challenges in AI, offering policy
recommendations across core strategic

171 See: 173 See: https://www.edpb.europa.eu/our-work-

https://www.consilium.europa.eu/en/press/press- tools/our-documents/support-pool-expert-projects/ai-
releases/2024/06/17/council-adopts-regulation-on- auditing_en.
use-of-supercomputing-in-ai-development/. 174 See: https://www.oecd.org/digital/oecd-artificial-
172 See: https://finance.ec.europa.eu/regulation-and- intelligence-review-of-germany-609808d6-en.htm.
supervision/consultations-0/targeted-consultation-
artificial-intelligence-financial-sector_en.

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areas, and includes spotlights on public June 2024176. This framework provides a
sector, sustainability, and healthcare AI comprehensive set of guidelines to help
applications. organizations adopt AI technologies
responsibly while complying with the
2.3.3. NORTH AMERICA Personal Data (Privacy) Ordinance
2.3.3.1. USA (PDPO). It offers best practices across
• «AI in Real World - Hedge Funds' Use of four key areas: establishing AI strategies
Artificial Intelligence in Trading», report and governance, conducting risk
published in June 2024 by the United assessments with human oversight,
States Senate Committee On Homeland customizing AI models while ensuring
Security & Governmental Affairs175. This data and system security, and enhancing
report analyzes the escalating use of AI stakeholder communication to build trust
in hedge funds, highlighting the and transparency. This initiative aims to
associated risks and regulatory gaps. It ensure that organizations can leverage
emphasizes the need for clear AI AI benefits while protecting personal data
definitions and standards to safeguard privacy.
financial stability and proposes
legislative actions to guide responsible AI 2.3.5. AUSTRALIA (& OCEANIA)
development and deployment across the 2.3.5.1. AUSTRALIA
financial sector. • «National framework for the assurance of
artificial intelligence in government - A
2.3.4. ASIA joint approach to safe and responsible AI
2.3.4.1. HONG KONG by the Australian, state and territory
• The Office of the Privacy Commissioner governments.», published in June 2024
for Personal Data, Hong Kong (PCPD) by the Australian Government in
issued the «Artificial Intelligence: Model collaboration with the NSW Government,
Personal Data Protection Framework» in the Victoria State Government (Victorian

175See: https://www.hsgac.senate.gov/wp- 176See:

content/uploads/2024.06.11-Hedge-Fund-Use-of-AI- https://www.pcpd.org.hk/english/news_events/media
Report.pdf. _statements/press_20240611.html.

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Government), the Queensland for AI178. The bill supports the

Government, the Government of enhancement of AI research,
Western Australia, the Government of development, and capacity-building
South Australia, the Tasmanian activities. It is designed to foster
Government, the ACT Government, & innovation within the AI industry,
the Northern Territory Government177. ensuring that companies of all sizes can
This framework ensures the safe and succeed and thrive. The act authorizes
responsible use of AI by Australia's the National Institute of Standards and
governments, based on AI ethics Technology (NIST) AI Safety Institute to
principles. It sets national standards for develop AI standards and establishes
AI assurance, focusing on lawful and new AI testbeds at national laboratories
ethical practices, public trust, and the for the evaluation of AImodels, facilitating
protection of rights, wellbeing, and discoveries that could benefit the US
interests, fostering consistent and economy. Additionally, it introduces
responsible AI deployment. grand challenge prize competitions to
encourage private sector solutions and
3. LEGISLATIONS, REGULATIONS, innovation in AI, accelerates AI

OTHER LEGISLATIVE innovation through the use of publicly

available datasets, and fosters the
INSTRUMENTS
creation of international alliances
3.1. APRIL
focused on AI standards, research, and
3.1.1. NORTH AMERICA
developments.
3.1.1.1. USA
• Introduced in April 2024, the bipartisan
3.1.2. SOUTH AMERICA
Future of AI Innovation Act in the US
3.1.2.1. PERU
aims to establish comprehensive
standards, metrics, and evaluation tools

177See: 178See:
https://www.finance.gov.au/government/public- https://www.commerce.senate.gov/services/files/E60
data/data-and-digital-ministers-meeting/national- CB738-9C67-4FD2-8F28-26B5D5EC33BE.
framework-assurance-artificial-intelligence-
government.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

• Project 7619-2023/CR was introduced in development, use, and decommissioning

April 2024 in Peru, proposing a law that of AI systems, mandating careful
mandates interoperability and the use of consideration of any potential negative
AI for the services of the Ministry of consequences associated with the use of
Foreign Affairs of Peru179. This bill AI technologies.
includes provisions for interoperability
among public entities, aiming to enable 3.2.2. EUROPE
the involved Ministry to access 3.2.2.1. EUROPEAN UNION
necessary information to provide its • «Artificial intelligence (AI) act: Council
services. gives final green light to the first
worldwide rules on AI», press release
3.2. MAY published in May 2024 by the Council of
3.2.1. INTERNATIONAL the European Union181.
• The Council of Europe has adopted in • «Commission Implementing Decision of
May 2024 the first-ever international 22.5.2023 on a standardisation request
legally binding treaty aimed at ensuring to the European Committee for
the respect of human rights, the rule of Standardisation and the European
law, and democracy legal standards in Committee for Electrotechnical
the use of AI systems180. Open to non- Standardisation in support of Union
European countries as well, the treaty policy on artificial intelligence»,
establishes a legal framework that published in May 2024 by the European
encompasses the entire lifecycle of AI Commission182. This decision the
systems, addressing the risks they might importance of standardization for safety,
pose and promoting responsible competitiveness, and compliance with
innovation. The convention takes a risk- European Union values and laws. It
based approach to the design, mandates CEN and CENELEC to draft

179 See: https://wb2server.congreso.gob.pe/spley- releases/2024/05/21/artificial-intelligence-ai-act-

portal-service/archivo/MTc3MjQx/pdf. council-gives-final-green-light-to-the-first-worldwide-
180 See: https://rm.coe.int/0900001680afb122. rules-on-ai/.
181 See: 182

https://www.consilium.europa.eu/en/press/press-

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

new standards, ensuring AI systems' obligations on users of high-risk AI

safety and transparency. It aligns with systems, including risk management and
the United Nations Convention on the governance requirements.
Rights of Persons with Disabilities and
ensures ongoing standardization efforts
to support future AI regulations.

3.2.3. NORTH AMERICA

3.2.3.1. USA
• Colorado passed a significant artificial
intelligence bill in May 2024183. Senate
Bill 205, known as the Colorado AI Act,
shares some features with the European
Union AI Act by adopting a risk-based
approach to AI and establishing
regulations for high-risk systems, along
B. GENERAL-PURPOSE
with mandates for AI usage disclosures. ARTIFICIAL INTELLIGENCE
The bill serves as a mechanism for
(GPAI), FOUNDATION
consumer protection. It mandates that
both developers and users of AI exercise
MODELS (FMS), & LARGE
«reasonable care» to avoid algorithmic LANGUAGE MODELS (LLMS)
discrimination in high-risk systems. 1. RESEARCH CONDUCTED BY
These systems are defined as any AI
INDIVIDUALS, COMPANIES,
technology that makes or assists in
ASSOCIATIONS AND
making impactful decisions related to
areas such as education, employment, UNIVERSITIES

finance, housing, healthcare, or legal 1.1. MAY

services. The legislation also imposes 1.1.1. INTERNATIONAL

183 See: https://leg.colorado.gov/bills/sb24-205.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

• «Unstructured Data and AI - Fine-Tuning 1.2.1.1. EUROPEAN UNION

LLMs to Enhance the Investment • «EU AI Act & General Purpose AI - A
Process», paper authored by Brian guide for the global AI Economy», report
Pisaneschi, CFA, and published in May published in June 2024 by AI &
2024 by CFA Institute184. This paper Partners185. This report outlines
delves into several topics, guiding strategies to ensure GPAI systems meet
readers through discussions on the European Union AI Act’s standards.
alternative and unstructured data, It details compliance obligations and risk
clarifying their differences, and providing management, emphasizing the
insights on how to ethically initiate AI alignment with global regulatory
projects using these data types within the frameworks and the safeguarding of
open-source community. It also offers client-owned AI systems and content.
essential background on NLP, necessary
for fine-tuning LLMs, and addresses the 2. REPORTS, GUIDELINES,
factors behind the significant shift in AI RECOMMENDATIONS AND
adoption. Furthermore, the paper applies
OTHER DOCUMENTS PUBLISHED
these concepts through an ESG case
BY REGULATORY AND
study that explores methods for fine-
tuning systems to detect material ESG SUPERVISORY AUTHORITIES,

tweets, which can be used to generate INTERNATIONAL

investment returns. This case study also ORGANIZATIONS, AND OTHER

highlights the benefits of leveraging PUBLIC INSTITUTIONS AND
open-source data and tools to develop
AGENCIES
new investment ideas.
2.1. APRIL
2.1.1. EUROPE
1.2. JUNE
2.1.1.1. UNITED KINGDOM
1.2.1. EUROPE

184See: 185 See: https://www.ai-and-partners.com/media.

https://rpc.cfainstitute.org/en/research/reports/2024/u
nstructured-data-and-ai.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

• «AI Foundation Models: Update paper», examines the safety of advanced AI

published in April 2024 by the systems, specifically general-purpose AI
Competition and Markets Authority186. (GPAI or GAI), highlighting its rapid
This update paper provides an overview development and associated risks. It
of developments in the AI sector since evaluates the capabilities and potential
the initial report in September 2023187. It dangers of these systems, including their
reviews the potential impacts on misuse and unintentional harm through
competition and consumer protection biased decisions. It also stresses the
that were considered in the earlier report need for deeper understanding and
and outlines a set of principles aimed at ongoing international collaboration to
guiding the sector toward positive address uncertainties and potential
outcomes in these areas. Following socioeconomic impacts. The report calls
feedback from stakeholders, this for a transparent approach, incorporating
document also presents updated diverse perspectives to shape future AI
principles to better align with the evolving developments responsibly, and aims to
needs and dynamics of the industry. guide global standards and foster
informed discussions on AI's trajectory.
2.2. MAY
2.2.1. EUROPE 2.3. JUNE
2.2.1.1. UNITED KINGDOM 2.3.1. NORTH AMERICA
• «International Scientific Report on the 2.3.1.1. USA
Safety of Advanced AI - Interim Report», • «Artificial Intelligence and Large
released in May 2024 by the Department Language Models - FINRA Reminds
for Science, Innovation and Technology Members of Regulatory Obligations
(AI Seoul Summit)188. This report When Using Generative Artificial
Intelligence and Large Language

186 See: 188See:

https://www.gov.uk/government/publications/ai- https://www.gov.uk/government/publications/internati
foundation-models-update-paper. onal-scientific-report-on-the-safety-of-advanced-ai.
187 See:

https://www.gov.uk/government/publications/ai-
foundation-models-initial-report.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

Models», regulatory notice published in 1. RESEARCH CONDUCTED BY

June 2024 by FINRA Investor Education INDIVIDUALS, COMPANIES,
Foundation189. This report outlines the
ASSOCIATIONS AND
opportunities and risks of AI, including
UNIVERSITIES
LLMs and GenAI, for FINRA member
1.1. APRIL
firms. It emphasizes the importance of
1.1.1. INTERNATIONAL
regulatory compliance, highlights the
• «What is generative AI?», published in
evolution of AI technology, and
April 2024 by McKinsey & Company190.
discusses the potential benefits and
This article discusses the concept of
concerns associated with GenAI tools in
GenAI, which encompasses algorithms
the financial sector.
like ChatGPT capable of generating
various forms of content such as audio,
code, images, text, simulations, and
videos. According to the article, recent
advancements in this field are poised to
revolutionize traditional approaches to
content creation.
• «GenAI in the Derivatives Market: a
Future Perspective», published in April
2024 by the ISDA191. This whitepaper
provides guidance for industry
stakeholders, regulators, and technology
C. GENERATIVE ARTIFICIAL providers who are interested in utilizing
GenAI to transform the OTC derivatives
INTELLIGENCE (GENAI)
market. It explores promising
applications of this technology within the

189 See: https://www.finra.org/rules- 191See: https://mondovisione.com/media-and-

guidance/notices/24-09. resources/news/isda-genai-in-the-derivatives-market-
190 See: https://www.mckinsey.com/featured- a-future-perspective/.
insights/mckinsey-explainers/what-is-generative-ai#/.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

OTC derivatives market, identifies Diakopoulos, Hannes Cools, Charlotte

associated risks, reviews the existing Li, Natali Helberger, Ernest Kung, Aimee
regulatory framework, and suggests Rinehart, edited by Lisa Gibbs, and
potential solutions for mitigating these published in April 2024 on
risks. ResearchGate193. This report provides a
• «Opportunities for Generative AI in snapshot of the industry's engagement
Financial Services», paper published in with the initial promises and challenges
April 2024 by Visa in collaboration with of GenAI as of late 2023. It includes a
This Week in Fintech192. In this paper, the survey of 292 individuals from the news
discussion centers on the emerging industry, discussing their current and
applications of GenAI, as demonstrated desired uses of GenAI, as well as the
by leading-edge banks and fintechs. The main ethical and practical concerns
evaluation covers how fintechs and regarding the development of
banks are integrating GenAI distinctively, responsible usage.
leveraging their respective strengths. • «2024 Generative AI in Professional
The paper also explores areas within Services - Perceptions, Usage & Impact
GenAI that remain underexplored, on the Future of Work», report published
highlighting current opportunities. in April 2024 by the Thomson Reuters
Additionally, the response from Institute194. This report explores
regulators and the potential implications professionals' perceptions of GenAI
for both banks and fintechs are utilization in their workplaces, detailing
assessed. the extent and manner in which they
• «Generative AI in Journalism: The incorporate it into their processes. It also
Evolution of Newswork and Ethics in a investigates their views on the potential
Generative Information Ecosystem», effects of GenAI across various work-
report authored by Nicholas related aspects, including efficiency,

192 See: ewswork_and_Ethics_in_a_Generative_Information_

https://docsend.com/view/s8ehw6bk5s2b5mzy. Ecosystem.
193 See: 194 See:

https://www.researchgate.net/publication/379668724 https://www.thomsonreuters.com/en/reports/2024-
_Generative_AI_in_Journalism_The_Evolution_of_N generative-ai-in-professional-services.html.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

billing, and job displacement. Lastly, the for personalized, anticipatory service,
report considers their perspectives on and discusses the integration of AI as a
the future of work in an environment force multiplier in service industries.
increasingly influenced by GenAI.
• «Guidelines on the Use of Artificial 1.1.2. EUROPE
Intelligence in Arbitration», published in 1.1.2.1. EUROPEAN UNION
April 2024 by Silicon Valley Arbitration & • «GDPR & Generative AI - A Guide for the
Mediation Center (SVAMC)195. This Public Sector», guide published in April
guidelines provide a comprehensive set 2024 by Microsoft197. This guide focuses
of best practices for the use of AI in on enabling public sector organizations
international arbitration, aimed at all to fully leverage Microsoft’s GenAI
participants in the arbitration process. solutions while adhering to their
They address both current and future responsibilities under the GDPR. It offers
applications of AI from a principled a detailed examination of the essential
framework, acknowledging the rapid GDPR obligations that public sector
evolution of the technology. organizations must consider when
• «Generative AI: A (work)force multiplier acquiring GenAI services like Copilot for
for exceptional service. Human-machine Microsoft 365 and Azure OpenAI
collaboration is reshaping service Service. Additionally, the paper outlines
experiences for customers and agents the support and resources available from
alike.», report published in April 2024 by Microsoft, including aspects related to
Deloitte196. This report explores how transparency, data subject rights,
GenAI can revolutionize service processor obligations, technical and
operations by enhancing customer organizational security measures, Data
interaction and operational efficiency. It Protection Impact Assessments (DPIAs),
outlines strategies for leveraging AI to and international data transfers.
meet increasing customer expectations

195See: https://svamc.org/svamc-publishes- 196 See:

guidelines-on-the-use-of-artificial-intelligence-in- https://www.deloittedigital.com/content/dam/digital/glo
arbitration/. bal/documents/report-20240424-future-of-service.pdf.
197 See: https://wwps.microsoft.com/blog/gdpr-genai.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

1.1.3. NORTH AMERICA publication highlights specific audit risk

1.1.3.1. USA areas, and through hypothetical
• «Boston University AI Task Force - scenarios, illustrates how entities might
Report on Generative AI in Education assess risks associated with GenAI.
and Research», published in April 2024 Although primarily focused on GenAI,
by the Boston University198. This report some discussions may also apply to
focuses exclusively on GenAI tools, other AI types, emphasizing the broader
omitting broader discussions of AI implications for auditing practices.
applications across various research and
business fields. Its purpose is to inform 1.2. MAY
and educate faculty members and 1.2.1. INTERNATIONAL
provide recommendations to the Boston • «Is Generative AI beginning to deliver on
University administration regarding the its promise in India?», report published in
use of GenAI tools in education and May 2024 by EY200. This report
research. investigates the cost-benefit analysis of
• «Auditing in the Age of Generative AI», GenAI and recommends a dual-speed
report published in April 2024 by the approach.
Center for Audit Quality199. This report • «Taxonomy of Human Rights Risks
delves into the fundamental principles Connected to Generative AI», paper
and emerging risks of GenAI in financial published in February 2024 by the United
reporting and internal control over Nations201. This paper explores the
financial reporting (ICFR). It summarizes human rights risks arising from the
key aspects of GenAI technology, its development, deployment, and use of
implementation by companies, and GenAI technology. According to the
relevant government regulations. The paper, the establishment of a rights-

198 See: https://www.bu.edu/hic/files/2024/04/BU-AI- letter/05/ey-is-generative-ai-beginning-to-deliver-on-

Task-Force-Report.pdf. its-promise-in-india-aidea-of-india-update.pdf.
199 See: https://www.thecaq.org/auditing-in-the-age- 201 See:

of-generative-ai. https://www.ohchr.org/sites/default/files/documents/is
200 See: https://assets.ey.com/content/dam/ey- sues/business/b-tech/taxonomy-GenAI-Human-
sites/ey-com/en_in/topics/ai/2024/ai-news- Rights-Harms.pdf.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

based taxonomy is essential for Institute for the Study of Journalism & the
understanding how to operationalize the University of Oxford204. This report
United Nations Guiding Principles on analyzes a survey from six countries on
Business and Human Rights - UNGPs202 the usage and perceptions of GenAI,
in addressing the human rights risks highlighting ChatGPT's recognition and
associated with GenAI. This taxonomy sporadic use. It discusses public
focuses on demonstrating that the most expectations of AI's impact on various
significant harms to individuals related to sectors, concerns over responsible
GenAI are, in fact, impacts on usage, and skepticism towards AI-
internationally agreed human rights. generated news, suggesting that public
• «Strategic alliances for gen AI: How to engagement will shape AI's future
build them and make them work», article integration.
published in May 2024 by McKinsey & • «A new future of work: The race to deploy
Company203. This article explores the AI and raise skills in Europe and
transformative potential of GenAI in beyond», report published in May 2024
business, emphasizing the need for by McKinsey & Company205. This report
strategic alliances with providers. It analyzes how GenAI and other
highlights the importance of deep technologies could transform jobs in
collaboration, selecting scalable and Europe and the US by 2030, highlighting
interoperable providers, and maintaining the need for accelerated technology
control over one's technological destiny adoption and significant upskilling to
to maximize economic impact. manage labor market shifts and enhance
• «What Does the Public in Six Countries productivity growth, amidst changing
Think of Generative AI in News?», demands in various occupations.
published in May 2024 by the Reuters

202 See: 204 See: https://reutersinstitute.politics.ox.ac.uk/what-

https://www.undp.org/sites/g/files/zskgke326/files/mig does-public-six-countries-think-generative-ai-news.
ration/in/UNGP-Brochure.pdf. 205 See: https://www.mckinsey.com/mgi/our-
203 See: research/a-new-future-of-work-the-race-to-deploy-ai-
https://www.mckinsey.com/capabilities/mckinsey- and-raise-skills-in-europe-and-beyond.
digital/our-insights/strategic-alliances-for-gen-ai-how-
to-build-them-and-make-them-work.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

• «Building an enterprise approach for to enhance internal compliance, focusing

generative AI: A guide for boards and on privacy, data protection, and ethical
business leaders», report published in considerations. Key aspects include
May 2024 by Amazon Web Services cross-team collaborations, public policy
(AWS) in collaboration with Deloitte206. awareness, and legal engagement to
This whitepaper outlines a strategic manage risks and ensure responsible
approach for boards and business use of AI tools, crucial for maintaining
leaders to leverage GenAI. It details consumer trust and legal compliance in a
critical building blocks, risk management, dynamic technological landscape.
and support systems, illustrated by a • «Intelligent financial system: how AI is
case study of Chorus Limited's 75% transforming finance», working paper
productivity boost through AI-assisted published in June 2024 by the Bank for
aggregation and insight generation. International Settlements – BIS208. This
paper analyzes the impact of GenAI and
1.3. JUNE potential AGI on finance, covering
1.3.1. INTERNATIONAL intermediation, insurance, asset
• «Generative AI for Organizational Use: management, and payments. It assesses
Internal Policy Considerations», report implications for financial stability,
published in June 2024 by the Future of prudential policy, and the real economy,
Privacy Forum207. This report addresses proposing a framework for financial
evolving responsibilities and high-risk regulation based on AI governance
uses of GenAI in light of recent regulatory principles.
developments. Drawing from extensive • «Generative AI Controls Framework -
consultations with experts across Safe, Secure, and Compliant AI Adoption
industries, this document serves as a Approach – Whitepaper», published in
comprehensive guide for organizations June 2024 by IBM Institute for Business

206 See: policy-considerations-resource-to-provide-new-key-

https://www2.deloitte.com/jp/en/pages/technology/arti lessons-for-practitioners/.
cles/ea/aws-gen-ai.html. 208 See: https://www.bis.org/publ/work1194.htm.
207 See: https://fpf.org/blog/newly-updated-guidance-

fpf-releases-updates-to-the-generative-ai-internal-

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

Value209. This report outlines the critical steps to integrate GenAI applications,
importance of GenAI in gaining considering risk and business factors,
competitive advantage. It highlights the and building a sustainable model within
adoption rates, ethical concerns, and the bank for optimal use of GenAI. It
strategic priorities in financial services. emphasizes understanding and
The report introduces the Trusted and managing associated risks, answers
Secure Gen AI Framework, designed executives' crucial questions, addresses
with the IBM Financial Services Cloud their concerns, and guides them in
Council, to manage AI-specific risks and embracing GenAI to sustain and grow
ensure trustworthy AI deployment. Key their banking business.
components include AI application, • «Trusted Journalism in the Age of
model, data, and infrastructure security Generative AI», published in June 2024
controls. by European Broadcasting Union
• «Generative Artificial Intelligence in (EBU)212. This report examines the
Fintech: A Journey (Part 2)», whitepaper impact of GenAI on the news industry,
published in June 2024 by Quod detailing how this technology can help
Financial210. This paper discusses the news organizations enhance audience
impact of GenAI on the software industry engagement, achieve efficiency gains,
and outlines the experiments and and mitigate risks while upholding ethical
expectations of a fintech firm in standards. It also addresses ongoing
response. debates in newsrooms and the scientific
• «Generative AI in Banking - A Must for community.
Compliance and Growth», published in
June 2024 by Samlink – A Kyndryl 1.3.2. EUROPE
Company211. This document outlines 1.3.2.1. EUROPEAN UNION

209 See: 211 See:

https://community.ibm.com/community/user/fscc/view https://samlink.fi/app/uploads/2024/06/Samlink_Gene
document/generative-ai-controls-framework- rative_AI_In_Banking_Web.pdf.
sa?CommunityKey=911102bb-642f-450c-a1ea- 212 See: https://www.ebu.ch/guides/open/report/news-

0187c94429ba&tab=librarydocuments. report-2024-trusted-journalism-in-the-age-of-
210 See: https://www.quodfinancial.com/gen-ai- generative-ai.
intelligence/.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

• «GDPR & Generative AI - A Guide for advertising. It covers regulations, case-

Customers», report produced in May law on intellectual property and privacy,
2024 and published in June 2024 by and potential legislative impacts on the
Microsoft213. This report explores digital advertising sector, providing a
Microsoft's commitment to enabling the comprehensive industry overview.
use of GenAI while ensuring GDPR
compliance. It details responsible AI 2. REPORTS, GUIDELINES,
development, privacy commitments, and RECOMMENDATIONS AND
key GDPR obligations, providing
OTHER DOCUMENTS PUBLISHED
guidance on leveraging AI solutions like
BY REGULATORY AND
Copilot for Microsoft 365 and Azure
SUPERVISORY AUTHORITIES,
OpenAI Service within a secure and
compliant framework. INTERNATIONAL

ORGANIZATIONS, AND OTHER

1.3.3. NORTH AMERICA PUBLIC INSTITUTIONS AND
1.3.3.1. USA
AGENCIES
• «Legal Issues and Business
2.1. APRIL
Considerations When Using Generative
2.1.1. EUROPE
AI in Digital Advertising», whitepaper
2.1.1.1. FRANCE
published in June 2024 by the IAB Legal
• «Recommandations de Sécurité pour un
Affairs Council Generative AI Working
Système d'IA Générative» («Security
Group214. This report presents a
Recommendations for a Generative AI
whitepaper on legal and business
System»), published in April 2024 by the
considerations for using GenAI in digital
French Republic215. This document aims

213 See: 215See:

https://techcommunity.microsoft.com/t5/security- https://cyber.gouv.fr/sites/default/files/document/Reco
compliance-and-identity/introducing-our-new- mmandations_de_s%C3%A9curit%C3%A9_pour_un
whitepaper-gdpr-amp-generative-ai-a-guide/ba- _syst%C3%A8me_d_IA_g%C3%A9n%C3%A9rative.
p/4158935. pdf.
214 See: https://www.iab.com/guidelines/legal-issues-

and-business-considerations-when-using-generative-
artificial-intelligence-in-digital-advertising/.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

to provide security recommendations on Institute of Standards and Technology

the implementation of GenAI solutions (NIST)217. This document serves as an
based on LLMs within public and private auxiliary resource for GenAI in relation to
entities. the AI Risk Management Framework - AI
RMF218, in accordance with President
2.1.1.2. GERMANY Biden’s Executive Order - EO 14110 on
• «Generative AI Models - Opportunities Safe, Secure, and Trustworthy Artificial
and Risks for Industry and Authorities», Intelligence219. The AI RMF 1.0 was
report published in April 2024 by the issued in January 2023 and is designed
Federal Office for Information Security for voluntary adoption to enhance
(BSI)216. This report examines the dual organizations' ability to integrate
aspects of GenAI models: their potential trustworthiness considerations into the
for innovation and inherent IT security design, development, use, and
risks. It advocates for thorough risk evaluation of AI products, services, and
analyses by users and developers prior systems. Additionally, this resource
to integration, highlighting necessary functions as both a use-case and a
adjustments and enhancements to cross-sectoral profile for the AI RMF 1.0.
existing security measures.
2.2. MAY
2.1.2. NORTH AMERICA 2.2.1. INTERNATIONAL
2.1.2.1. USA • «Emerging Risks and Opportunities of
• «Artificial Intelligence Risk Management Generative AI for Banks: A Singapore
Framework: Generative Artificial Perspective», published in May 2024 by
Intelligence Profile», initial public draft the MindForge consortium (Monetary
published in April 2024 by the National Authority of Singapore (MAS), Citi , DBS
Bank, HSBC, OCBC, Standard

216 See: 218 See:

https://www.bsi.bund.de/SharedDocs/Downloads/EN/ https://nvlpubs.nist.gov/nistpubs/ai/nist.ai.100-1.pdf.
BSI/KI/Generative_AI_Models.html. 219 See: https://www.whitehouse.gov/briefing-
217 See: https://airc.nist.gov/docs/NIST.AI.600- room/presidential-actions/2023/10/30/executive-
1.GenAI-Profile.ipd.pdf. order-on-the-safe-secure-and-trustworthy-
development-and-use-of-artificial-intelligence/.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

Chartered, The Association of Banks in 2024 by the European Commission221.

Singapore (ABS), UOB, Accenture, This report addresses the burgeoning
Google & Microsoft220. This whitepaper, field of GenAI. It highlights concerns
developed by the Project MindForge, regarding the potential misuse of this
explores the use of GenAI in the financial technology and underscores the
sector. It examines the significant necessity for mechanisms to identify
benefits such as enhanced customer machine-generated content.
satisfaction and improved decision- • «Report of the work undertaken by the
making, alongside potential risks that ChatGPT Taskforce», report published in
surpass traditional AI concerns. Covering May 2024 by European Data Protection
seven risk dimensions from fairness and Board222. This report examines the
bias to cyber and data security, the paper regulatory challenges and GDPR
also proposes a platform-agnostic compliance requirements facing LLMs,
reference architecture to guide specifically focusing on OpenAI's
responsible adoption. Highlighting use ChatGPT service. It emphasizes the
cases and the necessity for continuous importance of transparency, fairness,
monitoring and human oversight, this data accuracy, and the protection of data
document sets a comprehensive subjects' rights, urging all data controllers
framework for deploying GenAI in a way to adhere strictly to GDPR principles,
that is both effective and secure. including data protection by design.

2.2.2. EUROPE 2.2.2.2. UNITED KINGDOM

2.2.2.1. EUROPEAN UNION • «Generative AI fourth call for evidence:
• «Generative AI Transparency: engineering individual rights into
Identification of Machine-Generated generative AI models», published in May
content», policy brief published in May

220 See: https://www.britcham.org.sg/knowledge- 222See: https://www.edpb.europa.eu/our-work-

bank/emerging-risks-and-opportunities-generative-ai- tools/our-documents/other/report-work-undertaken-
banks-singapore-perspective. chatgpt-taskforce_en.
221 See:

https://publications.jrc.ec.europa.eu/repository/handle
/JRC137136.

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2024 by the Information Commissioner's and Information - MCI)224. This

Office223. This call for evidence presents framework identifies nine dimensions for
the Information Commissioner's Office's creating a trusted environment, aiming to
developing perspectives on the creation enable end-users to utilize GenAI
and application of GenAI, as part of its confidently and safely, while also
ongoing series of consultations on the fostering innovation. Acknowledging that
subject. This fourth installment no single intervention can fully address
concentrates on individual rights— the various existing and emerging AI
specifically, the data protection rights risks, this framework provides a set of
that individuals hold regarding their practical initial suggestions. Additionally,
personal information, particularly in the it aims to facilitate global discussions
contexts of training and fine-tuning among policymakers, industry leaders,
GenAI systems. It offers a synopsis of the and researchers to support trusted
analysis conducted and outlines the development internationally.
policy stances the Information
Commissioner's Office seeks to discuss 2.6. JUNE
and refine through this consultation. 2.6.1. EUROPE
2.6.1.1. EUROPEAN UNION
2.2.3. ASIA • «Generative AI and the EUDPR. First
2.2.3.1. SINGAPORE EDPS Orientations for ensuring data
• «Model AI Governance Framework for protection compliance when using
Generative AI - Fostering a trusted AI Generative AI systems.», published in
ecosystem», published in May 2024 by June 2023 by the EDPS - European Data
AI Verify Foundation & the Infocomm Protection Supervisor225. This
Media Development Authority – IMDA orientations document provides practical
(Singapore Ministry of Communications guidance for European Union institutions

223 See: https://ico.org.uk/about-the-ico/what-we- 225See:

do/our-work-on-artificial-intelligence/generative-ai- https://www.edps.europa.eu/system/files/2024-05/24-
fourth-call-for-evidence/. 05-29_genai_orientations_en_0.pdf.
224 See: https://aiverifyfoundation.sg/resources/mgf-

gen-ai/.

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(EUIs) on handling personal data to develop their GenAI products such as

responsibly when using GenAI systems. ChatGPT and Copilot, thereby violating
It emphasizes compliance with the copyright laws. The lawsuit asserts that
GDPR to safeguard individual rights and this infringement is not merely a
freedoms. While the GDPR doesn't technological dispute but a clear violation
explicitly mention AI, the document of legal rights where the defendants have
highlights the importance of correctly capitalized on journalism to build
interpreting data protection principles for lucrative AI enterprises without
ethical AI use. The document also compensation. It stresses that the lawsuit
acknowledges the evolving nature of AI aims to enforce the principle that
technology. To accommodate this, the Microsoft and OpenAI must secure
guidance has a broad scope, aiming to permission and offer fair compensation
cover various GenAI scenarios and for using the publishers' content. The
applications. newspapers are seeking various legal
remedies, including statutory and
4. LITIGATION & CASE-LAW compensatory damages, restitution, and

3.1. APRIL disgorgement. They also demand a

3.1.1. NORTH AMERICA permanent injunction against further

3.1.1.1. USA unlawful activities and the destruction of

• A group of prominent U.S. newspapers, all AI models and datasets that include

including the New York Daily News, have the infringed works.

initiated a lawsuit against OpenAI and • In April 2024, visual artists Jingna Zhang,
Microsoft in April 2024226. The legal Sarah Andersen, Hope Larson, and

action accuses both tech giants of using Jessica Fink filed a lawsuit against

millions of copyrighted articles from Google, alleging that the tech giant used

these newspapers without authorization their artworks without permission for

training its AI-based image generator227.

226See: 227 See: https://www.classaction.org/media/zhang-et-

https://fingfx.thomsonreuters.com/gfx/legaldocs/jnpwx al-v-google-llc-et-al.pdf.
mwwbvw/OPENAI%20NEWSPAPER%20COPYRIG
HT%20LAWSUIT%20complaint.pdf.

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According to the lawsuit, the artists statutory damages, actual damages,

assert that they never granted Google restitution of profits, and other legal
authorization to utilize their copyrighted remedies.
works in any manner. Despite this,
Google has been accused of breaching 3.2. MAY
their exclusive rights to reproduce, create 3.2.1. NORTH AMERICA
derivative works from, display, and 3.2.1.1. USA
distribute their artworks. The complaint • In a significant tentative ruling dated May
elaborates that Google allegedly 2024, a judge ruled in favor of artists
incorporated the plaintiffs’ images into Sarah Andersen, Karla Ortiz, and Kelly
the training datasets for various versions McKernan, allowing their lawsuit against
of its GenAI tool Imagen, including GenAI companies Stability AI, Runway,
Imagen 2, as well as for other multimodal and Midjourney to proceed to the
AI models that combine image and text discovery phase228. The court found
data, such as Google Gemini. These credible the artists' claims that
models, trained on the LAION-400M compressed copies of their works may
dataset, are collectively referred to in the be stored as mathematical data within
lawsuit as the Google–LAION Models. the AImodels. This ruling indicates that
The lawsuit also implicates Alphabet Inc., these aspects should be further
Google's parent company, claiming that examined and tested against existing
Alphabet Inc. had both the right and the copyright laws at the summary judgment
ability to oversee Google's activities but stage. However, the judge expressed a
failed to prevent the alleged readiness to dismiss all Digital
infringements. As a result, the artists Millennium Copyright Act (DMCA) claims
argue that they have suffered damages brought by the artists. Additionally, the
due to Alphabet Inc.'s lack of oversight judge indicated a disposition to deny
and are seeking compensation through Midjourney’s request to dismiss the

228See: https://www.courthousenews.com/wp-
content/uploads/2024/05/anderson-v-stability-
tentative-ruling-mtd.pdf.

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accusations related to false endorsement

and trade dress, suggesting those parts
of the lawsuit could move forward.

3.3. JUNE
3.3.1. NORTH AMERICA
3.3.1.1. USA
• In June 2024, the Center for Investigative
Reporting, Inc. has filed a lawsuit against
OpenAI and Microsoft, alleging copyright
infringement. The Center for
Investigative Reporting, Inc. claims the
defendants copied, used, and displayed
its content without authorization or
compensation, damaging The Center for
Investigative Reporting, Inc.'s
relationships and revenue streams. The
lawsuit emphasizes the importance of
copyright law in protecting creative
works, as outlined in the U.S.
Constitution and Copyright Act. The
Center for Investigative Reporting, Inc.
accuses OpenAI and Microsoft of
knowingly including copyrighted
journalism in their training sets, leading
to unauthorized use and distribution,
removal of copyright information, and
training AI models to disregard copyright
protections.

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Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

IV. OTHER AREAS RELATED TO

WEB3 & WEB4
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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

identifiers (LEIs) for the future of

digitalized trade, underscoring their role
in achieving sustainability goals and
improving supply chain visibility. It should
serve as an alert that adoption rates
within the business community are
alarmingly low to non-existent, and that
the digital identity infrastructure for trade
is fragmented and inadequate for
modern, international trade.
• «Driving 5G-Advanced to 6G»,
A. WEB 3.0, WEB 4.0 & DIGITAL
whitepaper authored by Dimitris
TRANSFORMATION
Mavrakis & Malik Kamal Saadi, and
1. RESEARCH CONDUCTED BY published in April 2024 by ABI Research
INDIVIDUALS, COMPANIES, in collaboration with InterDigital, Inc230.

ASSOCIATIONS AND This whitepaper explores the potential of

5G Advanced, and certain aspects of
UNIVERSITIES
foundational 5G, as a precursor to the
1.1. APRIL
innovations anticipated in 6G. This
1.1.1. INTERNATIONAL
document highlights the critical priority
• «Scaling the use of digital identities in
for 5G Advanced to monetize existing 5G
trade», report published in April 2024 by
networks beyond the consumer sector. It
the Global Legal Entity Identifier
delves into strategies for creating large-
Foundation (GLEIF), World Trade Board,
scale opportunities in the enterprise
ICC United Kingdom & Center for Digital
domain for mobile operators and
Trade & Innovation229. This report
infrastructure vendors, positioning these
highlights and offers use cases on the
crucial importance of legal entity

229See: https://iccwbo.uk/scaling-the-use-of-digital- 230See:

identities-in-trade/?comment=130520940796. https://www.interdigital.com/white_papers/driving-5g-
advanced-to-6g.

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advancements as key drivers in the next Blockchain Labs and HashKey Group,
wave of technological evolution. the event convened industry leaders and
• «The EU Regulation Triumvirate Blog representatives from the Web3 sector,
Post Series», authored by Mark Boyd & including regulatory bodies, to explore
Mariana Velásquez, and published in emerging technologies and discuss
April 2024 by Platformable231. This report pivotal challenges and opportunities in
outlines three new regulations impacting the development of the industry.
European Union stakeholders in the
open banking/ open finance ecosystem. 1.2. MAY
Essential for banks, fintechs, and 1.2.1. INTERNATIONAL
regulators, it emphasizes preparation for • «Embracing Digital Product Passport as
2024 regulatory standards and explores a regulatory requirement: Setting a new
opportunities for offering innovative standard for luxury experiences and
digital financial services and products to circularity», report published in May 2024
European Union citizens. by Deloitte in collaboration with the Aura
Blockchain Consortium233. This report
1.1.2. ASIA explores how luxury brands are adapting
1.1.2.1. HONG KONG to evolving market demands by finding
• «Hong Kong Web3 Festival 2024 - innovative ways to uphold their traditional
Bullish Insights Team», conference values while showcasing their
report published in April 2024 by commitment to emerging customer
Bullish232. This conference report priorities. One significant development
provides a summary analysis and a discussed in this report is the adoption of
selected session-by-session overview of the Digital Product Passport. This tool
one of Hong Kong's largest crypto events has rapidly become a vital solution for
to date, the WEB3 FESTIVAL 2024 . brands facing these new challenges,
Jointly organized by Wanxiang enabling them to transparently

231 See: https://platformable.com/blog/eu-open- 233See:

banking-regulations-2024. https://www2.deloitte.com/content/dam/Deloitte/ch/Do
232 See: https://bullish.com/news- cuments/consumer-business/ch-deloitte-embracing-
insights/insights/hong-kong-web3-festival-2024/. dpp-regulatory-requirement-en.pdf.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

communicate product origins, digitalization, and the need for enhanced

authenticity, and compliance with capacity building and coordination.
sustainability standards. The report • «Disruptive Innovations X - Ten More
delves into how this technology not only Things to Stop and Think About», report
assists brands in maintaining their published in May 2024 by Citi236. This
market positioning but also enhances report presents a diverse array of
consumer trust and engagement in a innovations identified by Citi experts. It
digitally evolving landscape. compiles a total of 100 groundbreaking
• «Digitalisation of finance», report innovations over its editions,
published in May 2024 by the Bank for incorporating datasets and
International Settlements – BIS234. The methodologies to spotlight innovation
report examines the impact of the themes. Featured topics include
continuous digitalization of finance on Antibody Drug Conjugates for targeted
banks and their supervision. It serves as cancer treatment, the potential of AI-
a follow-up to the «Sound Practices: powered Autonomous Agents,
Implications of fintech developments for advancements in FemTech for bridging
banks and bank supervisors» issued in gender health disparities, and the
2018235, and reviews recent integration of AI in Joint All-Domain
advancements in the field of financial Command and Control. The report also
digitalization. It explores both the explores emerging technologies like
advantages and challenges introduced Neuromorphic Computing, Piezoelectric
by new technologies and the rise of new Roads, Quantum Sensing, and
tech-enabled providers in the banking innovations in financial services with
sector. The document identifies eight key Smart Money.
implications for banks and supervisory • «Industry 5.0: Mass Personalization
bodies, focusing on macro-structural Driven by IoT and AI», whitepaper
factors, specific themes related to published in May 2024 by Intellias237.

234 See: https://www.bis.org/bcbs/publ/d575.htm. 236 See:

235 See: https://www.bis.org/bcbs/publ/d431.htm. https://www.citigroup.com/global/insights/citigps/disru
ptive-innovation-2.
237 See: https://intellias.com/industry-5-0-whitepaper/.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

This whitepaper explores the transition industrialization policy, focusing on

from Industry 4.0 to Industry 5.0, digital transformation to enhance
emphasizing the shift towards mass productivity and global relevance. It
personalization in manufacturing. It offers a guide for manufacturers,
delves into how advanced technologies particularly SMEs, to innovate business
like machine learning (ML), AI, computer models and integrate new technologies,
vision, and cognitive systems can be ensuring competitiveness in the
tailored to introduce a human touch in changing global market.
production processes. The document
highlights the necessity of integrating 1.3. JUNE
these technologies to not only enhance 1.3.1. INTERNATIONAL
product customization but also to • «Emerging Technology Trends:
improve overall consumer engagement JPMorgan Chase Perspective», report
and satisfaction. It addresses the critical published in June 2024 by
role these technologies play in redefining JPMorganChase239. This report outlines
industry standards and ensuring key areas in global technology
businesses meet the evolving demands modernization, covering cloud
of today’s personalized market infrastructure, AI-driven demand, and
landscape. chip competition. It discusses
advancements in quantum computing,
1.2.2. SOUTH AMERICA modern engineering practices, and
1.2.2.1. BRAZIL customer experience strategies.
• «Empowering Small and Medium-Sized Additionally, it explores AI-powered
Enterprises through Digital Business employee experience, large-scale data
Model Innovation», published in May and AI/ ML deployment, and enhanced
2024 by the World Economic Forum238. security measures for the firm.
This report explores Brazil's neo-

238See: 239See:
https://www.weforum.org/publications/empowering- https://www.jpmorgan.com/content/dam/jpmorgan/do
small-and-medium-sized-enterprises-through-digital- cuments/technology/jpmorganchase-emerging-
business-model-innovation/. technology-trends-a-jpmorganchase-perspective.pdf.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

• «Top 10 Emerging Technologies of digital regulations for 2024, focusing on

2024», report published in June 2024 by cybersecurity and data242. It covers the
the World Economic Forum240. This NIS2 Directive, Cyber Resilience Act,
report leverages insights from scientists Digital Operational Resilience Act, Data
and futurists to identify 10 disruptive Act, Digital Services Act, Digital Markets
technologies expected to impact Act, and AI Act, detailing their
societies and economies within five implications for businesses.
years. • «Digital Operational Resilience Act
• «Web3: A new era for social commerce», (DORA): Navigating the new regulatory
report published in July 2024 by ONYX landscape», report published in June
Insight (J.P. Morgan)241. This report 2024 by Taylor Wessing243. This report
explores the paradigm shift from Web2 to examines the European Union's Digital
Web3 and its impact on social Operational Resilience Act (DORA)
commerce. It examines emerging Web3 within the context of increasing digital
platforms and applications, highlighting reliance in financial services. It highlights
innovative functionalities including Web3 the fragmented nature of current
wallets, digital identity, open algorithms, regulations, the critical need for
and streamlined payments for users and harmonization, and the European
brands. Union's efforts to enhance cybersecurity
and operational resilience through
1.3.2. EUROPE comprehensive, unified guidelines for
1.3.2.1. EUROPEAN UNION financial institutions.
• «EU Digital Regulations», report
published in June 2024 by White Label 2. REPORTS, GUIDELINES,
Consultancy. This report provides an RECOMMENDATIONS AND
overview of pivotal European Union
OTHER DOCUMENTS PUBLISHED

240 See: https://www.weforum.org/publications/top-10- 243See: https://www.taylorwessing.com/en/insights-

emerging-technologies-2024/. and-events/insights/2024/06/digital-operational-
241 See: https://www.jpmorgan.com/onyx/content- resilience-act-navigating-the-new-regulatory-
hub/web3-a-new-era-for-social-commerce. landscape.
242 See: https://whitelabelconsultancy.com/blog/.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

BY REGULATORY AND argues that expertise, evidence, and

SUPERVISORY AUTHORITIES, data should be essential components of

policy and law making processes.
INTERNATIONAL
Additionally, it emphasizes the need for
ORGANIZATIONS, AND OTHER
consistent application of ex-post
PUBLIC INSTITUTIONS AND quantified evaluations of legislation to
AGENCIES ensure its effectiveness and relevance.
2.1. APRIL • «Interoperable Europe Act», briefing
2.1.1. EUROPE published in April 2024 by the European
2.1.1.1. EUROPEAN UNION Parliament245. This briefing outlines the
• «Law and ICT», study published in April development and finalization of the
2024 and prepared by the European European Commission's proposal for the
Parliament’s Policy Department for Interoperable Europe Act, aimed at
Citizens’ Rights and Constitutional enhancing interoperability across the
Affairs at the request of the JURI European Union's public sector. It details
Committee244. This study examines the the legislative process, noting that the
impact of rapid advancements in ICT on proposal, introduced in November 2022,
access to data and information. It sought to foster collaboration between
outlines how these technological public and private sectors and streamline
improvements can enhance accessibility, operations for citizens and businesses.
reduce complexity, and increase The briefing highlights key milestones,
efficiency and adherence to fundamental including the adoption of positions by the
rights in policy, law making, and law European Parliament and the Council of
implementation. The study advocates for the European Union in late 2023,
a shift from traditional paper-based followed by the signing of the act in
methods to modern digital media in the March 2024 after a provisional
drafting and publication of laws. It also agreement. The act was officially

244 See: 245See:

https://www.europarl.europa.eu/thinktank/en/docume https://www.europarl.europa.eu/thinktank/en/docume
nt/IPOL_STU(2024)762738. nt/EPRS_BRI(2023)745711.

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enacted on 11 April 2024, with provisions It outlines priorities for secure digital
set to apply from 12 July 2024. spaces, fair competition, and enhanced
• «A future-proof network for the EU: Full digital sovereignty, aligned with
fibre and 5G», briefing published in April European Union's digital and green
2024 by the European Parliament246. transitions.
This briefing aims to offer an overview of
full fibre and 5G mobile networks as part 2.1.2. AUSTRALIA (& OCEANIA)
of the European Union's Digital Decade 2.1.2.1. AUSTRALIA
goal, which focuses on accelerating the • «Guidance for managing the risks of
deployment and investment in legacy ICT», published in April 2024 by
infrastructures that are prepared for the Australian Government in
future advancements. It addresses the collaboration with the Australian Signals
current status of full fibre and 5G mobile Directorate248. This publication offers
technology within the European Union, guidance to organizations on how to
highlights the challenges in attracting mitigate risks associated with legacy ICT
private investment, and examines new systems within their environments. It
business models for network provides a range of low-cost mitigation
deployment. strategies for legacy ICT, which
• «Digital agenda for Europe», fact sheet organizations can incorporate alongside
updated in April 2024 by the European their existing strategies, although these
Parliament247. This fact sheet examines are intended only as temporary solutions
the European Union digital agenda for for risk reduction. Primarily aimed at
2020-2030, highlighting the profound Australian Government entities, the
impact of digital service platforms and guidance is also applicable to any
emerging technologies like AI on society. organization seeking to manage the risks

246 See: 248See:

https://www.europarl.europa.eu/thinktank/pt/documen https://www.cyber.gov.au/sites/default/files/2024-
t/EPRS_BRI(2024)762298. 04/Guidance%20for%20managing%20the%20risks%
247 See: 20of%20legacy%20ICT_FA.pdf.
https://www.europarl.europa.eu/factsheets/en/sheet/6
4/digital-agenda-for-europe.

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posed by legacy ICT systems in their ICT Europe (CERRE)250. This report explores
environments. the impacts of deceptive user interfaces
in digital commerce. It critically evaluates
2.2. MAY the current regulatory frameworks and
2.2.1. EUROPE identifies challenges within digital
2.2.1.1. EUROPEAN UNION environments. Offering ten principles, the
• «Digital finance legislation: Overview and authors suggest broadening regulations
state of play», briefing published in May beyond intentional harm and emphasize
2024 by the European Parliament249. understanding the mechanisms and
This briefing outlines the European nature of harm. They advocate for
Union's strategic response to the regulations that facilitate easy user rights
evolution of digital finance, characterized exercise and require behavioral testing of
by the integration of innovative online architectures. This comprehensive
information and communication approach aims to enhance trust and
technologies across various financial empower consumers, ensuring that
sectors, from digital payment systems to digital choice architectures serve users
crypto-assets utilizing DLT. It highlights positively and equitably.
the potential benefits such as reduced • «Mass surveillance», factsheet
transaction costs and enhanced financial published in June 2024 by the European
inclusion, while also addressing the Court of Human Rights251. The factsheet
inherent risks to financial stability and addresses the problem of mass
consumer protection. monotyrization via cutting-edge
• «Harmful Online Choice Architecture», technologies under the excuse of
report authored by Christoph Busch and combating terrorism.
Amelia Fletcher, and published in May • «Conclusion Report», produced by the
2024 by the Centre on Regulation in Directorate-General for Communications

249 See: 251See:

https://www.europarl.europa.eu/thinktank/pt/documen https://www.echr.coe.int/documents/d/echr/fs_mass_
t/EPRS_BRI(2024)762308. surveillance_eng.
250 See: https://cerre.eu/publications/harmful-online-

choice-architecture/.

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Networks, Content and Technology, and

published in May 2024 by the EU 2.3. JUNE
Blockchain Observatory and Forum252. 2.3.1. EUROPE
This report provides a comprehensive 2.3.1.1. EUROPEAN UNION
overview of the EU Blockchain • «Eyes on the future: Signals from recent
Observatory and Forum's achievements reports on emerging technologies and
since its inception as part of the breakthrough innovations to support
European Commission's blockchain European Innovation Council strategic
strategy. It details the observatory's role intelligence», report published in June
in fostering blockchain innovation 2024 by the European Commission253.
compatible with European Union values, This report reviews literature from
highlighting its twenty thematic reports various organizations, summarizing 34
which cover key sectors like automotive, emerging technology trends across 11
healthcare, and energy. It also categories defined by the European
addresses the integration of blockchain Innovation Council and SMEs Executive
with emerging technologies like AI and Agency (EISMEA). It evaluates 186
virtual worlds and outlines the reports, distills 489 signals, and connects
observatory's community-building efforts these with European Union policies to
through workshops and hybrid events. support decision-making and funding
The report acknowledges the prioritization in technology.
collaborative efforts of Netcompany- • «EU-US Trade and Technology Council:
Intrasoft, the University of Nicosia, and The end of the legislative cycle could
Centre for Research & Technology mark a turning point», published in June
Hellas (CERTH), emphasizing their 2024 by the European Parliament254.
crucial contributions to the project's This briefing discusses the EU-US Trade
success.

252 See: https://blockchain- 254See:

observatory.ec.europa.eu/publications/eubof- https://www.europarl.europa.eu/thinktank/pt/documen
conclusion-report_en. t/EPRS_BRI(2024)762335.
253 See:

https://publications.jrc.ec.europa.eu/repository/handle
/JRC137811.

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and Technology Council's efforts to • «Safeguarding Brain Data: Assessing

bolster transatlantic trade and tech the Privacy Practices of Consumer
leadership, focusing on AI, 6G vision, Neurotechnology Companies», report
and platform regulation. It highlights the published in April 2024 by The
need for reform, including enhanced Neurorights Foundation255. The report
stakeholder involvement and streamlined presents an initial assessment of privacy
meeting frequency. practices within the consumer
neurotechnology market. It examines the
privacy policies and user agreements of
30 companies offering publicly available
products online, comparing them against
global data protection standards and
taking into account the unique
sensitivities of neuraldata. This
assessment provides valuable insights
into how consumer neurotechnology
companies handle neuraldata and the
corresponding consumer rights. It aims
to assist industry stakeholders, investors,
B. DATA & BIG DATA and consumers in promoting responsible
1. RESEARCH CONDUCTED BY innovation, safeguarding human rights,
INDIVIDUALS, COMPANIES, and ensuring the ethical advancement of

ASSOCIATIONS AND neurotechnologies. The analysis focuses

on five key thematic areas: access to
UNIVERSITIES
information, data collection and storage,
1.1. APRIL
data sharing, user rights, and data safety
1.1.1. INTERNATIONAL
and security.

255See: https://www.perseus-strategies.com/wp- chnology_Report_Neurorights_Foundation_April-

content/uploads/2024/04/FINAL_Consumer_Neurote 1.pdf.

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1.2. JUNE ORGANIZATIONS, AND OTHER

1.2.1. EUROPE PUBLIC INSTITUTIONS AND
1.2.1.1. EUROPEAN UNION
AGENCIES
• «Data Act - An Introduction», e-book
2.1. APRIL
authored by Moritz Hennemann, Dr.
2.1.1. EUROPE
Gordian Ebner, Benedikt Karsten,
2.1.1.1. EUROPEAN UNION
Gregor Lienemann & Marie Wienroeder,
• «Data Act explained - A comprehensive
and published in June 2024 by
overview of the Data Act, including its
Nomos256. This e-book analyzes the
objectives and how it works in practice»,
Data Act, detailing its scope, market
updated in April 2024 by the European
design, contractualization of data, user
Commission257. This overview details the
rights, enforcement mechanisms, SME
Data Act, a initiative aimed at addressing
exemptions, and public-sector data
data-related challenges and maximizing
access. It covers datasharing with third
opportunities within the European Union.
parties, technical protections, and
It outlines the Data Act's focus on
interoperability standards, providing a
promoting fair access and enhancing
comprehensive overview of the Data
user rights while maintaining robust
Act's regulatory framework and its
protection for personal data. The
implications.
document serves to explain how the Data
Act functions in practical terms, also
2. REPORTS, GUIDELINES,
offering insights into its implementation
RECOMMENDATIONS AND and impact of the Data Governance Act.
OTHER DOCUMENTS PUBLISHED

BY REGULATORY AND

SUPERVISORY AUTHORITIES,

INTERNATIONAL

256 See: https://www.nomos- 257See: https://digital-

elibrary.de/10.5771/9783748918691/data- strategy.ec.europa.eu/en/policies/data-act.
act?page=1.

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transforming the European Digital

Identity framework. It details the
significant updates introduced by eIDAS
2.0 and discusses their importance in
ensuring a secure experience for
European Union citizens.

1.2. MAY
1.2.1. INTERNATIONAL
• «Digital Identity», report published in
May 2024 by the Deutsche Bank in
C. DIGITAL IDENTITY
collaboration with Polygon Labs259. This
1. RESEARCH CONDUCTED BY
paper examines a blockchain and zero-
INDIVIDUALS, COMPANIES,
knowledge cryptography-based
ASSOCIATIONS AND sovereign, private digitalidentity
UNIVERSITIES infrastructure. This digital framework is
1.1. APRIL proposed as the foundation for future
1.1.1. EUROPE lifestyles that are predominantly digital
1.1.1.1. EUROPEAN UNION and fully integrated, taking advantage of

• «Unleashing the potential of Digital the convergence of Web3, the IoT, and

Identity. How the EU DI Wallet AI.

ecosystem is redefining the European

Digital Identity framework?», published in 2. REPORTS, GUIDELINES,

April 2024 by Worldline258. This RECOMMENDATIONS AND

whitepaper explores how the European OTHER DOCUMENTS PUBLISHED
Union Digital Identity Wallet ecosystem is
BY REGULATORY AND

258See: See: https://corporates.db.com/publications/White-

259

https://worldline.com/content/dam/worldline/global/do papers-guides/digital-identity.
cuments/white-papers/white-paper-unleashing-the-
potential-of-digital-identity.pdf.

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SUPERVISORY AUTHORITIES,

INTERNATIONAL

ORGANIZATIONS, AND OTHER

PUBLIC INSTITUTIONS AND

AGENCIES

2.1. JUNE
2.1.1. EUROPE
2.1.1.1. EUROPEAN UNION
• «Updating the European digital identity
framework», briefing published in June
D. DIGITAL MARKETS &
2024 by the European Parliament260.
This briefing outlines the European SERVICES
Travel Commission's proposal to update 1. REPORTS, GUIDELINES,
the European digital identity framework, RECOMMENDATIONS AND
allowing European Union citizens to
OTHER DOCUMENTS PUBLISHED
authenticate online and share digital
BY REGULATORY AND
documents. It details the approval
SUPERVISORY AUTHORITIES,
process through European Parliament
and the Council of the European Union, INTERNATIONAL

culminating in the framework's ORGANIZATIONS, AND OTHER

enactment on May 20, 2024. PUBLIC INSTITUTIONS AND

AGENCIES

1.1. APRIL
1.1.1. EUROPE
1.1.1.1. EUROPEAN UNION

260See:
https://www.europarl.europa.eu/thinktank/en/docume
nt/EPRS_BRI(2021)698772.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

• The European Commission has initiated about TikTok's effectiveness in

a second formal investigation in April implementing age verification
2024 under the Digital Services Act mechanisms. This aspect has been
(DSA) against TikTok, focusing on the previously highlighted in another DSA-
launch of TikTok Lite in France and related proceeding against TikTok
Spain261. This investigation scrutinizes initiated earlier in February262, which also
whether TikTok complied with DSA addressed issues related to the
requirements, which mandate that very platform's potentially addictive design.
large online platforms conduct and TikTok is required to submit the
submit a thorough risk assessment necessary risk assessment to the
report before introducing new European Commission by April 23 and
functionalities that might significantly provide additional requested information
impact their systemic risks. Central to by May 3. Failure to comply with these
this investigation is TikTok Lite's «Task deadlines could result in fines under the
and Reward Program», which rewards provisions of the DSA, emphasizing the
users for engaging in various activities on seriousness of these compliance
the platform such as watching videos, requirements.
liking content, following creators, and
inviting new users. The European 1.2. MAY
Commission is concerned that this 1.2.1. EUROPE
program was launched without a 1.2.1.1. EUROPEAN UNION
sufficient evaluation of its potential risks, • «Commission designates Booking as a
particularly its addictive effects, which gatekeeper and opens a market
could significantly influence user investigation into X», published in May
behavior. The issue of child safety is also 2024 by the European Commission263.
at the forefront, given ongoing concerns The European Commission has

261 See: 263See:

https://ec.europa.eu/commission/presscorner/detail/e https://ec.europa.eu/commission/presscorner/detail/e
n/ip_24_2227. n/IP_24_2561.
262 See:

https://ec.europa.eu/commission/presscorner/detail/e
n/ip_24_926.

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designated Booking.com as a to the European Commission's formal

gatekeeper under the DMA for its online inquiries about protecting minors and risk
intermediation service, Booking.com, assessment methodologies, publicly
while deciding not to designate X Ads accessible reports, and analysis
and TikTok Ads as such. Simultaneously, conducted by the European Commission
the European Commission has initiated a itself.
market investigation to further examine • In May 2024, the European Commission
the rebuttal submitted concerning the formally designated Temu as a Very
online social networking service X. Large Online Platform (VLOP) under the
• The European Commission initiated in Digital Services Act (DSA)265. According
May 2024 formal proceedings to to the press release, Temu, an online
evaluate if Meta, the company behind marketplace, averages more than 45
Facebook and Instagram, has violated million monthly users in the European
the Digital Services Act (DSA) Union. This user count, which Temu
concerning the protection of minors264. reported to the European Commission,
The European Commission's concerns exceeds the DSA threshold for
center on the possibility that the designation as a VLOP. Following this
platforms' systems, including their designation, Temu is required to comply
algorithms, might foster behavioral with the most stringent rules of the DSA
addictions among children and lead to within four months of its notification (i.e.,
what are referred to as «rabbit-hole by the end of September 2024). These
effects». The proceedings also scrutinize obligations include the duty to assess
the adequacy of Meta's age-assurance and mitigate any systemic risks
and verification methods. This action associated with their services, such as
follows a preliminary review of the risk the listing and sale of counterfeit goods,
assessment report Meta submitted in unsafe or illegal products, and items that
September 2023, responses from Meta infringe intellectual property rights.

264 See: 265 See:

https://ec.europa.eu/commission/presscorner/detail/e https://ec.europa.eu/commission/presscorner/detail/e
n/ip_24_2664. n/ip_24_3047.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

1.2.2. UNITED KINGDOM

• «Digital markets competition regime
guidance - CMA194con DRAFT -
Guidance on the digital markets
competition regime set out in the Digital
Markets, Competition and Consumers
Act 2024», published in May 2024 by the
Competition and Markets Authority266.
This guidance outlines the Competition
and Markets Authority's approach under
E. QUANTUM TECHNOLOGIES
the 2024 Digital Markets, Competition
1. RESEARCH CONDUCTED BY
and Consumers Act for regulating digital
INDIVIDUALS, COMPANIES,
markets. It details the criteria for
designating firms with strategic market ASSOCIATIONS AND

status (SMS) and the processes for SMS UNIVERSITIES

investigations. The document also 1.1. APRIL
describes methods for imposing and 1.1.1. INTERNATIONAL
revising conduct requirements on SMS • «Steady progress in approaching the
firms, assessing and applying pro- quantum advantage», article published in
competition interventions, and utilizing April 2024 by McKinsey & Company267.
investigatory powers. Additionally, it This article discusses the substantial
covers monitoring compliance, potential of quantum technology to
addressing breaches, and imposing generate trillions of dollars in value over
penalties. the next decade. Highlighting a year of
robust funding and strong foundational

266See: 267See:
https://assets.publishing.service.gov.uk/media/6650a https://www.mckinsey.com/capabilities/mckinsey-
56d8f90ef31c23ebaa6/Digital_markets_competition_r digital/our-insights/steady-progress-in-approaching-
egime_guidance.pdf. the-quantum-advantage.

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principles, the article explores significant accelerating their efforts to capitalize on

technological advancements that its potential. This document details the
indicate a growing momentum in the field substantial investments made by major
of quantum technology. global players—China, the United
States, and the European Union—as
2. REPORTS, GUIDELINES, they compete for technological

RECOMMENDATIONS AND dominance. Additionally, the briefing

addresses the accompanying security
OTHER DOCUMENTS PUBLISHED
and regulatory challenges that arise with
BY REGULATORY AND
these advancements.
SUPERVISORY AUTHORITIES,

INTERNATIONAL

ORGANIZATIONS, AND OTHER

PUBLIC INSTITUTIONS AND

AGENCIES

2.1. APRIL
2.1.1. EUROPE
2.1.1.1. EUROPEAN UNION
• «Quantum: What is it and where does the
EU stand?», published in April 2024 by
the European Parliament268. This briefing
examines the critical emergence of F. FINCRIME, AML,
quantum information science and
CYBERCRIME &
technologies, highlighting a significant
juncture in technological progress. As the CYBERSECURITY
strategic value of quantum technology
gains global recognition, nations are

268See:
https://www.europarl.europa.eu/thinktank/pt/documen
t/EPRS_ATA(2024)760413.

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 Tech Review Q2 2024 – A review on key regulatory and non-regulatory developments

1. RESEARCH CONDUCTED BY today's fraudsters and their evolving

INDIVIDUALS, COMPANIES, tactics. The document includes case

studies and success stories from industry
ASSOCIATIONS AND
leaders, providing actionable insights to
UNIVERSITIES
fortify defenses and protect assets in the
1.1. APRIL
evolving fraud landscape of 2024.
1.1.1. INTERNATIONAL
• «Strategic Cybersecurity Talent
• «Hack3d: The Web3 Security Quarterly
Framework», whitepaper published in
Report - Q1 2024 Edition», published in
April 2024 by the World Economic
April 2024 by CertiK269. This report
Forum271. This whitepaper is designed to
includes a compilation of data and
act as a reference for public and private
insights on onchain security breaches. It
decision-makers who are concerned
provides essential information to
about the industry workforce shortage
stakeholders, empowering them to
and are committed to cultivating robust
navigate the complexities of a high-risk
cybersecurity talent across their
landscape with well-informed strategies.
respective sectors. According to the
• «The Anatomy of the New Fraudster», whitepaper, in collaboration with over 50
guide published in April 2024 by BPC
public and private organizations, a
Banking Technologies270. This document strategic Cybersecurity Talent
serves as an guide for understanding Framework (CTF) has been developed,
and combating modern fraud threats. It featuring actionable approaches
offers comprehensive insights and designed to assist organizations in
strategies, exploring the latest trends,
building sustainable talent pipelines. The
emerging technologies, and effective
CTF addresses key priorities such as
security measures. Readers will find in-
attracting talent into cybersecurity,
depth analysis of the modus operandi of
educating and training professionals,

269 See: 271See:

https://www.certik.com/resources/blog/hack3d-the- https://www.weforum.org/publications/strategic-
web3-security-quarterly-report-q1-2024. cybersecurity-talent-framework/.
270 See: https://bpcbt.com/en/guide/the-anatomy-of-

the-new-fraudster-2024.

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recruiting the right individuals, and 2024 by Elliptic273. This report identifies
retaining cybersecurity professionals. five emerging AI-enabled crime
typologies in the crypto-asset
1.2. MAY ecosystem, aiming to equip compliance
1.2.1. INTERNATIONAL professionals and investigators with tools
• «Unveiling the Dark Side of GenAI: How to monitor and mitigate risks. It aims to
People Trick Bots into Revealing support the sustainable, safe, and secure
Company Secrets», report published in development of both the crypto and AI
May 2024 by Immersive Labs272. This sectors for universal benefit.
report explores prompt injection • «Generative AI Tracker®: Can
techniques used to manipulate chatbots Generative Al Break the Payments Fraud
(or bots) and highlights the significant Cycle?», report published in June 2024
threat these novel attacks pose to by PYMNTS274. This report delves into
organizations, emphasizing the the use of GenAI in payments’ fraud
necessity for collaboration between the detection. It examines modern fraud
public and private sectors. It aims to detection needs, the leadership of
inform and prepare leaders to confront financial giants in AI advancements, the
this GenAI escalating threat. potential of GenAI to enhance security,
Furthermore, the report provides key and the technical, ethical, and regulatory
insights and strategies for risk mitigation. challenges that lie ahead for its adoption.

1.3. JUNE 2. REPORTS, GUIDELINES,

1.3.1. INTERNATIONAL RECOMMENDATIONS AND
• «AI-enabled crime in the cryptoasset
OTHER DOCUMENTS PUBLISHED
ecosystem - Exploring emerging risks
BY REGULATORY AND
and trends in crypto and artificial
SUPERVISORY AUTHORITIES,
intelligence», report published in June

272See: https://www.immersivelabs.com/wp- 273 See: https://www.elliptic.co/resources/ai-enabled-

content/uploads/2024/05/Study_Dark_Side_of_GenA crime-in-the-cryptoasset-ecosystem.
I.pdf. 274 See: https://www.pymnts.com/tracker/generative-

ai-payments-fraud-prevention/.

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INTERNATIONAL existing cybersecurity standards for each

ORGANIZATIONS, AND OTHER CRA requirement, analyze their

coverage within the intended scope, and
PUBLIC INSTITUTIONS AND
address potential gaps.
AGENCIES
• «Artificial intelligence and
2.1. APRIL
cybersecurity», briefing published in April
2.1.1. EUROPE
2024 by the European Parliament276.
2.1.1.1. EUROPEAN UNION
This briefing discusses the integration of
• «Cyber Resilience Act Requirements
AI into daily life and its potential to
Standards Mapping», published in April
reshape the digital landscape. It
2024 by the European Commission in
addresses the wide-ranging influence of
collaboration with European Union
AI, from personal data security to
Agency for Cybersecurity (ENISA)275.
national defense strategies, and
This report explains that the escalating
emphasizes the growing importance of
cyber attacks on digital products and
cybersecurity in this context.
their financial ramifications prompt the
European Commission's drafting of the
2.1.2. NORTH AMERICA
Cyber Resilience Act (CRA), which
2.1.2.1. USA
proposes a legislative framework
• «2024 Report on the Cybersecurity
defining essential cybersecurity
Posture of the United States», published
requirements for manufacturers placing
in May 2024 by the White House277. This
digital products on the internal market.
report evaluates cybersecurity stance in
To facilitate adoption, the report
the US, the effectiveness of its national
suggests translating these requirements
cyber policy and strategy, and the
into harmonized standards. Additionally,
progress of federal departments and
this study aims to identify relevant

275See: 276 See:

https://www.enisa.europa.eu/publications/cyber- https://www.europarl.europa.eu/thinktank/en/docume
resilience-act-requirements-standards- nt/EPRS_ATA(2024)762292.
mapping#artificialera. 277 See: https://www.whitehouse.gov/oncd/briefing-

room/2024/05/07/fact-sheet-cybersecurity-posture-
report/.

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agencies in implementing these deepfakes, to deceive victims and

strategies. Furthermore, the report obscure their identities. It also highlights
outlines cybersecurity threats and the rising trend of «scam centres» in
challenges that the US faces, particularly regions like Southeast Asia, Africa,
focusing on new or emerging Eastern Europe, and Latin America,
technologies that could impact national where offenders are sometimes coerced
security, economic stability, and the rule into fraud through human trafficking.
of law. Furthermore, the assessment discusses
the growing prevalence of the «pig-
2.2. MAY butchering» fraud scheme, which
2.2.1. INTERNATIONAL merges romance and investment fraud,
• «Interpol Global Financial Fraud often involving cryptocurrencies. The
Assessment», report published in May document underscores the complexity of
2024 by the Interpol278. This assessment financial fraud networks and the
provides a detailed analysis of financial convergence of various cybercrimes,
fraud offenses and offenders based on underscoring the urgent need for
Interpol data, including Notices and enhanced data collection and analysis to
Diffusions. The assessment reveals that develop more effective
the most common types of financial fraud countermeasures.
at a global level are investment fraud,
advance-payment fraud, romance fraud, 2.2.2. NORTH AMERICA
and business email compromise. It 2.2.2.1. USA
illustrates how these crimes increasingly • «Illicit Finance Risk Assessment of Non-
exploit ICT, reflecting their transnational Fungible Tokens», assessment
and transcontinental scope. According to published in May 2024 by the U.S.
the assessment, fraudsters are utilizing Department of the Treasury279. The risk
emerging technologies, such as AI and assessment examines the vulnerabilities

278See: https://www.interpol.int/News-and- 279See: https://home.treasury.gov/news/press-

Events/News/2024/INTERPOL-Financial-Fraud- releases/jy2382.
assessment-A-global-threat-boosted-by-technology.

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of NFTs and NFT platforms that could be This report discusses the significant
exploited for illicit financial activities such potential of GenAI to enhance
as money laundering, terrorist financing, productivity and improve public services,
and proliferation financing. This scrutiny while also addressing concerns over
is part of an effort to monitor emerging labor disruptions and rising inequality. It
threats in the digital asset sector and recommends agile fiscal policies to
address global challenges in setting AML optimize the benefits of AI, mitigate
and CTF standards for NFTs. Despite negative effects, and prepare for varied
recognizing that most illicit transactions future scenarios.
occur through traditional methods and
fiat currencies, the report acknowledges 2.3.2. EUROPE
that NFTs have potential vulnerabilities 2.3.2.1. EUROPEAN UNION
that could be exploited for fraud, scams, • «New European cybersecurity
and laundering illicit funds. The competence centre and network»,
assessment suggests that while NFT briefing published in June 2024 by the
markets have fluctuated, the potential European Parliament281. This briefing
risks demand ongoing vigilance, summarizes the development and
improved regulatory measures, and implementation of the European Union's
increased public and industry cybersecurity initiatives, beginning with
awareness. the adoption of a cybersecurity package
by the European Commission on 13
2.3. JUNE September 2017. This package aimed to
2.3.1. INTERNATIONAL enhance European Union cyber-
• «Broadening the Gains from Generative resilience and defense capabilities. In
AI: The Role of Fiscal Policies», September 2018, the European
discussion note published in June 2024 Commission proposed establishing a
by the International Monetary Fund280. European cybersecurity competence

280See: https://www.imf.org/en/Publications/Staff- 281See:

Discussion-Notes/Issues/2024/06/11/Broadening-the- https://www.europarl.europa.eu/thinktank/pt/documen
Gains-from-Generative-AI-The-Role-of-Fiscal- t/EPRS_BRI(2019)635518.
Policies-549639.

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centre and a network of national court rulings related to overcoming

coordination centres to strengthen encryption when it poses an obstacle to
European Union cybersecurity criminal investigations, particularly
infrastructure. This centre was concerning the admissibility of evidence.
designated to manage European Union
funds for cybersecurity research under 3. LITIGATION & CASE-LAW
the Digital Europe and Horizon Europe 3.1. MAY
programs from 2021 to 2027. Following 3.1.1. NORTH AMERICA
extensive negotiations and trilogue 3.1.1.1. USA
meetings, the legislation was enacted on • Federal prosecutors in Manhattan
28 June 2021. charged, in May 2024, two graduates
• «First Report on Encryption», published from the Massachusetts Institute of
in June 2024 by the EU Innovation Hub Technology with orchestrating a
for Internal Security (Europol, Eurojust, sophisticated crypto theft283. Anton and
European Commission’s Directorate- James Peraire-Bueno are accused of
General for Migration and Home Affairs - exploiting the Ethereum blockchain and
DG HOME, European Commission’s stealing $25 million from traders within
Joint Research Center - JRC, European 12 seconds. This incident, described as
Council’s Counter-Terrorism unprecedented by the authorities, is the
Coordinator, European Union Agency for first U.S. criminal case of its kind. The
the Operational Management of Large- brothers, leveraging their Massachusetts
Scale IT Systems in the Area of Institute of Technology background in
Freedom, Security and Justice - EU- computer science and mathematics,
LISA)282. This report offers an analysis of allegedly identified and utilized a
encryption from legislative, technical, loophole in a program called MEV-boost,
and developmental perspectives. It also which is employed by Ethereum
examines specific judicial processes and validators for transaction verification.

282See: https://www.europol.europa.eu/publications- 283See: https://www.justice.gov/d9/2024-

events/publications/first-report-encryption. 05/us_v._anton_peraire-bueno_and_james_peraire-
bueno_indictment.pdf.

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After securing the funds, they are

accused of engaging in money
laundering to hide the origin of the stolen
cryptocurrency. They now face federal
charges of wire fraud and money
laundering.

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140