Regulators had a busy week. The EU’s AI Act transparency rules are now in effect, so companies must label AI-generated content. European financial watchdogs warned about a rise in MiCA-related fraud. The US Senate is still deciding whether to vote on the Clarity Act before the August break. At the same time, South Africa is taking steps to oversee cross-border crypto transfers.
The main challenge is not the regulations, but the difference between what regulators want and what actually happens. New rules send out new compliance signals, which can attract people trying to exploit them. The recent MiCA fraud wave shows this, and it likely won’t be the last time.
The EU’s AI Act transparency rules took effect on 02 August, according to The Guardian. Companies now have to clearly label AI-generated images, audio, video, and text, and let users know when they are interacting with an AI system rather than a person. These rules aim to fight deepfakes, misinformation, and other misleading uses of generative AI.
These rules apply to anyone who provides or uses generative AI systems in the EU. A voluntary Code of Practice, developed over the last nine months with input from industry, civil society, and member states, will help guide implementation. The code is not a substitute for the law, but it gives companies a practical way to comply. It remains to be seen if enforcement will be consistent across all 27 EU countries; regulators and courts will decide that over time.
The changes in European crypto regulations are also giving fraudsters new opportunities. The Financial Times reports that EU regulators are warning investors to be cautious, as scammers are impersonating crypto exchanges and financial watchdogs to trick people into sending assets to fake accounts. France’s AMF and ESMA have both confirmed instances of their names and logos being misused.
The mechanics are straightforward: MiCA’s July deadline made some platforms leave the EU market, so real customers have to move their assets. Scammers are taking advantage of this uncertainty by impersonating licensed providers or regulators to intercept these transfers. Officials are advising investors to double-check any requests before moving funds. Last month’s round-up covered how MiCA was beginning to function as a market access filter; this week’s development shows what can happen at the edges of that filter. Last year, global crypto scam losses were estimated at $17 billion, and big regulatory changes often lead to more fraud.
The Digital Market Structure Clarity Act is still waiting for a Senate floor vote, according to Investor’s Business Daily. The bill, which would determine whether digital assets fall under SEC or CFTC oversight, is under pressure to move before the August recess. A vote this week would represent the most major step forward for US crypto legislation in years. A delay into the autumn would extend the regulatory uncertainty that has already weighed on institutional appetite.
This decision is about more than just choosing an agency. How the US resolves the SEC versus CFTC issue will shape how digital assets are listed, traded, and structured for years to come. Companies like Coinbase and Circle have been asking for clear rules. Meanwhile, ARK Invest bought more crypto this week, suggesting some big players are getting ready for potential new laws rather than waiting.
South African lawmakers have proposed draft rules that would require cross-border cryptocurrency transfers to comply with reporting and other requirements similar to those for traditional financial assets, according to CoinDesk. These steps are meant to address risks like money laundering and capital flight. Authorities estimate that about R63 billion has recently left the country through crypto channels.
The proposal does not ban crypto or limit ownership. Instead, it focuses on transparency and tracking who is moving what and where. This approach is less strict than some expected and allows the market to continue running while regulators gather more information about cross-border flows. Earlier this year, Brazil took a tougher approach by banning crypto for cross-border payments. South Africa’s draft rules show a different path: monitor first, restrict later if needed.
This week brought regulatory changes in four regions and two tech areas. What connects them is not a global plan, but the moment when long-discussed rules begin to have real effects, both expected and unexpected. The EU is learning that AI labelling rules are easier to write than to enforce across the board. MiCA is working for licensing but is also causing more fraud. The US is still deciding, and Africa’s largest economy is starting to set its own rules.
Watch this week’s AIBC News Round-up with Cyrielle Delmas for a concise breakdown of the key digital asset and emerging tech stories.
