UK AI Safety Summit begins with global leaders in attendance, remarks from China and Musk

November 1, 2023 Coin Telegraph

China

The U.K. AI Safety Summit concluded its first day with a common declaration, the U.S. announcing an AI safety institute, China willing to communicate on AI safety and comments from Elon Musk.

The United Kingdom’s global summit on artificial intelligence (AI) safety, “AI Safety Summit” began on Nov. 1 and will carry on through Nov. 2 with government officials and leading AI companies from the world in attendance, including from the United States and China.

U.K. Prime Minister Rishi Sunak is hosting the event, which is taking place nearly 55 miles north of London in Bletchley Park. It comes at the end of a year of rapid advancements in the widespread use and accessibility of AI models following the emergence of OpenAI’s popular AI chatbot ChatGPT.

Who is in attendance?

The AI Safety Summit expects to have around 100 guests in attendance. This includes leaders of many of the world’s prominent AI companies such as Microsoft president Brad Smith, OpenAI CEO Sam Altman, Google and DeepMind CEO Demis Hassabis, Meta’s AI chief Yann LeCunn and its president of global affairs Nick Clegg and billionaire Elon Musk.

On a governmental level, global leaders from around 27 countries are expected to be in attendance including the U.S. Vice President Kamala Harris, the president of the European Commission Ursula von der Leyen and the secretary-general of the United Nations Antonio Guterres.

The U.K. also extended the invitation to China, which has been a major competitor to Western governments and companies in AI development. Chinese Vice Minister of Science and Technology, Wu Zhaohui will be attending, along with companies Alibaba and Tencent.

Initial summit proceedings

The two-day summit’s primary aim is to create dialogue and cooperation between its dynamic group of international attendees to shape the future of AI, with a focus on “frontier AI models.” These AI models are defined as highly capable, multipurpose AI models that equal or surpass the capabilities of current models available.

The first day included several roundtable discussions on risks to global safety and integrating frontier AI into society. There was also an “AI for good” discussion on the opportunities presented by AI to transform education.

The 'Bletchley Declaration' and the U.S.’s AI Safety Institute

During the summit, Britain published the "Bletchley Declaration” which serves as an agreement to boost global efforts of cooperation in AI safety. The signatories of said declaration included 28 countries, including the U.S. and China, along with the European Union.

In a separate statement on the declaration, the U.K. government said:

"The Declaration fulfills key summit objectives in establishing shared agreement and responsibility on the risks, opportunities and a forward process for international collaboration on frontier AI safety and research, particularly through greater scientific collaboration.”

Other countries endorsing the statement include Brazil, France, India, Ireland, Japan, Kenya, Saudi Arabia, Nigeria and the United Arab Emirates.

In addition, the U.S. Secretary of Commerce Gina Raimondo said that it plans to create its own AI Safety Institute, focusing on the risks of frontier models.

Raimondo said she will “certainly” be calling on many in the audience who are “in academia and the industry” to participate in the initiative. She also suggested a formal partnership with the U.K.’s Safety Institute.

Musk calls summit a “referee"

Elon Musk, the owner of social media platform X and CEO of both SpaceX and Tesla, has been a prominent voice in the AI space. He has already participated in talks with global regulators on the subject.

At the U.K’s AI Safety Summit on Wednesday, he said the summit wanted to create a “"third-party referee" oversee AI development and warn of any concerns.

According to a Reuters report Musk is quoted saying:

"What we're really aiming for here is to establish a framework for insight so that there's at least a third-party referee, an independent referee, that can observe what leading AI companies are doing and at least sound the alarm if they have concerns.”

He also said before there is “oversight” there must be “insight” inference to global leaders making any mandates. “I think there's a lot of concern among people in the AI field that the government will sort of jump the gun on rules, before knowing what to do," Musk said.

China says it's ready to bolster communications

Also in attendance was China’s Vice Minister of Science and Technology, Wu Zhaohui who emphasized that everyone has the right to develop and deploy AI.

"We uphold the principles of mutual respect, equality and mutual benefits. Countries regardless of their size and scale have equal rights to develop and use AI," he said.

"We call for global cooperation to share AI knowledge and make AI technologies available to the public on open source terms."

He said that China is “willing to enhance our dialogue and communication in AI safety” with “all sides.” These remarks come as China and many Western countries, particularly the U.S., have been racing to create the most advanced technology on the market.

The summit will continue for its final day on Nov. 2 with remarks from the U.K. Prime Minister and U.K. Technology Secretary Michelle Donelan.

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US surveillance and facial recognition firm Clearview AI wins GDPR appeal in UK court

October 19, 2023 Coin Telegraph

Coin Telegraph

According to court documents, the UK commissioner doesn’t have the authority or jurisdiction to cite or fine the “foreign” company for GDPR infractions.

U.S. surveillance and facial recognition firm Clearview AI has won a court appeal in the United Kingdom after being accused of alleged infractions related to the U.K’s general data protection regulation (GDPR).

Originally, the company was fined nearly $10 million for breaches of the U.K.’s GDPR in May of 2022. The recent victory will see that fine rescinded unless the U.K.’s Information Commissioner’s Office (ICO) further appeals the ruling.

Per a U.K. court tribunal led by Tribunal Judge Lynn Griffin, whether Clearview AI (called "CV" throughout the documents) ran afoul of GDPR is immaterial due to the jurisdictional limits on applying GDPR to foreign companies.

According to court documents released Oct. 17:

“Whether or not CV has infringed the Articles of GDPR or UK GDPR as alleged or at all was not the issue before us. That would be the subject of any substantive hearing were this case to go forward.”

The document goes on to state that, despite the fact that Clearview AI has billions of images in its facial recognition and AI surveillance system (including, according to experts, those sourced from “public” internet repositories originating in the U.K.) the U.K’s ICO doesn’t have the jurisdiction to offer GDPR protection to its citizenry in this case.

In reference to Clearview AI, the court document states “it is a foreign company providing its service to ‘foreign clients, using foreign IP addresses, and in support of the public interest national security and criminal law enforcement functions’, such functions being targeted at behaviour within their jurisdiction and outside of the UK.”

In essence, it appears as though the appeal’s approval sets a legal precedent wherein the U.K. court system’s stance on enforcing GDPR has been relegated to only those companies firmly within the U.K.’s purview.

In contrast, Clearview AI has been sued and fined multiple times in Europe via the E.U. 's GDPR with fines being levied in France, Italy, and Greece. In Sweden, the local police authority was fined more than $300K for its illegal use of Clearview AI products in 2021.

However, regarding these and other judgments, Clearview AI has managed to avoid following the court’s orders in at least some instances. Despite, for example, being fined $20 million for GDPR breaches in France in October of 2022, the company refused payment and was found in breach of that order as of May of 2023.

Currently, Clearview AI holds what appears to be a unique position within the U.S. tech ecosystem. Despite continuing allegations that its software and services violate civil rights and privacy protections afforded all U.S. citizens, the company’s close ties with law enforcement have, according to some experts, afforded it a level of protection inconsistent with U.S. laws against unwarranted surveillance and the Fourth Amendment to the U.S. Constitution.

As such, it is nearly impossible for most people to have their data removed from the company’s datasets and systems.

Per Clearview AI’s Privacy Policy page, "currently, only those who are a resident of one of the following states may submit a consumer request for access, opt-out, and/or delete.” Those states include California, Colorado, Connecticut, Illinois, and Virgina.

Individuals outside of those areas have, so far, no explicit recourse to have their images, likeness, and other data removed from the company’s dataset.

The same document states explicitly that Clearview AI “may have sold this category of personal information [face vectors and photographs] to law enforcement, governmental agencies, authorized contractors of law enforcement or government agencies, security and national security professionals.”

Those living in the aforementioned U.S. states wishing to opt-out, must submit a “headshot” photograph, verify their government-issued identification, and provide “any additional information” required by the company in order to have their request for removal reviewed.

Stocks across Asia and Europe rise on Economic growth indicators

October 12, 2023 Coin Telegraph

Coin Telegraph

Stocks across the Asia Pacific region marked a second consecutive day of bullish growth as the European stock market reached a three-week high.

Stock markets in the Asia-Pacific region and Europe saw gains on Thursday. This uptick was attributed to the United Kingdom’s economic recovery, China’s recent stimulus measures and expectations surrounding the United States Consumer Price Index.

The Hang Seng Index in Hong Kong led a positive movement in the Asian markets. The Oct. 12 rise came after reports that China’s sovereign wealth fund increased its investment in some of the country’s major banks.

In Europe, the stock market rally was bolstered by data from the United Kingdom, with reports showing economic growth in August, although some sectors still lagged.

China led bullish stock rally in Asia

China’s sovereign wealth fund announced an increase in its holdings in the country’s four largest banks on Thursday, Oct. 12. The news helped shares of all three main lenders in the country go up during Shanghai’s trading hours. Bank of China stock increased by 3.2%, the China Construction Bank saw an increase of 2.7%, the Industrial and Commercial Bank of China registered a 2.5% gain, and the Agricultural Bank of China jumped 0.6%.

China’s stimulus decisions also helped Hong Kong’s Hang Seng Index rise by 1.9% to 18,257 points for the day, marking the sixth consecutive day of gains for the benchmark index — its longest winning streak since November 2021.

*Hong Kong Hang Seng Index daily price chart. Source: investing.com*

Japan’s Nikkei 225 index recorded another 1.8% gain on Thursday to reach 32,494.66 points, marking its second consecutive day of gains

*Japan Nikkei 225 index daily price chart. Source: Investing.com*

European stocks three-week high led by London

The British economy rose 0.2% in gross domestic product terms in August compared to the previous month, exceeding estimates of less than 0.1%. This GDP growth helped reverse a slide in the economy that began in July with a 0.5% contraction.

The bullish economic growth for the U.K. helped European stock markets rise to a new three-week-high. The benchmark London stock FTSE 100 Index rose 0.8%, the French CAC 40 was up 0.6% and the pan-European Stoxx 600 traded 0.8% higher on Thursday.

Vintage Markets is dedicated to the in-depth exploration and reporting of traditional financial news, tracing the journey of global markets and economies from the Stone Age to the Stoned Age.

Huobi, KuCoin, over 140 crypto exchanges ‘non-authorized’ — UK regulator

October 9, 2023 Coin Telegraph

Coin Telegraph

The FCA’s list of registered crypto asset providers includes 42 entities and hasn’t changed since August.

The United Kingdom’s financial markets regulator, The Financial Conduct Authority (FCA), had a busy Sunday on Oct. 8, as it added several crypto exchanges to its warning list of non-authorized firms that customers “should avoid.”

A total of 143 new entities were added to the warning list, including major exchanges, such as Huobi-owned HTX and KuCoin. The warning list doesn’t reveal much apart from the statement, “You should avoid dealing with this firm.”

However, in the U.K., firms permitted to “carry out crypto asset activities” must either be registered with the FCA or have been granted temporary status to operate. In July, Jayson Probin, crypto financial promotions lead at the FCA, suggested that failure to comply could result in criminal charges:

“We will take robust action against persons illegally promoting to U.K. consumers. This may include, but it is not limited to, placing firms on our warning list requesting take downs of websites, social media accounts, apps and all other promotions that are in breach, and enforcement action.”

In August, the FCA revealed that since 2020, it has received 291 applications for registration and approved only 38 of them, which is roughly 13%. At the time of publication, the FCA’s list of registered crypto asset providers includes 42 entities, such as Bitstamp, Revolut and Gemini.

PayPal has recently halted crypto transactions for its U.K. customers until it figures out how to comply with the FCA’s requirements. Dubai-headquartered cryptocurrency exchange Bybit also suspended all its services in the U.K. in late September due to “regulatory changes.”

Snapchat warned by UK data watchdog over AI chatbot risks

October 6, 2023 Coin Telegraph

Coin Telegraph

Snapchat received a warning from the U.K. data watchdog regarding its AI chatbot “My AI” for potentially failing to identify and address its privacy risks.

The social media platform Snapchat has received a warning from the United Kingdom’s data watchdog over its new artificial intelligence (AI) chatbot known as “My AI,” according to an update posted by the regulator.

On Oct. 6, the U.K. Information Commissioner’s Office (ICO) issued a preliminary notice to Snap Inc. and Snap Group, the parent companies of Snapchat, for the potential failure to “properly assess the privacy risks” posed by the chatbot.

We have issued Snap, Inc and Snap Group Limited with a preliminary enforcement notice over a potential failure to properly assess the privacy risks posed by its generative AI chatbot ‘My AI’.

Read more about the case: https://t.co/MAuHAH0h8B pic.twitter.com/BawISttPJN
— ICO - Information Commissioner's Office (@ICOnews) October 6, 2023

The notice is based on a provisional investigation of the company conducted by the watchdog, which said the risks to several million My AI users, including children aged 13–17, were not adequately identified before its launch.

John Edwards, the U.K.’s information commissioner, commented on the notice, saying:

“We have been clear that organizations must consider the risks associated with AI, alongside the benefits. Today’s preliminary enforcement notice shows we will take action in order to protect U.K. consumers’ privacy rights.”

According to the notice, if a final enforcement notice is issued, Snap may be forced to stop data processing in relation to My AI, which would prevent it from offering the service to U.K.-based users without an “adequate” risk assessment.

Currently, ICO said a conclusion should not be made from the current stage of investigations.

Snapchat’s AI chatbot was rolled out to users of Snapchat+ in the U.K. in February 2023, with wider availability beginning in April 2023.

My AI is powered by OpenAI’s GPT-4 technology and, according to the data watchdog, was the “first example of generative AI embedded into a major messaging platform in the UK.”

Throughout the year, major social media platforms have integrated AI features into their operations. On Oct. 4, the Microsoft-owned business-focused social media platform LinkedIn announced additional AI tools available to recruiters, as well as an AI assistant in its learning center.

Big Tech giants Meta — the parent company of Facebook and Instagram — and Google have also revealed AI chatbot integrations into their service offerings.

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UK FCA gives unregistered crypto firms ‘final warning’ on ads regime compliance

September 21, 2023 Coin Telegraph

The financial regulator expressed its frustration at the lack of engagement from crypto firms in a strongly worded letter.

The Financial Conduct Authority (FCA), the United Kingdom’s financial markets regulator, has again expressed its concern over the lack of engagement on the part of crypto firms that will soon be subject to new marketing rules. The consequences of noncompliance could be severe, it warned.

In a letter dated Sept. 21, the FCA said it was making a final warning to firms marketing crypto assets to UK consumers. The four-page letter first documented the efforts the agency had made to reach out to crypto firms and attempted to support them as they complied with rules announced June 8.

The FCA has gone so far as to extend the Oct. 8 compliance deadline to Jan. 8, 2024, “to introduce features that require greater technical development,” and to publish lengthy notes on best practices. But “many unregistered, overseas cryptoasset firms […] have refused to engage with the FCA despite our best efforts,” the letter said. As evidence, the letter pointed out that only 24 such firms responded to a survey sent to 150 of them.

Compliance with the new regime will require firms to be proactive:

“Once the regime is in force, unauthorised and unregistered crypto businesses will only be able to communicate financial promotions which have been approved by an authorised person or are within the scope of certain narrow exemptions in the Financial Promotion Order.”

Illegal promotion of crypto assets would become a criminal offense. Violators would be placed on a warning list and their promotions could be blocked or removed from websites, social media and apps. Those intermediaries would be expected to heed the new regime as well, in line with Anti-Money Laundering and Counter-Terrorist Financing regulations and other measures.

FCA issues final warning to unregistered crypto firms about upcoming financial promotions regime. UK customer concerns cited. Compliance steps outlined. Expectations for supporting businesses discussed. Read the letter in full here: https://t.co/AjSTQKXDDl pic.twitter.com/hfX9qbLmBq
— Digital Currencies Governance Group (DCGG) (@DigitalDcgg) September 21, 2023

The FCA could seek monetary compensation from the violators, and contracts they enter into with UK citizens would not be enforceable, the letter continues. Crypto asset forms that are unable to meet the new requirements are expected to take steps to prevent UK consumers from responding to their promotions.

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The UK releases key ambitions for global AI summit

September 4, 2023 Coin Telegraph

Coin Telegraph

The officials in the U.K. released their priorities for the upcoming global AI summit during which they plan to focus on risk and policy.

The United Kingdom released its five “ambitions” for its global artificial intelligence (AI) safety summit on Sep. 4, with a big focus on risks and policy to support the technology.

The summit, which will take place on Nov. 1-2, is anticipated to unite thought leaders from around the world, including academics, politicians and major tech companies developing AI, in order to create a common understanding of how to regulate the technology.

According to the announcement, it will primarily focus on “risks created or significantly exacerbated by the most powerful AI systems” and the need for action. It will also focus on how safe AI development can be used for public good and overall quality of life improvement.

Additionally, the summit will touch on a way forward for international collaboration on AI safety and how to support international laws, AI safety measures for individual organizations and areas for “potential collaboration on AI safety research.”

The summit will be spearheaded by the U.K. Prime Minister Rishi Sunak’s representatives for the AI Safety Summit Jonathan Black and Matt Clifford.

Sunak called the U.K. a “global leader” in AI regulation and highlighted that his government wants to accelerate AI investment to improve productivity. Earlier this year it was announced that the U.K. would be receiving “early or priority access” to Google and OpenAI’s newest AI models.

On Aug. 31, the U.K’s Science, Innovation and Technology Committee (SITC) released a report that recommended Britain align itself with countries holding similar democratic values to safeguard against the misuse of AI by malignant actors.

Prior to that announcement, on Aug. 21, the U.K. government said it will spend $130 million on AI semiconductor chips as a part of its effort to create an “AI Research Resource” by mid-2024.

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UK considers blanket ban on crypto investment cold calls

August 24, 2023 Coin Telegraph

Coin Telegraph

The U.K. Treasury has released a consultation paper to understand the grassroots-level impact of a blanket ban on cold calls related to financial services and products.

As the United Kingdom prepares for a ban on finance-related cold calls, His Majesty’s Treasury has issued a consultation paper, and it is calling for evidence to gauge the full impact on businesses and the costs associated with introducing and implementing the ban.

On May 3, the U.K. government announced an ambitious fraud strategy, which would involve adding 400 new jobs to update its approach to intelligence-led policing. As Cointelegraph previously reported, the National Crime Agency estimates that fraud costs the country approximately 7 billion pounds ($8.7 billion) annually.

“The government will not tolerate this behavior,” said Andrew Griffith, the economic secretary to the Treasury, while criticizing the rising cold calls for financial services and products that often target the most vulnerable members of society.

*The Treasury’s case study on crypto cold call scam. Source: gov.uk*

The Treasury highlighted numerous instances where cold calls were responsible for investors’ losses, out of which one involved cryptocurrencies, as shown above. While the U.K. government previously implemented various prohibitions and restrictions on cold calling, scammers often find loopholes in the system to bypass the law.

*The Treasury intends to impose a blanket ban on finance cold calls. Source: gov.uk*

Intending to impose a blanket ban on financial cold calls, the Treasury put forth 19 questions to stakeholders to ensure maximum impact on scammers and minimum effect on businesses that often rely on cold calling prospects. The consultation closes on Sept. 27, 2023.

The U.K. government recently rejected the appeal to consider and regulate cryptocurrencies as gambling.

“HM Treasury and the FCA [Financial Conduct Authority] will work with the industry to ensure crypto firms are made fully aware of the standards required for approval at the FSMA gateway. Further communications will be provided in due course to ensure standards for approval are clearly available to crypto firms operating in the UK.“

The government response noted that such an approach has the potential to completely counter the globally agreed recommendations from international organizations and standard-setting bodies.

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UK FCA shuts down 26 crypto ATMs following coordinated investigation

July 11, 2023 Coin Telegraph

ATM

The FCA — along with other law enforcement agencies — investigated 36 crypto ATM locations using powers under the Money Laundering Regulations 2017.

The United Kingdom’s financial regulator, the Financial Conduct Authority (FCA), “disrupted” 26 of the 34 cryptocurrency ATMs it visited and inspected since the start of 2023.

On Feb. 14, the FCA gave an ultimatum to all crypto ATM operators in the UK — to either comply with regulations or wind down illegal operations. Following the warning, the FCA — along with other law enforcement agencies — investigated 36 crypto ATM locations using powers under the Money Laundering Regulations 2017.

#Crypto ATMs operating without FCA registration are illegal. The action we’ve taken over the past few months and wider work shows that we will act to stop illegal activity. #cryptocurrency https://t.co/KnMhiKAt21
— Financial Conduct Authority (@TheFCA) May 5, 2023

Speaking against the use of all crypto ATMs, Steve Smart, joint executive director of enforcement and market oversight at the FCA, stated:

“If you use a crypto ATM in the UK, you are using a machine that is operating illegally and you may be handing your money over to criminals.”

Smart further clarified that victims of scams involving the crypto or Bitcoin (BTC) ATMs “will not be protected” by the government or the operator of the machines. Out of the lot, 18 locations were inspected in May and June, right when the FCA publicly announced the commencement of the inspection drive.

All crypto exchanges and ATMs must be registered with the FCA and comply with the UK Money Laundering Regulations. On July 8, Clive Police Department released a report detailing how a crypto scammer, called up an unsuspecting victim pretending to represent law enforcement and managed to steal $6,000 while threatening an arrest warrant.

Scammers utilize fear tactics and impersonate law enforcement officials to deceive unsuspecting individuals into transferring funds through crypto ATMs. However, it is important to note that law enforcement agencies never contact individuals demanding payment over the phone or via crypto.

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Gaining speed on tokenization is vital for UK’s financial future, banking group warns

July 6, 2023 Coin Telegraph

Coin Telegraph

UK Finance says it’s not too late for the United Kingdom to make up for other jurisdictions’ faster start to securities tokenization, and it better do it if it wants to remain a global financial leader.

Advocacy group UK Finance is urging the British government to encourage securities tokenization. The market is small now, but the future stakes are high, it said.

In a report co-written with consulting firm Oliver Wyman, UK Finance said the advantages of tokenization, such as lower costs, lower risk and wider access, are not just “a nice-to-have.” Tokenization “can transform the financial system, and the UK should be at the centre of this transformation,” it said.

Today we have published our ‘Unlocking the power of securities tokenisation’ report, produced in conjunction with @OliverWyman. It looks at how securities tokenisation will transform capital markets and international banking infrastructure. https://t.co/HtsPzFwj4y pic.twitter.com/RfyQrNy8Hw
— UK Finance (@UKFtweets) July 6, 2023

UK Finance chair and former Bank of England court member Bob Wigley wrote in a Financial Times editorial timed to the report’s release:

“The UK is at risk of falling behind other financial centres, as digital bond issuance to date has been in other places such as Singapore or Switzerland […] Our progress is similar to the US, which could quickly leap ahead given its huge financial resources, deep capital markets and technology knowhow.”

“The UK government has given some indications of its commitment to tokenisation and its enablers. Industry now requires action from government,” the report added. It held up Singapore’s Project Guardian as an example of a government exploring collaboration with the private sector to develop the use of tokenized assets.

The U.K. already has a growing legal foundation that is “fit for purpose” for securities tokenization, if in need of adaptation, the report said. UK Finance suggested a road map for the United Kingdom to position itself as a global tokenization market leader.

The detailed plan had three components — innovation, interoperability and global standards leadership — with a five-year horizon. Financial market infrastructure sandboxes, due for launch this year by the Treasury, played a key role in the plan.

Tokenization is currently only carried out on a small scale, with 1% of $20.6 trillion of global long-term fixed income instruments tokenized in 2021, according to research cited in the report.

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UK Government