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European regulators and central bankers sounded the alarm last week that artificial intelligence is advancing faster than existing financial rules can handle, calling for new safeguards including market-wide "kill switches" to prevent AI-driven trading from triggering financial instability.

The European Securities and Markets Authority issued a public statement on Friday reminding firms that products marketed as "event contracts" qualify as binary options under existing EU regulations, effectively barring their sale to retail investors across the bloc.

Binance, the world's largest cryptocurrency exchange by trading volume, has suspended core services for users across several European Union member states after failing to secure authorization under the bloc's Markets in Crypto-Assets Regulation before the July 1 deadline.