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Australia’s online safety regulator has raised concerns about the AI platform Grok amid a sharp increase in complaints involving non-consensual, AI-generated sexual imagery.
The eSafety Commissioner said reports of image-based abuse created using artificial intelligence have doubled since late 2025, reflecting a broader global surge in the misuse of generative AI tools. Some of the complaints reviewed by the regulator involved children, elevating the issue to a serious criminal and child-safety concern.
According to the Commissioner, AI systems capable of producing realistic images at scale are increasingly being exploited to create deepfake sexual content without consent. Victims often face severe emotional distress, reputational damage, and long-term psychological harm, while removal of such material can be slow and difficult once it spreads online.
Grok was cited as part of the regulator’s wider examination of AI platforms and their safeguards, rather than as the sole source of abuse. The Commissioner emphasized that all AI developers and platform operators have a responsibility to implement robust protections, including stronger content moderation, safeguards against misuse, and rapid takedown processes.
Australia has some of the world’s strongest online safety laws, granting the eSafety Commissioner powers to issue removal notices and fines for platforms that fail to act on harmful content. However, the rapid evolution of generative AI is testing the limits of existing regulatory frameworks.
“The speed and realism of AI-generated imagery has fundamentally changed the scale of image-based abuse,” the Commissioner said, warning that without stronger preventative controls, complaints are likely to continue rising.
The regulator is now engaging with AI companies, law enforcement, and international partners to address the problem, while urging users to report harmful content and seek support services where needed.
As generative AI tools become more accessible, the case underscores growing pressure on tech companies to balance innovation with accountability—and on governments to adapt safety laws to an AI-driven internet.
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India’s tax authorities have raised fresh concerns over the regulation and enforcement of cryptocurrencies, aligning closely with the Reserve Bank of India’s (RBI) long-standing cautious stance on virtual digitalassets (VDAs). The remarks come ahead of the Union Budget presentation, signaling that crypto oversight remains a sensitive and unresolved policy issue.
Officials from the Income Tax Department highlighted the practical challenges involved in tracking crypto transactions, particularly those conducted through overseas exchanges and decentralized platforms. The pseudonymous nature of blockchain transactions, combined with rapid innovation in the sector, has made monitoring, valuation, and compliance enforcement increasingly complex.
Despite the introduction of a 30% tax on crypto gains and a 1% tax deducted at source (TDS) on transactions, authorities believe gaps remain in reporting accuracy and investor disclosure. Tax officials reportedly emphasized the need for stronger data-sharing mechanisms, clearer regulations, and enhanced coordination with global agencies to prevent tax evasion and illicit financial flows.
The RBI has consistently warned about the macroeconomic and financial stability risks posed by private cryptocurrencies, including capital flight and consumer protection concerns. While the government has stopped short of imposing an outright ban, the convergence of views between the central bank and tax authorities suggests continued regulatory tightening rather than liberalization.
As India prepares its next Union Budget, market participants are closely watching for signals on whether the government will clarify its long-term crypto policy, introduce stricter compliance measures, or maintain the current taxation framework. For now, the government’s messaging indicates that caution and control will remain central to India’s approach toward digital assets.

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