Finance
Factbox-Governments, regulators increase scrutiny of DeepSeek
Published by Global Banking & Finance Review®
Posted on January 6, 2026
3 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 6, 2026
3 min readLast updated: January 20, 2026
DeepSeek, a Chinese AI startup, is under scrutiny worldwide for its security and privacy practices, facing bans and investigations in several countries.
Jan 6 (Reuters) - Chinese AI startup DeepSeek, which said in January it had developed an AI model to rival ChatGPT at much lower cost, has come under scrutiny in some countries for its security policies and privacy practices.
According to its own privacy policy, DeepSeek stores numerous pieces of personal data, such as requests to its AI programme or uploaded files, on computers in China.
Below are countries' actions regarding DeepSeek:
AUSTRALIA
In early February, Australia banned DeepSeek from all government devices over concerns that it posed security risks.
CZECH REPUBLIC
The Czech government banned in July the country's public administration from using any of the services of Chinese AI startup DeepSeek due to data security concerns.
FRANCE
France's privacy watchdog said in January 2025 it will question DeepSeek to gain a better idea of how the Chinese startup's AI system works and any possible privacy risks for users.
GERMANY
Germany has asked Apple and Google to remove DeepSeek from their stores due to concerns about data safety, a data protection authority commissioner said in June.
INDIA
India's finance ministry asked its employees at the beginning of February to avoid using AI tools including ChatGPT and DeepSeek for official purposes, citing risks posed to confidentiality of government documents and data.
ITALY
Italy's antitrust watchdog AGCM has ended an investigation into the Chinese AI system DeepSeek for allegedly failing to warn users that it may produce false information, agreeing to binding commitments as a condition for closing the case.
In January of 2025, it blocked the app citing a lack of information on its use of personal data.
NETHERLANDS
The Netherlands' privacy watchdog at the end of January said it would launch an investigation into Chinese artificial intelligence firm DeepSeek's data collection practices and urged Dutch users to exercise caution with the company's software.
The government has also banned civil servants from using the app, citing policy regarding countries with an offensive cyber program, the government spokesperson said in late July.
RUSSIA
Russia's President Vladimir Putin in early February instructed Sberbank to collaborate with Chinese researchers on joint AI projects, a top executive at Russia's biggest bank told Reuters.
SOUTH KOREA
South Korea's data protection authority said in mid-February that new downloads of the DeepSeek app had been suspended in the country after the startup acknowledged failing to take into account some of the agency's rules on protecting personal data.
Earlier in February, the industry minister had temporarily blocked employee access to DeepSeek due to security concerns.
The service became available again at the end of April.
TAIWAN
Taiwan in February banned government departments from using DeepSeek's service as it saw it as a security risk. It also raised concerns about censorship on DeepSeek and the risk of data ending up in China.
UNITED STATES
The Trump administration is weighing penalties that would block DeepSeek from buying U.S. technology, and is debating barring Americans' access to its services, the New York Times reported in April.
A group of nine U.S. lawmakers sent in December a letter to U.S. Secretary of Defense Pete Hegseth urging the Pentagon to add a slew of Chinese technology firms, including DeepSeek, to a list of entities allegedly assisting the Chinese military.
Seven Republican U.S. senators in August already asked the Commerce Department to evaluate potential data security vulnerabilities posed by Chinese open-source AI models like DeepSeek.
(Compiled by Mateusz Rabiega, Paolo Laudani and Tristan Veyet in Gdansk; Editing by Matt Scuffham)
A regulatory framework consists of the rules, regulations, and guidelines established by authorities to govern the operations of financial institutions and ensure compliance with laws.
Security risk refers to the potential for unauthorized access or harm to information systems and data, which can lead to data breaches, financial loss, and reputational damage.
A privacy policy is a legal document that outlines how an organization collects, uses, discloses, and manages a customer's personal information, ensuring transparency and compliance with data protection laws.
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