Crypto mining to become legal under Turkmenistan’s new law

Turkmenistan has adopted its first comprehensive law regulating virtual assets, officially legalising cryptocurrency mining and allowing the operation of crypto exchanges, effective January 1, 2026. Signed by President Serdar Berdimuhamedov, the legislation lays out the framework for creating, issuing, storing and trading digital assets, while clearly distinguishing them from legal tender or securities.

Cryptocurrencies will be recognised as objects of civil rights, but cannot be used as a means of payment within the country.

Under the new rules, mining will be allowed for companies and individual entrepreneurs who complete mandatory electronic registration with the Central Bank. Covert mining, which involves using someone else’s computing power without their consent, is strictly prohibited.

Crypto exchanges and related trading platforms must also register with the regulator, with the state disclaiming any responsibility for these entities’ financial obligations.

The law introduces strict requirements for user identification, banning anonymous wallets and transactions to align with anti-money laundering standards. Advertising of cryptocurrencies will be tightly controlled.

Promotional materials must include risk warnings, highlight the possibility of losing all invested funds, and avoid portraying digital assets as an easy path to wealth. Ads cannot use luxury imagery, bonuses, or involve minors.

Additionally, crypto companies are prohibited from using terms associated with national symbols, such as ‘Turkmenistan’ or ‘state,’ in their branding.

Turkmenistan’s move aligns with a broader trend in Central Asia, where countries like Uzbekistan and Kazakhstan have established licensing regimes, mining regulations and even national crypto reserves. The regional push suggests growing interest in formalising digital asset markets while maintaining strict state oversight.

Would you like to learn more about AI, tech and digital diplomacyIf so, ask our Diplo chatbot!

EU moves forward on new online child protection rules

EU member states reached a common position on a regulation intended to reduce online child sexual abuse.

The proposal introduces obligations for digital service providers to prevent the spread of harmful content and to respond when national authorities require the removal, blocking or delisting of material.

A framework that requires providers to assess how their services could be misused and to adopt measures that lower the risk.

Authorities will classify services into three categories based on objective criteria, allowing targeted obligations for higher-risk environments. Victims will be able to request assistance when seeking the removal or disabling of material that concerns them.

The regulation establishes an EU Centre on Child Sexual Abuse, which will support national authorities, process reports from companies and maintain a database of indicators. The Centre will also work with Europol to ensure that relevant information reaches law enforcement bodies in member states.

The Council position makes permanent the voluntary activities already carried out by companies, including scanning and reporting, which were previously supported by a temporary exemption.

Formal negotiations with the European Parliament can now begin with the aim of adopting the final regulation.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

EU faces new battles over digital rights

EU policy debates intensified after Denmark abandoned plans for mandatory mass scanning in the draft Child Sexual Abuse Regulation. Advocates welcomed the shift yet warned that new age checks and potential app bans still threaten privacy.

France and the UK advanced consultations on good practice guidelines for cyber intrusion firms, seeking more explicit rules for industry responsibility. Civil society groups also marked two years of the Digital Services Act by reflecting on enforcement experience and future challenges.

Campaigners highlighted rising concerns about tech-facilitated gender violence during the 16 Days initiative. The Centre for Democracy and Technology launched fresh resources stressing encryption protection, effective remedies and more decisive action against gendered misinformation.

CDT Europe also criticised the Commission’s digital omnibus package for weakening safeguards under laws, including the AI Act. The group urged firm enforcement of existing frameworks while exploring better redress options for AI-related harms in the EU legislation.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Australia moves to curb nudify tools after eSafety action

A major provider of three widely used nudify services has cut off Australian access after enforcement action from eSafety.

The company received an official warning in September for allowing its tools to be used to produce AI-generated material that harmed children.

A withdrawal that follows concerns about incidents involving school students and repeated reminders that online services must meet Australia’s mandatory safety standards.

eSafety stated that Australia’s codes and standards are encouraging companies to adopt stronger safeguards.

The Commissioner noted that preventing the misuse of consumer tools remains central to reducing the risk of harm and that more precise boundaries can lower the likelihood of abuse affecting young people.

Attention has also turned to underlying models and the hosting platforms that distribute them.

Hugging Face has updated its terms to require users to take steps to mitigate the risks associated with uploaded models, including preventing misuse for generating harmful content. The company is required to act when reports or internal checks reveal breaches of its policies.

eSafety indicated that failure to comply with industry codes or standards can lead to enforcement measures, including significant financial penalties.

The agency is working with the government on further reforms intended to restrict access to nudify tools and strengthen protections across the technology stack.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Coinbase Ventures reveals top areas to watch in 2026

Coinbase Ventures has shared the ideas its team is most excited about for 2026, highlighting areas with high potential for innovation in crypto and blockchain. Key sectors include asset tokenisation, specialised exchanges, next-generation DeFi, and AI-driven robotics.

The firm is actively seeking teams to invest in these emerging opportunities.

Perpetual contracts on real-world assets are set to expand, enabling synthetic exposure to private companies, commodities, and macroeconomic data. Specialised exchanges and trading terminals aim to consolidate liquidity, protect market makers, and improve the prediction market user experience.

Next-gen DeFi will expand with composable perpetual markets, unsecured lending, and privacy-focused applications. These developments could redefine capital efficiency, financial infrastructure, and user confidentiality across the ecosystem.

AI and robotics are also a focus, with projects targeting advanced robotic data collection, proof-of-humanity solutions, and AI-driven innovative contract development. Coinbase Ventures emphasises the potential for these technologies to accelerate on-chain adoption and innovation.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Malicious Chrome extension siphons SOL from Solana swaps

Security researchers have uncovered a malicious Chrome extension that secretly diverts SOL from users conducting swaps on the Solana blockchain. The extension, called Crypto Copilot, injects an undisclosed transfer into every Raydium transaction, quietly routing funds to a hardcoded attacker wallet.

The tool presents itself as a convenience app that enables Solana swaps directly from X posts, connecting to wallets such as Phantom and Solflare. Behind the interface, the code appends a hidden SystemProgram.transfer instruction to each transaction.

The fee is set at either 0.0013 SOL or 0.05% of the trade amount, whichever is higher, and remains invisible unless the user inspects the complete instruction list.

External services lend the app legitimacy, utilising DexScreener data, Helius RPC calls, and a backend dashboard that provides no actual functionality. Researchers warn that the disposable infrastructure, misspelt domains, and obfuscated code point to clear malicious intent, not an unfinished product.

On-chain analysis indicates limited gains for attackers so far, likely due to the low distribution. The mechanism, however, scales directly with swap volume, placing high-frequency and large-volume traders at the most significant risk.

Security teams are urging users to avoid closed-source trading extensions and to scrutinise Solana transactions before signing.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

EU prepares tougher oversight for crypto operators

EU regulators are preparing for a significant shift in crypto oversight as new rules take effect on 1 January 2026. Crypto providers must report all customer transactions and holdings in a uniform digital format, giving tax authorities broader visibility across the bloc.

The DAC8 framework brings mandatory cross-border data sharing, a centralised operator register and unique ID numbers for each reporting entity. These measures aim to streamline supervision and enhance transparency, even though data on delisted firms must be preserved for up to twelve months.

Privacy concerns are rising as the new rules expand the travel rule for transfers above €1,000 and introduce possible ownership checks on private wallets. Combined with MiCA and upcoming AML rules, regulators gain deeper insight into user behaviour, wallet flows and platform operations.

Plans for ESMA to oversee major exchanges are facing pushback from smaller financial hubs, which are concerned about higher compliance costs and reduced competitiveness. Supporters argue that unified supervision is necessary to prevent regulatory gaps and reinforce market integrity across the EU.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

New phishing kit targets Microsoft 365 users

Researchers have uncovered a large phishing operation, known as Quantum Route Redirect (QRR), that creates fake Microsoft 365 login pages across nearly 1,000 domains. The campaign uses convincing email lures, including DocuSign notices and payment alerts, to steal user credentials.

QRR operations have reached 90 countries, with US users hit hardest. Analysts say the platform evades scanners by sending bots to safe pages while directing real individuals to credential-harvesting sites on compromised domains.

The kit emerged shortly after Microsoft disrupted the RaccoonO365 network, which had stolen thousands of accounts. Similar tools, such as VoidProxy and Darcula, have appeared; yet, QRR stands out for its automation and ease of use, which enable rapid, large-scale attacks.

Cybersecurity experts warn that URL scanning alone can no longer stop such operations. Organisations are urged to adopt layered protection, stronger sign-in controls and behavioural monitoring to detect scams that increasingly mimic genuine Microsoft systems.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Family warns others after crypto scam costs elderly man £3,000

A South Tyneside family has spoken publicly after an elderly man lost almost £3,000 to a highly persuasive cryptocurrency scam, according to a recent BBC report. The scammer contacted the victim repeatedly over several weeks, initially offering help with online banking before shifting to an ‘investment opportunity’.

According to the family, the caller built trust by using personal details, even fabricating a story about ‘free Bitcoin’ awarded to the man years earlier.

Police said the scam fits a growing trend of crypto-related fraud. The victim, under the scammer’s guidance, opened multiple new bank accounts and was eventually directed to transfer nearly £3,000 into a Coinbase-linked crypto wallet.

Attempts by the family to recover the funds were unsuccessful. Coinbase said it advises users to research any investment carefully and provides guidance on recognising scams.

Northumbria Police and national fraud agencies have been alerted. Officers said crypto scams present particular challenges because, unlike traditional banking fraud, the transferred funds are far harder to trace.

Community groups in Sunderland, such as Pallion Action Group, are now running sessions to educate older residents about online threats, noting that rapid changes in technology can make such scams especially daunting for pensioners.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot