Major crypto exchanges in South Korea face new ownership limits

South Korea’s ruling Democratic Party and the Financial Services Commission have agreed to cap major shareholder stakes in domestic crypto exchanges at 20%. Exceptions of up to 34% would apply to new businesses to support early-stage operators.

Large exchanges like Upbit and Bithumb will have 3 years to comply, while smaller platforms will receive an additional 3-year grace period.

Current ownership exceeds the proposed cap, with Upbit at 25.5%, Bithumb at 73.6%, and Coinone at 53.4%. Korbit’s pending acquisition would give Mirae Asset Consulting 92% ownership, highlighting the extent of concentrated holdings in the market.

The cap seeks to curb governance risks from concentrated shareholding, following the FSC’s January 2026 proposal. The move gained urgency after Bithumb’s accidental $43 billion Bitcoin transfer, which raised concerns about internal controls.

The ownership limit will likely be included in South Korea’s upcoming Digital Asset Basic Act, alongside rules on stablecoins and crypto ETFs.

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

U Mobile named Malaysia’s fastest 5G network in 2025

U Mobile has been ranked Malaysia’s fastest 5G network for the third and fourth quarters of 2025, according to Ookla Speedtest Awards data drawn from millions of real-world user tests.

The result is attributed to the company’s ULTRA5G network, which deploys advanced antenna technologies, including 64T64R systems and extremely large antenna arrays, to boost coverage and handle heavier data traffic.

Chief Technology Officer Woon Ooi Yuen said the recognition validates the company’s infrastructure investments, emphasising that the award reflects actual user experience rather than controlled lab conditions.

U Mobile is targeting 5G coverage across 80% of populated areas in Malaysia by the second half of 2026, with its rollout said to be ahead of schedule.

Beyond coverage expansion, U Mobile has signed a memorandum of understanding with ZTE Malaysia to explore AI-native capabilities in its 5G core network.

The collaboration centres on integrating AI tools for traffic prediction, automated network management, and security monitoring, with digital twin technology potentially allowing engineers to simulate changes before deployment.

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

Passkey login comes to Windows 11 via Bitwarden vault

Bitwarden has announced support for logging into Windows 11 devices using passkeys stored in its encrypted vault, enabling phishing-resistant authentication directly at the operating system login screen.

The feature is available across all Bitwarden plans, including the free tier, and is believed to be a first for a third-party password manager.

During the login process, Windows 11 displays a QR code that users scan with their mobile device running the Bitwarden app, which then confirms access to the stored passkey and completes authentication.

Unlike device-bound passkey implementations, passkeys are synchronised across devices via Bitwarden’s end-to-end encrypted vault, meaning users can still regain access even if their phone is lost.

The feature builds on Microsoft’s introduction of native support for external passkey managers in Windows 11 in November 2025. It requires the device to be joined to Microsoft Entra ID with FIDO2 security key sign-in enabled.

Microsoft says the passkey-based login will roll out throughout March, depending on an organisation’s Entra ID configuration.

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

Sovereign AI becomes a strategic question for governments

Governments across the world are increasingly treating AI as a strategic capability that shapes economic development, public services and national security. Momentum behind the idea of ‘sovereign AI’ is growing as countries reassess who controls the chips, cloud infrastructure, data and models powering modern technology.

Complete control over the entire AI stack remains unrealistic for most economies because of the enormous financial and technological costs involved. Global infrastructure continues to rely heavily on US technology firms, which still operate a large share of data centres and AI systems worldwide.

Policy makers are therefore exploring different approaches to sovereignty across the AI ecosystem rather than pursuing total independence. Strategies range from building domestic computing capacity to adapting global AI models for national languages, regulations and public services.

Several countries already illustrate different approaches. The EU is investing billions in AI infrastructure, Canada protects sensitive computing resources while using global models, and India prioritises applications that serve its multilingual population through public digital systems.

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

Data centres’ expansion in London sparks energy and climate debate

London authorities are drafting new data centre policies amid concerns about their environmental impact and rising energy use. City Hall aims to balance the sector’s economic advantages with pressures on electricity, water, and emissions.

The Greater London Authority (GLA) estimates that 10 large data centres generate around 2.7 million tonnes of carbon emissions due to their high electricity consumption. Of the 100 data centres the UK plans, about 60 will be in London.

Megan Life, assistant director for environment and energy at the GLA, told the London Assembly Environment Committee the new strategy aims to ‘keep hold of the kind of economic growth benefits that data centres offer’ while addressing some ‘quite challenging’ impacts linked to their energy use.

Deputy mayor for environment Mete Coban said the expansion of data centres brings both ‘big benefits’ and ‘massive challenges’ for the capital, particularly in terms of energy and water consumption. ‘It’s not just a London problem, it’s going to be a global problem,’ he said, adding: ‘It’s about making sure that our environment doesn’t suffer in the hands of a few global corporations who will take and not give back, so we want to make sure we equitably do this.’

Policymakers are assessing how data centre growth may affect climate goals and urban infrastructure. London Mayor Sadiq Khan has commissioned a study to forecast future expansion. At the same time, UK lawmakers have launched an inquiry into the environmental impact of the sector as demand for cloud computing and AI infrastructure grows.

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

TikTok rejects end-to-end encryption citing safety concerns

TikTok will not adopt end-to-end encryption for direct messages. The company explained that using this technology could hinder safety teams’ and law enforcement’s efforts to detect harmful content in private messages, which the company believes could make users less safe online.

Encrypted messaging ensures that only the sender and recipient can read a conversation and is widely used across the social media industry. Rivals including Facebook, Instagram, Messenger, and X have adopted the technology, saying protecting private communication is central to user privacy.

The issue has become more sensitive because the platform has long faced scrutiny over possible links between its parent company, ByteDance, and the government of the People’s Republic of China, something the company has repeatedly denied. Reflecting these concerns, earlier this year, US lawmakers ordered the separation of TikTok’s US operations from its global business.

The company told the BBC that encrypted messaging would make it impossible for police and platform safety teams to read direct messages when needed. TikTok emphasised that this decision was made to enhance user protection, with a particular focus on the safety of younger users, and that it sees monitoring capabilities as crucial for addressing harmful behaviour.

Industry analyst Matt Navarra said the platform’s decision to ‘swim against the tide’ is ‘notable’ but presents ‘challenging optics’. He noted, ‘Grooming and harassment risks are present in DMs [direct messages], so TikTok can state it is prioritising proactive safety over privacy absolutism,’ though he added that the decision ‘places TikTok out of alignment with global privacy expectations’.

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

Online privacy faces new pressures in the age of social media

Online privacy is eroding as digital services collect ever-growing personal data and surveillance becomes part of daily technology use. The debate has intensified as social media platforms, advertisers, and connected devices expand their ability to track behaviour, preferences, and habits.

Analysts say younger generations have adapted to this reality rather than resisting it. ‘In 2026, online privacy is a luxury, not a right,’ says Thomas Bunting, an analyst at the UK innovation think tank Nesta. He argues many people have grown up accepting data collection as a trade-off for access to online services, noting: ‘We’ve been taught how to deal with it.’

Advocates warn that the erosion of online privacy could have wider social consequences. Cybersecurity expert Prof Alan Woodward from the University of Surrey says the issue goes beyond personal privacy. ‘People should care about online privacy because it shapes who has power over their lives,’ he says, arguing that privacy is ‘about having something to protect: freedom of thought, experimentation, dissent and personal development without permanent surveillance.’

Despite a growing number of privacy tools and regulations, data exposure remains widespread. According to Statista, more than 1.35 billion people were affected by data breaches, hacks, or exposure in 2024 alone. At the same time, more than 160 countries now have privacy legislation, while users regularly encounter cookie consent prompts that govern how their data is collected online.

Experts say frustration with privacy controls reflects a broader ‘privacy paradox’, in which people express concern about data protection but rarely change their behaviour. Cisco’s Consumer Privacy Survey found that while 89% of respondents said they care about privacy, only 38% actively take steps to protect their data.

As philosopher Carissa Véliz notes, the challenge is not simply awareness but a sense of agency: ‘Mostly, people don’t feel like they have control.’ She argues that protecting privacy requires stronger regulation, responsible technology design, and cultural change, adding: ‘It’s about having [access to] the right tech, but also using it.’

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

Global AI race intensifies as China claims leadership in strategic technologies

China asserted its position as the global leader in AI and strategic technology R&D, pledging to accelerate advancement toward technological autonomy. The assertion was prominently featured in government reports presented to the National People’s Congress.

A National Development and Reform Commission report states that China leads international research, development, and implementation in AI, biomedicine, robotics, and quantum technology. The report also references advancements in domestic chip innovation as proof of progress.

Competition between China and the United States for dominance in advanced technologies has escalated. Washington imposed export controls on advanced chips, while Beijing retaliated with restrictions on rare earth resources, escalating trade tensions over strategic technologies.

The report also highlighted the country’s global leadership in open-source AI models and its expansion into emerging technology sectors, including industrial robots and drones. Authorities pledged to nurture future industries such as quantum technology, embodied AI, and 6G networks, while promoting large-scale AI deployment across key sectors.

Officials also plan to launch new data centres, coordinate nationwide computing capacity, and establish mechanisms to prevent AI security risks. The strategy places particular emphasis on embodied AI to boost productivity and performance across sectors. Although US firms command larger investment resources, Beijing is relying on supply chains, manufacturing capacity, and rapid R&D cycles to scale emerging industries despite questions about long-term growth.

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

UK to launch new lab for breakthrough AI research

Researchers in the UK will gain a new AI lab designed to drive transformational breakthroughs in healthcare, transport, science, and everyday technology, supported by government funding.

The lab will provide up to £40 million in funding over six years, alongside substantial access to large-scale computing resources, inviting UK researchers to pitch their most ambitious ideas.

The Fundamental AI Research Lab will focus on tackling core AI challenges, including hallucinations, unreliable memory, and unpredictable reasoning.

The lab will support high-risk, blue-sky research rather than simply scaling existing systems. Its goal is to unlock entirely new capabilities that could improve medical diagnoses, infrastructure resilience, scientific discovery, and public services.

UK officials highlighted the country’s strength in world-class universities, AI talent, and a thriving sector attracting over £100 billion in private investment. Experts, including Raia Hadsell of Google DeepMind, will peer-review funding applications, prioritising bold, high-reward proposals.

The initiative is part of the UKRI AI Strategy, which is backed by £1.6 billion and aims to strengthen research and ensure AI benefits society and the economy. UK AI projects like RADAR for rail faults and the IXI Brain Atlas for Alzheimer’s research demonstrate the approach’s potential impact.

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

AI adoption and jobs debated at India summit

Governments, companies and international organisations gathered in India in February for the AI Impact Summit to discuss the future of AI governance and adoption. Participants in India focused on economic impacts, labour market changes and sector specific uses of AI.

Delegates in India also highlighted growing interest in international cooperation on AI governance. Ninety one countries endorsed a declaration supporting shared tools, global collaboration and people centred development of AI.

Language diversity became a central topic during discussions in India. India’s government announced eight foundation AI models designed to support generative AI across the country’s 22 recognised languages.

Debate in India also reflected the growing influence of the Global South in AI policy discussions. Policymakers and experts in India emphasised infrastructure gaps, language diversity and local economic realities shaping AI adoption.

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