Consumer protection

The US House Committee passes a bill to strengthen stablecoin oversight

The US House Financial Services Committee has passed a bill aimed at regulating stablecoins, moving it to a full House vote. On 2 April, the Committee approved the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act in a 32-17 vote.

The bill outlines a regulatory framework for payment stablecoins such as USDT and USDC. It mandates transparency in token reserves, ensuring issuers hold sufficient dollar-equivalent assets to back their circulating supply.

Key provisions focus on consumer protection and reducing risk for stablecoin users. The bill also aims to strengthen the role of the dollar in digital finance.

Supporters argue the bill will modernise the US payment infrastructure, making transactions faster and more cost-effective. They also emphasise the importance of maintaining space for innovation.

Congressman Dan Meuser highlighted that the legislation reinforces the dollar’s position as the world’s reserve currency. Meanwhile, Congressman Troy Downing emphasised his role in balancing innovation with strong consumer protections.

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North Korean hacker group cashes in on crypto trade

A wallet linked to North Korea’s notorious Lazarus Group has reportedly sold 40.78 Wrapped Bitcoin (WBTC) for $3.51 million, exchanging it for 1,847 Ethereum (ETH), according to data from SpotOnChain.

Instead of holding onto the ETH, the wallet redistributed 2,507 ETH across three separate addresses, with the largest portion of 1,865 ETH sent to another wallet allegedly tied to the hacker group.

The wallet originally purchased the 40.78 WBTC in February 2023 for around $999,900, when the price of WBTC averaged $24,521. Instead of selling earlier, the group waited until WBTC surged to $83,459, securing a realised profit of $2.51 million, representing a 251% gain over two years.

Lazarus Group, instead of operating openly, has been using complex laundering techniques to move stolen funds, particularly after its attack on crypto exchange Bybit.

In March, the group allegedly laundered nearly 500,000 ETH—worth $1.39 billion—through various transactions in just ten days, instead of keeping the stolen assets in a single location. At least $605 million was processed via the THORChain platform in a single day.

According to Arkham Intelligence, a wallet linked to the group still holds approximately $1.1 billion in crypto, with substantial reserves in Bitcoin, Ethereum, and Tether.

Meanwhile, Google’s Threat Intelligence Group has reported increased efforts by North Korean IT workers to infiltrate European tech and crypto firms, acting as insider operatives for state-sponsored cybercrime networks like Lazarus Group instead of working as legitimate employees.

For more information on these topics, visit diplomacy.edu.

AI transforms autism therapy in China

In Shenzhen, a quiet breakthrough is unfolding in autism rehabilitation as AI-powered tools begin to transform how young children receive therapy.

At a local centre, a therapist guides a three-year-old boy through speech exercises, while an AI system documents progress and instantly generates a tailored home-training plan, offering much-needed support to both therapists and families.

China faces a severe shortage of autism therapists, with only around 100,000 professionals serving a community of over 10 million individuals, including 3 million children.

Traditional diagnosis and treatment rely on time-consuming behavioural assessments. Now, AI is streamlining this process.

Centres like Dami & Xiaomi, in partnership with Amazon Web Services, have developed RICE AI, a system trained on over 80 million behavioural data points to generate faster, personalised interventions and even custom visual materials for home learning.

By dramatically reducing workloads and enhancing precision, AI is helping to close the gap in early intervention and support.

More facilities are following suit, with efforts underway to unify and open-source these tools across the country. As one mother tearfully recalled her autistic son’s first spoken word, the emotional impact of this technological shift was clear, AI is not replacing care, but deepening it.

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Google report exposes North Korea’s growing cyber presence in blockchain industry

North Korean cyber operatives have expanded their activities by targeting blockchain startups in the United Kingdom and European Union.

A report from Google’s Threat Intelligence Group (GTIG) revealed that IT workers linked to the Democratic People’s Republic of Korea (DPRK) have embedded themselves in crypto projects beyond the United States, across the UK, Germany, Portugal, and Serbia.

These operatives, posing as remote developers, have left compromised data and extortion attempts in their wake.

Affected projects include blockchain marketplaces, AI web applications, and Solana-based smart contracts. Some developers worked under multiple fake identities, using falsified university degrees and residency documents to gain employment.

Payments were routed through services like TransferWise and Payoneer, obscuring funds flowing back to the North Korean regime. Cybersecurity experts warn that companies hiring these workers risk espionage, data theft, and security breaches.

GTIG reports that these cyber operations are generating revenue for North Korea, which has been accused of using overseas IT specialists to finance its sanctioned weapons programmes.

Financial service providers, including Wise, have stated that they monitor transactions closely and report any suspicious activity. With increasing global scrutiny, experts caution businesses to remain vigilant against fraudulent hires in the blockchain sector.

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Japan targets Apple and Google with new law

The Japan Fair Trade Commission (JFTC) announced on Monday that it has designated Apple Inc., its Japanese subsidiary iTunes K.K., and Google LLC under the new smartphone software competition promotion law.

The law targets dominant IT companies in the smartphone app market, regulating areas like smartphone operating systems, app stores, web browsing software, and search engines.

The primary aim of the law is to prevent these giants from blocking market entry for other companies or giving preferential treatment to their own services. The law will take full effect in December, with the designated companies required to correct any problematic practices.

Apple will be required to allow other companies into the App Store business instead of monopolising it, fostering price competition. Google will be prohibited from displaying its services in search results instead of favouring them.

In response, both companies expressed concerns, with Apple questioning the impact on user experience and Google vowing to engage in discussions to ensure fairness.

For more information on these topics, visit diplomacy.edu.

Meta’s Hypernova smart glasses promise cutting-edge features and advanced display technology

Meta is preparing to launch an advanced pair of smart glasses under the codename Hypernova, featuring a built-in display and gesture control capabilities.

The new device, developed in partnership with Ray-Ban, aims to enhance user convenience by offering features such as media viewing, map navigation, and app notifications.

Unlike previous models, the Hypernova glasses will have a display located in the lower right corner of the right lens, allowing users to maintain a clear view through the left lens.

The glasses will be powered by Qualcomm silicon and run on a customised version of Android. Meta is also developing a wristband, codenamed Ceres, which will provide gesture-based controls, including pinch-to-zoom and wrist rotation.

The wristband is expected to be bundled with the glasses, offering users a more seamless and intuitive experience.

Retail pricing for the Hypernova smart glasses is expected to range between $1,000 and $1,400, significantly higher than current VR-ready smart glasses like the Viture Pro and Xreal One.

However, Meta aims to differentiate its product through enhanced functionality and fashionable design, making it an appealing option for consumers looking for both style and utility.

The Hypernova glasses are projected to hit the market by the end of 2025. Meta is also developing additional augmented reality products, including the Orion holographic glasses and research-focused Aria Gen 2 AR glasses.

Competitors like Samsung are expected to launch similar Android-based smart glasses around the same time, setting the stage for an exciting year in the wearable tech market.

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Hackers exploit AI: The hidden dangers of open-source models

As AI adoption grows, security experts warn that malicious actors are finding new ways to exploit vulnerabilities in open-source models.

Yuval Fernbach, CTO of machine learning operations at JFrog, notes that hackers are increasingly embedding harmful code within AI models, making it easier to steal information, manipulate outputs, or disrupt services.

A recent study by JFrog and Hugging Face found that of over one million AI models analyzed, 400 contained malicious code—roughly a 1% chance of encountering a tainted model.

However, the risk has escalated: while the number of available AI models has tripled, attacks have increased sevenfold.

The widespread use of open-source models, often chosen over costly proprietary alternatives, exacerbates security concerns.

Many companies lack proper oversight, with 58% of surveyed firms admitting to having no formal policy for vetting AI models. Meanwhile, banks and other industries worry that AI’s rapid evolution outpaces their ability to implement safeguards.

With agentic AI poised to automate decision-making, businesses face an urgent need to strengthen AI security measures before vulnerabilities lead to significant financial and operational consequences.

For more information on these topics, visit diplomacy.edu.

ChatGPT adds one million users per hour with AI image tool

OpenAI’s ChatGPT is experiencing unprecedented growth following the release of its new AI image generation feature. According to CEO Sam Altman, the AI tool has been attracting one million new users per hour, spurred by what he described as ‘biblical demand.’

The GPT-4o model, now available to free users, has quickly become a sensation, drawing comparisons to the app’s initial launch 26 months ago.

The latest update allows users to generate highly detailed visuals, including logos, diagrams, and imagery with precise meaning. OpenAI has touted GPT-4o’s ability to accurately render text, follow prompts closely, and draw from its extensive knowledge base to produce tailored visuals.

Popular uses include crafting images in the style of Studio Ghibli, which has led to a flood of creative outputs shared across social media platforms.

However, the overwhelming popularity has strained OpenAI’s resources. Sam Altman acknowledged the situation by noting that their GPUs were ‘melting’ under the pressure.

To manage the surge, OpenAI implemented temporary rate limits to enhance efficiency and maintain service quality.

The company’s success has also attracted significant investment, with OpenAI securing $40 billion in funding, bringing its valuation to $300 billion.

Since launching in November 2022, ChatGPT has amassed 500 million users, solidifying its position as one of the most influential AI platforms globally.

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Dutch police struggle with cyberattacks and underfunding

A leaked report has revealed serious financial and digital failings within the Dutch police, including unchecked spending on IT and cybersecurity.

Auditors from Ernst & Young found that the force must cut €160 million, raising concerns over national security and officer safety.

The Dutch Police Union warns that chronic understaffing, daily cyberattacks and a lack of digital resilience have pushed the system to breaking point.

A September data breach affected nearly all officers, and experts say over €300 million is needed to restore proper infrastructure.

Police Chief Janny Knol acknowledged the force underestimated the costs of digital transformation.

Merged systems from 24 regional departments have caused spiralling maintenance issues, while key tech projects run over budget and behind schedule. Urgent reforms are now planned.

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TikTok Shop launches in France, Germany and Italy

TikTok is expanding its e-commerce push by launching TikTok Shop in France, Germany and Italy. Already active in Spain and Ireland, the feature allows users to buy products directly within the app via videos, livestreams and a dedicated shop tab.

Customers can now browse, order, and get personalised product suggestions without leaving TikTok. However, users under 18 won’t be able to access content linked to TikTok Shop, with the platform promising stricter moderation.

The move has sparked concern among French retailers, with trade groups calling on the government to act against what they see as unfair competition from platforms like TikTok, Shein and Temu. Lawmakers are also investigating TikTok’s impact on young users.

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