The Bank of Russia plans to allow investment funds to purchase cryptocurrency derivatives next year, a senior official confirmed at the Capital Markets 2025 forum. Currently, only brokers can offer such instruments to qualified investors.
Deputy head of the bank’s Investment Finance Intermediation Department, Valery Krasinsky, explained that the move aims to level the playing field for management companies. Futures on Bitcoin ETFs are available via brokers, and mutual funds could soon access them under new rules.
Access to crypto funds will remain limited to highly qualified investors. Individuals must meet strict financial thresholds, including securities and deposits exceeding 100 million rubles or an annual income of over 50 million.
The CBR is also finalising a list of base assets for derivative financial instruments, with a draft regulatory act expected in 2026.
Authorities have indicated a cautious expansion of investor access. The Ministry of Finance is considering easing the criteria for ‘highly qualified’ investors, signalling a gradual opening of Russia’s crypto market while preserving the dominance of traditional stock and bond investments.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
BingX, a leading cryptocurrency exchange and Web3 AI company, has unveiled BingX AI Master, the world’s first AI-powered crypto trading strategist. The tool makes trading more innovative and more accessible, using AI optimisation with strategies from five leading digital investors.
BingX AI Master guides users through the entire trading process, from generating ideas to executing trades and reviewing results. Key features include 24/7 strategy ideas, instant alerts, AI backtesting, dynamic orders, and transparent performance reviews.
BingX has introduced a trading competition with a 3,000,000 USDT prize pool to mark the launch. Users can compete directly against BingX AI Master, with additional rewards from task-based lucky draws, trading volume contests, and the AI 1v1 Arena.
Founded in 2018, BingX serves over 20 million users worldwide and offers a full suite of AI-driven trading tools. The company expands its AI portfolio with BingX AI Master and AI Bingo, reinforcing its role in AI-driven crypto trading.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
South Korea will grant cryptocurrency firms ‘venture company’ status from 16 September, giving them access to tax breaks, financing support, and other incentives. The move follows a partial revision of the Venture Business Act removing restrictions on crypto trading and brokerage.
The regulatory change aims to stimulate growth in the crypto and blockchain sectors. Advantages include research and development grants, credit guarantees, and the ability for existing venture companies to expand into crypto without losing their status.
Minister Han Seong-sook said the measure will help create a transparent and responsible ecosystem for venture capital and innovation.
Crypto firms were first restricted in October 2018, and the ban’s removal reflects industry maturity and better user protections. Officials expect the change to accelerate growth in virtual asset trading, blockchain technologies, smart contracts, and cybersecurity.
South Korea’s crypto industry has already benefited from a friendlier environment under President Lee Jae-myung. The market is projected to reach $1.1 billion in revenue in 2025 and $1.3 billion by 2026, with exchange users surpassing 16 million, over 30% of the population.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
A group of 12 Democratic US senators unveiled a crypto regulation plan, highlighting the need for bipartisan oversight. The proposal comes in response to Republicans’ plan to advance a market structure bill this month.
The Democrats’ framework outlines seven key pillars, including protections against illicit finance and measures to close gaps in the spot market for digital assets not classified as securities. It also calls for fair and effective regulation, highlighting concerns over the SEC, CFTC, and Treasury Department leadership.
The framework criticised Trump for removing Democratic commissioners and noted his family’s financial ties to crypto projects. Senators urged limits on elected officials and family members profiting from digital assets and reinforced disclosure requirements.
With the House passing the CLARITY Act and the GENIUS Act regulating stablecoins, the Senate is expected to prioritise crypto market structure legislation. However, Democrats remain uncertain whether Republicans will adopt their recommendations, with a final bill unlikely before 2026.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Kazakhstan President Kassym-Jomart Tokayev has announced plans to establish a State Digital Asset Fund to consolidate the country’s position in digital finance. The fund will accumulate a strategic crypto reserve through the National Bank’s Investment Corporation.
Crypto adoption in Kazakhstan has surged, doubling ownership from 4% in 2022 to 8% in 2024. Mining generated over $10 million in taxes, while licensed providers contributed $367,000 in the first eight months 2024.
Tokayev warned of rising online fraud, highlighting the need for anti-fraud centres, biometric ID systems, and enhanced legislation to protect citizens and state finances. He connected digital finance to urban development, unveiling Alatau City, a $7.2 billion fully digitalised smart city with crypto payments.
The initiative positions Kazakhstan as a regional leader in crypto strategy, combining economic growth, technological innovation, and digital infrastructure development.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Yevgeny Masharov, a member of the Public Chamber of the Russian Federation, said a national crypto bank would bring vast sums of crypto into the legal economy. He added that lawmakers also aim to ban quasi-legal exchanges while exploring the launch of state-run trading platforms.
Masharov suggested that a crypto bank could be a tool against online fraud, particularly schemes involving ‘droppers’ who launder cash and crypto for criminals. He argued that by keeping transactions within an official system, authorities would have more control over illicit flows.
The initiative follows similar moves in Belarus, where President Alexander Lukashenko has instructed officials to accelerate work on a national crypto bank. Moscow also views such a project as a way to support miners, enable safer cross-border payments, and reduce reliance on Western-controlled financial networks.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Stablecoins have become central to the digital economy, with billions in daily transactions and stronger regulatory backing under the GENIUS Act. Yet experts warn that advances in quantum computing could undermine their very foundations.
Elliptic curve and RSA cryptography, widely used in stablecoin systems, are expected to be breakable once ‘Q-Day’ arrives. Quantum-equipped attackers could instantly derive private keys from public addresses, exposing entire networks to theft.
The immutability of blockchains makes upgrading cryptographic schemes especially challenging. Dormant wallets and legacy addresses may prove vulnerable, putting billions of dollars at risk if issuers fail to take action promptly.
Researchers highlight lattice-based and hash-based algorithms as viable ‘quantum-safe’ alternatives. Stablecoins built with crypto-agility, enabling seamless upgrades, will better adapt to new standards and avoid disruptive forks.
Regulators are also moving. NIST is finalising post-quantum cryptographic standards, and new rules will likely be established before 2030. Stablecoins that embed resilience today may set the global benchmark for digital trust in the quantum age.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!
ScamSniffer has reported a sharp rise in phishing scams during August, with losses climbing to $12.17 million, a 72% increase from July. The figure marks the highest monthly losses this year and came alongside 15,230 victims, a new annual record.
The spike was driven mainly by EIP-7702 batch signature scams, which accounted for nearly half of the stolen funds. One victim lost $3.08 million in a single incident, while two others lost $1.54 million and $1 million, respectively.
More minor but significant losses also occurred, including users losing $235,977 and $66,000 in scams disguised as Uniswap swaps.
EIP-7702, introduced with Ethereum’s Pectra upgrade, allows externally owned accounts to act temporarily like smart contracts. While intended to improve user experience, it has opened the door to new phishing exploits.
Security experts warn that attackers increasingly use automated sweeper attacks to drain compromised wallets.
Beyond EIP-7702, traditional phishing methods remain a problem. ScamSniffer noted a rise in address poisoning and malicious ads on platforms such as Google and Bing. One user lost $636,559 after copying a tainted address, while two more lost $500,000 and $19,000 in similar schemes.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Japan’s Financial Services Agency (FSA) has proposed moving cryptocurrency regulation under the Financial Instruments and Exchange Act (FIEA), which would align oversight with securities law and impose tougher rules on the industry.
The regulator noted crypto issues such as unclear disclosures, scams, unregistered operations, and exchange security weaknesses. Applying the Act could bring stricter disclosure requirements, regulation of brokerages, and enforcement tools such as emergency injunctions.
The report, though non-binding, highlights crypto’s growing role in Japan. Over 12 million exchange accounts have been opened, with deposits exceeding 5 trillion yen ($33.7bn).
Around 70 per cent of users are middle-income earners, and most expect long-term price gains. Finance Minister Katsunobu Kato recently acknowledged that cryptocurrencies could be part of diversified portfolios despite volatility risks.
If adopted, the proposed changes would reshape Japan’s regulatory landscape by treating crypto more like traditional financial instruments, aiming to reduce risks while strengthening investor confidence.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
The European Central Bank (ECB) has emphasised that its proposed digital euro will enhance Europe’s resilience against cyber threats and infrastructure disruptions while ensuring broad access to digital payments.
Piero Cipollone, a member of the ECB’s Executive Board, told the European Parliament that resilience and inclusiveness are central to the project. The digital euro is intended to complement physical cash, providing spare capacity alongside private payment systems.
Safeguards include multi-region transaction processing, a mandatory ECB-run app, and offline functionality to allow peer-to-peer payments during network or power outages.
The ECB also highlighted the importance of accessibility. Millions of Europeans with visual or hearing impairments or limited digital literacy could benefit from adaptive interfaces, voice commands, large-font displays, and mandatory support from payment providers.
Public institutions such as post offices and libraries may offer free assistance for those less familiar with digital tools.
Lawmakers received the ECB’s 14th update on the digital euro, underscoring the central bank’s commitment to combining security, inclusivity, and technological innovation in Europe’s evolving payments landscape.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
