A UAE crypto fund has invested $100 million into World Liberty Financial, a blockchain project supported by President Donald Trump. Aqua 1 Foundation said the investment supports a blockchain ecosystem linking traditional and decentralised finance.
The platform’s native token, WLFI, is only available to accredited investors. According to the project’s team, WLFI enables token holders to vote on decisions within the system.
Meanwhile, its stablecoin, USD1, is already trading on major crypto exchanges and was used in a controversial $2 billion settlement involving Binance and an Abu Dhabi-based wealth fund.
Although details on the World Liberty platform remain limited, developers claim it will function as a decentralised borrowing and lending hub. Chase Herro, Zak Folkman, Eric Trump, and the Witkoff family—long-time Trump allies—lead the project.
Ethical concerns are mounting, particularly among Democratic lawmakers, as the Trump family has reportedly earned tens of millions from token sales.
President Trump disclosed a personal gain of over $57 million from the project, prompting Senator Richard Blumenthal to investigate its operations. The Trump-linked DT Marks DEFI LLC recently reduced its stake in the project from 60% to 40%.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
The European Commission is reportedly preparing new guidance to ease restrictions on foreign-issued stablecoins such as USDC and USDT. Under the plan, these tokens would match EU-registered versions, removing a key barrier to broader use in Europe’s financial system.
The shift comes despite strong objections from the European Central Bank, which has repeatedly warned that unrestrained access to foreign stablecoins could destabilise the eurozone.
ECB President Christine Lagarde has voiced concerns over capital outflows and a potential erosion of monetary control, urging tighter oversight of stablecoin issuers.
The EU’s MiCA regulation requires issuers to maintain reserves in European banks and uphold euro-based redemption rights. The changes would exempt some dollar-backed tokens under the EU oversight, bringing rules closer to those in the US and Asia.
The Financial Times reports that the move aims to prevent the EU from becoming a ‘flyover zone’ in global crypto adoption. Officials are considering compromises, including giving national regulators more discretion in assessing risks tied to foreign stablecoins.
If adopted, the plan could increase the dollar’s influence in Europe’s digital economy while positioning the EU as a more attractive crypto hub.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
The top eight South Korean banks are forming a joint venture to issue a won-pegged stablecoin to cut reliance on foreign digital currencies. Backed by the Financial Supervisory Service and blockchain groups, the move marks the country’s first joint entry into the digital asset market.
The launch is expected by late 2025 or early 2026, pending regulatory approval.
The group is weighing two issuance models: a trust-based system where customer funds are segregated and a deposit token model that links digital tokens to bank liabilities on a 1:1 basis. The stablecoin will comply with South Korea’s proposed Digital Asset Act.
Although separate from the central bank’s CBDC project, the token could connect to national systems later. Planned use includes domestic payments, cross-border transfers, and Web3 services. Legal clarity and public trust are essential for the project’s success.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Japan’s Financial Services Agency has proposed classifying cryptocurrencies as financial products under the Financial Instruments and Exchange Act.
The change would pave the way for crypto ETFs and apply a flat 20% capital gains tax, replacing the current progressive system, which taxes some gains at rates up to 55%. The proposal is part of the government’s broader ‘New Capitalism’ strategy to boost investment.
Interest in crypto has surged nationwide, with over 12 million active accounts and holdings exceeding 5 trillion yen. The FSA noted that crypto now surpasses traditional products like FX and bonds in popularity among retail investors.
Japanese regulators hope the shift will attract domestic and international institutional investors, following global trends such as spot Bitcoin ETF adoption in the US.
Japan is also moving towards stablecoin adoption. In April, SMBC and Ava Labs began exploring stablecoins pegged to the yen and dollar to settle tokenised assets. Meanwhile, SBI VC Trade secured Japan’s first stablecoin-handling licence, preparing to support USDC issuance.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Turkey’s Ministry of Treasury and Finance has introduced new regulations to curb illicit activities in the digital asset space. Platforms must now verify more detailed transaction data, including a written explanation for each transfer and proof of fund origin.
The move is expected to improve transparency and allow authorities to detect suspicious activity earlier.
A mandatory waiting period has been introduced for crypto withdrawals. Assets must remain on the platform for 48 hours after being purchased or exchanged, with a 72-hour delay for first-time withdrawals.
Daily and monthly limits of $3,000 and $50,000 have also been placed on stablecoin transfers, though fully compliant platforms may operate with doubled limits.
Authorities clarified that market-making, arbitrage, and liquidity provision transactions would remain unrestricted. However, platforms that fail to comply risk fines, licence suspensions, or complete bans.
These measures form part of a wider framework introduced in March under Capital Markets Law No. 6362, which mandates capital requirements, audits, and user protections. The new rules build on earlier regulations introduced in early 2025 to align with global anti-money laundering standards.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
South Korea’s central bank wants stablecoins introduced slowly, starting with regulated commercial banks.
Deputy governor Ryoo Sangdai said banks offer the highest level of oversight and could act as a safety net, limiting risks to consumers and markets.
Expansion to the broader financial sector would follow only after initial stability is ensured.
Despite limited support, the Bank of Korea remains cautious. Officials warned that stablecoins could accelerate capital outflows and complicate foreign exchange policy. Governor Rhee Chang-yong raised concerns about managing a won-based stablecoin in global markets.
To counter risks, the central bank is advancing its digital currency. A CBDC pilot is set to end by 30 June, with future trials depending on legal clarity and bank coordination.
While South Korea moves carefully, countries like the UAE, Russia, and several African nations are rapidly embracing stablecoin development.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Bitcoin is trading around $106,533 after returning from early June lows and holding above the key $100,000 mark. Despite brief dips below $99,000 due to geopolitical tensions, strong support remains.
Resistance lies between $105,000 and $107,000, with a potential breakout targeting $112,000 to $114,000.
Technical charts show a possible cup and handle formation and a golden cross, supporting a bullish outlook.
Institutional accumulation and crypto fund inflows suggest continued long-term confidence, though short-term indicators signal caution as Bitcoin nears overbought levels.
Ethereum trades near $2,437, consolidating above $2,400 within a defined range. A cup and handle pattern, a nearing golden cross, and bullish signals indicate possible gains if resistance at $2,589 is surpassed. Recent on-chain buying supports Ethereum’s recovery from a flash dip to $2,224.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
North Korean hackers have reportedly used deepfake technology to impersonate executives during a fake Zoom call in an attempt to install malware and steal cryptocurrency from a targeted employee.
Cybersecurity firm Huntress identified the scheme, which involved a convincingly staged meeting and a custom-built AppleScript targeting macOS systems—an unusual move that signals the rising sophistication of state-sponsored cyberattacks.
The incident began with a fraudulent Calendly invitation, which redirected the employee to a fake Zoom link controlled by the attackers. Weeks later, the employee joined what appeared to be a routine video call with company leadership. In reality, the participants were AI-generated deepfakes.
When audio issues arose, the hackers convinced the user to install what was supposedly a Zoom extension but was, in fact, malware designed to hijack cryptocurrency wallets and steal clipboard data.
Huntress traced the attack to TA444, a North Korean group also known by names like BlueNoroff and STARDUST CHOLLIMA. Their malware was built to extract sensitive financial data while disguising its presence and erasing traces once the job was done.
Security experts warn that remote workers and companies have to be especially cautious. Unfamiliar calendar links, sudden platform changes, or requests to install new software should be treated as warning signs.
Verifying suspicious meeting invites through alternative contact methods — like a direct phone call — is a vital but straightforward way to prevent damage.
Would you like to learn more aboutAI, tech and digital diplomacy? If so, ask our Diplo chatbot!
A new Trojan dubbed SparkKitty is stealing sensitive data from mobile phones, potentially giving hackers access to cryptocurrency wallets.
Cybersecurity firm Kaspersky says the malware hides in fake crypto apps, gambling platforms, and TikTok clones, spread through deceptive installs.
Once installed, SparkKitty accesses photo galleries and uploads images to a remote server, likely searching for screenshots of wallet seed phrases. Though mainly active in China and Southeast Asia, experts warn it could spread globally.
SparkKitty appears linked to the SparkCat spyware campaign, which also targeted seed phrase images.
The malware is found on iOS and Android platforms, joining other crypto-focused threats like Noodlophile and LummaC2.
TRM Labs recently reported that nearly 70% of last year’s $2.2 billion in stolen crypto came from infrastructure attacks involving seed phrase theft.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Senator Adam Schiff has proposed a bill to ban top officials and their families from engaging in crypto ventures while in office. The COIN Act seeks to ban top officials from endorsing, creating, or promoting cryptocurrencies, NFTs, and stablecoins.
The proposal follows growing scrutiny of President Donald Trump’s involvement in digital assets. Schiff pointed directly to Trump’s financial gains, which included $58 million from token sales in 2024 and a projected $390 million in 2025.
He argued that such activities raise ‘ethical, legal and constitutional’ concerns, especially concerning public office.
Under the COIN Act, any sale of digital assets over $1,000 must be disclosed. Violators could face penalties equal to their profits and up to five years in prison.
Despite this push, Schiff previously voted for the GENIUS Act, which exempted the president and vice president from stablecoin restrictions—a move some critics see as contradictory.
The bill has gained support from nine Senate Democrats but is unlikely to pass under a Republican-controlled Congress. Democrat-led measures, such as the MEME Act and the Stop TRUMP in Crypto Act, have similarly struggled to gain traction.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
