Cryptocurrencies

UK and US join forces to promote responsible cryptocurrency adoption

The United Kingdom and the United States are set to strengthen their collaboration in advancing cryptocurrency adoption. UK Finance Minister Rachel Reeves confirmed that the UK plans to introduce a comprehensive regulatory framework for crypto assets.

The government hopes to work closely with the US to promote the responsible use of the asset class.

Under President Trump’s leadership, the US has become increasingly supportive of cryptocurrency, marking a significant shift towards pro-crypto policies. With these developments, both countries aim to foster wider, more secure adoption of crypto.

The UK is specifically focusing on regulatory frameworks to prevent misuse while encouraging innovation.

In its bid to become a global leader in digital assets, the UK has published draft legislation on crypto regulation. Reeves stated that international cooperation would be essential for success.

She emphasised that collaboration between the UK and the US could establish groundbreaking regulatory standards, elevating the crypto industry to new heights.

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Trump’s first 100 days show steady tech policy

In his blog post ‘Tech continuity in President Trump’s first 100 days,’ Jovan Kurbalija highlights that Trump’s approach to technology remained remarkably stable despite political turbulence in trade and environmental policy. Out of 139 executive orders, only nine directly addressed tech issues, focusing mainly on digital finance, AI leadership, and cybersecurity, reflecting a longstanding US tradition of business-centric tech governance.

Trump’s administration reinforced the idea of letting the tech sector evolve without heavy regulatory interference, even as international players like the EU pushed for stronger digital sovereignty measures. Content moderation policies saw a significant shift, notably with an executive order to curb federal involvement in online censorship, aligning with moves by platforms like Meta and X (formerly Twitter) toward deregulation.

Meanwhile, the prolonged TikTok saga underlined the growing intersection of tech and geopolitics, with ByteDance receiving a deadline extension to sell its US operations amid rising tensions with China. In AI policy, Trump steered away from Biden-era safety concerns, favouring economic competitiveness and educational reforms to strengthen American AI leadership, while public consultations revealed a broad range of industry perspectives.

Kurbalija also noted the administration’s steady hand in cybersecurity, focusing on technical infrastructure while minimising concern over misinformation, and in digital economy matters, where new tariffs and the removal of the de minimis import exemption pointed toward a potentially fragmented global internet. In the cryptocurrency sector, Trump adopted a crypto-friendly stance by creating a Strategic Bitcoin Reserve and easing previous regulatory constraints, though these bold moves sparked fears of financial volatility.

Despite these tactical shifts, Kurbalija concludes that Trump’s overarching tech policy remains one of continuity, firmly rooted in supporting private innovation while navigating increasingly strained global digital relations.

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Cybercriminals target Gmail accounts in sophisticated new attack

Gmail users are facing a serious new threat that could lead to their accounts being hijacked by cybercriminals.

Experts at Malwarebytes have issued an urgent warning about a sophisticated scam that is bypassing Gmail’s usually reliable spam filters, putting billions of accounts at risk.

The scam was first noticed by Nick Johnson, a developer with the Ethereum Name Service, who received an official-looking email supposedly from Google.

Although it appeared genuine and even passed all verification checks, the link inside redirected users to a fraudulent site hosted via Google’s own website creation platform. Cybercriminals exploited the fact that anyone can create pages on sites.google.com to make the scam look credible.

Google has acknowledged the attack, linked to the Rockfoils threat group, and confirmed that new protections are being rolled out.

While measures are underway to address the vulnerability, security experts strongly advise Gmail users to remain cautious and follow essential safety practices to avoid falling victim.

Simple actions, such as avoiding links in unsolicited emails, double-checking email headers, and refusing to use Google credentials to sign into other services, can significantly reduce the risk. Staying vigilant is now more important than ever to protect personal data and online security.

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Abu Dhabi institutions plan a dirham-pegged stablecoin

Three major Abu Dhabi institutions are teaming up to launch a dirham-pegged stablecoin, pending regulatory approval. The partners include Abu Dhabi’s sovereign wealth fund ADQ, First Abu Dhabi Bank (FAB), and the International Holding Company (IHC).

The stablecoin will be regulated by the UAE’s central bank and backed by the dirham. It aims to support use cases like machine-to-machine communication and artificial intelligence. The project will operate on the ADI blockchain, created by the ADI Foundation, a non-profit focused on blockchain adoption.

The initiative seeks to position the UAE as a leader in global blockchain innovation. It also aims to strengthen the country’s digital infrastructure and provide new financial opportunities.

The UAE joins other nations exploring alternatives to US dollar-backed stablecoins, as global interest in national digital currencies grows.

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The stablecoin market remains largely dominated by Tether

Tether (USDT) continues to lead the stablecoin market with a 66% market share, while USDC follows at 28%, according to Nansen’s 25 April report. Ethena’s USDe stablecoin ranks a distant third with just over 2%.

Although USDC has grown faster, Tether’s dominance is expected to persist due to its large user base and the market’s ‘winner-takes-most’ nature. Tether remains the most profitable stablecoin issuer, with profits of nearly $14 billion expected in 2024.

USDC’s growth has accelerated since November, thanks to a more favourable regulatory environment. It is particularly appealing to institutions seeking regulatory clarity. However, traditional financial institutions, such as PayPal and Fidelity, are increasing competition with their stablecoins.

Ethena’s USDe stablecoin remains competitive, offering yield-bearing features with a 19% annualised yield. It has been integrated into both CEXs and DeFi protocols, positioning it for future growth.

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Mastercard launches stablecoin payment support

Mastercard is stepping up its crypto ambitions by enabling stablecoin transactions through new partnerships. The payment giant announced a collaboration with crypto exchange OKX, processor Nuvei, and fintech firm Circle.

The goal is to build an ecosystem where users can spend stablecoins and merchants can accept them.

A new card issued with OKX will allow stablecoin holders to pay directly using crypto, while Nuvei and Circle will support the infrastructure behind these transactions.

Mastercard’s Chief Product Officer said stablecoins have the potential to simplify global payments. They can also empower both consumers and businesses by offering more choices.

Mastercard plans to allow users to spend stablecoins from their wallets at over 150 million merchant locations worldwide that already accept its cards.

The move comes as regulatory discussions around stablecoins continue in the US. The Securities and Exchange Commission recently stated that certain dollar-pegged tokens do not qualify as securities. However, it stopped short of offering clarity on yield-bearing or algorithmic stablecoins, leaving questions open for future decisions.

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El Salvador keeps buying Bitcoin under the IMF radar

El Salvador continues quietly accumulating Bitcoin, even as it complies with conditions set by the International Monetary Fund (IMF). Although the government paused Bitcoin activity to secure a $1.4 billion loan, the Bitcoin Office kept buying. It added 32 BTC last month, now holding over 6,160 BTC worth $584 million.

The small daily purchases adhere to the country’s ‘one Bitcoin a day’ policy.

The IMF confirmed El Salvador’s fiscal sector is meeting its non-accumulation pledge, but the Bitcoin Office operates outside those fiscal definitions. The technical loophole has allowed the country to continue acquiring Bitcoin without breaching the agreement.

The reforms agreed with the IMF include scaling back the Chivo wallet initiative and removing Bitcoin’s mandatory status as legal tender.

Despite the pressure, President Nayib Bukele remains committed to the Bitcoin strategy. In January, El Salvador’s Legislative Assembly passed amendments removing Bitcoin as a compulsory payment method and tax payment option.

These changes, effective from 1 May, were necessary to unlock IMF funding. They also opened access to an additional $2 billion in development financing aimed at stabilising the economy and reducing debt, which recently reached 85% of GDP.

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Trump suggests tariffs could replace income taxes

US President Donald Trump has proposed substantial reductions or even the elimination of federal income taxes once the full impact of import tariffs is realised. In a 27 April post on Truth Social, Trump revealed that the plan would primarily benefit individuals earning less than $200,000 annually.

He added that the government might transition to funding its operations through import tariffs rather than the traditional model, which relies on the Internal Revenue Service (IRS).

Trump’s vision involves creating what he described as an ‘External Revenue Service,’ where revenues would come solely from tariffs. He has suggested that this change could trigger economic benefits similar to those seen in the US during the 19th century, when there was no permanent federal income tax.

Research by Dancing Numbers indicates that such a plan could potentially save the average American significant amounts in lifetime tax payments.

However, the proposal has raised concerns among analysts and financial markets. Despite Trump’s past remarks, doubts exist about how practical this plan could be. His administration has faced criticism for its unpredictable trade policies, which have caused volatility in the stock market and increased bond yields.

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Lazarus Group uses fake firms to spread malware to the crypto industry

North Korean hackers, believed to be part of the Lazarus Group, have created fake US businesses to target cryptocurrency developers. According to cybersecurity firm Silent Push, two companies, Blocknovas LLC and Softglide LLC, were set up to infect victims with malicious software.

These companies were established using false information in New York and New Mexico, violating international sanctions.

The attacks involved job offers that led to ‘sophisticated malware deployments,’ aimed at compromising cryptocurrency wallets and stealing credentials. The FBI has since seized the Blocknovas website, which had been used to deceive individuals and distribute malware.

Silent Push noted that multiple victims had fallen victim to the scam, with Blocknovas being the most active front in the campaign.

The phishing operation is just one example of North Korea’s ongoing cyber activities. The Lazarus Group has previously been responsible for high-profile hacks, including the $1.4 billion attack on crypto exchange Bybit in February.

The FBI continues to focus on imposing risks and consequences for those facilitating these cyber operations.

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Russian governor proposes gas-powered Bitcoin mining solution

A Russian provincial governor has proposed a solution to Bitcoin mining-related energy shortages. He suggested that associated gas from oil drilling sites could power mining operations.

Irkutsk Governor Igor Kobzev suggested that crypto miners collaborate with oil and gas companies to build data centres powered by alternative fuels. The suggestion comes amidst mounting energy concerns, especially after the recent year-round ban on Bitcoin mining in southern Irkutsk.

Governor Kobzev stated that the regional government supports Bitcoin mining but is committed to ensuring reliable electricity for residents and businesses.

He pointed out that mining operations should address the region’s electricity shortages. The government is ready to facilitate partnerships between miners and the oil and gas sectors.

Russian companies like BitRiver and Gazprom Neft have already experimented with using associated gas to power crypto mining facilities.

The Ministry of Energy is reportedly considering additional regional mining bans due to the strain on electricity networks.

Despite concerns, Governor Kobzev supports associated gas-powered mining, viewing it as a solution to reduce flaring and the environmental impact.

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