Australia has taken down 14,000 online scams since July 2023, with more than 3,000 involving crypto. The Australian Securities and Investments Commission (ASIC) has expanded scam enforcement to cover social media ads, investment fraud, and phishing websites.
ASIC Deputy Chair Sarah Court noted takedown powers refer suspicious sites to cybercrime specialists for removal. Common scams include AI trading bots, fake websites, and fraudulent celebrity endorsements, making fraud harder to detect.
Investment scams remain the leading threat, with over $73 million lost this year, though overall losses have fallen since 2023. Regulators urged caution with testimonials, AI investment claims, and schemes on WhatsApp, Telegram, and other messaging apps.
Crypto ATMs have also come under scrutiny. AUSTRAC and the AFP have investigated connections between crypto ATMs and scams, including pig-butchering operations. Australia has nearly 2,000 crypto ATMs, with new limits to curb crime and protect investors.
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The European Union is accelerating work on a digital euro after the United States introduced new legislation to regulate the $288 billion stablecoin market. Brussels officials warn the euro may lose ground to dollar-backed tokens without swift action.
Sources told the Financial Times that regulators are revisiting issuing the digital euro on public blockchains such as Ethereum or Solana. Privacy concerns had blocked the option, but US developments have led Europe to reconsider.
The European Central Bank warned that reliance on foreign payment systems could weaken Europe’s financial sovereignty. A digital € would provide strategic autonomy, countering the risk of deposits flowing abroad and reinforcing the euro’s role in international settlements.
China has already rolled out its digital yuan, while the UK is evaluating a digital pound. The US market is dominated by companies such as Circle and Tether, with banks like Citi and JPMorgan preparing their own tokens.
Although smaller euro stablecoins exist, ECB officials say a digital € would cement Europe’s competitive position in the evolving global financial system.
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China is preparing to take a major step in the digital currency race by considering yuan-backed stablecoins, marking a sharp reversal from its earlier tough stance on cryptocurrencies. According to sources, Beijing’s cabinet will soon review a national strategy, with Hong Kong and Shanghai expected to spearhead the rollout thanks to Hong Kong’s recently passed Stablecoins Bill.
The move comes as Japan accelerates its own efforts. JPYC Inc., a Japanese fintech firm, has received regulatory approval to issue a yen-backed stablecoin, also called JPYC. The company plans to sell up to 1 trillion yen ($68 billion) worth of the tokens within three years, each pegged 1:1 to the yen and backed by liquid assets such as government bonds.
These parallel developments in East Asia could challenge the dominance of dollar-backed stablecoins, which currently make up nearly the entire global market. Analysts say the introduction of major Asian currencies into the mix could reshape digital finance and add momentum to regulatory frameworks emerging worldwide.
Stablecoins are increasingly seen as a bridge between traditional finance and digital assets, offering stability that other cryptocurrencies lack. Despite regulatory hurdles and slow adoption, the market is expected to surge to $4 trillion by 2030, signalling how pivotal the latest steps from China and Japan could be for the global financial system.
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Brazil’s Chamber of Deputies Economic Development Commission will hold its first hearing on 20 August to examine a proposal to establish a Bitcoin Strategic Reserve. The legislation aims to diversify Treasury assets and protect reserves from currency and geopolitical risks.
Deputy Luiz Philippe de Orleans e Bragança requested the hearing to gather expert input from government agencies and financial institutions. Lawmaker Eros Biondini highlighted global examples such as El Salvador, the US, China, Dubai, and the EU to support the initiative.
The bill assigns custody responsibilities to Brazil’s Central Bank and Finance Ministry and requires biannual reports on RESBit performance and risk assessments.
Brazil leads Latin America in crypto adoption, ranking 10th globally, with nearly $76 billion in crypto traded last year. The proposal positions the country among nations exploring digital asset reserves as hedges against traditional currency.
Following the hearing, the proposal will undergo review by four Chamber committees before full consideration and Senate approval. Expert and monetary authority input will guide committee reviews and amendments, supporting a strong legislative framework for Brazil’s proposed Bitcoin reserve.
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Coinbase positions stablecoins at the heart of AI-powered apps, bots, and machines. Over a sweltering August weekend in Brooklyn, around 100 developers from across the globe built tools enabling software to send and receive payments using these digital dollars.
Projects included instant-pay publishing platforms, chatbots charging small fees, and group marketplaces operating independently of traditional banks.
The company is promoting x402, an open-source protocol named after the ‘402 Payment Required’ internet error, designed to let apps and software settle payments instantly using stablecoins.
Developers were encouraged to integrate x402 into their projects, offering real-time microtransactions without relying on PayPal, Visa, or banks. Coinbase hopes the protocol becomes the go-to toolkit for app builders, similar to how Amazon Web Services underpins the internet.
Competition intensifies as Stripe, PayPal, Visa, and Mastercard explore stablecoin infrastructure. Recent US legislation regulating stablecoins provides legal clarity, encouraging developers to innovate confidently.
Despite traditional payment systems and slow-changing consumer habits, Coinbase’s hackathon showcased growing ambitions to develop AI financial infrastructure. Stablecoins are being positioned not just as digital assets, but as functional tools for the next generation of software payments.
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Federal Reserve Vice Chair for Supervision Michelle Bowman has warned that banks must embrace blockchain technology or risk fading into irrelevance. At the Wyoming Blockchain Symposium on 19 August, she urged banks and regulators to drop caution and embrace innovation.
Bowman highlighted tokenisation as one of the most immediate applications, enabling assets to be transferred digitally without intermediaries or physical movement.
She explained that tokenised systems could cut operational delays, reduce risks, and expand access across large and smaller banks. Regulatory alignment, she added, could accelerate tokenisation from pilots to mainstream adoption.
Fraud prevention was also a key point of her remarks. Bowman said financial institutions face growing threats from scams and identity theft, but argued blockchain could help reduce fraud.
She called for regulators to ensure frameworks support adoption rather than hinder it, framing the technology as a chance for collaboration between the industry and the Fed.
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Thirty crypto executives have urged Finance Minister Rachel Reeves to adopt a national stablecoin strategy, warning the UK could fall behind faster-moving markets. Their letter warned that the UK could remain a ‘rule-taker’ in digital assets without regulation.
The executives criticised the UK’s current legal definition of stablecoins as outdated and misleading, likening it to defining a cheque merely as’ paper concerning currency.’
They argue that stablecoins should be recognised as digital payment rails already used globally. Signatories include Coinbase, Kraken, Copper, Fireblocks, BitGo, and VanEck leaders, calling for regulation that treats stablecoins as financial infrastructure rather than risks.
Analysts stress stablecoins remain essential, acting as the ‘cash equivalent’ for digital assets and enabling faster blockchain transfers than traditional banking.
Industry experts, including HSBC’s Daragh Maher, emphasised that growth depends on a suitable regulatory environment. Clear rules could strengthen the UK’s global financial role and let stablecoins play a key part in its digital finance system.
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Researchers at the University of California, Davis, have revealed that generative AI browser assistants may be harvesting sensitive data from users without their knowledge or consent.
The study, led by the UC Davis Data Privacy Lab, tested popular browser extensions powered by AI and discovered that many collect personal details ranging from search history and email contents to financial records.
The findings highlight a significant gap in transparency. While these tools often market themselves as productivity boosters or safe alternatives to traditional assistants, many lack clear disclosures about the data they extract.
Researchers sometimes observed personal information being transmitted to third-party servers without encryption.
Privacy advocates argue that the lack of accountability puts users at significant risk, particularly given the rising adoption of AI assistants for work, education and healthcare. They warn that sensitive data could be exploited for targeted advertising, profiling, or cybercrime.
The UC Davis team has called for stricter regulatory oversight, improved data governance, and mandatory safeguards to protect users from hidden surveillance.
They argue that stronger frameworks are needed to balance innovation with fundamental rights as generative AI tools continue to integrate into everyday digital infrastructure.
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Bitcoin and Ether fell on Tuesday as traders took profits following a recent market rally and positioned themselves ahead of upcoming macroeconomic events. Bitcoin dropped 2.78% to $113,234, briefly trading as low as $112,709, while Ether fell 5.44% to $4,108.
Analysts attribute the declines to profit-taking and leveraged liquidations after Bitcoin reached an all-time high earlier this month. Market participants take a wait-and-see approach, with ether key levels at $4,200 support and $3,900 downside risk.
Spot Bitcoin and Ether ETFs are also being closely monitored. ETFs have recently seen net outflows after strong inflows in July and early August, signalling cautious investor sentiment.
Traders are now focused on July’s Federal Open Market Committee meeting minutes. Federal Reserve Chair Jerome Powell’s Jackson Hole speech on Friday could trigger sharp market movements depending on policy signals.
Investors remain cautious, positioning for Powell’s remarks while weighing the potential impact of expected rate cuts in September. Analysts suggest the market may consolidate until greater clarity emerges on monetary policy.
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TeraWulf has secured a $3.2 billion financial backstop from Google to develop a 160-megawatt data centre at its Lake Mariner site in New York. Google will receive warrants for 32.5 million shares, lifting its stake in TeraWulf to about 14%.
Unlike its existing Bitcoin mining activities, the new deal focuses exclusively on AI and high-performance computing (HPC) workloads. TeraWulf confirmed it will maintain its Bitcoin mining operations but has no plans for expansion in that area.
The pivot reflects a broader trend in the mining industry, where companies increasingly shift capacity toward AI following the April 2024 halving that cut block rewards.
Executives highlighted that while Bitcoin mining offers immediate cash flow and grid flexibility, the long-term growth lies in powering AI and HPC demand. Research from VanEck suggests that if miners redirected just 20% of their power toward AI hosting, the industry could see $13.9 billion in additional annual revenue.
TeraWulf’s leadership said the partnership with Google positions the company as a key player in building next-generation digital infrastructure.
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