A member of Kazakhstan’s lower house of parliament, Azat Peruashev, has proposed the creation of a ‘crypto bank‘ in the country. The aim is to provide a legal exchange and custody platform for digital assets.
Peruashev pointed out the absence of a proper legal infrastructure for cryptocurrency in Kazakhstan. It has led to the proliferation of illegal exchanges and the shadow economy. He suggested that a national crypto bank could prevent scams, protect citizens, and stop money from leaving the country illegally.
The lawmaker argued that, currently, 90% of cryptocurrency transactions occur outside the legal sector. He claimed that this gap in regulation has allowed criminals to use crypto for illicit activities. These activities include tax evasion and financing criminal operations.
Peruashev highlighted that billions of tenge worth of cryptocurrency are being transferred abroad without state control. His proposal envisions a legal framework for managing digital assets and preventing fraudulent activities.
Other lawmakers, including Ekaterina Smyshlyaeva, have shown support for crypto reform. Smyshlyaeva has suggested decriminalising crypto trading for individuals on licensed platforms. She is also calling for tighter control over licensed exchanges.
President Kassym-Jomart Tokayev has also shown interest in expanding Kazakhstan’s crypto infrastructure to ensure the country remains competitive in the global crypto economy.
The country’s crypto mining sector was later impacted by power shortages. Despite this, global crypto operators continue to set up shop in Kazakhstan, attracted by its low energy costs.
For more information on these topics, visit diplomacy.edu.
Microsoft has scrapped plans for over 2GW of data centre leases in the US and Europe, signalling a strategic shift in its AI infrastructure support.
The move appears linked to scaled-back OpenAI workloads and concerns over market oversupply.
The decision has sent shockwaves through US tech markets, with shares of AI players like Nvidia and Dell taking hits. Bitcoin mining stocks also slumped by up to 12%, as hopes for sustained AI-driven demand dimmed.
While Microsoft steps back, Google and Meta are ramping up their own capacity, trying to fill the gap.
Analysts warn that crypto miners, already facing profitability pressure, may need to rethink their business models in light of this new reality.
For more information on these topics, visit diplomacy.edu.
The US Securities and Exchange Commission (SEC) has officially closed its investigation into Crypto.com without any enforcement action. In October 2024, Crypto.com filed a lawsuit against the agency, arguing that the SEC had overstepped its authority.
The case was dismissed in December, and the investigation has now ended without any penalties for the platform.
Crypto.com’s Chief Legal Officer, Nick Lundgren, welcomed the closure, criticising the prior SEC leadership for misusing its power against the crypto industry.
CEO Kris Marszalek echoed these sentiments, calling the previous administration’s regulatory approach a ‘war on crypto’. He claimed it aimed to restrict access to banking, auditors, and investors.
Crypto.com, with over 100 global regulatory approvals, is the only major exchange that has neither been sued nor settled with the SEC. The company continues to operate in compliance with key US agencies.
The development reflects a broader shift in the SEC’s approach under acting Chair Mark Uyeda. The agency has recently withdrawn lawsuits against several prominent crypto firms.
It has also established a Crypto Task Force, which will focus on industry regulation in upcoming public discussions.
For more information on these topics, visit diplomacy.edu.
Katasonov described such a move as ‘laying landmines,’ suggesting it would pose significant risks to Russia’s economic stability.
He argued that cryptocurrencies are speculative tools, not fully-fledged money. He warned that they could lead to inflationary bubbles that may eventually burst, affecting the economy and creating numerous casualties.
Katasonov also expressed concern over crypto advocates pushing for the inclusion of digital assets in Russia’s official economic system. He labelled these individuals as ‘fifth columnists,’ accusing them of attempting to undermine the country’s financial security.
Despite the growing interest in digital currencies, Katasonov pointed out that no country has successfully launched a crypto reserve to date. He referenced scepticism about the feasibility of Bitcoin reserves, even in countries like the US.
While Russia’s Central Bank has ruled out the idea of a Bitcoin reserve, the country’s finance ministry has shown some openness. Despite this, the ministry continues to focus on gold and the Chinese yuan for the time being.
For more information on these topics, visit diplomacy.edu.
South Korean regulators have strengthened their efforts to curb money laundering and protect local users by urging Google Play to block 17 unregistered overseas crypto exchanges.
They cited concerns about platforms failing to comply with local regulations.
The blocked exchanges, including major names such as KuCoin, MEXC, and Poloniex, can no longer be accessed for new downloads or updates through the Google Play Store.
South Korean authorities are increasing oversight of virtual asset service providers (VASPs) to prevent illicit activities and ensure the security of users.
The move follows heightened scrutiny of the crypto industry in South Korea. Recently, the Southern District Prosecutors’ Office raided Bithumb offices over allegations of financial misconduct.
The authorities are also in discussions with Apple Korea to extend the block to the App Store. As these regulatory measures progress, exchanges are being urged to comply with South Korea’s strict crypto laws to maintain their access to the market.
For more information on these topics, visit diplomacy.edu.
As Canada nears a federal election, Coinbase urges the next government to prioritise clear crypto regulations. Coinbase’s Canadian country director highlighted that while Canada has been a leader in crypto adoption, regulatory uncertainty could hinder further progress.
Matheson cited statistics showing that five million Canadians already hold crypto. According to Coinbase, 86% of Canadians see room for improvement, 80% feel the system is unfair, and 76% view it as outdated. The growing dissatisfaction signals the need for forward-thinking financial policies.
Regulatory challenges have forced several crypto exchanges to exit Canada following stricter rules. Meanwhile, Mark Carney, a Liberal Party leader, has expressed scepticism towards Bitcoin, favouring central bank digital currencies instead.
Coinbase calls for reforms, including a government crypto task force within 100 days, federal stablecoin regulations, and clearer asset definitions.
The company also advocates for a national Bitcoin reserve and fewer barriers for mining. It further supports enabling banks to integrate crypto into their services. Without swift action, Canada risks falling behind in the global digital landscape.
For more information on these topics, visit diplomacy.edu.
Custodia Bank and Vantage Bank have launched Avit, the first US bank-issued stablecoin deployed on a permissionless blockchain.
Tokenised US dollar demand deposits were issued on Ethereum using the ERC-20 standard, marking a significant development in the financial sector. Custodia described the initiative as a new payment rail within the US banking system.
Custodia CEO Caitlin Long emphasised that Avit represents a ‘real dollar’ stablecoin, backed by demand deposits rather than synthetic tokens. Vantage Bank CEO Jeff Sinnott highlighted the launch as a transformative payment moment. He emphasised the growing role of blockchain in traditional banking.
Ethereum supporters praised Custodia’s choice of blockchain, with industry figures pointing out its dominance in securing stablecoins and tokenised assets.
The network currently holds over $125.8 billion in stablecoins, significantly outpacing competitors. Additionally, Ethereum hosts more than $3.6 billion in tokenised US Treasury bills.
Stablecoin adoption has surged, with active wallets increasing by 53% over the past year. The total supply of stablecoins also jumped from $138 billion in February 2024 to $225 billion a year later.
Federal Reserve Governor Christopher Waller stated that they could strengthen the currency’s global dominance by facilitating faster payments and supporting financial inclusion.
For more information on these topics, visit diplomacy.edu.
Brazil’s data protection agency, the National Data Protection Authority (ANDP), has upheld its ban on World, formerly known as Worldcoin, in the country.
The ban prevents the company from offering financial compensation to users who provide biometric data, specifically iris scans. ANDP rejected a petition from World ID developer, Tools For Humanity, to review the restriction.
The agency’s decision comes after concerns that providing financial rewards for biometric data could undermine users’ ability to consent.
The company now faces a daily fine of 50,000 Brazilian reais ($8,800) if it resumes data collection activities. Concerns over privacy violations tied to the project’s biometric data collection were mounting at the time.
While World ID has faced opposition in Brazil, the push for digital identity solutions continues in other regions. Some companies are finding ways to develop digital identity solutions without infringing on privacy or facing regulatory pushback.
Billions Network launched a platform using zero-knowledge verification technology. It has already been tested by major financial institutions.
For more information on these topics, visit diplomacy.edu.
Meme coins have recorded a 3.2% increase in the past 24 hours, with PEPE leading the rally. The sector’s total market cap now stands at $53.8 billion, marking a 12.2% rise over the past week.
Rebound like this one follows a period of weak sentiment in early May, as reflected in the Fear and Greed Index.
PEPE has gained 14.9% in the past seven days, currently trading at $0.000007922. Meanwhile, Dogecoin (DOGE) has delivered a 4.9% return in the last 24 hours.
PEPE’s daily trading volume has surged by 30% to $630 million. Open interest in its futures contracts has reached its highest level in nearly a month.
The meme coin appears poised to retest the $0.00000900 level after breaking out of a descending price channel. Technical indicators support a bullish outlook.
The RSI is maintaining a strong position, while the MACD histogram shows increasing momentum. With the Federal Reserve meeting now behind, market conditions appear favourable for further gains.
In parallel, MIND of Pepe (MIND), an AI-driven meme coin project, has raised $7.6 million in its presale. The token aims to leverage artificial intelligence and social media influence to enhance user engagement. Investors can acquire $MIND at a discounted rate before the next price increase in 36 hours.
For more information on these topics, visit diplomacy.edu.
BlackRock, the world’s largest asset manager, has expanded its reach into the European crypto market with the launch of the iShares Bitcoin ETP.
The product will begin trading on Germany’s Xetra exchange, Euronext Paris, and Euronext Amsterdam. However, this move follows the success of the iShares Bitcoin Trust in the US, which has amassed $48 billion since its launch in January 2024.
The iShares Bitcoin ETP is designed to cater to both institutional and qualified retail investors. BlackRock has introduced a competitive 10 basis point fee waiver for the product, reducing its expense ratio to 0.15% through the end of the year.
Once the waiver expires, the ETP will charge 0.25%, matching CoinShares’ Bitcoin ETP.
Digital asset investment products saw a significant recovery last week, with $644 million in inflows. This ended a five-week streak of outflows, signalling a positive shift for the broader crypto market.
Bitcoin products led the way, with Bitcoin ETFs benefiting from rising institutional demand. Ethereum ETFs, however, experienced outflows, highlighting shifting investor preferences.
For more information on these topics, visit diplomacy.edu.
