Cryptocurrencies Archives | Page 89 of 174

Zhao urges AI projects to focus on utility over tokens

Changpeng Zhao has urged AI projects to reconsider launching their own tokens, stating that AI agents can accept payments using existing cryptocurrencies instead.

In a recent post on X, the Binance founder argued that tokens should only be introduced when a project reaches significant scale and has clear utility.

The AI & Big Data token market has seen a 22% decline over the past 30 days, now valued at $27.44 billion, according to CoinMarketCap. Some of the biggest losses include Virtuals Protocol (VIRTUALS) dropping by 42%, Render (RENDER) by 30%, and Near Protocol (NEAR) by 26%.

Analysts suggest that these declines stem largely from macroeconomic pressures, such as Donald Trump’s tariffs and uncertainty over US regulatory policies. The impact has extended beyond crypto, with Nvidia’s stock falling 6% amid concerns over AI chip restrictions.

Beyond market conditions, some experts share Zhao’s view on the limited utility of AI tokens. Coinbase analyst David Han believes much of the recent AI token hype was driven by speculation rather than actual demand.

On-chain investigator ZachXBT also criticised the industry, claiming that 99% of AI crypto projects are scams and that many mislead investors by presenting their tokens as having real utility.

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SEC may reverse proposed cryptocurrency custody rule

The United States Securities and Exchange Commission (SEC) is considering reversing a proposed rule that would impose stricter custody requirements on investment advisers handling cryptocurrencies.

Acting SEC Chair Mark Uyeda announced the potential change during a conference in San Diego, highlighting concerns over the broad scope of the crypto custody rule and compliance challenges.

Proposed in February 2023, the custody rule would require registered investment advisers to store crypto assets with qualified custodians while implementing additional safeguards. Significant objections from industry participants have led the SEC to reassess its approach.

Uyeda also revealed that the agency is reviewing a separate regulation mandating monthly portfolio holdings reports for unit trusts and exchange-traded funds, a policy that has raised concerns about its impact on AI-driven trading strategies.

These regulatory reviews mark a shift in SEC policy under the Trump administration, which has already rolled back several cryptocurrency-related initiatives introduced under former Chair Gary Gensler.

Recent changes include rescinding accounting guidance for cryptocurrency firms, dropping enforcement actions, and forming a cryptocurrency task force to reassess priorities.

With former SEC Commissioner Paul Atkins set to take over as chair, Uyeda’s push for regulatory revisions signals a more industry-friendly approach, particularly towards digital assets and financial institutions navigating changing compliance requirements.

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Spanish police dismantle Bitcoin-themed crypto scam

Spanish police have successfully dismantled a Bitcoin-themed pyramid scam, uncovering a fraudulent network that swindled around $32.6 million from unsuspecting victims.

According to the National Police Corps (CNP), eight individuals were arrested, including the mastermind, a computer programmer detained in Malaga. The scam targeted over 3,600 people, mostly in Spain, but extended its reach to 36 countries.

The group operated a seemingly legitimate platform offering various Bitcoin investment plans. Promoted through websites and social media, victims were promised significant returns, with some reportedly offered dividends of 40% in just a month.

However, once funds were invested, obstacles were fabricated to delay or prevent withdrawals.

The police first uncovered the operation in 2022, following a report from a victim in Murcia. Their investigation revealed the scam’s pyramid structure, where older investors were paid with funds from newer ones.

Some victims were even tricked into handing over control of their devices for crypto transfers.

In total, the fraudsters amassed approximately 400 Bitcoin and created a worthless token for investors. Authorities have since frozen 73 bank accounts, seized cars, and impounded various assets as part of the investigation.

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Microsoft warns of new malware targeting cryptocurrency wallets

Microsoft has issued a warning about StilachiRAT, a newly discovered malware that steals cryptocurrency wallet data and sensitive browser information.

The trojan is designed to evade detection while extracting credentials from over 20 different wallets, including MetaMask, Trust Wallet, and Coinbase.

The malware actively scans for cryptocurrency wallet extensions in Google Chrome and monitors clipboard actions for copied keys and passwords.

Attackers can use the stolen data to drain victims’ funds. StilachiRAT also enables remote command execution, allowing cybercriminals to manipulate system settings and maintain control over infected devices.

Beyond stealing data, the malware gathers detailed information about the compromised system, including OS details and hardware identifiers.

It even monitors Remote Desktop Protocol sessions, enabling attackers to impersonate users and spread further across networks.

Microsoft has not yet linked StilachiRAT to a specific threat actor but emphasises the need for caution. Users are advised to download software only from official sources, enable Microsoft Defender real time protection, and use SmartScreen to block malicious websites.

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Kyrgyzstan introduces USDKG, a gold-backed stablecoin

Kyrgyzstan has officially launched USDKG, a gold-backed stablecoin that is entirely backed by the government, marking a significant shift in the nation’s digital currency strategy.

The decision to focus on a gold-backed model contrasts with the global trend of using fiat currencies, like the US dollar, to support stablecoins. The move is seen as pragmatic, especially in a time of uncertainty around cryptocurrency regulations.

Gold, historically considered a hedge against economic volatility, is now being used as collateral to back the stablecoin.

The government hopes that this will instil more trust among users compared to stablecoins backed by traditional digital currencies. However, it remains to be seen whether this approach will gain traction globally, as nations like Abu Dhabi also explore alternative asset-backed stablecoins, such as AE Coin.

Kyrgyzstan’s gold-backed stablecoin strategy is part of a broader trend where countries and corporations are increasingly adopting stablecoins to enhance digital finance.

The Bahamas introduced the Sand Dollar in 2020, becoming the first country to launch a central bank digital currency (CBDC). Meanwhile, Wyoming in the US is planning to launch its stablecoin in early 2025, and private companies, such as Braza, are integrating stablecoins into global payment systems.

USDKG’s success will largely depend on how effectively Kyrgyzstan manages its gold reserves and maintains transparency to ensure user confidence. If successful, this model could inspire other nations to move away from fiat-backed stablecoins, offering a more stable and tangible alternative.

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Thailand’s CIB uncovers illegal crypto mining rig network

Thailand’s Central Investigation Bureau (CIB) seized 63 illegal crypto-mining machines in a raid on Friday, marking a significant step in cracking down on illicit operations in the country.

The mining rigs, valued at approximately 2 million baht ($60,000), were discovered hidden in three abandoned houses in Pathum Thani province.

The raid followed complaints from locals about stolen electricity, with suspicions that it was being used for cryptocurrency mining.

Crypto mining requires substantial power, and the stolen electricity resulted in significant losses, with authorities estimating damages to the Metropolitan Electricity Authority at over 11 million baht ($327 million).

Along with the mining rigs, officials seized equipment including controllers, routers, and modified electricity meters. However, the operations were remotely controlled, so no arrests were made.

The illegal operation appears to have connections to a luxury house in Bangkok’s Khan Na Yao district, where further investigations are underway.

Authorities are concerned not only about the financial losses but also the fire hazard posed by these high-power mining activities, which were carried out without any human supervision.

Illegal crypto mining has been a persistent issue in Thailand and Southeast Asia, with several large operations dismantled in recent months.

In previous raids, authorities seized nearly 1,000 mining rigs and shut down illegal farms in Surat Thani province, which had been stealing electricity worth hundreds of thousands of dollars.

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Bank of Korea rejects Bitcoin for national reserves

South Korea has confirmed that Bitcoin will not be included in its foreign exchange reserves, citing concerns over volatility and regulatory standards. The Bank of Korea responded to a parliamentary inquiry by stating that Bitcoin does not meet the International Monetary Fund’s criteria for reserve assets, which require liquidity, stability, and an investment-grade credit rating.

Despite global discussions on national Bitcoin reserves, the central bank emphasised a cautious approach. It highlighted that major institutions, including the European Central Bank and the Swiss National Bank, share similar reservations. Officials also warned that cashing out Bitcoin could become costly if the market experiences instability.

Some South Korean lawmakers have urged the central bank to explore Bitcoin’s role in the financial system, but no formal discussions have taken place. Meanwhile, the country continues to ease crypto regulations, working on institutional trading reforms and considering exchange-traded funds to expand market opportunities.

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Michael Saylor calls Bitcoin the ‘Orange Dwarf’ of finance

Michael Saylor has drawn attention with a poetic analogy, describing Bitcoin as an ‘Orange Dwarf‘ in a recent tweet. He likened Bitcoin to a steadily growing and intensifying star, portraying it as the brightest object in the financial system that gains strength as it attracts capital. Saylor also referred to Bitcoin as a digital energy network, reinforcing its role as a transformative financial asset.

Strategy has been at the forefront of Bitcoin adoption since 2020, amassing 499,096 BTC and becoming the largest corporate holder. Under Saylor’s leadership, the firm has also issued approximately $9 billion in convertible bonds, further cementing its influence in the crypto space. A new exchange-traded fund (ETF), BMAX, was launched to track companies holding Bitcoin on their balance sheets, with Strategy making up a significant portion of the fund.

Meanwhile, Bitcoin faces market volatility ahead of the US Federal Reserve’s upcoming meeting. With investors closely watching for updates on inflation and monetary policy, the Fed is expected to maintain its cautious stance, with potential interest rate cuts anticipated later in the year.

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GENIUS stablecoin bill moves forward in US Senate

The United States Senate Banking Committee has advanced the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in an 18-6 vote. Despite some opposition from Democrat lawmakers, the bill has garnered bipartisan support. Notably, Senator Elizabeth Warren’s amendments—such as limiting stablecoin issuance to banking institutions—were rejected. Warren raised concerns that the bill, as is, could facilitate illicit financial activities, including terrorism financing and sanctions evasion.

Senator Tim Scott, Chair of the Senate Banking Committee, praised the bill as a victory for innovation, stating that it sets clear rules for stablecoin issuers. These include requiring one-to-one reserves, compliance with anti-money-laundering laws, and stronger safeguards to protect American consumers, all while reinforcing the US dollar’s position in the global economy.

The bill has undergone revisions to include stricter provisions, including enhanced anti-money-laundering measures, provisions to combat terrorist financing, and new safeguards to ensure sanctions compliance. Senator Bill Hagerty, who introduced the bill in February 2025, defended these updates against Warren’s proposals, arguing that the legislation already includes strong consumer protections and crime deterrence provisions. Legal experts suggest that the GENIUS Act is setting the stage for the integration of stablecoins with the traditional financial system.

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Turkey grants full control of crypto regulation to CMB

Turkey has unveiled a new set of cryptocurrency regulations, placing the Capital Markets Board (CMB) in full control of the sector. The new framework outlines strict criteria for Crypto Asset Service Providers (CASPs), including financial integrity and legal compliance, before they are allowed to operate. This move is part of the government’s efforts to enhance investor protection and stability in the crypto market. Additionally, CASPs are now required to insure user crypto assets, further bolstering security.

The new regulations also introduce substantial licensing and capital requirements for crypto businesses. Founders must demonstrate financial stability, and the capital must be paid in cash, with minimum thresholds determined by the CMB. Failure to meet these standards could result in the denial of operating licences. To ensure compliance, the CMB has been granted the power to revoke licences and impose penalties on companies that violate the rules.

These new rules come as part of Turkey’s broader effort to strengthen its financial regulatory framework and secure delisting from the Financial Action Task Force’s (FATF) grey list. By increasing oversight and promoting transparent operations, Turkey aims to make the cryptocurrency sector more secure without stifling innovation, positioning itself as a secure hub for blockchain technology and crypto trading.

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