India uses AI to catch crypto tax evaders

India’s Income Tax Department is using AI and data tools to identify tax evasion in cryptocurrency transactions. The government collected ₹437 crore in crypto taxes in 2022-2023 using machine learning and digital forensics to spot suspicious activity.

Tax authorities match deducted at source (TDS) data from crypto exchanges to improve compliance. The introduction of the Crypto-Asset Reporting Framework (CARF) also enables automated sharing of tax information, aligning India’s efforts with international tax agreements.

These moves mark a push for greater transparency in India’s digital asset market. Enhanced wallet visibility and automatic data exchange aim to reduce anonymity and curb tax evasion in the crypto space.

India continues to develop regulations focused on consumer protection, cross-border cooperation, and tax compliance, demonstrating a commitment to a more traceable and accountable crypto industry.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Coinbase users can now pay with Samsung Wallet

Samsung has announced a partnership with Coinbase, enabling Samsung Wallet users to buy and deposit cryptocurrency directly through the Coinbase app. The new feature will be gradually rolled out to select users in the US and Canada, with broader access expected soon.

The integration brings Samsung Pay into Coinbase as a supported payment and deposit method, enhancing convenience for users looking to trade or fund crypto accounts using mobile devices.

The partnership highlights Samsung’s strategy of open collaboration to deliver richer mobile experiences. Coinbase, meanwhile, continues to expand its compliant crypto services to mainstream audiences.

Samsung Wallet combines digital payments, crypto, and identity features in one secure app. It includes multiple layers of protection such as tokenisation, biometric login, and Samsung Knox security.

Sensitive data is safeguarded in a secure on-device element, offering users peace of mind when managing digital assets.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Bank of Korea launches new crypto oversight unit

The Bank of Korea is forming a virtual asset committee to monitor the country’s growing crypto market and support legislative developments around stablecoins. The new Virtual Asset Team will assist regulators and handle policy matters on digital assets and stablecoins.

As part of this shift, the central bank has renamed its CBDC-related units to reflect a more business-driven approach. The newly titled Digital Currency Team replaces the former Digital Currency Research Team.

Two additional teams, Digital Currency Technology and Digital Currency Infrastructure, will focus on testing platforms and voucher systems using deposit tokens.

Although South Korea’s central bank postponed its CBDC trial in late June due to regulatory uncertainty and concerns from local banks, discussions are expected to resume once legal issues are addressed.

At the same time, the country’s major banks are preparing to issue stablecoins pegged to the Korean won by 2025 or 2026, with support from the Bank of Korea for a bank-led rollout.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Thailand launches crypto sandbox to boost tourism

Thailand has launched a digital asset sandbox to attract high-spending, tech-savvy tourists by enabling seamless cryptocurrency payments. The initiative lets foreign visitors convert digital assets to Thai baht and spend them using local e-money platforms.

The Securities and Exchange Commission, the Bank of Thailand, and other agencies oversee the regulatory sandbox. It aims to simplify payments from street vendors to luxury retailers, eliminating currency conversion friction and card fees.

Authorities plan to focus on merchant education, compliance, and cybersecurity to support the programme’s success.

The move aligns with Thailand’s broader strategy to become a regional digital finance and blockchain innovation hub. Recent policies include a five-year capital gains tax exemption on crypto sales through local exchanges.

The sandbox could attract fintech firms and blockchain events, signalling Thailand’s ambition to lead in digital asset adoption while maintaining regulatory safeguards.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Indonesia prepares new crypto tax rules

Indonesia plans to implement fresh tax regulations on cryptocurrency starting August 2025, reclassifying digital assets as financial instruments. The regulatory authority is shifting from Bappebti to the Financial Services Authority, marking a significant overhaul in oversight and licensing.

The upcoming tax increase on crypto transactions aims to boost government revenue, but risks discouraging retail investors due to higher costs. OJK Chair Mahendra Siregar emphasises that the new framework aligns cryptocurrencies with broader financial regulations.

The allowlist of tradable digital assets will nearly double, expanding market opportunities amid the changing landscape.

Fintech startups face challenges adapting to stricter rules and rising operational expenses, potentially disadvantaging them compared to regional competitors like Singapore and Hong Kong.

While retail investors may find initial barriers, more straightforward rules and regulatory sandboxes could foster long-term stability and innovation. Indonesia’s approach will require a careful balance between encouraging growth and ensuring oversight.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Hanwha and Samsung lead Korea’s cyber insurance push

South Korea is stepping up efforts to strengthen its cyber insurance sector as corporate cyberattacks surge across industries. A string of major breaches has revealed widespread vulnerability and renewed demand for more comprehensive digital risk protection.

Hanwha General Insurance launched Korea’s first Cyber Risk Management Centre last November and partnered with global cybersecurity firm Theori and law firm Shin & Kim to expand its offerings.

Despite the growing need, the market remains underdeveloped. Cyber insurance makes up only 1 percent of Korea’s accident insurance sector, with a 2024 report estimating local cyber premiums at $50 million, just 0.3 percent of the global total.

Regulators and industry voices call for higher mandatory coverage, clearer underwriting standards, and financial incentives to promote adoption.

As Korean demand rises, comprehensive policies offering tailored options and emergency coverage are gaining traction, with Hanwha reporting a 200 percent revenue jump in under a year.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

EU Commission accuses Temu of failing DSA checks

The European Commission has accused Temu of breaching the Digital Services Act by failing to assess and address the sale of illegal or dangerous products.

The accusation follows months of investigation and a review of a required risk report submitted by Temu, which the Commission found too vague.

A mystery shopping exercise by the EU uncovered unsafe toys and electronics on the platform, raising concerns over consumer safety.

Additional parts of the probe are ongoing, including scrutiny of Temu’s use of addictive designs, algorithmic transparency and product recommendations.

Temu now has a few weeks to respond to the preliminary findings, though no final deadline has been given. Under the DSA, confirmed violations could result in fines of up to 6% of a company’s global turnover.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Trust in human doctors remains despite AI advancements

OpenAI CEO Sam Altman has stated that AI, especially ChatGPT, now surpasses many doctors in diagnosing illnesses. However, he pointed out that individuals still prefer human doctors because of the trust and emotional connection they provide.

Altman also expressed concerns about the potential misuse of AI, such as using voice cloning for fraud and identity theft. He emphasised the need for stronger privacy protections for sensitive conversations with AI tools like ChatGPT, noting that current standards are inadequate and should align with those for therapists.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

DOJ seizes $2.3 million Bitcoin from Chaos ransomware

The US Department of Justice has moved to seize over $2.3 million in Bitcoin tied to a member of the Chaos ransomware group. The funds, taken from a wallet linked to the individual known as ‘Hors’, are alleged to be proceeds of extortion and money laundering.

Chaos operates as a ransomware-as-a-service group, renting its malware to affiliates targeting Windows, Linux, and NAS systems. The group has been active since early 2025 and is known for encrypting victims’ data while demanding crypto payments under threat of public leaks.

US Federal agents accessed the wallet in April using a recovery seed phrase from an older Electrum platform and transferred the assets to a government-controlled address. The DOJ said the operation demonstrates growing success in disrupting ransomware-related crypto flows.

Despite the seizure, challenges remain as such groups evolve their tactics and benefit from the relative anonymity of decentralised platforms. Authorities stress that continued cross-agency cooperation and advances in blockchain forensics are essential in combating future threats.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

AI bands rise as real musicians struggle to compete

AI is quickly transforming the music industry, with AI-generated bands now drawing millions of plays on platforms like Spotify.

While these acts may sound like traditional musicians, they are entirely digital creations. Streaming services rarely label AI music clearly, and the producers behind these tracks often remain anonymous and unreachable. Human artists, meanwhile, are quietly watching their workload dry up.

Music professionals are beginning to express concern. Composer Leo Sidran believes AI is already taking work away from creators like him, noting that many former clients now rely on AI-generated solutions instead of original compositions.

Unlike previous tech innovations, which empowered musicians, AI risks erasing job opportunities entirely, according to Berklee College of Music professor George Howard, who warns it could become a zero-sum game.

AI music is especially popular for passive listening—background tracks for everyday life. In contrast, real musicians still hold value among fans who engage more actively with music.

However, AI is cheap, fast, and royalty-free, making it attractive to publishers and advertisers. From film soundtracks to playlists filled with faceless artists, synthetic sound is rapidly replacing human creativity in many commercial spaces.

Experts urge musicians to double down on what makes them unique instead of mimicking trends that AI can easily replicate. Live performance remains one of the few areas where AI has yet to gain traction. Until synthetic bands take the stage, artists may still find refuge in concerts and personal connection with fans.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!