Economic

Slovenia’s crypto-friendly status faces test with new tax proposal

Slovenia’s Finance Ministry has proposed a 25% tax on crypto trading profits, aiming to bring digital assets in line with other investments. The draft law, unveiled on 17 April, targets residents who convert crypto into fiat or use it for purchases.

Crypto-to-crypto trades and transfers between self-owned wallets would remain untaxed under the proposed rules.

Finance Minister Klemen Boštjančič defended the move, describing it as a step towards fairness rather than a revenue-generating effort. He emphasised that speculative instruments like cryptocurrencies should not be excluded from taxation.

Taxpayers would be required to report transactions annually, with profits calculated by subtracting purchase costs from sale values.

Critics argue the plan could harm Slovenia’s crypto-friendly image. Opposition MP Jernej Vrtovec warned that the tax may drive innovation and young talent abroad.

If adopted, the law will take effect from 1 January 2026. Slovenia already taxes mining and staking income, while hobbyist use remains exempt.

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

Stablecoin giant Circle unveils new remittance network

Circle is set to unveil a new payments and cross-border remittance product. The launch will take place at the company’s headquarters in One World Trade Center, New York, on Tuesday.

The event will cater to banks, fintechs, payment service providers, remittance providers, and USDC strategic partners. Circle’s CEO is expected to outline the company’s vision for expanding its presence in the payments space.

The launch marks a strategic shift as Circle looks to strengthen its position in the payments industry. Circle plans to position itself as a key player, eyeing competition with financial giants like Mastercard and Visa.

The company’s new offering aims to revolutionise remittances and cross-border payments. It leverages stablecoins like USDC to potentially disrupt traditional money transfer services.

Circle’s recent developments have been significant, including its postponed IPO due to volatile market conditions. As the adoption of stablecoins grows, Circle continues to innovate and solidify its place in the evolving payments ecosystem.

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

Scammers target Zhao with fake Grok tokens amid rising Musk-related fraud

Changpeng Zhao, former Binance CEO, was hit with 90 million fake Grok tokens. Scammers are ramping up their efforts to target crypto investors with Elon Musk-related fraud.

According to blockchain security firm PeckShield, the tokens are likely part of a phishing attack. These tokens are unrelated to Musk’s official AI chatbot, Grok, which has not issued any cryptocurrency.

Scammers have long exploited high-profile figures like Musk to gain trust from victims. Fake Grok-related tokens first appeared in 2023, leading to significant losses after scammers sold a portion of the supply.

Recent Elon Musk scams have resurfaced, featuring fake giveaways and memecoins on the BNB Smart Chain.

The rise in scams reflects a growing trend of phishing attacks, such as address poisoning, which trick victims into sending assets to fraudulent wallets.

In 2024, phishing incidents cost the crypto industry over $1 billion, highlighting the need for increased vigilance and security.

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

Telegram CEO says privacy matters more than market share

Pavel Durov, CEO of Telegram, has vowed that the company would rather exit markets like France than implement encryption backdoors.

Lawmakers in the European Union are increasingly proposing backdoors that would allow authorities to bypass encryption. These backdoors would grant access to private messages.

Durov’s statement comes as Telegram faces mounting pressure to comply with regulations that could undermine digital privacy.

In a recent post, Durov emphasised that backdoors, while intended for law enforcement, could be exploited by hackers and foreign agents. He warned that such measures would not only put user data at risk but also drive criminals to use lesser-known apps to avoid detection.

Telegram has long been committed to safeguarding its users’ privacy. It has never disclosed private messages to authorities, even when complying with court orders in certain jurisdictions.

Durov’s comments come at a time when the EU is proposing legislation that could force apps to implement backdoors for police access. Despite some progress, the fight for digital privacy continues.

Durov urges privacy advocates to resist these changes. He stresses that losing encryption would be a major blow to personal safety and freedom.

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

Fujitsu and RIKEN expand quantum computing with 256 qubits

Fujitsu and RIKEN, a prominent Japanese research institute, have unveiled a new 256-qubit superconducting quantum computer, marking a major advancement in quantum computing.

Located at the RIKEN RQC-FUJITSU Collaboration Center, the new machine is designed with high-density techniques, building on a previous model with 64 qubits. However, this increase will allow more complex molecule analysis and improved error correction algorithms.

Unlike its predecessors, this quantum computer will not be exclusive to Fujitsu and RIKEN. Both organisations plan to grant access to global companies and research institutes in the first quarter of fiscal 2025, enabling further innovation across various fields.

Alongside the qubit expansion, the teams have developed a breakthrough in cooling technology, using a dilution refrigerator with advanced thermal design to maintain efficiency.

Fujitsu and RIKEN also aim to enhance the platform’s usability by allowing seamless interaction between quantum and classical computers. This will enable users to run hybrid quantum-classical algorithms.

Looking ahead, the two organisations are working on a 1,000-qubit quantum computer, set to be installed next year, and have agreed to continue their partnership until 2029 to foster ongoing development.

While the 256-qubit computer does not yet compete with machines boasting over 1,000 qubits, it represents a crucial step in exploring diverse quantum computing approaches, as some may fail to scale effectively for practical use.

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

Pro-crypto Paul Atkins sworn in as SEC Chair

Paul Atkins has officially been sworn in as the 34th Chair of the US Securities and Exchange Commission (SEC). Known for his pro-crypto stance, Atkins is expected to bring much-needed clarity to digital asset regulations.

He was nominated by President Trump and confirmed by the Senate after a brief delay, officially taking office in April.

Atkins, who previously served as an SEC Commissioner from 2002 to 2008, brings over 20 years of experience in capital markets. His appointment is timely, as the SEC’s case against Ripple nears its end, with XRP supporters urging swift action.

Additionally, more than 17 applications for XRP spot ETFs are now awaiting review under Atkins’ leadership.

Crypto advocates are hopeful that Atkins will use his position to drive forward long-awaited regulatory reforms for the industry. His personal involvement with digital assets—holding nearly $6 million in them—demonstrates his commitment to the space.

As the SEC moves forward under his leadership, clearer rules for crypto markets are expected to emerge.

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

Google spoofed in sophisticated phishing attack

A sophisticated phishing attack recently targeted Google users, exploiting a well-known email authentication method to bypass security measures.

The attackers sent emails appearing to be from Google’s legitimate address, no-reply@accounts.google.com, and claimed the recipient needed to comply with a subpoena.

The emails contained a link to a Google Sites page, prompting users to log in and revealing a fake legal support page.

What made this phishing attempt particularly dangerous was that it successfully passed both DMARC and DKIM email authentication checks, making it appear entirely genuine to recipients.

In another cyber-related development, Microsoft issued a warning regarding the use of Node.js in distributing malware. Attackers have been using the JavaScript runtime environment to deploy malware through scripts and executables, particularly targeting cryptocurrency traders via malvertising campaigns.

The new technique involves executing JavaScript directly from the command line, making it harder to detect by traditional security tools.

Meanwhile, the US has witnessed a significant change in its disinformation-fighting efforts.

The State Department has closed its Counter Foreign Information Manipulation and Interference group, previously known as the Global Engagement Center, after accusations that it was overreaching in its censorship activities.

The closure, led by Secretary of State Marco Rubio, has sparked criticism, with some seeing it as a victory for foreign powers like Russia and China.

Finally, gig workers face new challenges as the Tech Transparency Project revealed that Facebook groups are being used to trade fake gig worker accounts for platforms like Uber and Lyft.

Sellers offer access to verified accounts, bypassing safety checks, and putting passengers and customers at risk. Despite reports to Meta, many of these groups remain active, with the social media giant’s automated systems failing to curb the activity.

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

Crypto comeback for Deutsche Bank and Standard Chartered

Deutsche Bank and Standard Chartered are ramping up their crypto operations in the US. They’re seizing the opportunity created by a shift in regulatory policy under Donald Trump. A digital asset reserve is now in place, creating new prospects for the banks.

Deutsche Bank has partnered with Bison to safeguard euro balances. It is also expanding its crypto services globally, including a strategic alliance with Crypto.com in Asia. The bank also plans to extend its operations in the UK and Europe.

Standard Chartered is focusing on infrastructure. It is launching a digital collateral programme with OKX and Franklin Templeton. The bank is also entering the stablecoin market with a Hong Kong dollar-backed project.

Both banks aim to secure a leading position in the growing crypto sector.

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

ChatGPT search grows rapidly in Europe

ChatGPT search, the web-accessing feature within OpenAI’s chatbot, has seen rapid growth across Europe, attracting an average of 41.3 million monthly active users in the six months leading up to March 31.

It marks a sharp rise from 11.2 million in the previous six-month period, according to a regulatory filing by OpenAI Ireland Limited.

Instead of operating unnoticed, the service must now report this data under the EU’s Digital Services Act (DSA), which defines monthly recipients as users who actively view or interact with the platform.

Should usage cross 45 million, ChatGPT search could be classified as a ‘very large’ online platform and face stricter rules, including transparency obligations, user opt-outs from personalised recommendations, and regular audits.

Failure to follow DSA regulations could lead to serious penalties, up to 6% of OpenAI’s global revenue, or even a temporary ban in the EU for ongoing violations. The law aims to ensure online platforms operate more responsibly and with better oversight in the digital space.

Despite gaining ground, ChatGPT search still lags far behind Google, which handles hundreds of times more queries.

Studies have also raised concerns about the accuracy of AI search tools, with ChatGPT found to misidentify a majority of news articles and occasionally misrepresent licensed content from publishers.

Instead of fully replacing traditional search, these AI tools may still need improvement to become reliable alternatives.

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

TSMC struggles to block chip exports to China

Taiwan Semiconductor Manufacturing Company (TSMC) has acknowledged it faces significant challenges in ensuring its advanced chips do not end up with sanctioned entities in China, despite tightening export controls.

The company admitted in its latest annual report that its position as a contract chipmaker limits its visibility into how and where its semiconductors are ultimately used.

Instead of directly selling finished products, TSMC manufactures chips for firms like Nvidia and Qualcomm, which are then integrated into a wide range of devices by third parties.

Α layered supply chain structure like this makes it difficult for the company to guarantee full compliance with export restrictions, especially when intermediaries may divert shipments intentionally.

TSMC halted deliveries to a customer last year after discovering one of its AI chips had been diverted to Huawei, a Chinese tech giant on the US sanctions list. The company promptly notified both Washington and Taipei and has since cooperated with official investigations and information requests.

The US continues to tighten restrictions on advanced chip exports to China, urging companies like TSMC and Samsung to apply stricter scrutiny.

Recently, Washington blacklisted 16 Chinese entities, including firms allegedly linked to the unauthorised transfer of TSMC chips. Despite best efforts, TSMC says there is no assurance it can completely prevent such incidents.

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

Diplo chatbot can make mistakes. Consider checking important information.