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Trump’s crypto adviser meets UAE’s national security chief for tech talks

A top UAE official, Sheikh Tahnoon Bin Zayed Al Nahyan, met with White House crypto and AI czar David Sacks to discuss digital currencies, artificial intelligence, and potential investments.

Tahnoon, the UAE’s national security adviser, revealed on social media that their discussions focused on AI’s impact and the growing role of digital currencies in the global economy.

The meeting was part of a broader engagement between UAE and US officials. Tahnoon attended a dinner with former President Donald Trump and senior advisers, where they explored ways to deepen economic and technological cooperation.

Additional talks included meetings with Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent to discuss trade and investment, as well as a video call with White House cost-cutting czar Elon Musk.

Reports suggest that Tahnoon met leading tech executives, including Microsoft CEO Satya Nadella and Nvidia CEO Jensen Huang, to discuss AI and semiconductor access.

The UAE reportedly seeks to expand its technology infrastructure in the US, particularly following US export restrictions on advanced computer chips.

Through his investment firm MGX, Tahnoon is backing a $7 billion investment in a private-led project called “Stargate,” aiming to develop AI data centres across the US.

His financial empire, valued at $1.5 trillion, includes significant stakes in sovereign wealth funds, banking, and AI development, reflecting the UAE’s growing influence in global tech and finance.

For more information on these topics, visit diplomacy.edu.

Abu Dhabi sets goal to become first AI government

The Abu Dhabi Government has signed a landmark agreement with tech giant Microsoft and Core42, a subsidiary of AI powerhouse G42, to fast-track the adoption of AI across its public services.

The partnership will focus on merging Microsoft’s advanced cloud technology with G42’s AI capabilities to drive innovation and efficiency.

As part of its digital transformation strategy, Abu Dhabi aims to process more than 11 million digital interactions daily, making public services more innovative and responsive. Officials say this collaboration marks a pivotal step toward redefining how the government engages with citizens through technology.

With a dedicated budget of around $3.54 billion (Dh13 billion), Abu Dhabi has set its sights on becoming the world’s first fully AI-powered government by 2027. The initiative signals the emirate’s ambition to lead globally in AI-driven governance and digital innovation.

Microsoft CEO Satya Nadella called the agreement a new benchmark for public sector AI use, emphasising that Abu Dhabi is setting the pace for governments worldwide in embracing transformative technologies.

For more information on these topics, visit diplomacy.edu.

Cyberattack exploits a flaw in ZoneAlarm’s vsdatant.sys driver

A sophisticated cyberattack has targeted vulnerabilities in the vsdatant.sys driver, a component of Checkpoint’s ZoneAlarm antivirus software, allowing attackers to bypass critical Windows security features.

The driver, released in 2016, has been exploited in a Bring Your Own Vulnerable Driver (BYOVD) attack, enabling attackers to elevate privileges and access sensitive data.

The vsdatant.sys driver operates with high kernel-level privileges, containing long-known vulnerabilities that allow attackers to exploit crafted Interrupt Request Packets (IRPs).

These flaws, affecting versions of the driver prior to 7.0.362, allow for arbitrary code execution by improperly validating arguments passed to system function handlers.

BYOVD attacks have become increasingly common, with attackers leveraging legitimate but vulnerable drivers to bypass security measures undetected.

In this case, attackers were able to disable Windows’ Memory Integrity feature, which is designed to protect critical system processes.

By exploiting flaws in vsdatant.sys, the attackers gained full access to the compromised system, enabling them to steal sensitive information.

To mitigate the risk of such attacks, security experts recommend implementing driver blocklisting, enabling Memory Integrity, and ensuring that all security products are kept up to date.

Users are urged to update their ZoneAlarm installations to the latest version to avoid exposure to these vulnerabilities.

For more information on these topics, visit diplomacy.edu.

Australia unveils crypto regulation plan

Australia’s government has announced plans to introduce a new regulatory framework for cryptocurrency exchanges, custody services, and brokerage firms.

The proposed rules will bring these platforms under existing financial services laws, requiring them to obtain licences and meet capital requirements. However, smaller firms and software developers will be exempt from these obligations.

The reforms, outlined by the Treasury, come as Prime Minister Anthony Albanese’s centre-left Labour government prepares for a closely contested federal election.

The government has also pledged to collaborate with the country’s four largest banks to address the ongoing issue of debanking, a problem that has impacted many crypto-related businesses.

In addition to regulatory changes, the government will review the potential for a central bank digital currency and introduce an Enhanced Regulatory Sandbox in 2025, allowing financial firms to test new products without a licence.

However, with elections looming, the opposition Coalition, led by Peter Dutton, has also promised to prioritise crypto regulation if it wins power.

Industry leaders, including BTC Markets CEO Caroline Bowler and Kraken Australia’s managing director Jonathon Miller, have welcomed the government’s efforts but stress the need for clarity on capital and custody requirements.

They argue that clear regulations will help Australia remain competitive while preventing unnecessary business burdens.

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Google and Apple risk fines under EU’s Digital Markets Act

Google has been charged with two violations of the EU’s Digital Markets Act (DMA), while Apple has been ordered to allow greater interoperability with rival devices.

The European Commission accused Google of restricting app developers from promoting external offers outside its Play Store and favouring its own services, such as Google Flights, over competitors in search results. If found guilty, the company could face fines of up to 10% of its global annual revenue.

The Commission also directed Apple to make its iPhones and iPads more accessible to rival smartphone and accessory makers. Additionally, Apple must respond to app developers’ requests for interoperability with its systems within a set timeframe.

Both companies pushed back against the EU’s findings, with Google arguing that compliance could harm consumers and businesses, while Apple claimed the rules would slow innovation and unfairly benefit competitors.

Regulators have intensified their crackdown on Big Tech despite warnings from the United States government against targeting American firms.

Google has already been fined over €8 billion for previous antitrust violations in Europe, and failure to comply with the latest orders could lead to further penalties for both tech giants.

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Ampere Computing joins SoftBank in AI-focused expansion

SoftBank has announced a $6.5 billion acquisition of US chip startup Ampere Computing, marking a major step in its investment in AI infrastructure.

The deal, paid entirely in cash, reflects founder Masayoshi Son’s growing focus on AI as a transformative technology. Ampere produces data centre CPUs based on an architecture from SoftBank’s majority-owned Arm Holdings, with customers including Oracle.

The acquisition follows a series of multi-billion-dollar AI investments by SoftBank, including funding for OpenAI, the Stargate AI data centre project, and Cristal, an AI services joint venture in Japan.

Ampere, founded in 2018 by former Intel president Renee James, developed its own custom CPU cores—an approach typically seen in larger firms like Apple and Qualcomm.

Under SoftBank’s ownership, the company will operate alongside Arm, strengthening SoftBank’s growing collection of AI-focused chip technology firms.

Masayoshi Son described the move as part of his vision for ‘artificial super intelligence,’ highlighting the need for advanced computing power.

While SoftBank has seen mixed results in past investments, such as its troubled backing of WeWork, the company continues to place high-stakes bets on emerging technologies.

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Apple faces EU crackdown over closed technology

The European Commission has ordered Apple to grant rival smartphone, headphone, and virtual reality companies access to its technology and mobile operating system.

The directive, part of the bloc’s Digital Markets Act, aims to curb the dominance of major tech firms and enhance competition. A separate mandate also requires Apple to establish a structured process for responding to interoperability requests from app developers.

Apple strongly criticised the decision, arguing that it places unfair constraints on its ability to innovate and benefits competitors without imposing the same restrictions on them.

Expressing concerns, the company warned that the new rules could negatively impact its products and European users, adding that the additional regulatory burden might slow progress.

The European Commission, however, dismissed Apple’s objections, stating that the order simply enforces existing laws and provides regulatory clarity.

Failure to comply could result in an investigation and potential fines of up to 10% of Apple’s global annual revenue. The ruling underscores the EU’s determination to rein in the power of Big Tech and ensure a more competitive digital market.

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AI firm Cognite targets India as global tech hub

Cognite, the Saudi Aramco-backed industrial software company, has launched an AI services centre in Bengaluru as part of its global expansion strategy.

The firm, which specialises in optimising industrial operations, is seeking contracts with major Indian conglomerates and has already secured deals with a leading cement manufacturer and a major automotive firm.

While declining to name the companies, Cognite’s executives confirmed significant investments in the Indian market, with plans for further expansion.

Chief Executive Girish Rishi described India as a key growth destination, highlighting its appeal as an alternative to China for global tech firms.

Cognite’s parent company, Aker ASA, and major shareholders like Saudi Aramco have been supporting its global push, as AI-driven solutions increasingly play a role in industrial automation, safety, and efficiency.

The company, which recently relocated its headquarters to the US, counts AkerBP, Japanese refiner Cosmo Energy Holdings, and US-based Koch Chemical among its major clients.

India’s rapidly expanding technology sector has drawn interest from several global giants, including Apple, Tesla, and Jabil, following the Indian government’s incentives to attract international firms.

With AI transforming industries worldwide, Cognite’s move signals growing confidence in India’s capabilities as a major player in the global tech ecosystem.

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Garantex reportedly resurfaces as Grinex after sanctions

Garantex, a Russian cryptocurrency exchange previously sanctioned by the US, is reportedly back in operation under the name Grinex.

According to Global Ledger, a Swiss blockchain analytics firm, Garantex shifted liquidity and customer balances to the new platform after its official shutdown. On-chain and off-chain evidence points to the two exchanges being closely linked despite Garantex’s closure.

Global Ledger’s report revealed that Garantex laundered over $60 million worth of ruble-backed stablecoins, using a process of burning and reminting to erase transaction histories.

The funds were then channelled to Grinex, which began processing large transaction volumes soon after Garantex went offline. Blockchain data showed systematic fund transfers through temporary wallets before reaching Grinex’s deposit addresses.

Further evidence linking the two platforms includes user reports of previously blocked funds from Garantex appearing in Grinex accounts.

A Grinex staff member also confirmed that users were visiting Garantex’s office to move funds between the two platforms. Additionally, Grinex’s website and promotional materials strongly resemble those of Garantex, and it is listed as being founded by the same team.

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Czech central bank weighs Bitcoin despite concerns

The Czech National Bank (CNB) remains cautious about adding Bitcoin to its reserves, with board member Jan Kubicek citing legal complexities and extreme price volatility as key concerns.

While the bank is evaluating various asset classes, Kubicek expressed scepticism about Bitcoin’s suitability as a central bank reserve asset.

Kubicek noted that Bitcoin’s unpredictable price swings undermine its stability, making it less attractive for reserve holdings.

He also highlighted the need for new accounting and auditing processes if Bitcoin were to be included. The CNB’s assessment of alternative assets, including corporate bonds and technology stocks, is expected to conclude by October.

The idea of holding Bitcoin in reserves was initially proposed by CNB Governor Ales Michl in January 2025, sparking interest in the crypto community but drawing scepticism from policymakers.

European Central Bank President Christine Lagarde opposed the move, emphasising that central bank reserves must prioritise liquidity and security.

Despite concerns, several countries have already integrated Bitcoin into their strategic reserves. The US, under the Trump administration, has taken a more proactive stance on cryptocurrency, influencing global discussions on digital asset adoption.

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