Economic

Pro-Russian hackers target Italian government and airport websites

Hackers temporarily disrupted around ten official websites in Italy on Saturday, including those of the Foreign Ministry and Milan’s two airports, according to the country’s cybersecurity agency. The pro-Russian group Noname057(16) claimed responsibility on Telegram, describing the attack as a retaliation against what it called Italy’s ‘Russophobia.’

The attack, a Distributed Denial of Service (DDoS) operation, flooded networks with excessive data traffic, paralysing their functionality. Italy’s cybersecurity agency acted swiftly, mitigating the impact within two hours. A spokesperson confirmed that assistance was provided to affected institutions and companies.

Despite the disruptions, flights at Milan’s Linate and Malpensa airports were unaffected, and the airports’ mobile apps continued to operate normally, according to SEA, the company managing the airports. Authorities continue to investigate the incident, highlighting ongoing threats from cyber groups linked to geopolitical tensions.

Japan plans to change crypto classification

Japan’s top financial regulator, the Financial Services Agency (FSA), has announced plans to redefine cryptocurrency assets like Bitcoin as ‘financial assets‘ in its tax reform proposals for fiscal year 2025. It would shift crypto from its current classification as “payment instruments” to something more in line with traditional investments. The change aims to give cryptoassets more legitimacy and could encourage greater public investment.

While the FSA did not directly call for tax reform, it suggested the possibility of revising Japan’s controversial crypto tax rules. It follows similar calls from the ruling Liberal Democratic Party (LDP), which has advocated for regulations that offer investor protection comparable to those for stocks. The LDP also wants to move away from the current crypto tax system, which subjects traders to high income tax rates, in favour of a capital gains tax.

Despite some differences in approach, such as the FSA favouring a broader income tax integration, both the FSA and LDP agree on the need to update the legal classification of crypto. The shift comes at a time when companies in Japan are increasing their investments in Bitcoin, signalling growing interest in the evolving regulatory landscape.

Trump urges Supreme Court to postpone TikTok law

President-elect Donald Trump has called on the US Supreme Court to postpone implementing a law that would ban TikTok or force its sale, arguing for time to seek a political resolution after taking office. The court will hear arguments on the case on 10 January, ahead of a 19 January deadline for TikTok’s Chinese owner, ByteDance, to sell the app or face a US ban.

The move marks a stark shift for Trump, who previously sought to block TikTok in 2020 over national security concerns tied to its Chinese ownership. Trump’s legal team emphasised that his request does not take a stance on the law’s merits but seeks to allow his incoming administration to explore alternatives. Trump has expressed a newfound appreciation for TikTok, citing its role in boosting his campaign visibility.

TikTok, with over 170 million US users, continues to challenge the legislation, asserting that its data and operations affecting US users are fully managed within the country. However, national security concerns persist, with the Justice Department and a coalition of attorneys general urging the Supreme Court to uphold the divest-or-ban mandate. The case highlights the growing debate between free speech advocates and national security interests in regulating digital platforms.

Irkutsk power provider caught leasing land to illegal crypto farm

A power provider in Siberia’s Irkutsk region has been caught illegally leasing land to crypto miners, with the plot originally designated for public utilities. The Irkutsk Region Prosecutor-General’s Office announced that the unnamed power company had facilitated the establishment of a crypto mining farm, leading to a fine of 330 thousand rubles (approximately $3,120) and an ongoing administrative case against the firm.

This case highlights the ongoing issue of illegal crypto mining in Russia, particularly in Siberia, where miners are drawn to cheap electricity and low temperatures that reduce cooling costs. However, the increased demand for power has led to grid instability and power outages in the region, prompting Moscow to implement temporary mining bans in some areas. Despite these measures, illegal mining continues to thrive, especially in Irkutsk.

Other parts of Russia, like Tyumen and the Komi Republic, are emerging as alternative hotspots for crypto mining, with new facilities being developed to attract miners. In addition to these developments, Russia’s largest industrial mining firm, BitRiver, is building a new 100MW data centre in Buryatia, set to become the largest in the Far Eastern Federal District. These moves reflect the growing demand for crypto mining infrastructure across the country, despite the regulatory challenges.

NERA recommends key reforms for a successful 5G spectrum auction in Pakistan

The National Economic Research Associates Inc. (NERA) has outlined critical recommendations for ensuring the success of Pakistan’s upcoming 5G spectrum auction while addressing the challenges in its telecom sector. NERA advocates for reasonable reserve prices, extended payment terms, and a transition to rupee-based pricing to mitigate risks associated with exchange rate volatility.

High spectrum prices, the consultancy warns, reduce competition, stifle innovation, and harm consumers, ultimately weakening the sector’s long-term potential. Pakistan’s telecom industry is severely spectrum-starved, ranking lowest in South Asia due to auction delays, high base prices, and unsold spectrum in litigation.

To address this, NERA recommends releasing more spectrum, including the disputed 140 MHz in the 2600 MHz band, and resolving market structure issues, such as the number of operators post-mergers. Additionally, it emphasises the urgent need for infrastructure development, particularly expanding fibre-optic backhaul networks, which currently account for only 15% of mobile towers, and addressing the limited adoption of 5G-capable smartphones due to their high costs.

Reforms like the Telecom Infrastructure Sharing framework and measures to make smartphones more affordable are critical for fostering competition and sector growth. NERA underscores the trade-off between short-term government revenue from high spectrum prices and the long-term benefits of a competitive and thriving telecom sector.

It highlights that a robust telecom environment requires sustained investments in infrastructure, wider spectrum availability, and affordable tariffs. By implementing its recommendations, including encouraging smartphone upgrades, expanding fibre networks, and creating favourable pricing structures, Pakistan can maximise the potential of 4G and 5G technologies.

These measures are not only vital for the success of the 2025 spectrum auction but also for ensuring a dynamic and sustainable telecom industry capable of driving digital transformation across the country.

Snapdragon powers AI-driven Samsung Galaxy S25 Ultra

Samsung’s upcoming Galaxy S25 Ultra is set to debut with Qualcomm’s Snapdragon 8 Elite chipset, bringing advanced AI features directly to the device. A standout capability of the chipset enables on-device AI-powered image editing, enhancing privacy and reducing reliance on internet connectivity.

Code leaks have highlighted a feature called ‘FEATURE_GEN_EDIT_ON_DEVICE,’ which points to AI tools operating locally on the phone. Alongside this, Samsung plans to introduce a revamped AI-powered Bixby assistant with the Galaxy S25 lineup, aiming to outpace competitors like the iPhone 16.

All Galaxy S25 models are expected to exclusively use Snapdragon processors, with no signs of Exynos chipsets in the series. A leaked specifications sheet also suggests the Ultra variant will boast up to 16 GB of RAM, improving overall AI performance.

As manufacturers increasingly focus on AI, these features are only the beginning of a broader transformation. The Galaxy S25 Ultra represents a significant step in showcasing how powerful AI can reshape mobile experiences.

DeepSeek unveils a powerful new AI model

Chinese AI firm DeepSeek has unveiled DeepSeek V3, a groundbreaking open-source model designed for a range of text-based tasks. Released under a permissive licence, the model supports coding, translations, essay writing, and email drafting, offering developers the freedom to modify and deploy it commercially.

In internal benchmarks, DeepSeek V3 outperformed major competitors, including Meta’s Llama 3.1 and OpenAI’s GPT-4o, especially in coding contests and integration tests. The model boasts an impressive 671 billion parameters, significantly exceeding the size of many rivals, which often correlates with higher performance.

DeepSeek V3 was trained on a dataset of 14.8 trillion tokens and built using a data centre powered by Nvidia H800 GPUs. Remarkably, the model was developed in just two months for a reported $5.5 million—far less than comparable systems. However, its size and resource demands make it less practical without high-end hardware.

Regulatory limitations influence the model’s responses, particularly on politically sensitive topics. DeepSeek, backed by High-Flyer Capital Management, continues to push for advancements in AI, striving to compete with leading global firms despite restrictions on access to cutting-edge GPUs.

KULR invests $21 million in Bitcoin

KULR Technology, a US-based firm specialising in thermal management solutions, has boldly invested $21 million in Bitcoin. The purchase marks the beginning of its strategy to allocate 90% of its surplus cash to the leading cryptocurrency. The company acquired 217.18 BTC at an average price of $96,556.53 per coin.

The decision aligns with KULR’s belief in Bitcoin’s growing adoption and potential to enhance its financial standing. CEO Michael Mo stated that the investment would support the company’s growth and strengthen its balance sheet. KULR utilised Coinbase’s Prime platform for custody and wallet services to ensure the secure handling of its digital assets.

KULR joins a wave of companies embracing Bitcoin as part of their financial strategies. Firms like Genius Group and MicroStrategy have also increased their holdings, viewing Bitcoin as a hedge against inflation and a tool for innovation. This trend highlights the cryptocurrency’s rising role in corporate treasury management.

Trump ally’s firm aims to launch Bitcoin bond ETF

Strive, the asset management firm founded by Vivek Ramaswamy has filed a request with US regulators to list an ETF focusing on Bitcoin bonds. The proposed fund, called the Strive Bitcoin Bond ETF, will invest in convertible bonds from companies like MicroStrategy and others that allocate significant resources to Bitcoin purchases.

MicroStrategy, a pioneer in corporate Bitcoin investment, has used convertible bonds to fund its $27 billion Bitcoin holdings since 2020. These bonds, paying little to no interest, can convert into company shares under specific conditions. Strive’s ETF aims to offer exposure to similar instruments and will actively manage investments, potentially using financial derivatives like swaps and options.

The filing comes amid a surge in interest in crypto-focused ETFs, with corporate treasuries holding over $56 billion worth of Bitcoin. Analysts predict that Trump’s recent presidential win and his pro-crypto regulatory plans could pave the way for wider adoption of crypto ETFs in the financial market.

AI sales tools spark rapid growth but face long-term questions

AI startups specialising in sales development representatives (SDRs) are experiencing rapid growth as businesses embrace new technologies to streamline outreach. These startups, leveraging large language models (LLMs) and voice technology, automate tasks like crafting personalised emails and placing calls to potential customers. This sector has seen an unprecedented surge, with multiple companies achieving notable success in a short span, according to Shardul Shah of Index Ventures. However, investors remain cautious about whether this trend will yield lasting results or fade once the novelty wears off.

The appeal of AI SDRs is particularly strong among small and medium-sized businesses, which find it easier to experiment with these tools. Arjun Pillai, founder of Docket, attributes the popularity to declining reply rates for traditional cold emails, prompting businesses to explore AI-driven solutions. Startups like Regie.ai, AiSDR, and 11x.ai, as well as incumbents like ZoomInfo, are vying for market share, boasting impressive revenue growth. Yet, as Tomasz Tunguz of Theory Ventures noted, some businesses report that while AI SDRs generate substantial leads, they don’t necessarily translate into higher sales, highlighting a gap in effectively integrating AI into sales strategies.

Despite the enthusiasm, the rise of AI SDRs faces significant challenges. Industry leaders such as Salesforce and HubSpot, which control vast customer data, could introduce similar AI features, potentially outpacing smaller startups. Investors also point to cautionary tales like Jasper, a copywriting AI startup that stumbled after the launch of ChatGPT, emphasising the uncertainty surrounding the longevity of AI adoption in sales. For now, the potential of AI SDRs to revolutionise sales processes is undeniable, but their ability to sustain growth and deliver tangible results remains to be seen.

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