Thailand sees its first stablecoin-driven international payment system

Siam Commercial Bank has launched Thailand’s first cross-border payment system powered by stablecoins, aiming to revolutionise international transactions. Partnering with SCB 10X and Lightnet, the system uses stablecoins pegged to gold or the US dollar to offer faster, more cost-effective transfers, allowing users to transact in local currencies.

The innovative payment network runs on a public blockchain, with Fireblocks ensuring the highest level of asset security. By eliminating the need for pre-funded accounts with foreign banks, SCB’s new system reduces operational costs and enhances capital efficiency.

Having completed testing in Thailand’s regulatory sandbox, the project is now fully operational, setting a new benchmark for blockchain-driven financial services and solidifying SCB’s leadership in the digital banking sector.

US dominates AI funding, but Europe shows rapid growth

Funding for AI and cloud companies in the United States, Europe, and Israel is experiencing a resurgence, after three years of decline, and is expected to reach $79.2 billion by the end of 2024, according to venture capital firm Accel. This marks a 27% increase compared to the $62.5 billion invested in 2023. Generative AI is playing a major role, accounting for around 40% of this year’s investments.

Of the $56 billion invested in generative AI over the past two years, 80% went to US-based companies, with the remainder split between Europe and Israel. In the US, OpenAI, Anthropic, and Elon Musk’s xAI led funding rounds, while Europe saw significant investment in companies like Mistral, Aleph Alpha, and DeepL. AI foundation models attracted two-thirds of the total AI investment during this period.

Generative AI investment in Europe is growing quickly, rising from $2.4 billion in 2023 to $6.4 billion in 2024. By comparison, the US saw $25 billion in funding for private AI companies in 2024. Accel noted, however, that outside of AI, the focus in the tech industry has shifted towards profitability, signalling the end of an era of high growth in software.

Despite the shift, the booming AI sector is seen as transformative, with Accel partner Philippe Botteri comparing the current AI wave to other major technological shifts like the rise of broadband, mobile, and cloud computing.

New safety regulations set for social media platforms by UK regulator

Starting in December, Britain’s media regulator Ofcom will outline new safety demands for social media platforms, compelling them to take action against illegal content. Under the new guidelines, tech companies will have three months to assess the risks of harmful content or face consequences, including hefty fines or even having their services blocked. These demands stem from the Online Safety Bill passed last year, aiming to protect users, particularly children, from harmful content.

the UK‘s Ofcom’s Chief Executive Melanie Dawes emphasised that the time for discussion is over, and 2025 will be pivotal for making the internet a safer space. Platforms such as Meta, the parent company of Facebook and Instagram, have already introduced changes to limit risks like children being contacted by strangers. However, the regulator has made it clear that any companies failing to meet the new standards will face strict penalties.

Alabama man arrested for hacking SEC’s X account

A 25-year-old man from Alabama has been arrested for hacking the US Securities and Exchange Commission’s X account in a scheme to manipulate Bitcoin prices. The incident, which occurred in January, involved a false post on the SEC’s account claiming the approval of Bitcoin exchange-traded funds, briefly causing Bitcoin’s price to rise by $1,000. The SEC swiftly deleted the post and denied the message, but the hack sparked criticism over security vulnerabilities on X.

The suspect, Eric Council Jr., used a SIM-swapping technique to access the account and later received Bitcoin as payment for his involvement in the hack. Following the incident, he reportedly searched online for information on how to avoid FBI detection. Council now faces charges of conspiracy to commit aggravated identity theft and access device fraud.

The SEC expressed its gratitude to law enforcement for their prompt action in the case, while the incident reignited concerns over the security of social media platforms, particularly since X’s acquisition by Elon Musk.

US adopts ‘click to cancel’ rule for easier subscription management

The United States Federal Trade Commission (FTC) has introduced a new ‘click to cancel‘ rule, designed to simplify the process of ending subscriptions. The rule mandates that businesses must make it just as easy for consumers to cancel a subscription as it is to sign up for one, and requires customer consent before renewing subscriptions or converting free trials into paid services.

Under the new regulations, businesses will no longer be allowed to force customers to navigate chatbots or agents to cancel subscriptions initiated via an app or website. The rule will take effect in about six months and aims to save consumers time and money by eliminating unnecessary hurdles. For subscriptions made in person, companies must provide an option to cancel by phone or online.

The FTC has previously sued Amazon and Adobe for making it difficult for consumers to cancel subscriptions. Amazon was accused of using misleading website designs to push people into automatic Prime renewals, while Adobe allegedly imposed hidden fees and unclear cancellation terms. Both companies have rejected the claims.

Similar measures have also been adopted in the United Kingdom. The Digital Markets, Competition and Consumers Act 2024 ensures that businesses must give clear information to customers before they enter into subscription agreements, and make it easier for them to cancel or end contracts.

South Korea boosts protection of key industries

South Korea plans to strengthen measures to prevent the overseas leakage of business secrets as global competition for advanced technology intensifies, according to Finance Minister Choi Sang-mok. The government will implement a “big data” system at the patent agency to monitor potential leaks and introduce stricter regulations with tougher penalties for offenders, although details on the punishments were not provided.

The National Intelligence Service reported 97 attempts to leak business secrets to foreign countries over the past five years, 40 of which targeted the semiconductor sector. If successful, these breaches could have caused losses of approximately 23 trillion won ($16.85 billion). Recently, a South Korean executive accused of stealing Samsung Electronics’ chip technology was detained again over new allegations.

In response to global competition and supply chain challenges, South Korea has identified 12 sectors, including semiconductors, rechargeable batteries, aerospace, and AI, as ‘national strategic technologies.’ These industries receive targeted support and protection to boost the country’s technological leadership.

Lightmatter raises funds for photonic chips amid AI race

Photonic chip startup Lightmatter has raised $400 million in a Series D funding round led by T. Rowe Price, valuing the company at $4.4 billion. This funding boost comes amid surging demand for more efficient data center infrastructure due to the rise of artificial intelligence technologies like ChatGPT. With backing from investors such as Fidelity and Alphabet’s GV, Lightmatter plans to use the capital to produce and deploy its innovative chips and expand its workforce across the US and Canada.

The Mountain View-based company, founded in 2017, specialises in using silicon photonics to build faster and more energy-efficient chips, a crucial technology for AI and cloud computing. Co-founder and CEO Nick Harris indicated that this could be the company’s last private funding round, with plans to go public in the near future. He emphasised that photonic chips are the future of high-performance computing, which is why Lightmatter has secured large deals with major tech players, though the company has not disclosed specific clients.

With the potential to work across platforms like Nvidia, Intel, and AMD, Lightmatter’s technology aims to significantly increase AI cluster bandwidth while lowering energy consumption. Its first large AI clusters are expected to be operational next year as the company prepares for an initial public offering.

Ireland drafts urgent crypto regulations ahead of new EU laws

Ireland is set to draft urgent cryptocurrency regulations as the country prepares for new European Union standards to combat money laundering and terrorist financing. Finance Minister Jack Chambers revealed that the legislation would update Ireland’s crypto laws before the EU’s new rules come into force on 30 December.

The upcoming EU regulations will give financial intelligence units greater powers, including suspending transactions and enforcing stricter reporting requirements for crypto exchanges. These new rules will also cap cash payments at €10,000 and introduce more stringent oversight of high-value transactions.

Ireland’s Central Bank supports the initiative, viewing it as essential for safeguarding the financial system. The country has already approved 15 virtual asset service providers, including major players like Coinbase and Ripple, as part of its efforts to ensure compliance with these new regulations.

Intel faces scrutiny as China calls for security review over national security concerns

The Cybersecurity Association of China (CSAC) has urged a security review of Intel’s products in China, alleging that the US chipmaker poses a national security risk. Although CSAC is an industry group, it has strong connections to the Chinese government, and its claims may prompt action from the Cyberspace Administration of China (CAC).

CSAC’s post on WeChat accuses Intel’s chips, including its Xeon processors used for AI, of containing vulnerabilities and backdoors allegedly tied to the US NSA. The group warns that using Intel products threatens China’s national security and critical infrastructure.

This recommendation comes amid growing US-China tensions over technology and trade. Last year, the CAC banned Chinese infrastructure operators from using products from Micron Technology after a security review, raising concerns that Intel could face a similar outcome.

Intel’s China unit responded, emphasising its commitment to product safety and quality. The company stated on its WeChat account that it will cooperate with authorities to clarify concerns. If the CAC carries out a security review, it could impact Intel’s sales in its significant Chinese market. Intel’s shares recently dropped 2.7% in US premarket trading.

Human-level AI still a decade away, Meta scientist warns

Achieving human-level AI may be at least a decade away, according to Meta’s AI scientist, Yann LeCun. Current AI systems, like large language models, fall short of true reasoning, memory, and planning, even though companies like OpenAI market their technologies with terms like ‘memory’ and ‘thinking’. LeCun cautions against the hype, saying these systems lack the deeper understanding required for complex human tasks.

LeCun argues that the limitations stem from how these AI models function. LLMs predict words, while image and video models predict pixels, making them capable of only single or two-dimensional predictions. In contrast, humans operate in a three-dimensional world, able to plan and adapt intuitively. Even the most advanced AI struggles with everyday actions, such as cleaning a room or driving a car, tasks children and teenagers can learn with ease.

The key to more advanced AI, according to LeCun, lies in ‘world models’ – systems capable of perceiving and predicting outcomes within a three-dimensional environment. These models would allow AI to form action plans without trial and error, similar to how humans quickly solve problems by envisioning the results of their actions. However, building these systems requires massive computational power, driving cloud providers to partner with AI companies.

FAIR, Meta’s research arm, has shifted its focus towards developing world models and objective-driven AI. Other labs are also pursuing this approach, with researchers such as Fei-Fei Li raising significant funding to explore the potential of world models. Despite growing interest, LeCun emphasises that significant technical challenges remain, and achieving human-level AI will likely take many years, if not a full decade.