cryptocurrency

World Economic Forum President warns of potential AI and crypto bubbles 

World Economic Forum President Borge Brende has warned that massive investments in AI and cryptocurrencies may create financial bubbles. Speaking in Berlin, he noted that $500 billion has been invested in AI this year, raising concerns about speculative bubbles in AI and cryptocurrency.

Brende described frontier technologies as a ‘big paradigm shift’ that could drive global growth, with potential productivity gains of up to 10% over the next decade. He noted that breakthroughs in medicine, synthetic biology, space, and energy could transform economies, but stressed that the benefits must be widely shared.

Geopolitical uncertainty remains a significant concern, according to Brende. He pointed to rising tensions between the US and China, calling it a race for technological dominance that could shape global power.

He also urged multilateral cooperation to address global challenges, including pandemics, cybercrime, and investment uncertainty.

Despite the disorder in world politics, Brende highlighted the resilience of economies like those in the US, China, and India. He called for patient investment strategies and stronger international coordination to ensure that new technologies translate into sustainable prosperity.

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

Norway sees surge in cryptocurrency tax declarations

Norway’s efforts to improve cryptocurrency tax compliance have led to a significant increase in declarations. More than 73,000 residents reported owning digital assets in their 2024 filings, a 30% rise compared with 2023, according to the Norwegian Tax Administration.

Officials attribute the growth to enforcement measures, educational campaigns, and improved digital reporting systems.

The total reported value of these holdings exceeded US$4 billion, with gains of around US$550 million and losses near US$290 million. Tax director Nina Schanke Funnemark said higher participation reflects the success of recent initiatives and increased taxpayer awareness.

From January 2026, Norwegian crypto service providers, including exchanges and custodians, must share client transaction data under a new third-party reporting regime. The measure aims to close oversight gaps and ensure transparency across the sector.

The 2024 declaration figures contrast sharply with 2019, when only 6,470 individuals reported crypto ownership.

Norway’s sovereign wealth fund holds indirect crypto exposure through investments in companies such as Coinbase, Metaplanet, and Strategy, representing roughly 7,161 Bitcoin. Other countries are boosting crypto oversight, with the UK’s HMRC sending around 65,000 warning letters to suspected non-compliers.

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

$MELANIA coin faces court claims over price manipulation

Executives behind the $MELANIA cryptocurrency, launched by Melania Trump in January, are accused in court filings of orchestrating a pump-and-dump scheme. The coin surged from a few cents to $13.73 before falling to 10 cents, while $TRUMP dropped from $45.47 to $5.79.

Investors allege the creators planned the price surge and collapse to profit from rapid trading. Court papers allege Meteora executives used accomplices to buy and sell $MELANIA quickly, securing large profits while ordinary investors lost money.

Melania Trump herself is not named in the lawsuit, which describes her as unaware of the alleged scheme.

The $MELANIA allegations are now part of broader legal proceedings involving multiple cryptocurrencies that began earlier this year. Meteora has not commented, while the Trump family reportedly earned over $1bn from crypto ventures in the past year.

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

UK government urges awareness as £106m lost to romance fraud in one year

Romance fraud has surged across the United Kingdom, with new figures showing that victims lost a combined £106 million in the past financial year. Action Fraud, the UK’s national reporting centre for cybercrime, described the crime as one that causes severe financial, emotional, and social damage.

Among the victims is London banker Varun Yadav, who lost £40,000 to a scammer posing as a romantic partner on a dating app. After months of chatting online, the fraudster persuaded him to invest in a cryptocurrency platform.

When his funds became inaccessible, Yadav realised he had been deceived. ‘You see all the signs, but you are so emotionally attached,’ he said. ‘You are willing to lose the money, but not the connection.’

The Financial Conduct Authority (FCA) said banks should play a stronger role in disrupting romance scams, calling for improved detection systems and better staff training to identify vulnerable customers. It urged firms to adopt what it called ‘compassionate aftercare’ for those affected.

Romance fraud typically involves criminals creating fake online profiles to build emotional connections before manipulating victims into transferring money.

The National Cyber Security Centre (NCSC) and UK police recommend maintaining privacy on social media, avoiding financial transfers to online contacts, and speaking openly with friends or family before sending money.

The Metropolitan Police recently launched an awareness campaign featuring victim testimonies and guidance on spotting red flags. The initiative also promotes collaboration with dating apps, banks, and social platforms to identify fraud networks.

Detective Superintendent Kerry Wood, head of economic crime for the Met Police, said that romance scams remain ‘one of the most devastating’ forms of fraud. ‘It’s an abuse of trust which undermines people’s confidence and sense of self-worth. Awareness is the most powerful defence against fraud,’ she said.

Although Yadav never recovered his savings, he said sharing his story helped him rebuild his life. He urged others facing similar scams to speak up: ‘Do not isolate yourself. There is hope.’

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

Bitcoin pauses after reaching new all-time high

Bitcoin’s rally has slowed after reaching an intraday high of $125,725, signalling a possible short-term cooling phase following its record-breaking climb. Despite the pause, indicators show the bullish trend remains intact, with higher highs and strong momentum across key timeframes.

Analysts note that Bitcoin’s price may consolidate near the $120,000–$121,000 support zone before resuming its upward trajectory. The relative strength index (RSI) at 71 and stochastic reading of 89 suggest overbought conditions, increasing the likelihood of a brief retracement.

Resistance remains firm around $125,000–$126,000, while traders watch for renewed volume and upward confirmation.

Short-term charts reveal mixed signals. A local double top around $125,725 and falling volume indicate profit-taking, yet moving averages across all key periods continue to flash bullish signals.

If Bitcoin holds above $121,000, analysts expect the pullback to stabilise as part of a healthy consolidation phase, potentially paving the way for another breakout above $126,000.

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

Openbank adds cryptocurrency trading for German customers

Openbank, Grupo Santander’s fully digital bank, now allows customers in Germany to buy, sell, and hold major cryptocurrencies, including Bitcoin, Ether, Litecoin, Polygon, and Cardano.

The service integrates seamlessly with existing investments, removing the need to transfer funds to other platforms. It also provides the protection of MiCA regulations and the backing of Santander.

Competitive fees of 1.49% per trade apply, with no custody charges, and the service will soon be available to customers in Spain. Over the coming months, Openbank plans to expand its portfolio and introduce new features, such as direct conversion between different digital assets.

The launch strengthens Openbank’s investment offerings in Germany, complementing its Robo Advisor and thousands of stocks, funds, and ETFs. It also includes an AI-powered broker platform providing target prices for European and US stocks.

Grupo Santander emphasises that the new crypto trading service responds to customer demand while broadening the bank’s range of innovative, technology-driven investment products.

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

Bitcoin rallies above 116k on rate cut hopes

Bitcoin climbed nearly 4.42% over the past week, trading at $116,031 on Monday as investor optimism grows ahead of an expected US rate cut. Analysts say the rally is driven by technical factors and expectations of a 25bps Fed rate cut.

Edul Patel, CEO of Mudrex, highlighted that Bitcoin is holding above $115,400, with $117,100 acting as key resistance and $113,500 providing strong support.

Other cryptocurrencies are showing mixed trends, with Solana breaking out at $242 and potentially reaching $261 if buying momentum continues, while Ethereum consolidates around $4,600–$4,700.

The broader crypto market capitalisation stood at roughly $4.06 trillion, with institutional flows via ETH ETFs and shrinking exchange reserves tightening sell-side pressure. Analysts warn that high long-term Treasury yields may limit gains despite rising speculative demand ahead of the Fed decision.

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

CoreWeave scales rapidly to meet AI growth

Nvidia-backed CoreWeave says peak AI investment is still far off, as demand for compute capacity from OpenAI, hyperscalers, enterprises, and governments continues to surge. CEO Michael Intrator said CoreWeave is rapidly scaling to meet soaring global GPU demand.

CoreWeave shares have fallen around 20% despite strong market interest over the past month. The decline follows a higher-than-expected Q2 net loss, $1 billion in capital expenditure, and a projected $500 million this quarter, raising debt concerns.

Since the IPO lockup expiry, insider stock sales have added to the downward pressure.

Intrator defended the company’s strategy, describing debt as the most efficient way to fund growth. Analysts warn CoreWeave shares could stay volatile, though strong AI infrastructure demand supports long-term optimism.

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

South Korea to grant crypto firms venture company status

South Korea will grant cryptocurrency firms ‘venture company’ status from 16 September, giving them access to tax breaks, financing support, and other incentives. The move follows a partial revision of the Venture Business Act removing restrictions on crypto trading and brokerage.

The regulatory change aims to stimulate growth in the crypto and blockchain sectors. Advantages include research and development grants, credit guarantees, and the ability for existing venture companies to expand into crypto without losing their status.

Minister Han Seong-sook said the measure will help create a transparent and responsible ecosystem for venture capital and innovation.

Crypto firms were first restricted in October 2018, and the ban’s removal reflects industry maturity and better user protections. Officials expect the change to accelerate growth in virtual asset trading, blockchain technologies, smart contracts, and cybersecurity.

South Korea’s crypto industry has already benefited from a friendlier environment under President Lee Jae-myung. The market is projected to reach $1.1 billion in revenue in 2025 and $1.3 billion by 2026, with exchange users surpassing 16 million, over 30% of the population.

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

Japan considers stricter crypto rules under securities law

Japan’s Financial Services Agency (FSA) has proposed moving cryptocurrency regulation under the Financial Instruments and Exchange Act (FIEA), which would align oversight with securities law and impose tougher rules on the industry.

The regulator noted crypto issues such as unclear disclosures, scams, unregistered operations, and exchange security weaknesses. Applying the Act could bring stricter disclosure requirements, regulation of brokerages, and enforcement tools such as emergency injunctions.

The report, though non-binding, highlights crypto’s growing role in Japan. Over 12 million exchange accounts have been opened, with deposits exceeding 5 trillion yen ($33.7bn).

Around 70 per cent of users are middle-income earners, and most expect long-term price gains. Finance Minister Katsunobu Kato recently acknowledged that cryptocurrencies could be part of diversified portfolios despite volatility risks.

If adopted, the proposed changes would reshape Japan’s regulatory landscape by treating crypto more like traditional financial instruments, aiming to reduce risks while strengthening investor confidence.

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