digital assets

Czech central bank invests in digital assets for the first time

The Czech National Bank (CNB) has acquired digital assets for the first time, creating a USD 1 million test portfolio outside its international reserves. The initiative includes Bitcoin, a USD stablecoin, and a tokenised deposit on the blockchain.

The portfolio aims to provide practical experience with digital assets and test related operational processes, without plans for further active investment.

Governor Aleš Michl explained that the idea originated in January 2025 to evaluate decentralised Bitcoin and explore its potential role in diversifying reserves. Discussions later included stablecoins, tokenised deposits, and future payment methods, with insights to be shared over the next two to three years.

The CNB emphasises that the koruna remains the country’s legal tender, while new digital payment and investment methods are increasingly emerging.

The test portfolio will examine the full chain of digital asset management, from technical administration and multi-level approvals to crisis scenarios, security measures, and AML compliance.

The CNB aims to maintain and develop internal expertise, ensuring staff gain practical knowledge transferable across teams. The investment is separated from the central bank’s international reserves and will not influence monetary policy or foreign exchange operations.

Alongside the portfolio, the CNB has launched CNB Lab, an innovation hub to test digital assets, blockchain solutions, AI tools, and payment innovations. The Lab will help the bank prepare for the future of finance while building practical experience and team expertise.

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

France moves to tax crypto as ‘unproductive wealth’

French lawmakers approved a proposal to expand the wealth tax to cover ‘unproductive assets’ like luxury goods, property, and digital currencies. The amendment by centrist MP Jean-Paul Matteï narrowly passed the National Assembly, 163 to 150, with support from socialist and far-right members.

The proposal will now move to the Senate for further debate as part of the 2026 national budget process.

Under the plan, individuals holding ‘unproductive wealth’ valued above €2 million would face a new 1% flat tax. The measure replaces the existing progressive real estate wealth tax, which currently charges up to 1.5% on assets exceeding €10 million.

Matteï argued that the change would promote ‘productive investment’ and address inconsistencies in the current system, which excludes assets like gold, classic cars, and cryptocurrencies.

The inclusion of digital assets has drawn criticism from the local crypto community. Éric Larchevêque, co-founder of crypto wallet maker Ledger, warned that the move sends a negative message, portraying crypto as economically ‘unproductive.’

He cautioned that investors could be forced to liquidate their holdings to pay the tax, and expressed concern that the threshold might later be reduced.

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! 

IBM unveils Digital Asset Haven for secure institutional blockchain management

IBM has introduced Digital Asset Haven, a unified platform designed for banks, corporations, and governments to securely manage and scale their digital asset operations. The platform manages the full asset lifecycle from custody to settlement while maintaining compliance.

Built with Dfns, the platform combines IBM’s security framework with Dfns’ custody technology. The Dfns platform supports 15 million wallets for 250 clients, providing multi-party authorisation, policy governance, and access to over 40 blockchains.

IBM Digital Asset Haven includes tools for identity verification, crime prevention, yield generation, and developer-friendly APIs for extra services. Security features include Multi-Party Computation, HSM-based signing, and quantum-safe cryptography to ensure compliance and resilience.

According to IBM’s Tom McPherson, the platform gives clients ‘the opportunity to enter and expand into the digital asset space backed by IBM’s level of security and reliability.’ Dfns CEO Clarisse Hagège said the partnership builds infrastructure to scale digital assets from pilots to global use.

IBM plans to roll out Digital Asset Haven via SaaS and hybrid models in late 2025, with on-premises deployment expected in 2026.

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

Australian ASIC grants stablecoin relief to boost innovation

The Australian Securities and Investments Commission (ASIC) has introduced class relief for intermediaries involved in the secondary distribution of stablecoins issued by licensed providers. The measure aims to encourage responsible growth in the digital assets and payments sectors.

Under the relief, intermediaries do not need to hold separate Australian financial services (AFS), market, or clearing licences when offering services linked to stablecoins issued by an AFS licensee. However, they must provide clients with the product disclosure statement, if one is available.

ASIC has indicated that as more issuers of eligible stablecoins obtain an AFS licence, the exemption could extend further. The regulator stressed its support for innovation while safeguarding consumers by requiring stablecoins to remain under licensing rules.

The move follows ASIC’s consultation on updates to its guidance for digital assets, which included stablecoins and other token types. ASIC will soon release revised guidance and is working with Treasury on digital asset reforms, including a payment stablecoin framework.

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

SEC approves new standards for digital asset trading

The Securities and Exchange Commission has approved new generic listing standards for exchange-traded products that hold spot commodities, including digital assets. Exchanges can now list and trade Commodity-Based Trust Shares without submitting a separate SEC rule change.

SEC Chairman Paul S. Atkins said the move aims to maintain America’s capital markets as a leading hub for digital asset innovation. The decision is expected to increase investor choice and streamline access to digital asset products.

Jamie Selway, Director of the Division of Trading and Markets, highlighted that the approval offers clear regulatory guidance and ensures investor protections while making it easier for products to reach the market.

Alongside the generic standards, the SEC approved the Grayscale Digital Large Cap Fund listing, which tracks the CoinDesk 5 Index of spot digital assets.

The regulator also authorised p.m.-settled options on the Cboe Bitcoin US ETF Index and the Mini-Cboe Bitcoin US ETF Index with multiple expiration formats.

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

Greece strengthens crypto rules to align with EU standards

Greek authorities are enforcing stricter regulations on the crypto sector to strengthen oversight and align with European standards. The move targets money laundering and tax evasion, reflecting Athens’ intent to bring order to the industry.

Digital asset exchanges and wallet providers will face a rigorous licensing process. Applicants must submit a complete business dossier, disclose management and shareholder details, and pass extensive checks before being allowed to operate.

Non-compliant platforms risk being barred from the market.

Financial regulators will monitor crypto transactions closely, with powers to freeze suspicious digital assets and trace funds. Authorities aim to prevent illegal capital flows while boosting investor confidence through enhanced transparency.

Taxation rules for crypto are expected this fall, with capital gains taxes set at 15% for private investors and potentially higher for companies. Some crypto services may also be subject to 24% VAT, with final rates announced in the coming months.

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

UAE emerges as major Bitcoin holder through mining operations

The UAE has emerged as a major player in the global crypto landscape, with recent data revealing Bitcoin holdings worth $700 million linked to Citadel’s mining operations. Citadel, owned mainly by the UAE Royal Group via IHC, has boosted the country’s influence in digital assets.

These holdings reflect the UAE’s strategic efforts to establish a robust crypto ecosystem, particularly in Dubai.

Enforcement actions against fraudulent investment schemes and high-profile Ponzi operations have helped the UAE accumulate approximately 420,000 BTC. Governments worldwide own roughly 463,000 BTC, equivalent to around 2.3% of Bitcoin’s total supply.

While some nations maintain secrecy over their holdings, others openly report their Bitcoin accumulation.

Several countries have obtained BTC through mining initiatives. El Salvador continues to expand its reserve with daily purchases under the ‘1 Bitcoin per day’ programme. At the same time, Bhutan has used hydroelectric resources to mine between 12,000 and 13,000 BTC, representing up to 40% of its economy.

Iran has recognised Bitcoin mining as a government-controlled enterprise, requiring licensed miners to sell directly to the Central Bank.

Other nations have acquired BTC primarily through seizures. The US leads with nearly 200,000 BTC from high-profile cases like Silk Road and ransomware takedowns.

China, the UK, and Bulgaria also hold significant amounts from fraud and cybercrime investigations, while smaller nations such as Finland, Georgia, and Venezuela maintain modest reserves.

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

The first state to issue a government-backed stablecoin

Wyoming has launched the Frontier Stable Token (FRNT), becoming the first US state to issue a government-backed stablecoin. The initiative aims to modernise payments for citizens and businesses, offering a secure and efficient way to transact.

The token is fully reserved, backed by dollars and short-term treasuries held in trust, and structured to be 2% over-collateralised. State officials emphasised that this design strengthens confidence and avoids the risks often linked to privately issued stablecoins.

The launch was announced during the Wyoming Blockchain Symposium and coincided with new federal legislation, the GENIUS Act, which sets more explicit rules for stablecoin issuers.

Ahead of the rollout, Wyoming tested a blockchain-based payment to a government contractor, proving the token’s ability to reduce costs and streamline transactions.

By introducing FRNT, Wyoming has positioned itself as a digital asset pioneer within the US. The move reflects growing confidence in stablecoins, which have already reached a $260 billion market and could expand to $1 trillion within years.

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

China shifts to cold storage for seized crypto

Authorities in China’s Guizhou Province have begun using joint custody centres and cold wallets to manage cryptocurrencies seized from unlawful activities, particularly in Duyun City. The move represents a strategic adjustment amid the country’s ongoing ban on crypto trading.

Adopting cold storage and joint custody addresses practical challenges in preserving and disposing of seized assets. Experts warn that selling seized crypto could breach trading bans, cause risk compliance issues, and cause market disruption.

China’s approach may influence international handling and regulation of digital assets. Analysts suggest these protocols could integrate regulatory compliance with financial stability goals, shaping broader policies for Bitcoin and other cryptocurrencies worldwide.

Scholars describe the current measures as temporary solutions that do not fully align with the nation’s crypto prohibition.

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