The US Department of Homeland Security has ordered federal civilian agencies to remove DeepSeek products from their IT systems due to security concerns. This follows new US Treasury rules designed to restrict investments in AI and high-risk semiconductor projects in countries including China, Russia, Iran, North Korea, and Cuba. The Treasury recently issued its first penalty of $200,000 to Amidi, LLC for failing to report an investment in a Chinese embodied AI company.
In Asia, the Solana Accelerate event in Shanghai was postponed after registration numbers exceeded local limits. Meanwhile, South Korean financial institutions are expanding their stablecoin initiatives. Shinhan Card is testing yen-based stablecoin payments with Japan’s SBI, while Injective is partnering with BDACS to develop a won-backed stablecoin. Additionally, a task force involving Kakao, KakaoBank, and KakaoPay has been formed to build infrastructure for won stablecoin issuance and payments.
Corporate consolidation continues as Metaplanet secured a 93.7% stake in the Nasdaq-listed Super League and announced a $160 million share repurchase plan. In the exchange sector, Bitget plans to acquire Thailand’s GMO-Z.com Cryptonomics to expand its regional presence. Concurrently, Bank Negara Malaysia has launched a new platform for tokenized bond issuance, and BIT Asset Management has received approval to launch Switzerland’s first spot Bitcoin ETF.
Regional cooperation is also evolving, with Switzerland and Vietnam discussing a partnership between the Swiss Crypto Valley and Vietnam’s innovation ecosystem. In Da Nang, Vietnam, a regulatory sandbox is currently testing crypto applications within the tourism sector. These developments coincide with ongoing discussions in South Korea regarding the potential delay of crypto taxation until 2027, following consultations between regulators and major local exchanges.
