Crypto rebounds on easing US–China tensions, while AI faces new scrutiny over deepfakes, bullying, and the rise of virtual companions.
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After last week’s major crash, crypto markets found their footing with BTC edging higher, following news that US President Donald Trump will meet China’s President Xi Jinping on 31 October. This brought potential relief to the tariff standoff that sent shockwaves through both traditional and digital markets.
Across Asia, regulatory manoeuvres took centre stage. Beijing ordered major tech firms to halt stablecoin projects in Hong Kong, underscoring its tight control over monetary policy, while Japan’s regulators moved closer to allowing banks to hold crypto and issue yen-pegged stablecoins. Meanwhile, Binance cracked down on over 600 accounts after evidence of exploitation on its platform was discovered.
In AI, the spotlight turned to safety and accountability. Australia sounded alarms over chatbots fuelling a bullying crisis, and OpenAI suspended disrespectful MLK deepfakes. Meta rolled out new parental controls for teens’ AI chats, but the boundary between human and machine continues to blur, from Google’s cancer-detecting DeepSomatic to the rise of AI erotica chatbots and political deepfakes testing the limits of trust in digital spaces.
Get up to speed with the latest in Web3 and AI with this week’s Pasar Pulse.
Crypto and Web3
Beijing Halts Stablecoin Plans by Major Tech Firms in Hong Kong
China has ordered major tech firms to suspend their stablecoin projects in Hong Kong. The directive supposedly reinforces Beijing’s control over monetary policy and cites concerns about capital supervision and potential overlap with the e-CNY. Officials emphasised that Hong Kong’s role is to attract foreign crypto capital, not to serve as a loophole for speculative mainland transactions.
Binance Bans Over 600 Users and Introduces Whistleblower Rewards
Binance permanently closed more than 600 accounts accused of exploiting its Binance Alpha platform through coordinated bot farms that manipulated token sale and airdrop rewards. The exchange also launched a whistleblower programme offering up to 50% of recovered funds to users who report fraudulent activity.
Hackers Lose US$13.4 Million Trading ETH During Market Crash
Six hacker wallets collectively lost over US$13.4 million while trading Ethereum during the 10 October market crash due to poor timing. The wallets panic-sold 7,816 ETH at around US$3,728 (the local bottom) before buying back at approximately US$4,159 as prices rebounded.
China’s Rare Earth Controls Undermine Dollar Dominance
Six hacker wallets collectively lost over US$13.4 million while trading Ethereum during the 10 October market crash due to poor timing. The wallets panic-sold 7,816 ETH at around US$3,728 (the local bottom) before buying back at approximately US$4,159 as prices rebounded.
Japan May Allow Banks to Hold Crypto and Issue Yen Stablecoins
Japan’s Financial Services Agency (FSA) is reviewing policies that could allow banks to invest directly in cryptocurrencies such as Bitcoin, reversing current restrictions linked to volatility risks. The FSA is also exploring the possibility of allowing bank groups to register as licensed cryptocurrency exchange operators.
MrBeast Files Trademark for ‘MrBeast Financial’ Crypto Services
YouTube star, MrBeast, filed a US trademark application for ‘MrBeast Financial’ through his company Beast Holdings. The filing covers cryptocurrency exchange and payment processing services, as well as decentralised trading platforms. If approved, the project could accelerate mainstream adoption of digital currencies among MrBeast’s vast global audience.
Friday CPI Report Becomes Key Indicator for Fed Rate Decision
The US Consumer Price Index (CPI) report for September will be released on a Friday amidst an ongoing government shutdown. As the only major economic data point available before the Federal Reserve’s 29 October meeting, the CPI report will heavily influence rate decisions.
Crypto Rallies as Trump Confirms 31 October Meeting with Xi Jinping
US President Donald Trump confirmed a meeting with China’s President Xi Jinping at the APEC summit on 31 October in South Korea. The announcement has eased trade tensions and sparked optimism across cryptocurrency markets.
Artificial Intelligence (AI)
Australia Warns AI Chatbots Are ‘Supercharging’ Bullying Crisis
Australia’s Federal Education Minister warned that artificial intelligence is ‘supercharging’ school bullying to alarming levels. Reports indicate that AI chatbots have been used to harass students, and the government has introduced a national anti-bullying strategy
Google’s AI Accurately Detects Genetic Drivers of Cancer
Google’s DeepSomatic AI system can detect somatic mutations in tumour DNA with greater precision than existing tools. Achieving a 90% F1 score for Indel detection on Illumina sequencing, DeepSomatic can also operate in a ‘tumour-only’ mode.
OpenAI Suspends MLK Deepfakes on Sora After Backlash
OpenAI suspended the creation of Martin Luther King Jr. deepfakes on its Sora platform after users produced disrespectful videos. The company acted following requests from King’s family and estate, and announced stronger safeguards to prevent misuse of historical likenesses.
Meta Adds Parental Controls to Restrict Teen AI Interactions
Meta is introducing new safeguards for teenage users, allowing parents to block AI chatbot interactions on Instagram, Facebook and the Meta AI app. The move follows concerns that user-created chatbots were engaging in inappropriate or romantic conversations with minors.
Anti-Renewables Group Used AI to Fabricate Research and Citations
An investigation revealed that Rainforest Reserves Australia (RRA), an anti-renewables group, submitted inquiry documents containing fake research papers, fabricated government bodies and even a non-existent wind farm. The submission writer admitted to using AI tools to draft over 100 documents and conduct literature searches.
Republicans Release Deepfake Schumer in Political Attack
The US National Republican Senatorial Committee (NRSC) released an attack advert featuring an AI-generated deepfake of Senate Minority Leader Chuck Schumer repeating a genuine quote about the ongoing government shutdown. Critics condemned the ad as a dangerous step towards normalising political misinformation.
AI Erotica Market Expands as Platforms Ease Restrictions
The AI erotica market continues to grow as major platforms relax content moderation policies. Elon Musk’s xAI has introduced adult ‘companion’ avatars available to Grok subscribers, while OpenAI CEO Sam Altman plans to permit erotic content for verified adults later this year.
Tory MP Reports Deepfake Video Falsely Claiming Party Defection
Conservative MP George Freeman has reported a deepfake video to police after it circulated online falsely claiming he had defected to Reform UK. The AI-generated clip appeared to show Freeman making the announcement on camera.
That’s all for this week’s Pasar Pulse. Want more insights? Stay tuned to our site or subscribe via email!
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