Crypto faces outflows and regulatory pressure as AI advances under tighter oversight, with rising legal and security challenges.
What’s up, Pasar Crew?
Pressure is building across both crypto markets and AI systems as regulation and real-world constraints tighten.
In crypto, capital is moving cautiously ahead of Europe’s MiCA deadline, with Binance seeing over $400 million in weekly outflows and regulators like Spain refusing any transition extensions. At the same time, policymakers are pushing for broader oversight, from DeFi and NFTs in the EU to calls for a CFTC probe into Polymarket’s promotional practices.
In AI, rapid advancement is being met with growing scrutiny. OpenAI’s GPT-5.6 rollout is proceeding under government oversight, while major industry players have launched coordinated defence efforts against emerging AI-driven cyber threats. At the same time, legal challenges tied to data centre expansion and creative rights are intensifying, reflecting broader societal pushback.
Get up to speed with the latest in Web3 and AI with this week’s Pasar Pulse.
Crypto and Web3
Binance Posts $400M Weekly Net Outflows
Binance recorded over $400 million in weekly net outflows ahead of the EU’s MiCA transition deadline on July 1. Outflows accelerated following its license withdrawal in Greece, though the exchange maintains that Europe is still an important market.
Crypto Equities Face Deepening Losses
Shares of Coinbase and Circle have plummeted 69% and 72% from their all-time highs, highlighting a widening divergence from the broader US stock market, vastly underperforming major tech firms like Netflix and Salesforce.
SecondFi Targets Two-Week Asset Recovery
Following a $2.4M Cardano wallet exploit, SecondFi completed its forensic probe and expects to return assets in two weeks. Users are urged not to migrate funds independently and to beware of scammers.
EU Lawmakers Push for DeFi Regulation
The European Parliament’s ECON committee has urged a review of regulating DeFi, staking, and NFTs under MiCA. The report also supports euro stablecoins to boost the bloc’s payment sector ahead of a plenary vote.
Senators Urge CFTC Probe into Polymarket
Bipartisan US senators have called for a CFTC investigation into Polymarket following reports that the platform paid social media influencers to film fake bets. A Wall Street Journal audit found 70% of reviewed promotional videos featured fake trades.
Spain Rejects MiCA Compliance Extensions
Spain’s financial regulator, the CNMV, confirmed there will be no extensions or exceptions to the July 1 MiCA deadline. Crypto exchanges like Binance must secure EU regulatory approval by then or halt onboarding new users.
Chain Stall on Base Mainnet Resolved
Base, the Coinbase-incubated blockchain, experienced its second brief block production stall in two days. Node operators were instructed to restart their mainnet nodes to resume syncing after the issue was quickly identified.
Kalshi Hits Record via World Cup Deal
Prediction market trading surged to a record $14.5 billion weekly volume. Kalshi teamed up with FIFA-linked ADI Predictstreet for massive World Cup marketing, dominating sports wagers with a 62% market share.
Artificial Intelligence (AI)
Tech Giants Launch Akrites for AI Defence
The Linux Foundation and 19 organisations, including OpenAI and Microsoft, launched Akrites. This initiative creates a unified incident response team to patch critical open-source software vulnerabilities before AI-powered attackers can exploit them.
GPT-5.6 Rolled Out in Limited Preview
OpenAI unveiled the GPT-5.6 model family, Sol, Terra, and Luna, on Friday. At the U.S. government’s request, the initial rollout is restricted to a limited preview for trusted partners while officials establish an AI evaluation framework.
AI Drone Rescues Hikers in Australia
Two men in their 20s were successfully rescued within five hours after veering off a walking track in Kosciuszko National Park, NSW. Fire and Rescue NSW utilised an AI-powered drone with thermal imaging, marking the system’s first successful rescue.
Explorer Scouts Launch AI & Digital Badges
The UK Explorer Scouts have introduced new badges focusing on AI, content creation, and online safety for 14- to 18-year-olds. The overhaul aims to equip teenagers with modern digital skills.
Aussie Artists Fight AI Music Scraping
Top Australian musicians are expressing fury after their entire song catalogues were found in AI training datasets. Artists argue that the unauthorised scraping violates copyright and dehumanises creative work.
Datacentres Face Rising Climate Lawsuits
An LSE report reveals a surge in global lawsuits against datacentres and AI infrastructure. Activists in the US, UK, Ireland, and Chile are challenging these facilities over massive energy use, water strain, and air pollution risks.
AI Reads Charred Vesuvius Scroll
Artificial intelligence has virtually unwrapped and decoded a 2,000-year-old papyrus scroll burnt during the Mount Vesuvius eruption. The breakthrough revealed 20 columns of hidden text without physically opening the fragile artefact.
Meta Pauses Employee Tracker for AI Training
Meta paused its Model Capability Initiative, which tracked employee keystrokes and screen content to train AI. The move follows a petition from 1,600 workers and reports that sensitive internal data was exposed.
That’s all for this week’s Pasar Pulse. Want more insights? Stay tuned to our site or subscribe via email!
Stay updated on crypto and AI by following our socials
