Crypto supply tightens, AI scrutiny ramps up, and regulators clash worldwide as markets, models and policies collide in another high-stakes week.
What’s up, Pasar Crew?
From shrinking ETH exchange balances to escalating political battles over AI governance, the landscape is shifting fast and in conflicting directions.
Crypto markets are feeling the effects of structural change. ETH held on exchanges has fallen to its lowest share in a decade as holders move towards staking and long-term custody, raising the prospect of a future supply squeeze.
At the same time, governments are pulling in very different regulatory directions: Poland has stalled its MiCA-aligned legislation, South Korea is considering bank-level liability for exchanges, and the EU is floating a “European SEC” that could reshape licensing across the bloc.
AI, meanwhile, is facing its own reckoning. Deepfakes impersonating medical professionals are spreading health misinformation at scale, UK researchers have shown that chatbots can shift political opinions, and Google is under fire for generating racialised “white saviour” imagery.
As OpenAI accelerates model releases and launches a national initiative in Australia, regulatory tensions are rising in the United States, where a proposed moratorium on state AI laws has triggered pushback even from within the far-right movement.
Get up to speed with the latest in Web3 and AI with this week’s Pasar Pulse.
Crypto and Web3
Exchange ETH Balance Falls to Lowest Levels
Exchange ETH balances have fallen by 43% since July as investors move the asset into staking, restaking, and long-term custody. Analysts warn that the tightening supply could set the stage for a future supply squeeze and potential upward price pressure.
Poland Stalls Crypto Bill With Veto
Poland’s parliament has vetoed the Crypto-Asset Market Act, blocking legislation intended to bring the country into alignment with the EU’s MiCA framework. The President argued the bill would threaten the freedoms of its people.
Polymarket Builds In-House Market-Making Desk
Polymarket is hiring for an internal market-making team that may trade against users on its own exchange, following the resolution of regulatory issues in the United States. Prediction markets are expanding, with volumes rising 565% across the largest platforms.
S. Korea Considers Bank-Style Liability for Crypto Exchanges
South Korea is proposing the introduction of bank-level, no-fault liability rules for crypto exchanges following a recent Upbit hack and repeated system failures. The framework would oblige exchanges to reimburse customers for losses even when the platform is not at fault.
US$179M in BTC Unlocked as Casascius Coins Activate
Two Casascius physical BTC, each containing 1,000 BTC and dormant for over 13 years, have been redeemed, unlocking more than US$179 million. Minted between 2011 and 2013, these collectible coins were created by Mike Caldwell.
US Prosecutors Seek 12-Year Sentence for Do Kwon
US prosecutors are seeking a 12-year prison term for Terraform Labs co-founder Do Kwon, who has pleaded guilty to wire fraud and conspiracy. They claim his actions caused greater combined losses than those attributed to Sam Bankman-Fried.
EU Proposal for ‘European SEC’ Sparks Licensing Concerns
A new European Commission proposal to expand ESMA’s authority over licensing and supervising crypto-asset service providers could create a “European SEC”. Legal experts caution that centralising supervision at the EU level may slow the licensing process and hinder innovation.
Western Union Launches Stable Card
Western Union has announced plans for a “stable card” aimed at protecting users in high-inflation economies, where remittances can lose substantial value within weeks. The company also intends to issue its own cryptocurrency.
Artificial Intelligence (AI)
Deepfakes of Real Doctors Spread Health Misinformation
An investigation by the fact-checking charity Full Fact has uncovered hundreds of AI-generated deepfake videos circulating on social media platforms, encouraging viewers to purchase supplements with no proven benefits.
Chatbots Can Sway Political Opinions but Sacrifice Accuracy
A major study by the UK government’s AI Safety Institute found that chatbots can significantly influence people’s political views. The most persuasive models were those producing dense, fact-focused responses.
Google AI Criticised for “White Saviour” Imagery
Nano Banana Pro has been criticised for producing racialised “white saviour” imagery, particularly in response to prompts related to humanitarian aid in Africa. Requests of Africa and volunteerism consistently generated images of a white woman surrounded by children.
OpenAI Launches Major National AI Initiative in Australia
OpenAI has unveiled “OpenAI for Australia”, aimed at advancing AI adoption across the nation. The initiative includes a Memorandum of Understanding with NEXTDC to develop sovereign AI infrastructure featuring a large-scale GPU supercluster in Sydney.
Meta Signs New Agreements with US News Outlets
Meta has reached new AI licensing agreements with several prominent news organisations, enabling Meta AI to draw on their reporting when delivering information. The move is intended to improve the chatbot’s ability to provide timely, diverse and reliable content.
New York Times Sues Perplexity AI Over Violations
The New York Times has filed a lawsuit against Perplexity AI, alleging that the company illegally copied millions of its articles and redistributed journalists’ work without permission, while generating fabricated content that is falsely attributed to the newspaper.
OpenAI Accelerates GPT-5.2 Release Amid Intensifying Competition
OpenAI CEO Sam Altman has reportedly declared a “code red” scenario, prompting teams to fast-track the release of GPT-5.2. The update could be announced as early as next week to close the performance gap created by Google’s Gemini 3 model.
Trump’s Proposed AI Moratorium Sparks Backlash
A draft executive order from the Trump administration, seeking to impose a nationwide moratorium on state-level AI regulation, has triggered unexpected criticism from hard-right media figures as the ruling would centralise significant power under David Sacks.
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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