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One of China’s largest short video platforms, Kuaishou, suffered a setback after a cyberattack incident disrupted livestream service, exposing its users to explicit content. The company made a report to the police following the breach that occurred on Monday evening, an incident that spread across social media, attracting the attention of investors, regulators, and the wider tech industry. Kuaishou’s users shocked at the data breach According to reports, the company indicated that its livestream platform was flooded with explicit content, leaving users in shock and questioning how such prohibited data managed to get through all of their safeguards. Some users stated they had never seen that type of content before on the app. Many users shared screenshots and video clips of what occurred on social media, increasing the public’s concern until moderators were able to intervene and address the situation and remove the affected Kuaishou livestream accounts early Tuesday morning. The social media company claimed to have contained the issue and had reported it to the police and other pertinent agencies while simultaneously working to suspend the perpetrating accounts and restore proper functionality within the Kuaishou app. In a public statement issued on Tuesday, Kuaishou stated that the live broadcast function of their platform was a point of concern, adding that they invoked emergency procedures as a result. The company further committed to eradicating illegal and damaging content from the platform, as well as promising to cooperate with law enforcement investigations into the incident. Experts on cybersecurity have highlighted that the scale of these attacks is indicative of how the methods used have changed. One expert cited by SMP said that now cybercriminals can create and manage thousands of fake accounts at once, given the availability of automated tools. Resultantly, this makes it difficult for human reviewers to act quickly enough. “This type of attack will overwhelm traditional methods of verification, because everything occurs nearly instantaneously,” the individual said. The expert warned that many platforms still depend on manual controls excessively. Another analyst noted that companies need to focus internally as well, because weaknesses regarding internal access will cause greater vulnerabilities to external threats. The market negatively responded to the cyberattack As these services were progressively restored, the market was immediately affected by this incident. On Tuesday, Kuaishou shares fell considerably to their lowest point in nearly five weeks, following the announcement on the back of concerns over reputational damage and potential costs related to implementing enhanced security protocols. The Chinese firm later stated that some parts of the app were not affected, adding it was going to pursue legal action against the perpetrators, signalling a much tougher stance as scrutiny around online content continues to grow in China. Some reports also indicate that the company is now looking to hire more cybersecurity staff to enhance security. Online posts that were shared insinuated openings for engineers and security specialists, highlighting a wider push to strengthen defences following the attack. The attack on Kuaishou comes as Chinese regulators are increasing pressure on digital platforms, with authorities calling on companies to remove harmful material and prevent its spread with haste. These have specifically cited content linked to violence, vulgarity, or risks to minors. As Cryptopolitan reported, regulators recently summoned major tech firms over content violations as part of a broader crackdown on online platforms. The campaign aims to clean up digital spaces and hold companies accountable for what appears on their services. Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.

Telegram now runs the largest crypto black-market economy ever documented, with Chinese-speaking users transacting literally $2 billion every month. According to an Elliptic’s investigation released this week, simple access to Telegram, the ability to relaunch banned channels, and Chinese-language moderation have replaced the technical barriers that once defined darknet crime. Elliptic estimates that one of those markets, Huione Guarantee, moved $27 billion between 2021 and 2025. 2025 has been a year of breakthroughs, takedowns and firsts. Our blockchain intelligence drove real-world impact at every turn: supporting the $96B Garantex takedown, launching AI-powered Copilot, exposing $35B in illicit Telegram marketplaces and securing HSBC's strategic… pic.twitter.com/8it0QBuJHB — Elliptic (@elliptic) December 23, 2025 Scam markets on Telegram generate record monthly volumes Elliptic identified two markets, Tudou Guarantee and Xinbi Guarantee, as the current leaders of this system. Together, they enable close to $2 billion per month in crypto transactions tied to laundering services, stolen personal data, fake investment websites, and AI deepfake tools. The listings also include pregnancy surrogacy services and ads linked to teen prostitution. These markets supply infrastructure to large-scale romance and investment scams known as pig butchering, which are run mainly from compounds in Southeast Asia. Thousands of trafficking victims are forced to work inside those compounds. The FBI estimates these scams take in about $10 billion a year from U.S. victims alone. By selling laundering and operational tools to those networks, Tudou Guarantee and Xinbi Guarantee expanded at the same pace as the scams they support. Tom Robinson, Elliptic’s cofounder and chief scientist, said that these markets are “the biggest ever recorded online.” Bans fail as platforms and payment rails stay in place In May, Telegram banned Huione Guarantee after it rebranded as Haowang Guarantee and was named as a money laundering operation by the U.S. Treasury’s Financial Crimes Enforcement Network. Tudou Guarantee, in which Haowang Guarantee holds a stake, expanded quickly, as Elliptic now tracks its activity at about $1.1 billion per month, compared with Haowang’s earlier level of $1.4 billion. Xinbi Guarantee reached around $850 million per month after being banned and relaunching. In its statement, Telegram said it reviews cases individually and defends user privacy and financial autonomy. Analysts rejected that position. Elliptic and other observers said most activity on Tudou Guarantee and Xinbi Guarantee is criminal. Aside from scam services, the markets sell prostitution, including posts that suggest sex trafficking of minors through terms like “lolita” and “young girl.” The scam groups they serve are also widely linked to forced labor inside brutal compounds. AlphaBay, once described by the FBI as ten times the size of Silk Road, processed only around $1 billion across two and a half years, while Hydra, a Russian market that also served ransomware groups and crypto thieves, handled more than $5 billion over seven years. Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.

President Donald Trump’s administration has decided not to impose new tariffs on semiconductor imports from China until June 2027, despite accusing Beijing of violating trade rules in the global chip market. The delay follows a quiet trade ceasefire that Trump and Chinese President Xi Jinping reached in October during a meeting in South Korea, according to findings released Tuesday by the Office of the U.S. Trade Representative (USTR). The nearly yearlong probe into China’s semiconductor sector started under former President Joe Biden in December 2024. At the time, Washington opened a Section 301 investigation into China’s chip manufacturing strategy, with expectations that any follow-up actions would fall under Trump’s watch once he returned to the White House. The USTR was legally obligated to release its findings within 12 months of the probe’s launch. The new timeline holds off on any duty hikes until June 23, 2027, with the tariff level on foundational chips remaining at zero for the next 18 months. “To a rate to be announced not fewer than 30 days prior to that date,” the notice read. USTR findings accuse China of undermining U.S. chip industry The USTR report concluded that China has used non-market tactics to support its chip sector while trying to push foreign markets into dependency on its cheaper, older generation chips. These so-called foundational or legacy semiconductors aren’t cutting-edge, but they power everything from airplanes and automobiles to telecom networks and hospital equipment. “China’s targeting of the semiconductor industry for dominance is unreasonable and burdens or restricts U.S. commerce and thus is actionable,” the USTR wrote in the public filing. The investigation found China’s government has created policies that allow its chip companies to flood international markets with low-cost products, creating pressure for American and European suppliers. The European Union is also dealing with ripple effects. In October, the Dutch government temporarily tried to seize control of Nexperia Holding BV, a chipmaker owned by China, citing national security concerns tied to the auto industry. Despite the findings, Trump is holding off for now, trying to keep the October agreement with Xi intact. That deal included a mutual understanding to scale back export restrictions and prevent another blow-up in tech tariffs. Still, Trump isn’t ruling out future action. “The U.S. Trade Representative will continue to monitor the efficacy of this action, the progress made toward resolution of this matter, and the need for any additional action,” the office said . Tariffs to target raw chip inputs, not finished goods The potential new duties will not apply to finished products like smartphones or computers, even if they contain Chinese-made chips. Instead, they’ll focus on core semiconductor inputs such as diodes, transistors, raw silicon, and electronic integrated circuits that are made in China. Any product matching the criteria laid out in the Federal Register notice and falling under HTSUS heading 9903.91.05 will still be subject to antidumping, countervailing, or other fees already in place, along with new duties if implemented. These products are described in subdivision (f)(ii) of note 31 to subchapter III of chapter 99 of the HTSUS. Another technical change buried in the notice will kick in on December 23, 2025. From that date forward, any qualifying Chinese-origin products brought into U.S. foreign trade zones must enter under “privileged foreign status” as defined in 19 CFR 146.41. That change makes them subject to additional duties when formally brought into U.S. markets. Only products considered “domestic status” under 19 CFR 146.43 will avoid these extra fees. The decision to keep tariffs on ice while keeping a loaded gun on the table gives Trump’s administration flexibility. If relations with Xi collapse, the U.S. has the legal framework and detailed tariff structure already mapped out. The Biden-era recommendation to double chip tariffs to 50 percent by the end of 2025 under a different Section 301 case still sits in the background, unused. Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program

The Japan Fair Trade Commission plans to conduct a fact-finding investigation into search engines that use generative artificial intelligence. It is expected to target companies such as Japanese tech giant LY Corp. and US firms Google and Microsoft. Japan’s antitrust watchdog suspects that the unauthorized use of articles from news organizations by IT companies in the display of search results may constitute an abuse of their dominant position in violation of the antimonopoly law. “The investigation is not intended as a crackdown, but rather to gain a better understanding of the situation,” an official from the commission stated. The probe is to be conducted as an extension of the 2023 investigation AI-powered search engines can understand questions asked in a conversational tone and respond accordingly. The AI generates summarized answers from data collected through the internet. The technology is regarded as more convenient than traditional search engines because it provides more direct answers. However, the unauthorized use of articles from news organizations and other sources by tech companies in their responses has become a problem. News agencies generate revenue by displaying ads on their sites, so the spread of AI-generated news summaries could lead to a decline in that income. Besides the search engines, conversational AI operators such as OpenAI, which runs ChatGPT, and Perplexity AI Inc., a US startup, are part of the problem. The decision comes amid a series of lawsuits and protests against Perplexity by Japanese news organizations over a conversational AI service. They claim copyright infringement and raise concerns that the system uses news articles without permission. Two years ago, the watchdog published a report on contracts for the internet distribution of news by major IT companies. It warned that one-sided contract changes that significantly lower payments to news organizations for their articles are a violation of the antimonopoly law. To that end, the latest probe will be conducted as an extension of the 2023 investigation. The EU and UK tighten their rules against US tech companies Similar investigations have been launched overseas into AI search services. Earlier this month, the European Commission launched a formal antitrust investigation into Google’s use of publisher and YouTube content to train its generative AI systems, including AI Overviews and Gemini. The Commission is investigating whether Google’s scraping such content without appropriate compensation or an “opt-out” mechanism breaches EU competition rules. This follows a fine of approximately €2.95 billion imposed in September over anti-competitive practices in its adtech segment. Google was able to overturn an old AdSense fine of €1.49 billion in late 2024, but that hasn’t stopped the flow of new claims. Recently, France’s Autorité de la concurrence confirmed a €250 million fine for violating intellectual property rights. Meanwhile, the UK’s CMA has temporarily granted Google’s advertising arm “Strategic Market Status” (SMS), which will enable stricter oversight in 2026. Additionally, regulators have opened a new front. The EU began a trade investigation into Meta’s new WhatsApp rules at the beginning of the month, as reported by Cryptopolitan. The probe looks into whether Meta is blocking other AI providers from the WhatsApp Business Solution so that its own Meta AI assistant can be used instead. Meanwhile, the Office of the US Trade Representative (USTR) accused European regulators of pursuing a “persistent course of discriminatory and harassing lawsuits, taxes, fines, and directives against US service providers.” The Trump administration says if these practices continue, the US is prepared to impose fees and restrictions on European companies operating in the American market.​ Join Bybit now and claim a $50 bonus in minutes

The new report by Outset PR delivered through its proprietary Outset Data Pulse intelligence showed that the traffic of crypto media in Asia declined 14.5% which coincided with the cooling interest in the market. The report indicates a correlation between the total crypto market cap and media attention, showing that both dropped concurrently between August and October 2025. At first glance, the numbers may look like another signal of fatigue in crypto. Fewer readers, fewer clicks, less noise. But a closer look at the data reveals something more nuanced — and more useful for founders, marketers, and media professionals operating in Asia. Attention didn’t disappear — it concentrated One of the most important findings in the report is that while overall traffic declined, roughly 80% of all visits still flowed through the top 20 crypto outlets in Asia. That share barely changed compared to the previous reporting period . The image is sourced from Outset PR Blog In other words, readers didn’t stop following crypto news. They stopped browsing widely. As the market cooled, casual readers dropped off. What remained was a more intentional audience that returned directly to the same trusted publications. This is supported by another key metric: direct traffic accounted for more than half of all visits. The end of “spray-and-pray” crypto PR During market upswings, visibility can be forgiving. Almost any mention drives traffic, and wide distribution often works by default. The Outset Data Pulse report shows that this logic breaks down quickly once momentum fades. When attention contracts, media choice becomes strategic rather than tactical. Publishing across dozens of small or low-trust outlets does little when audiences are consolidating around a limited set of platforms. The data suggests that influence in Asia is increasingly defined by a small group of publishers that act as attention hubs. What the traffic drop says about the audience itself A declining audience is often treated as a negative signal. But the composition of that audience matters more than its size. According to the report, mid-tier and niche outlets often showed stronger engagement metrics, including longer sessions and more pages per visit. This suggests that the remaining readers are spending more time understanding topics, not just skimming headlines. For projects communicating in Asia, this favors content that explains, contextualizes, and substantiates claims. Vague positioning and exaggerated language perform poorly when readers are actively filtering for signals. AI referrals quietly changed the discovery equation Another notable data point: AI tools already account for over 11% of traffic referrals across Asian crypto media. This matters because AI systems do not “discover” content the same way social feeds or search engines do. They surface sources that are: consistent clearly structured fact-based frequently cited As AI-mediated discovery grows , PR content is no longer written only for journalists or human readers. It is also parsed, summarized, and ranked by machines. The report indirectly highlights a new requirement for effective communication: structural clarity. Press releases and contributed articles that are precise, factual, and easy to interpret gain a second life through AI tools. What Outset PR’s report tells founders and teams building in Asia The Outset Data Pulse findings point to a quieter but more disciplined media environment. For teams operating in Asia, this creates both constraints and opportunities. The constraints are obvious: fewer passive impressions, less organic hype, higher scrutiny. The opportunity lies in alignment. When attention is concentrated and readers are intentional, strong narratives travel further within the right channels. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Global investors are increasingly turning to Chinese AI companies as worries grow that parts of Wall Street’s technology boom may be overheating. Many fund managers now see China as a place to spread risk, rather than rely only on expensive US tech stocks. Beijing’s drive for technology independence, particularly with regard to AI and chips, is helping many firms transition to public markets. This has allowed the Hong Kong Exchange to significantly ramp up the pace of going public. Not only are large numbers of firms now reaching the public market, but they are also reaching it with the benefit of significant media attention, a number of them being Moore Threads and MetaX. China drives AI interest on public markets Foreign investors believe that because of increased government support, China is closing the technology gap with the United States. On the contrary, many investors have expressed concerns about the high price valuations of AI stocks traded in the US and the possible lower return on investment than expected. As a result, many asset managers are changing their asset allocation strategies. For example, a UK-based asset management firm is reducing its exposure to large US technology firms and establishing investment positions in Chinese companies such as Alibaba to access the growth of AI in China. The growth trend is also driven significantly by large Chinese technology firms. Alibaba and Baidu are making heavy investments in chips, data centers, and AI models. They are also monetizing their operations with their cloud through the sale of these products. Interest has also surged as a wave of Chinese AI startups list in Shanghai and Hong Kong. Their rise has followed the global attention around DeepSeek , a Chinese chatbot often compared to ChatGPT. “While the US remains the leader in frontier AI, China is rapidly narrowing the gap,” said Gemma Cairns-Smith, Investment Specialist at Ruffer, noting that competition is becoming tougher than many expected. “The moat may not be as wide, or as deep, as many think… The competitive landscape is shifting.” Cairns-Smith. More recently, new types of exchange-traded funds have made it relatively easy for investors worldwide to access Chinese investments similar to what companies like Google, Meta, and Tesla represent in the West. Innovation spurs Chinese AI stocks According to one ETF manager, “The speed at which these technology companies are able to develop and deploy their products, as a result of the urgency created by this race to compete for technology, is the principal force behind their recent successes resulting from the increased demand for chips and AI based technologies.” Major financial investments are now following this trend, with funds that focus on Chinese technology and internet companies experiencing significant growth this year as sentiment toward China tech has returned to a previously strong level from earlier this decade. Some funds creating these companies believe China’s strengths are not necessarily focused on developing and creating original breakthrough technology, but rather on sustaining development at an extremely rapid pace. Retail investors inside China are also adding fuel to the rally. As Cryptopolitan reported, massive demand for chip IPOs has seen companies like MetaX and Onmicro oversubscribed thousands of times, reflecting strong domestic enthusiasm alongside rising trade surpluses. Overall, Chinese AI is becoming harder for global investors to ignore. While risks remain, many see it as a useful hedge in an uncertain, geopolitics-driven tech landscape. Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.

Bybit will gradually restrict accounts for its Japanese users starting in 2026 in a bid to comply with local regulatory requirements. Bybit has started notifying Japanese users that it will “discontinue services” and “gradually implement account restrictions” in an effort to comply with Japanese regulations, the exchange said in a December 22 announcement. “If you’re a resident of Japan, please note that starting from 2026, your account will be subject to gradual restrictions. You’ll receive additional updates on the remediation process in subsequent communications,” the announcement said. Bybit is one of the largest platforms in the cryptocurrency industry in terms of volume and has been operating in Japan for several years, despite not having obtained the necessary local registration or license. Starting in 2021, Japan’s Financial Services Agency began issuing repeated public warnings to Bybit and other platforms for operating an unregistered crypto exchange business, a violation of the country’s fund settlement laws. Over the next few years, the FSA continued to issue warnings to Bybit for non-compliance. Subsequently, in 2025, the regulator asked both Apple and Google to suspend the app store availability of five cryptocurrency exchanges, including Bybit, MEXC Global, LBank, Bitget, and KuCoin. In response, Bybit took a more measured approach and moved to demonstrate its intent to comply with Japanese regulations by voluntarily announcing plans to suspend new user registrations in Japan, as continued discussions with the FSA remained underway. Japan to work on crypto regulations Japan’s regulatory framework is considered one of the most stringent environments in the world when it comes to the crypto sector. Japanese regulators are expected to formally discuss a legislative overhaul in the upcoming 2026 parliamentary session to reclassify cryptocurrencies as “financial products.” That would bring crypto oversight more in line with traditional securities and improve investor protection and market integrity. As such, crypto-facing entities would be required to comply with more rigorous mandates that include obtaining a Type 1 Financial Instruments Business license. This comes with additional obligations like stringent security, capital, and risk management requirements. Other planned measures include enhanced disclosure requirements for listed tokens, insider trading bans, and mandatory emergency reserve funds to cover hacks or operational failures. Bybit reevaluates its global footprint Last year, Bybit scaled back its presence across Asia after it exited Hong Kong in May 2024, following regulatory scrutiny from the Securities and Futures Commission. Bybit was placed on the SFC’s list of suspicious platforms and flagged for operating without a license. In response to the regulatory pressure, Bybit affiliate Spark Fintech Limited formally withdrew its license application and suspended most services for local users by the end of May. Bybit has also exited several other markets such as the United States, mainland China, Singapore, Canada, and France, along with jurisdictions like Iran, North Korea, and Russian-controlled regions of Ukraine. However, in some jurisdictions, it has resumed or expanded operations after working toward compliance. For instance, Bybit is re-entering the UK market after a two-year absence by offering spot and peer-to-peer trading services under a promotions arrangement approved by Archax. Meanwhile, earlier this year, it also resumed full operations in India, where it had temporarily suspended services in January 2025 due to non-compliance. The company later became fully compliant after registering with the Financial Intelligence Unit and paying a penalty. The post Bybit begins phasing out services in Japan following FSA warnings appeared first on Invezz

Japan to Digitize Local Government Bonds on Blockchain with Security Tokens, Legislation Planned for 2026

Japan is pulling in its own people to help finance its growing debt pile. With the Bank of Japan (BOJ) stepping back from buying government bonds, the government is targeting the country’s $7 trillion in household savings. The Ministry of Finance wants regular Japanese savers to fill the gap left by the BOJ. This includes rolling out new bond products, offering incentives, and hoping better yields do the talking. Retail investors have responded fast. Sales of Japanese government bonds (JGBs) to households jumped 30.5% in 2025, hitting 5.28 trillion yen ($33.55 billion), the biggest level since 2007. This is not Japan’s first time trying to pitch bonds to the public. Back in 2010, officials introduced a mascot called Kokusai-sensei (Professor JGB) to educate people about the bonds. That effort failed. They even offered gold coins for buying special reconstruction bonds. Still didn’t work. Yields surge as BOJ tightens and banks hit limits The difference now is the yield. JGBs became attractive when the 10-year bond yield crossed 2% on Friday for the first time in 26 years. This came right after the BOJ raised interest rates by 25 basis points to 0.75%, the highest in three decades. The bank also warned of more tightening to come, which has turned the government to households for funding as commercial banks now face limits on buying due to capital rules designed to manage interest rate risk. Even so, retail JGBs still yield less than the institutional ones, making them hard to sell in normal times. Households currently own less than 2% of the country’s 1.06 quadrillion yen in JGBs. Meanwhile, about half of Japan’s 2.2 quadrillion yen in household financial assets sits idle in cash or low-yield accounts. That’s the money the government wants to tap. To close the gap, asset managers are launching new products. Daiwa Asset Management and Amova Asset Management introduced investment trusts focused on 30-year JGBs, targeting domestic investors. The push began when yields hit 3% in May. By Monday, those yields had surged to a record 3.445%. Takuya Kanazawa, senior VP at Amova, said they moved quickly once that 3% line was crossed. “The 3% yield is high enough to beat inflation,” he said . Takuya pointed out that Japanese retail investors have often looked abroad, usually to U.S. or Australian debt, for better returns. “But those always carry currency risks,” he added. “With this fund, they can enjoy higher yields without such risks.” Yen weakens further as market doubts BOJ’s tone While yields are rising, Japan’s currency is dropping. On Monday, the yen hovered near historic lows against the euro and Swiss franc, and hit an 11-month low against the U.S. dollar. The euro touched a record 184.92 yen, while the franc spiked to 198.4 yen, up 0.2%. The dollar slid slightly to 157.37 yen, still close to its recent peak of 157.90. Normally, higher yields help a currency recover. Not this time. BOJ Governor Ueda Kazuo gave a soft tone during Friday’s press conference, which markets read as dovish. That helped traders keep pressure on the yen. Ueda is expected to speak again on Christmas Day at the Keidanren business lobby, giving traders another chance to scan his tone for policy signals. The growing bond yields aren’t just about interest rates . They also reflect record government spending. Japan’s draft budget for fiscal 2026 is expected to cross 120 trillion yen ($775 billion), a new all-time high, according to two alleged government sources. So now, instead of relying on its central bank, Japan is looking inward, hoping that retail investors step up to fund the state. Whether this works depends on how much cash Japanese savers are willing to pull out of their mattresses. Join Bybit now and claim a $50 bonus in minutes