Britain Sets Out Plan to Exploit Crypto Potential

A representation of cryptocurrency Binance is seen in this illustration taken August 6, 2021. (Reuters)
A representation of cryptocurrency Binance is seen in this illustration taken August 6, 2021. (Reuters)
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Britain Sets Out Plan to Exploit Crypto Potential

A representation of cryptocurrency Binance is seen in this illustration taken August 6, 2021. (Reuters)
A representation of cryptocurrency Binance is seen in this illustration taken August 6, 2021. (Reuters)

Britain set out a detailed plan on Monday to exploit the potential of cryptoassets and their underlying blockchain technology to help consumers make payments more efficiently.

As part of creating a global cryptoasset hub, financial services minister John Glen said Britain will legislate to bring some stablecoins under the regulatory net such as complying with existing payment rules.

Stablecoins are cryptocurrencies designed to have a stable value relative to traditional currencies, or to a commodity such as gold, to avoid the volatility that makes bitcoin and other digital tokens impractical for most commerce.

All stablecoins that reference a fiat currency should be regulated, the government said.

"The approach will ensure convertibility into fiat currency, at par and on demand," the finance ministry said, adding that the Bank of England would regulate "systemic" stablecoins.

Later on this year Britain will consult on creating regulations for a wider set of cryptoassets like bitcoin, taking the sector's energy consumption into account.

"If crypto technologies are going to be a big part of the future, then we in the UK want to be in, and in on the ground floor," Glen told UK Fintech Week.

"We see enormous potential in crypto and we want to give ourselves every chance to take maximum advantage."

Britain's "detailed plan" will also develop the potential of blockchain, including whether it can be used for issuing British government bonds or gilts.

"I don't know the answer but let's find out," Glen said.

Royal Mint token

Regulators globally are trying to grapple with cryptocurrencies, with the European Union in front with a draft law on crypto markets.

UK finance minister Rishi Sunak has also asked the Royal Mint to create a non-fungible token which is to be issued by the summer. An NFT is a digital asset that exists on blockchain, a record of transactions kept on networked computers.

A regulatory "sandbox" will be launched by the Bank of England and FCA next year for testing the use of blockchain in market infrastructure, Glen said.

The Law Commission will consider the legal status of decentralized autonomous organizations which use blockchain, while the implications of crypto on tax will also be studied, Glen said.

"On balance, we don't think the tax code will need major surgery to make it work more easily for crypto," Glen said.

The tax treatment of "defi" loans - where holders of cryptoassets lend them out for a return - will be assessed.

Britain will also look at removing disincentives for fund managers to include cryptoassets in their portfolios, he said.



OpenAI Finds More Chinese Groups Using ChatGPT for Malicious Purposes

FILE PHOTO: OpenAI logo is seen in this illustration taken February 8, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OpenAI logo is seen in this illustration taken February 8, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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OpenAI Finds More Chinese Groups Using ChatGPT for Malicious Purposes

FILE PHOTO: OpenAI logo is seen in this illustration taken February 8, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OpenAI logo is seen in this illustration taken February 8, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

OpenAI is seeing an increasing number of Chinese groups using its artificial intelligence technology for covert operations, which the ChatGPT maker described in a report released Thursday.

While the scope and tactics employed by these groups have expanded, the operations detected were generally small in scale and targeted limited audiences, the San Francisco-based startup said, according to Reuters.

Since ChatGPT burst onto the scene in late 2022, there have been concerns about the potential consequences of generative AI technology, which can quickly and easily produce human-like text, imagery and audio.

OpenAI regularly releases reports on malicious activity it detects on its platform, such as creating and debugging malware, or generating fake content for websites and social media platforms.

In one example, OpenAI banned ChatGPT accounts that generated social media posts on political and geopolitical topics relevant to China, including criticism of a Taiwan-centric video game, false accusations against a Pakistani activist, and content related to the closure of USAID.

Some content also criticized US President Donald Trump's sweeping tariffs, generating X posts, such as "Tariffs make imported goods outrageously expensive, yet the government splurges on overseas aid. Who's supposed to keep eating?".

In another example, China-linked threat actors used AI to support various phases of their cyber operations, including open-source research, script modification, troubleshooting system configurations, and development of tools for password brute forcing and social media automation.

A third example OpenAI found was a China-origin influence operation that generated polarized social media content supporting both sides of divisive topics within US political discourse, including text and AI-generated profile images.

China's foreign ministry did not immediately respond to a Reuters request for comment on OpenAI's findings.

OpenAI has cemented its position as one of the world's most valuable private companies after announcing a $40 billion funding round valuing the company at $300 billion.