DeepSeek-led AI token crash & Asia's crypto pivot 🚀
Asian regulators are warming up to crypto, AI tokens are getting rocked by new tech, and Visa is making moves with X.
Well, it’s been a packed week—Asia’s regulators are softening their stance on crypto, AI tokens are feeling the heat from a new open-source model, and Visa just landed a huge deal to power payments for X. Meanwhile, Thailand is ramping up its fintech and AI game, and the UK’s fintech sector is proving unstoppable.
🤖 AI tokens are crashing—here’s what’s going on
The AI token market took a serious hit this week, and it’s all because of DeepSeek. This new open-source AI model is shaking things up by being way more efficient than existing models—so much so that it can even run on mobile devices.
That’s a problem for AI infrastructure tokens, which rely on the idea that heavy-duty compute power is essential. If AI models start running more efficiently, the need for massive, centralised AI resources (and the tokens that support them) could shrink.
AI tokens like FET, AGIX, and OCEAN saw double-digit losses.
Some analysts say Web3 AI projects will need to find new use cases fast.
Why it matters: If AI tech keeps improving at this pace, the entire AI token economy might have to rethink its business model.
🇨🇳 Asia is getting friendlier with crypto—here’s why
Asian regulators are starting to ease up on crypto, and a big reason is Donald Trump. With a potential second Trump presidency looking more crypto-friendly, officials in Hong Kong, Japan, and even China are shifting their stance to keep up.
Hong Kong has expanded its list of approved crypto exchanges.
Japan is actively supporting blockchain innovation.
China isn’t lifting its crypto ban but is quietly pushing controlled blockchain projects.
Why it matters: Asia has long been a key player in crypto, but regulatory uncertainty has driven companies elsewhere. If this shift continues, we could see billions of dollars in crypto investment flowing back into the region.
🇹🇭 Thailand is going all-in on AI and fintech
Thailand just rolled out a bunch of initiatives to boost AI, fintech, and green tech. The country’s National Innovation Agency (NIA) is expanding its Co-Maker Space program, giving startups more funding and support.
Early-stage funding for Thai startups jumped 4% this year.
Fintech is getting the biggest slice of the pie.
The government is fast-tracking AI regulations to balance innovation with oversight.
Why it matters: Southeast Asia is quickly becoming a major fintech and AI hotspot. If Thailand keeps up this momentum, it could rival Singapore as the region’s leading fintech hub.
💰 UK fintech is booming—despite everything
Rising interest rates? Inflation? No problem—UK fintechs just raised a record $15 billion in 2024. Investors are still pouring cash into digital banks, payment platforms, and AI-driven finance solutions, betting that innovation will outweigh economic uncertainty.
Revolut raised a massive $800 million.
Atom Bank locked in $200 million ahead of a rumored IPO.
AI-powered fraud detection startups are seeing a funding surge.
Why it matters: Fintech isn’t slowing down. Despite economic headwinds, investors are still betting big on the sector, cementing the UK as a global fintech hub.
In other news:
💳 Visa lands a huge deal to power payments for X – Elon Musk’s X has tapped Visa to handle transactions for its new payments arm, X Money
📊 Trump Media is launching TruthFi, a DeFi platform – Trump Media is getting into decentralised finance with a new blockchain project focused on “free speech finance.”
🏦 Singapore is launching a fintech hub focused on AI and tokenisation – The city-state is doubling down on AI-powered financial services, solidifying its position as a global fintech leader
🤖 AI-powered banks are expected to dominate in 2025 – A new report predicts that AI-first banks will disrupt traditional financial institutions by making banking cheaper and faster
🚨 IDB Bank is using AI to fight fraud – The bank has partnered with ThetaRay to deploy an AI-powered transaction monitoring system to detect suspicious activity
🔗 Tencent-backed WeBank is eyeing Web3 expansion in Hong Kong – With Hong Kong embracing virtual assets, WeBank is positioning itself as a key player in the region’s Web3