From battlefield espionage to banking breakthroughs, crypto’s global influence is on full display this week.
An Israeli man has been arrested for spying on behalf of Iran — reportedly paid in cryptocurrency. Bitcoin rebounded above $102K after war-fuelled panic selling. Norway plans to halt new crypto mining centres to conserve energy, and the U.S. Federal Reserve is rolling back a controversial banking rule that had sidelined crypto firms.
Here’s what you need to know.
Alleged crypto-funded espionage in Israel
A 27-year-old Tel Aviv resident has been arrested for allegedly spying on behalf of Iranian intelligence in exchange for cryptocurrency. Authorities claim Or Beilin received thousands of dollars in crypto to document the homes of public officials, snap photos of military installations, and report political activity in Israel.
According to police, Beilin was recruited through social media and used encrypted digital channels to coordinate with his Iranian handler. Two other citizens have been arrested in recent weeks for similar espionage attempts, including a man who gathered intel on the fiancée of the Prime Minister’s son in exchange for $500 per task.
Officials warn that crypto payments and online recruitment are becoming key tools in foreign espionage operations, and that civilians should stay alert to digital approaches from hostile actors.
Why this matters:
Crypto is becoming a silent weapon in modern warfare. As tensions escalate in the Middle East, digital assets are enabling cross-border espionage, funding, and recruitment, blurring the lines between finance, national security, and civilian risk.
Read more on Crypto News.
Bitcoin rebounds above $102K after panic sell-off
Bitcoin briefly plunged to $100,962 amid rising geopolitical tensions before rebounding sharply above $102,800 in a high-volume recovery. The market dip followed missile attacks between Iran and the U.S., prompting fears of wider conflict.
Despite initial panic selling, trading volume surged overnight, triggering a rebound that saw BTC recover nearly 3% in hours. Hedge fund manager James Lavish criticised the sell-off, arguing that dumping Bitcoin during wartime signals a fundamental misunderstanding of its long-term value.
Technical data shows rising support near $102,870, suggesting traders are watching the $100K–$110K range closely. On-chain metrics point to a stable, if cautious, market, with little sign of mass profit-taking or accumulation.
Why this matters:
Bitcoin is increasingly intertwined with global events. This week’s bounce suggests that, for some investors, BTC may be less a “risk asset” and more a hedge — even amid war.
Read more on CoinDesk.
Norway to ban new crypto mining centres over power concerns
Norway has announced plans to temporarily ban new proof-of-work crypto mining data centres starting in autumn 2025, citing concerns over electricity use. The proposal aims to preserve grid capacity for industries like AI, manufacturing, and public heating, which are seen as more economically and socially valuable.
Despite Norway’s abundance of clean hydropower, officials say crypto mining delivers few jobs or benefits to local communities. The Minister for Digitalization called the move a “clear intention” to limit mining in Norway.
The country has become a popular destination for miners in recent years, with large-scale operations like Kryptovault setting up outside Oslo. If passed, the new rules could put pressure on similar facilities across the Nordics and Europe.
Why this matters:
The proof-of-work debate isn’t going away. With energy in high demand, crypto miners may face tougher battles for resources — even in renewable-rich regions like Norway.
Read more on CoinDesk.
Fed drops ‘reputational risk’ rule that hurt crypto firms
The U.S. Federal Reserve has directed its supervisors to stop using “reputational risk” as a reason to limit banking access, a move seen as a major win for crypto companies.
Under Operation Chokepoint 2.0, over 30 crypto and tech firms were debanked following the collapse of major crypto-friendly banks in 2023. Critics say the reputational risk rule allowed regulators to unfairly sideline entire industries.
The Fed says it will replace the vague language with clearer guidelines focused on financial risk and will train examiners accordingly. Banks are still expected to follow existing laws and manage risk, but this marks a shift in how regulators view crypto.
Industry figures, including U.S. Senator Cynthia Lummis, praised the decision, calling it a turning point for American crypto firms. However, some warned that easing this oversight could obscure non-financial threats and reduce transparency.
Why this matters:
This rollback opens the door for fairer access to banking for crypto firms and signals a broader thaw in the U.S. regulatory approach.
Read more on Cointelegraph.
