This week’s crypto headlines are marked by a generational fault line.
In Pakistan, a bold new plan to power Bitcoin mining and AI data centers with 2,000 megawatts of electricity has sparked alarm at the IMF, which is demanding urgent clarification during ongoing budget talks. The initiative includes a national Bitcoin reserve and wallet and was pitched at the Bitcoin 2025 conference as a generational pivot.
Meanwhile, in the UK, Nigel Farage has made a similar generational pitch. Speaking at the same Bitcoin conference, he called for the UK to slash crypto taxes, protect lawful users from “debanking,” and create a Bitcoin reserve, citing youth adoption as the future of finance.
And in Australia, the generational divide plays out differently: regulators have imposed strict new controls on crypto ATMs after a spike in scams targeting users in their 60s and 70s.
As governments race to attract crypto-native talent and investment, tensions are rising between innovation, protection, and geopolitical priorities.
Here’s what you need to know this week.
IMF raises alarm over Pakistan’s plan to power Bitcoin mining with 2,000MW
Pakistan’s latest pro-crypto move — the allocation of 2,000 megawatts of electricity for Bitcoin mining and AI data centers — has triggered urgent scrutiny from the International Monetary Fund (IMF), which is currently in budget negotiations with the country.
The plan was revealed at the Bitcoin 2025 conference by Bilal bin Saqib, crypto adviser to Prime Minister Shehbaz Sharif. Alongside the energy commitment, Saqib announced the creation of a national Bitcoin reserve and the launch of a government-backed digital wallet — part of Pakistan’s wider pivot toward crypto infrastructure.
However, according to local reports, the IMF was not consulted in advance and has now requested immediate clarification from Pakistan’s Finance Ministry. An IMF delegation is expected to hold a dedicated virtual session to discuss the legality and implications of the proposal.
The timing is contentious. Just weeks earlier, Pakistan received a $2.4 billion loan from the IMF and has been urged to consult on all policy changes under its Extended Fund Facility agreement. Insiders say the IMF is especially concerned about electricity pricing and the repurposing of three coal-fired power plants for the initiative, in a country still facing severe energy shortages.
The move comes amid a rapid acceleration in Pakistan’s crypto adoption. In recent months, the government has:
- Formed the Pakistan Crypto Council
- Named former Binance CEO Changpeng Zhao as an advisor
- Established the Pakistan Digital Assets Authority (PDAA)
- Signed an MoU with World Liberty Financial, a DeFi project tied to Donald Trump’s network
At the conference, Saqib positioned the move as a generational shift: “Our youth are online and on-chain… Pakistan, with over 40 million crypto wallets and an average age of 23 years, is now being recognized for its future rather than its past.”
Why this matters:
Pakistan is rapidly building a crypto-forward national agenda — but without regulatory clarity and stakeholder alignment, it risks a showdown with key financial partners. As the IMF tightens scrutiny on how aid-receiving nations manage digital assets, Pakistan’s crypto ambitions could become a global test case for how innovation collides with economic reality.
Read more on Crypto Slate.
Farage unveils Bitcoin reserve plan in bold bid to position UK as crypto leader
At the Bitcoin 2025 conference in Las Vegas, Nigel Farage, leader of Reform UK, announced a sweeping pro-crypto policy that includes the creation of a UK Bitcoin reserve — a first-of-its-kind proposal from a British political party.
Farage’s Crypto Assets and Digital Finance Bill would:
- Establish a Bitcoin reserve managed by the Bank of England
- Cut crypto capital gains tax from 24% to 10%
- Ban banks from “debanking” lawful crypto users
- Accept campaign donations in Bitcoin, Ethereum, Solana and USDC
With 25% of Britons under 30 now holding crypto, Farage argued that the UK has a generational opportunity to lead the digital finance revolution. He called for London to become “the global capital” of crypto innovation.
Critics, including Labour leader Keir Starmer, dismissed the proposals as “fantasy economics,” warning of the dangers of tying public reserves to volatile digital assets.
Why this matters:
Farage’s announcement could bring crypto policy to the heart of the UK’s next general election campaign. Whether it’s dismissed or adopted, it marks a turning point in how digital assets are discussed at the highest levels of British politics.
Read more on Finance Feeds.
AUSTRAC clamps down on crypto ATMs after spike in elderly scam victims
AUSTRAC, Australia’s financial crime watchdog, has imposed strict new controls on the country’s booming crypto ATM sector following a surge in scams that disproportionately target older users. The move includes a $5,000 cap on transactions and the refusal to renew a key operator’s license.
The regulator cited “worrying trends” uncovered by its crypto taskforce, which launched in late 2023. Its investigation found that people aged 50 and over account for nearly 72% of crypto ATM transaction value — with those aged 60–70 representing nearly a third. AUSTRAC CEO Brendan Thomas called it a “huge concern,” noting that many in this age group are being defrauded out of life savings through ATM-based schemes.
In its latest enforcement move, AUSTRAC revoked the registration of Harro’s Empires, a crypto ATM operator, and placed other providers under strict conditions. All operators must now apply enhanced customer due diligence, and digital currency exchanges accepting cash are being urged to adopt similar safeguards.
The growth of the sector has been dramatic. Crypto ATMs in Australia have risen from just 23 in 2019 to over 1,800 in 2025, handling an estimated $275 million annually — much of it in Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). Most of these transactions are cash-based, making them harder to trace and particularly appealing to fraudsters.
AUSTRAC is also collaborating with law enforcement to install educational signage near machines and warn potential victims in real time. Thomas cautioned: “Once your money is gone, it is almost impossible for authorities to retrieve it.”
The crackdown follows similar moves elsewhere. In the US, crypto ATM scams targeting older Americans surged to $107 million in losses in 2024. Legislators in Arizona and Nebraska have introduced ID checks and scam warnings, while US Senator Dick Durbin has called for refund requirements and transaction caps.
Why this matters:
AUSTRAC’s intervention sends a strong message to the global crypto industry: unchecked growth in high-risk sectors like crypto ATMs won’t go unchallenged. With scam losses ballooning and regulators worldwide stepping up enforcement, crypto operators must prioritize compliance, customer protection, and transparency — or risk being shut out of key markets.
Read more on Decrypt.
The Insider shines light on crypto’s role in organized crime
This week, The Insider published a detailed investigation into how crypto is being used to finance and facilitate organized crime across Europe. Based on over a year of research, the report uncovers how crypto is increasingly being used to launder the proceeds of drug trafficking, finance arms deals, and facilitate cross-border criminal activity with alarming ease.
The piece highlights how everything from OTC brokers and mixers to gaming tokens and stablecoins are being exploited to move illicit funds through complex, decentralized networks, often faster than regulators or law enforcement can track.
The findings also explore the blurred lines between criminal actors and state-linked interests, suggesting that crypto is playing a growing role in geopolitical conflicts and hybrid warware.
We’ll be unpacking the report’s key takeaways, risks, and regulatory implications in next week’s edition.
Read more on the Insider.