In 2025, crypto losses from phishing attacks, especially wallet drainer scams, dropped sharply to $83.85 million, an 83% decrease from over $494 million in 2024. The number of victims fell by 68%.
Despite this significant decline, the threat of phishing persists. Losses tend to correlate with crypto market activity, with peaks during periods of high trading and price rallies. For example, Q3 2025 coincided with Ethereum’s strongest rally and the highest quarterly phishing losses ($31 million in total).
Attackers continue to use techniques like malicious Permit/Permit2 signatures, and new methods of attack are on the rise. For example, an EIP-7702 attack following the Pectra network upgrade allowed attackers to execute several malicious operations within a single transaction signature.
Overall, user and platform security risk remains elevated even as figures specific to phishing have fallen.
Implications for brokers and their clients:
- Ensure cyber liability insurance covers the range of tactics hackers use to steal digital assets, including social engineering.
- Verify whether existing policies respond to regulatory investigations in cases where attacks expose users’ personal information.
- Investigate specialized crypto custody insurance that spans the unique range of risks applicable to exchanges and custodial operations.
Source: Cointribune (January 4, 2026). Crypto Phishing Losses Plunge 83% in 2025, but Wallet Threats Persist.
Lunar Nuclear Power Exposes Critical Gaps in International Space Law
Russia’s Selena project, a nuclear plant designed for the lunar surface, was recently finalized. It is due for deployment in 2035 under the Russo-Chinese International Lunar Research station program. The project exposes gaps in international regulation as some of the riskiest technologies come together (AI and nuclear fission).
The Outer Space Treaty was established long before matters like data sovereignty and AI liability were a concern. The project also exposes a contradiction: Article II prohibits National Appropriation, stating that the Moon is the province of all mankind, yet Article VIII gives states jurisdiction over their registered objects and personnel. Would this make the ground on which the reactor stands Russian territory?
The Liability Convention presents another gray area. The Convention distinguishes between absolute liability for damage on Earth and fault-based liability for damage in space. However, back in 1972, when the Convention was established, fault was a human matter. We did not have to consider scenarios like AI-driven faults leading to radiological leaks, for example.
Selena highlights the urgent need for updated liability standards for autonomous space systems. This would bring greater clarity for both government and commercial projects as the new space economy develops.
Implications for brokers and their clients:
- Review space insurance policies regularly against evolving regulations and collaborate only with providers who have deep expertise in international space and technology liability.
- Partners with insurers that offer policy language designed for emerging space risks, rather than adapting aviation or satellite insurance policies that may not reflect today’s legal and operational realities.
- Secure coverage includes dispute-resolution, defense costs, and claims handling across multiple jurisdictions.
Source: JURIST (January 9, 2026). The Lunar Jurisdictional Trap: Why AI and Nuclear Ambition Are Outpacing Space Law.
Japan Moves to Impose Reserve Requirements on Crypto Exchanges
Japan’s Financial Services Agency (FSA) plans to introduce a requirement for domestic crypto exchanges to maintain liability reserves to protect users against losses caused by unauthorized outflows.
The legislation, expected to be submitted to parliament in 2026, would mandate exchanges to hold reserves potentially in the range of ¥2 billion to ¥40 billion ($12.7 million to $255 million), similar to those required of traditional securities firms. Allegedly, the FSA is considering allowing firms to use insurance alongside reserves to help them meet their obligations.
This change follows a series of high-profile breaches, including the 2024 DMM Bitcoin exchange hack. According to Chainalysis, Japan ranks among the six countries with the highest number of victims globally and is sixth for the amount stolen per victim.
The new requirements are intended to bolster consumer confidence in the digital assets space.
Implications for brokers and their clients:
- Partner with an insurer that has expertise in digital asset risk to secure coverage that can meaningfully supplement cash reserves under the new regulatory framework.
- Maintain comprehensive cybersecurity and crime insurance to ensure timely user compensation in case of hacks.
- Investigate coverage for regulatory investigations and business interruption in case of temporary shutdowns due to regulatory actions.
Source: CoinGeek (December 2, 2025). Japan to mandate liability reserves for ‘crypto’ exchanges.
UK Sets Out Crypto Framework to Attract Global Digital Asset Investment
The UK government has announced a new comprehensive crypto regulatory regime that will take effect from 2027. The regime aims to bring firms that deal with crypto assets within the Financial Conduct Authority’s (FCA) oversight, and subject them to rules similar to those applicable to regulated financial products like stocks and shares.
The initiative is designed to bring legal clarity to the sector, support responsible innovation, promote competition, and attract investment, making the UK a top destination for digital asset businesses.
The new regulations will enhance oversight and transparency, and make it easier to detect suspicious activity, enforce sanctions, and hold firms to account.
The government is also continuing its work with the US through the Transatlantic Taskforce to encourage innovation in the sector.
Implications for brokers and their clients:
- Partner with insurers that have expertise in UK-specific digital asset regulation.
- Investigate Professional Indemnity (PI) and D&O policies that explicitly cover FCA investigations and defense costs, claims arising from regulatory breaches, and personal liability of directors under the new regime.
- Review whether cyber liability and crime policies cover crypto assets and private keys explicitly, include social engineering and fraudulent transfer coverage, and extend to regulatory-driven losses like frozen or seized assets.
Source: GOV.UK (December 15, 2025). New crypto rules to unlock growth and protect customers.
Morocco’s Central Bank Lays Out Regulatory Pathway for Fintechs
In December 2025, Morocco’s Central Bank, Bank Al-Maghrib, released a new guide detailing the step-by-step regulatory pathway for fintech project holders that want to operate in Morocco, with the intention of encouraging the development of a dynamic and responsible fintech ecosystem.
There’s no legal definition of fintech in the country, but the guide clarifies that it applies to technology-driven financial services under the bank’s supervision, including activities related to payments, fund transfers, credit, or the collection of public funds.
The guide doesn’t replace existing laws, and certain activities are excluded, like services focused only on regulatory or supervisory technology, as well as internal innovations by institutions that are already licensed.
The guide explains how to engage with the central bank for consultations, opinions, or formal applications for authorization. Regulatory consultations can be initiated before a project is fully defined so that developers can better understand the applicable framework.
When formal authorization is required, applicants have to submit information on governance, business plans, funding sources, technical systems, and risk management strategies.
Implications for brokers and their clients:
- To demonstrate robust risk management, obtain comprehensive fintech insurance covering the unique risks that companies in both finance and technology face.
- Secure directors’ and officers’ insurance to safeguard founders and leadership against claims arising from evolving licensing standards and potential enforcement actions as fintech frameworks and digital asset rules continue to develop.
- Investigate business interruption coverage tied to disruptions to third-party services like payment processors or Anti-Money Laundering (AML) software vendors.
Source: Morocco World News (January 10, 2026). Bank Al-Maghrib Publishes New Guide Outlining Fintech Regulatory Pathway.
Federal Cannabis Rescheduling Marks a Turning Point for Institutional Investment
The recently signed Executive Order to reschedule cannabis to Schedule III signals a transition from a speculative sector toward a regulated, medically oriented market. This change is likely to normalize cash flow and eventually draw broader institutional participation.
Dan Ahrens, Managing Director and fund manager at AdvisorShares, told Investing News Network: “I think when Schedule III happens, I think the SAFER Banking Act can happen pretty soon afterwards, because it’ll be a much, much less controversial issue than it’s ever been in the past. It’ll be more of an administrative thing that needs to get done.”
With ongoing uncertainty around the timing and legal finality of rescheduling, both opportunity and risk are on the horizon.
Implications for brokers and their clients:
- Investigate representation and warranties insurance for M&As and financing rounds to protect against breaches of contractual representations about compliance as federal law continues to evolve.
- Review directors’ and officers’ insurance to confirm whether it responds to claims by investors alleging misrepresentation, failure to disclose material risks, or mistaken growth projections tied to rescheduling timelines and banking access uncertainties.
- Investigate policies that cover costs and claims arising from regulatory investigations or enforcement actions, giving investors confidence that evolving federal standards won’t trigger uninsured liabilities.
Source: Investing News Network (January 9, 2026). Is 2026 the Year the Cannabis Industry Matures?
