Regulatory Dynamics

1. The US financial regulatory agency has proposed new rules to strengthen the regulation of cryptocurrency trading.

The Financial Crimes Enforcement Network of the U.S. Department of the Treasury recently proposed a new draft rule aimed at strengthening regulation over convertible virtual currencies or digital asset transactions. According to the draft, users will need to provide personal information to the exchange when transferring cryptocurrency from a centralized exchange to a private wallet. Exchanges will also need to record and store relevant transaction records. The draft is set to be published on December 23 and will solicit public comments for 15 days. This rule aligns with the guidance issued by the Financial Action Task Force last year, which suggested treating personal crypto wallets as virtual asset service providers.

2. The Hong Kong Securities and Futures Commission issues the first virtual asset trading platform license.

The Hong Kong Securities and Futures Commission recently issued the first virtual asset trading platform license to OSL Digital Securities Limited. This platform is affiliated with a publicly listed company in Hong Kong. According to the strict requirements of the Securities and Futures Commission, this platform can only provide services to professional investors and must comply with special regulations similar to those applicable to securities brokers and automated trading venues.

3. Estonia’s Large-Scale Revocation of Cryptocurrency Company Licenses

To address the increasingly severe money laundering issue, Estonia has strengthened its regulation of the cryptocurrency industry this year. According to the Estonian Ministry of Finance, the country’s financial intelligence unit has revoked the licenses of more than 1,000 cryptocurrency companies this year. The government’s anti-money laundering committee recently held a meeting to discuss the regulatory issues surrounding cryptocurrency service providers. The Secretary General of the Ministry of Finance emphasized that regulation of such service providers still requires high attention.

Industry News

1. Bitcoin’s market capitalization has jumped to 12th place globally.

As the price of Bitcoin surpassed the $20,000 mark and continued to rise, its market capitalization has reached $445.442 billion. This figure has propelled Bitcoin to the 12th position in the global market capitalization ranking, surpassing retail giant Walmart. Analysts believe that the demand for safe-haven assets driven by the global pandemic and monetary easing policies is the main reason for Bitcoin’s recent surge.

2. A cryptocurrency exchange platform is about to go public, with a valuation possibly reaching 28 billion dollars.

A well-known cryptocurrency trading platform has submitted preliminary listing documents to the U.S. Securities and Exchange Commission and has selected an investment bank to lead its IPO process. Researchers have analyzed the platform’s business and trading data and estimate that its potential valuation could reach $28 billion. The platform’s trading volume mainly comes from institutional clients, but the average holding amount for individual clients is $703.

3. Wall Street investment banks adjust investment strategies, with some pension funds shifting from gold to Bitcoin.

The global head of stock strategy at a well-known investment bank recently stated that they plan to transfer 5% of the physical gold weight in the global pension fund portfolio they manage to Bitcoin. If the price of Bitcoin sees a significant pullback, the team may also increase this position. This decision reflects the rising attractiveness of Bitcoin as an investment target.

4. The Chicago Exchange will launch Ethereum futures.

The Chicago Mercantile Exchange has announced plans to launch Ethereum futures contracts on February 8, 2021, and is currently awaiting regulatory review. This move will provide investors with new trading tools for Ethereum. Ethereum is currently the second-largest cryptocurrency by market capitalization and daily trading volume.

5. A cryptocurrency investment company has completed the splitting of Ethereum trust shares.

A well-known cryptocurrency investment firm has completed a share split of its Ethereum trust fund. The split was conducted at a ratio of 9 to 1, with registered shareholders receiving an additional 8 times the shares. After the split, the total shares of the trust fund increased to 285,269,400 shares, with each share corresponding to approximately 0.1 Ether. The company currently manages digital assets worth $15.5 billion.

6. DeFi insurance protocol attacked, losses exceed 8 million USD

The personal address of the founder of the decentralized finance ( DeFi ) insurance protocol Nexus Mutual was attacked, resulting in a loss of approximately 370,000 NXM tokens, worth over 8 million USD. It is understood that the attacker gained remote access to the founder’s computer and modified the wallet plugin, misleading the founder into signing a fund transfer transaction. The officials stated that this was a targeted attack, and the protocol itself and other members were not affected.

7. Canadian wealth management firm completes Bitcoin fund IPO

A wealth management company in Canada has successfully completed a $72 million Bitcoin fund IPO. The fund has attracted interest from various sectors including institutional and individual investors, high-net-worth clients, and financial advisors. The fund shares will be traded on the Toronto Stock Exchange in USD and CAD.

8. Major global adult websites adjust payment methods, accepting only cryptocurrency.

Due to the impact of credit card companies stopping their settlement services, a globally renowned adult website currently only accepts cryptocurrency as a payment method. The website had an annual visit volume of up to 42 billion times in 2019, ranking 10th in global website traffic.

9. Bitmain Internal Restructuring

According to reports, the founders of Bitmain have reached a new agreement, and the company will undergo a business split. BTC.com, Bitdeer, and overseas mining farms will be split off with a valuation of $90 million, while other businesses (including mining machines, AI, Antpool, and domestic mining farms) will remain within the company. The company plans to complete its listing on the US stock market by the end of 2022, with a minimum valuation target of $5.5 billion and financing of no less than $500 million. Additionally, there are reports that Bitmain suffered a loss of nearly 400 million yuan in 2019, a significant decline compared to a profit of 3 billion yuan in 2018.