Regulatory Dynamics

1. The U.S. Financial Crimes Enforcement Network proposed new rules to strengthen the regulation of cryptocurrency transactions.

The U.S. Treasury Department's Financial Crimes Enforcement Network has recently proposed a new rule aimed at strengthening the regulation of convertible virtual currencies or digital asset transactions. The rule requires users to provide personal information to the exchange when transferring cryptocurrency from centralized exchanges to private wallets. Exchanges will also need to record and maintain relevant transaction records. The proposal is scheduled to be published in the Federal Register on December 23, and the public will have 15 days to provide feedback. This rule is consistent with the guidance from 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 licenses to virtual asset trading platforms for the first time.

The Hong Kong Securities and Futures Commission recently issued the first license to a virtual asset trading platform, OSL Digital Securities Limited. The platform is a subsidiary of a Hong Kong listed company. According to the strict regulatory requirements of the Commission, the platform provides services only to professional investors and must comply with special regulations similar to those for securities brokers and automated trading venues.

3. Estonia strengthens regulation of the cryptocurrency industry

Due to the increasingly serious issue of money laundering, Estonia has tightened its regulation of the cryptocurrency industry this year. The Estonian Ministry of Finance revealed that the country's Financial Intelligence Unit has revoked the licenses of more than 1,000 cryptocurrency companies this year. At a recent meeting of the government’s anti-money laundering committee, attendees discussed issues related to the regulation of cryptocurrency service providers. The Secretary General of the Ministry of Finance emphasized that the regulation of crypto service providers still requires high attention.

Industry News

1. Bitcoin breaks through the $20,000 mark, with its market value ranking among the top in the world.

The price of Bitcoin has continued to rise after recently breaking the historical high of $20,000. Data shows that the market capitalization of Bitcoin has reached $445.442 billion, ranking 12th in the global asset market capitalization, surpassing retail giant Walmart. Analysts believe that the impact of the global pandemic and the increased demand for safe-haven assets under loose monetary policies are important drivers behind the recent surge in Bitcoin.

2. A well-known cryptocurrency exchange platform is preparing for an IPO, with a valuation possibly reaching $28 billion.

According to reports, a well-known cryptocurrency exchange platform has chosen a certain investment bank to lead its upcoming IPO. The platform has submitted preliminary documents for the public offering to the U.S. Securities and Exchange Commission. Researchers have analyzed that the company's potential valuation could reach $28 billion. Analysis shows that the platform's trading volume mainly comes from institutional clients, but the average holding per client is $703.

3. Wall Street investment banks adjust their portfolios, increasing Bitcoin allocation.

The investment head of a well-known investment bank stated that they plan to reallocate 5% of the physical gold weight in their managed global pension fund portfolio to Bitcoin. This portfolio was established at the end of the third quarter of 2002. If the price of Bitcoin significantly drops from its high of $20,000, the team plans to further increase this position.

4. Mt. Gox liquidation compensation plan submitted to the court

The official website of Mt. Gox announced that it has submitted a draft liquidation compensation plan to the Tokyo District Court. The court and the examiner will review the draft to determine whether to proceed with the relevant compensation procedures. The specific details of the plan are expected to be communicated to the relevant parties at an appropriate time.

5. The Chicago Exchange plans to launch Ethereum futures.

CME Group announced plans to launch Ethereum futures on February 8, 2021, with the new contracts being cash-settled and currently awaiting regulatory review. Ethereum is currently the second-largest cryptocurrency by market capitalization and daily trading volume. Since the beginning of this year, CME's Bitcoin futures contracts have averaged 8,560 contracts traded daily, equivalent to approximately 42,800 Bitcoins.

6. A cryptocurrency trust completes share split

A well-known cryptocurrency investment firm has completed the split of its Ethereum trust fund shares. The split was conducted at a ratio of 9 to 1, with shareholders registered on December 14, 2020, receiving an additional 8 times the shares. After the split, the number of Ethereum corresponding to each share has decreased to approximately 0.1. The firm has purchased over $1 billion worth of various digital currencies from investors in the past month and currently manages digital assets valued at $15.5 billion.

7. Founders of DeFi insurance protocol suffer huge losses from attacks

The personal address of the founder of the DeFi insurance protocol Nexus Mutual was attacked, resulting in a loss of 370,000 NXM, worth over $8 million. The official statement indicated that this was a targeted attack, affecting only the founder's address. The attacker remotely accessed and modified the wallet plugin, deceiving the founder into signing the fund transfer transaction. Subsequently, the hacker demanded 4,500 ETH as ransom.

8. Canadian wealth management firm completes Bitcoin fund IPO

A Canadian wealth management company has completed a $72 million Bitcoin fund IPO. The company's CEO stated that the IPO attracted interest from various parties, including institutions, individual investors, high-net-worth investors, and financial advisors. Shares of the Bitcoin fund will be traded on the Toronto Stock Exchange in US dollars and Canadian dollars.

9. Adjustment of Payment Methods for the World's Largest Adult Website

The payment membership rules of the world's largest adult website Pornhub have changed, now only accepting cryptocurrency payments. Previously, due to certain controversies, major credit card companies ceased their payment services for the site. According to statistics, the website had a total of 42 billion visits in 2019, ranking 10th in global website traffic.

10. Internal Restructuring of a Major Mining Machine Giant

According to reports, a well-known mining machine manufacturer has reached a restructuring agreement internally. The company will conduct a business spin-off, with BTC.com, Bit Deer, and overseas mining sites being assigned to one party with a valuation of 90 million USD, while other businesses (mining machines, AI, Antpool, domestic mining sites, etc.) will belong to another party. The company promises to complete its listing on the US stock market by the end of 2022, with a minimum valuation of 5.5 billion USD and financing of no less than 500 million USD. In addition, the company's financial situation has also drawn attention, as it reportedly had a net loss of nearly 400 million RMB in 2019, while in 2018 it recorded a profit of 3 billion RMB.