Regulatory Dynamics

1. The U.S. tax authorities are exploring new schemes for taxing cryptocurrencies.

A senior advisor at the U.S. Department of the Treasury's Office of Tax Policy stated that the tax department is evaluating various methods of taxing cryptocurrencies. They will weigh the impacts of different options on the relevant parties, as well as the benefits in terms of improving compliance. Previously, the U.S. individual income tax return required taxpayers to disclose their virtual currency transactions for 2020, including activities such as trading, exchanging, selling, and acquiring virtual currencies through airdrops and hard forks.

2. The Singapore central bank focuses on developing wholesale central bank digital currency.

A senior official from the Central Bank of Singapore stated that Singapore is ready to launch a central bank digital currency. Due to the existing payment systems being able to achieve fast and inexpensive payments, there is not much demand for a retail central bank digital currency in Singapore. Currently, the central bank is focused on developing a wholesale digital currency for facilitating securities settlement and payments between financial institutions.

3. The Central Bank of Kyrgyzstan drafts a cryptocurrency regulation bill

The Central Bank of Kyrgyzstan is drafting a bill to regulate the cryptocurrency industry. The bill will standardize the buying and selling of cryptocurrencies, aiming to combat fraud and financial crime, and protect the rights of consumers and investors. The central bank stated that due to the cross-border nature of many cryptocurrencies, law enforcement may face challenges in the absence of proper regulatory infrastructure.

4. The Office of the Comptroller of the Currency nominates a new head, promoting banks to open up to crypto businesses.

The U.S. Office of the Comptroller of the Currency has proposed a draft to prevent banks from discriminating against businesses based on factors other than risk, which could make it easier for cryptocurrency companies to obtain banking services. The U.S. President has nominated the current acting director to be the official director for a five-year term. This nominee previously worked at Coinbase and is seen as an advocate for crypto-friendly reforms.

Industry News

1. A trading platform announces that it will soon resume the withdrawal function.

A well-known trading platform announced that it will restore the withdrawal function by November 27. The platform stated that the withdrawal was previously suspended due to special reasons, and the issues have now been resolved. Before restoring withdrawals, the platform will conduct strict security checks to ensure the secure and stable operation of the hot wallet system. The platform emphasized that it has always adhered to a 100% reserve system.

2. Galaxy Digital partners with CI GAM to launch a new Bitcoin fund

Cryptocurrency commercial bank Galaxy Digital has partnered with asset management company CI GAM to launch a new Bitcoin fund, CI Galaxy. CI GAM is responsible for management, while Galaxy Digital serves as a sub-advisor. The fund will price using the Bloomberg Galaxy Bitcoin Index and will offer Class A and Class F funds at a price of $10 per share.

3. Large asset management companies apply to the SEC for a Bitcoin fund

Two large asset management companies have submitted applications for Bitcoin funds to the U.S. Securities and Exchange Commission. If approved, the fund will provide institutional investors with a new way to go long on Bitcoin while avoiding the volatility risks of directly holding Bitcoin. The fund plans to reduce allocation when quantitative signals turn negative through built-in mechanisms.

4. The US launches its first Bitcoin 401(k) retirement plan

A U.S. digital asset investment management company has launched the first 401(k) retirement plan that includes Bitcoin. The plan allows individuals to allocate up to 10% of their retirement portfolio to Bitcoin. The Bitcoin will be stored by a third-party custodian, and employees can transfer their Bitcoin portion when they leave the company.

5. The Polkadot parachain code is complete and will soon launch public testing.

The code for the Polkadot Parachain 1.0 version has been completed and can be launched for public testing at any time. This marks an important step forward for the Polkadot ecosystem and lays the foundation for the official launch of parachains in the future.

6. The Ethereum Foundation launches a staking tool funding program

The Ethereum Foundation has launched the "Ethereum 2.0 Staking Community Grant" initiative to encourage the community to develop staking-related tools and documentation. The program aims to expand staking participation and improve the staking ecosystem. The proposal deadline is December 22, and the evaluation criteria include expanding the scale of staking, improving user experience, and other aspects.

7. Payment giants' cryptocurrency trading volume is rapidly increasing

A well-known payment company launched its cryptocurrency services less than a month ago, and its trading volume may have reached over 85% of a major cryptocurrency exchange's U.S. branch. It is reported that the trading volume of the service provider offering cryptocurrency custodial services for this payment company has grown from less than $5 million in October to $25 million by mid-November.

8. A stablecoin project suffered an attack resulting in a loss of 7 million dollars.

A stablecoin project suffered a flash loan attack, resulting in a loss of approximately $7 million. This once again highlights the security challenges faced by DeFi projects and reminds investors to be cautious of the associated risks.