8.16 AI Daily Report: The Crypto Assets market welcomes dual drivers of regulation and innovation.

1. Headlines

OpenAI successfully raised over $8 billion, with strong subscription demand.

OpenAI successfully secured $8.3 billion in a new round of funding as part of a $40 billion financing plan. This funding comes at a time when the company's business is accelerating, with annual recurring revenue rising from $10 billion in June to $13 billion, and is expected to exceed $20 billion by the end of the year. The number of paid enterprise users for ChatGPT has also rapidly increased from 3 million a few months ago to 5 million.

This round of fundraising has been completed ahead of schedule, with strong subscription demand, exceeding five times the amount. This reflects investors' confidence in the prospects of OpenAI's artificial intelligence technology. OpenAI CEO Sam Altman stated that he hopes to invest trillions of dollars in the future for the infrastructure needed to develop and operate artificial intelligence services and is designing innovative financing methods to provide funding for this.

The rapid development of artificial intelligence technology is reshaping various industries. OpenAI is leading the wave of popularization of artificial intelligence through products like ChatGPT, with enormous application potential in education, healthcare, finance, and other fields. However, it has also raised concerns about the impact of artificial intelligence on the job market and social order. Governments and enterprises need to formulate corresponding policies and measures to regulate the development and application of artificial intelligence technology, maximize its benefits while preventing potential risks.

2. The Ripple case is expected to reach a settlement, and the prospects for industry regulation are improving.

The U.S. Securities and Exchange Commission ( SEC ) has submitted a status report confirming that both parties have agreed to withdraw the appeal in the Ripple case. This move is seen as a signal that there is hope for a settlement in the Ripple case, which is beneficial for the regulatory outlook of the cryptocurrency industry.

The Ripple case has been a focal point in the cryptocurrency space since the SEC filed a lawsuit against it in December 2020. The SEC accused Ripple of raising over $1.4 billion by selling XRP tokens without registering them as securities. The two sides have clashed fiercely in court, sparking widespread attention in the industry regarding regulatory prospects.

If the Ripple case settles, it will set an important regulatory precedent for the cryptocurrency industry. This will not only benefit the development of the XRP token but also provide a reference for the compliance of other crypto assets. Industry insiders believe this will promote clarity in cryptocurrency regulatory policies and help attract more institutional funds into the sector.

However, it is still necessary to closely monitor the subsequent details of the settlement. If the parties cannot reach an agreement on the specific terms, the case may re-enter the litigation process. At that time, the cryptocurrency market will once again fall into the shadow of regulatory uncertainty.

3. The Ethereum merge is approaching, and institutional funds pouring in have triggered bullish market expectations.

As the Ethereum merge approaches, institutional funds are pouring in, sparking market expectations for the next bull market. The price of Ethereum has risen over 60% in the past month and is currently hovering around $1900.

The Ethereum Merge refers to the major upgrade that transitions its consensus mechanism from Proof of Work ( PoW ) to Proof of Stake ( PoS ). This upgrade will significantly reduce Ethereum's energy consumption and improve its scalability and security. Industry insiders believe that the Merge will bring long-term development momentum to Ethereum.

The influx of institutional capital is the main driving force behind the expectations for this bull market. Data shows that in the past month, the net inflow of Ethereum spot ETFs has exceeded $1 billion. Notable institutions, including Grayscale and BlackRock, have been significantly increasing their Ethereum positions.

At the same time, the Asian market is also preparing for the Ethereum merger. The latest cryptocurrency regulatory policies introduced in Japan and South Korea provide a more favorable environment for institutional investors. It is expected that the merger will unleash "huge" institutional capital flowing into the Ethereum ecosystem.

However, some analysts express concerns about the post-merge Ethereum. They believe that while energy consumption has decreased, the level of decentralization of Ethereum may be affected. Additionally, the significant reduction in mining rewards after the merge could lead to a loss of miners, impacting network security.

4. Shiba Inu Coin's ecological diversification development, the resurgence of the meme coin season is expected.

Shiba Inu Coin ( SHIB ) ecosystem is diversifying, and its tokens BONE and TREAT are expected to see significant growth in the upcoming altcoin season.

Shiba Inu Coin, as a representative of the altcoin boom in 2021, once had a market value of over $40 billion. However, it was not spared during the cryptocurrency winter of 2022, and its price fell sharply.

In order to break free from the limitations of a single token, the Shiba Inu ecosystem is accelerating its diversified development. Among them, BONE is the governance token of the Shiba Inu ecosystem, while TREAT is a reward token. The Shiba Inu development team plans to achieve broader adoption across 12 blockchains and to ensure contributions to the original community through the CCIP system.

Analysts believe that the diversified development of the Shiba Inu coin ecosystem will bring new growth momentum. As the altcoin season approaches, the demand for tokens such as BONE and TREAT will significantly increase, and prices will rise accordingly.

However, the Shiba Inu coin ecosystem also faces some challenges. The biggest issue is the lack of real use cases, relying too much on hype and speculation. On the other hand, issues such as token oversupply and uneven distribution also need to be addressed to ensure the long-term healthy development of the ecosystem.

5. Cryptocurrency exchanges are attacked by hackers, and millions of dollars in funds are stolen.

A cryptocurrency exchange was recently hacked, resulting in the theft of millions of dollars worth of cryptocurrency funds. This incident has once again sparked widespread attention and discussion within the industry regarding the security of exchanges.

According to the exchange, hackers exploited a vulnerability to bypass its security measures, obtained the private keys of the hot wallet, and transferred the funds to their own wallet address. The stolen funds included mainstream cryptocurrencies such as Bitcoin and Ethereum.

After the incident, the exchange immediately suspended all trading and began tracing the flow of funds. However, due to the anonymity and irretraceability of cryptocurrency transactions, recovering the stolen funds still faces numerous difficulties.

This hacker attack incident once again highlights the importance of security for cryptocurrency exchanges. Since exchanges concentrate a large amount of crypto assets, once a security vulnerability occurs, it poses a huge risk to users' funds.

Industry insiders urge exchanges to increase investment in security, employing multi-signature, hardware wallets, and other technological means to enhance fund security. At the same time, internal audits need to be strengthened to prevent insider involvement in theft.

On the other hand, when users choose an exchange, they also need to carefully assess its security and compliance, avoiding storing funds on platforms with higher risks. Only with the joint efforts of exchanges and users can the cryptocurrency ecosystem develop in a healthier way.

2. Industry News

1. The price of Bitcoin remains stable after the failure of the Trump-Putin peace conference.

The price of Bitcoin remained relatively stable on Tuesday, despite the failure of the peace conference between U.S. President Trump and Russian President Putin to achieve a ceasefire in Ukraine. Both leaders pointed out some progress, but Ukraine expressed concerns over the failure to reach an agreement. The price of Bitcoin fluctuated more due to other market factors rather than the outcome of the meeting.

Analysts indicate that the price of Bitcoin is primarily influenced by macroeconomic prospects and investor sentiment. Although geopolitical tensions may trigger short-term fluctuations, Bitcoin, as a decentralized digital asset, derives its long-term value mainly from its appeal as an alternative investment and a store of value.

Traders and investors are closely watching the Federal Reserve's monetary policy stance, as expectations of interest rate hikes may weaken demand for risk assets. At the same time, the ongoing influx of institutional investors provides support for Bitcoin's long-term growth prospects. Overall, Bitcoin's price remains relatively stable amidst a turbulent macro environment, reflecting its position as an alternative asset class.

2. The Chairman of the Securities and Exchange Commission elaborates on the vision for cryptocurrency regulation, the Federal Reserve relaxes regulations on cryptocurrency banks.

Despite the struggles in cryptocurrency prices on Friday, the industry achieved two significant victories in regulation. SEC Chairman Paul Atkins articulated his vision for crypto projects in an interview with Fox News, reiterating the agency's commitment to providing investors with a clear regulatory framework.

At the same time, the Federal Reserve has relaxed regulations on cryptocurrency banks, allowing them to hold an unlimited amount of crypto assets after obtaining proper regulation. This initiative aims to promote the integration of cryptocurrencies into the traditional financial system and provide greater participation opportunities for institutional investors.

Analysts believe that regulatory clarity helps enhance investor confidence in cryptocurrencies and may lead to more institutional capital flowing into the space. However, they also warn that excessive regulation could stifle innovation, and thus a proper balance needs to be sought between protecting investors and promoting development.

Overall, regulatory developments are seen as a significant step towards the mainstream adoption and institutional integration of the cryptocurrency ecosystem. With more capital flowing in, both trading volumes and volatility are expected to increase, bringing new opportunities and risks for investors.

3. The crypto gaming sector faces numerous challenges, and the industry calls for innovation and quality products.

The crypto gaming sector is facing unprecedented challenges. All parties involved are losing confidence, and crypto games are forcing participants to leave or innovate more significantly in products and enjoyable games in a more difficult manner. Nevertheless, there are still teams that remain confident in the gaming and cryptocurrency markets.

Industry insiders are calling for adjustments to the utility of tokens and unlocking terms, as there are significant issues with the existing unlocking mechanisms and utility. They pointed out that traditional IPOs require an investment lock-up period of only 6 months to a year, while the overall lock-up period for investments in ultra-early-stage seed round companies in cryptocurrency can be as long as 3 to 4 years.

Analysts say that the challenges in the gaming sector reflect a broader issue within the entire cryptocurrency industry, namely the lack of genuine user adoption and sustainable business models. They believe that only through innovation and offering quality products can the cryptocurrency industry regain its vitality and attract more mainstream users.

Overall, the crypto gaming sector is at a crossroads. It must either reinvent itself through innovation or face the fate of marginalization. Industry participants are calling for broader discussions and research to find a breakthrough and reignite user enthusiasm.

4. The Solana ecosystem is rising strongly, with multiple indicators showing its technical strength and growth potential.

The Solana ecosystem has shown strong performance recently, with multiple indicators reflecting its technical strength and growth potential. The native token of Solana, SOL, has increased in price by 33% over the past week, aligning with the previous bullish trend.

Analysts believe that Solana is expected to capture 35% of the enterprise blockchain market by 2030. As a project with a governance committee that includes well-known companies like Google, IBM, and LG, Solana provides itself with a level of credibility and trust that many other blockchains lack.

As of August 2025, the price of Solana is about $0.25 per SOL, with a market cap of around several billion dollars. However, as its ecosystem continues to expand and more enterprises join, Solana's value is expected to rise further.

Analysts point out that Solana's technical advantages, low transaction costs, and high throughput give it great potential in areas such as scalability and decentralized finance ( DeFi ). With the continuous influx of institutional investors, the development prospects of the Solana ecosystem are bright.

However, they also warned that Solana faces fierce competition from established rivals like Ethereum. To achieve long-term growth, Solana needs to continue driving innovation and attract more developers and users to join its ecosystem.

5. The Decentralized Finance Revolution: Navigating Opportunities and Risks in DeFi

Decentralized Finance ( DeFi ) is a groundbreaking movement that reconstructs traditional financial services using blockchain technology. By replacing traditional intermediaries like banks with automated peer-to-peer protocols, DeFi offers a new paradigm of financial inclusivity.

The DeFi ecosystem is rapidly developing, providing users with permissionless lending, trading, insurance, and other services. Analysts believe that DeFi has the potential to expand the reach of financial services, benefiting those who cannot access traditional banking services.

However, DeFi also faces numerous risks and challenges. Due to the lack of regulation, DeFi protocols may have vulnerabilities and security risks, and user funds may be at risk of theft or loss. Additionally, the high complexity of the DeFi ecosystem may also intimidate ordinary users.

Analysts suggest that investors should proceed cautiously when participating in DeFi and fully understand the potential risks. At the same time, they also urge DeFi projects to enhance security and user-friendliness to promote the long-term development of the sector.

Overall, the DeFi revolution is changing the landscape of financial services, but it also brings new opportunities and challenges. Investors and developers need to work together to fully unleash the potential of DeFi while effectively managing the associated risks.

6. Concerns Beneath the Prosperity of the Ethereum Ecosystem: The False Prosperity Brought by Airdrops and Incentives

The Ethereum ecosystem has shown a high level of activity recently, but analysts warn that this prosperity may be just a facade. A large number of airdrops and liquidity mining have driven a false prosperity in Ethereum, but the actual user base is limited, and people have started to feel disgusted with the airdrop customer acquisition strategy.

Research by third parties indicates that after the airdrop ends, the user churn rate can be as high as 80%, which is detrimental to both the founders and the project. Taking Friendtech as an example, this was once an influential project, but after the subsequent token launch failed to maintain its price, all users abandoned the application.

The restaking track has also encountered similar bottlenecks. After the airdrop ended, the total value locked (TVL) of ( experienced a significant outflow or transfer to new protocols. The latest data from MetaMask shows that the number of monthly active users has dropped from 30 million at the peak of the bull market to 1 million, marking a significant decline.

Analysts have pointed out that this phenomenon reflects a deeper issue within the Ethereum ecosystem: the lack of genuine user demand and sustainable business models. They call for the industry to refocus on innovation and practical applications, rather than overly relying on short-term incentives.

Overall, although the Ethereum ecosystem appears prosperous on the surface, underlying risks have begun to surface. Only by genuinely addressing user pain points and providing valuable products and services can long-term sustainable development be achieved.

) 7. Cryptocurrency market sentiment is sluggish, and investors are seeking new opportunities.

Despite the increase in inflow and accumulation in large wallets, the overall sentiment in the cryptocurrency market remains sluggish, facing the risk of a "death cross" signal. However, the potential bullish divergence in Chaikin money flow, if supported by stronger accumulation, provides a glimmer of hope.

At the same time, the price of Bitcoin is approaching $118,000 for consolidation, while the hash rate has reached an all-time high, indicating strong miner confidence. If it can break through $123,000, Bitcoin could reach a target of $125,000 to $131,000 by the end of August 2025, with further upward potential.

Analysts believe that despite the current market sentiment being low, cryptocurrencies still hold long-term investment value. They advise investors to closely monitor the fundamentals and technical indicators to look for potential buying opportunities.

Meanwhile, some emerging cryptocurrency projects are attracting the attention of investors. For example, Render###RENDER(, although facing the risk of pullback.

3. Project Highlights

) 1. AIW3: Reshaping the We ecosystem, creating a strategic economic system

AIW3 is an intelligent quantitative trading platform that combines AI and We. This project reshapes the We ecosystem through a decentralized AI agent architecture, featuring three major advantages: modular development, zero-code usability, and real-time self-evolution.

AIW3 is not just a strategy generation tool, but is redefining the "production and distribution logic of strategy trading", creating a truly user and creator-owned strategy economic system. In this current era of "highly commoditized strategies", acquiring an effective trading logic has never been easier. But the problem lies in: having a strategy ≠ being able to monetize it. AIW3 was born in this context, aiming to address pain points such as strategy execution, risk control, and community operation, providing a full-chain tool for strategy creators.

The emergence of AIW3 will promote the valorization and decentralized autonomy of trading strategies, leading a new era of on-chain entrepreneurship. This platform will attract more innovators to join and inject new vitality into the We ecosystem. Industry insiders believe that AIW3 is expected to become the "strategy center" in the blockchain field, injecting new momentum into industry development.

2. Solv Protocol: Allowing "dormant" Bitcoins to earn yields

Solv Protocol is a decentralized lending protocol that allows users to deposit idle Bitcoin into the protocol to earn returns. This innovative solution provides Bitcoin holders with new avenues for earning.

Traditionally, Bitcoin holders could only profit by buying and holding for the long term. However, the emergence of the Solv Protocol has changed this landscape. Users can deposit Bitcoin into the protocol and receive corresponding yield tokens, SOLV. These SOLV tokens can be freely traded in the secondary market.

The launch of Solv Protocol has brought new vitality to the Bitcoin ecosystem. It provides Bitcoin holders with a new way to profit while also injecting new liquidity into the entire cryptocurrency market. Analysts believe that this innovation is expected to drive mass adoption of Bitcoin and bring a positive impact to the entire industry.

3. GoPlus: The pioneer of We's security infrastructure

GoPlus is a company focused on We security infrastructure, whose trading simulation API integrates multi-dimensional security analysis models and precise risk control systems, providing real-time trading simulation and security detection.

This feature can be widely applied in various We products such as wallet applications, DApps, cross-chain bridges, aggregators, and We browsers, helping to enhance transaction security. GoPlus has an advanced AI-driven real-time, dynamic, and automated security detection engine, currently supporting most mainstream EVM chains and public chains like Solana.

The emergence of GoPlus has brought a new level of security assurance to the We ecosystem. Its innovative technology is expected to drive the large-scale implementation of We applications, enhancing user experience and trust. Industry insiders believe that GoPlus is leading the development direction of We's security infrastructure, contributing significantly to the sustainable development of the industry.

4. Sui:Move is a rising star of public chains

Sui is an emerging public blockchain based on the Move language, created by former Meta### Facebook( employees, and has garnered significant attention. The project performed remarkably during the TOKEN2049 conference, with the token SUI experiencing a price surge.

Sui is developed using the Move language, boasting advantages such as high performance and strong composability. Compared to public chains like Solana, Sui excels in scalability and security. The project also launched the SuiPlay gaming platform, which was prominently showcased at the KBW conference in South Korea.

Analysts believe that Sui represents the future development direction of Move-based public chains. As an emerging force, Sui is expected to become an industry benchmark in terms of performance, security, and ecosystem development. With more projects settling in, Sui is likely to become the core of the Move ecosystem.

Insiders are optimistic about the prospects of Sui, believing it has the potential to become the next "Solana killer." However, Sui currently has few tradable assets and limited star projects, and it still needs time to incubate.

) 5. Aptos: Another rising star in the Move ecosystem

Aptos is another public chain project based on the Move language, also receiving a lot of attention. The project was founded by former Meta employees and has strong technical strength.

During the TOKEN2049 conference, the price of the token APTOS surged. However, compared to Sui, the development direction and community expectations of Aptos are still not very clear. Analysts believe that Aptos needs to further clarify its development roadmap and incubate more star projects in order to secure a place in the Move ecosystem.

Overall, Aptos and Sui are both highly promising new star projects within the Move ecosystem. The competition and development between the two will drive the prosperity of the Move ecosystem and bring new vitality to the entire cryptocurrency industry.

6. Movement: The "last member" in the Move ecology.

Movement is the last public chain project in the Move ecosystem that has not yet issued tokens, and its development prospects are worth paying attention to.

Compared to Sui and Aptos, Movement is currently in a relatively low-key state. However, analysts believe that once Movement launches its mainnet and incubates star projects, its development potential will be significant.

The Movement team has shown impressive performance in both technical strength and community influence. If it can learn from the experiences of Sui and Aptos, Movement is expected to secure a place in the Move ecosystem.

Overall, Sui, Aptos, and Movement form a tripartite balance and will jointly promote the development of the Move ecosystem. The competition among the three is expected to spur more innovations and bring new opportunities to the entire cryptocurrency industry.

4. Economic Dynamics

1. Federal Reserve officials signal a hawkish stance, and the interest rate hike cycle is expected to extend.

Economic Background: The U.S. economy maintained a strong growth momentum in the first half of 2025, with a second-quarter GDP annualized growth rate of 3.2%, exceeding expectations. However, inflationary pressures remain severe, with the core PCE price index rising 4.1% year-on-year in June, far above the Federal Reserve's 2% target. The unemployment rate hovers at a low of 3.5%, and the job market continues to tighten.

Important events: Federal Reserve officials recently made speeches, releasing hawkish signals. San Francisco Fed President Daly stated that there may need to be two more rate hikes this year. Kansas City Fed President George believes that interest rates may need to be further raised to above 6%. This means that the rate hike cycle may be extended until the end of 2025.

Market reaction: The hawkish remarks from Federal Reserve officials have heightened expectations for interest rate hikes. The yield curve of U.S. Treasuries has further inverted, with the spread between the 10-year and 2-year Treasury yields widening to nearly -90 basis points. U.S. stocks fell after the announcement, with the Dow Jones dropping over 200 points. Concerns among investors about a hard landing for the economy have intensified.

Expert Opinion: Goldman Sachs Chief Economist Jan Hatzius stated that the Federal Reserve still needs to continue raising interest rates to control inflation. However, he warned that excessive tightening could lead the economy into recession. Citibank, on the other hand, expects that the Federal Reserve will ultimately end the interest rate hike cycle by the end of 2025, at which point the federal funds rate will reach a range of 5.5% to 5.75%.

2. China's economic data for July is a mixed bag, and policy support may be strengthened.

Economic Background: The Chinese economy shows signs of slow recovery in the first half of 2025. In the second quarter, GDP increased by 4.5% year-on-year, a rebound compared to the first quarter. However, manufacturing investment and consumption data remain weak, reflecting an unstable economic foundation. In July, the official manufacturing PMI was 49.3, remaining in the contraction zone for the third consecutive month.

Important events: The economic data for July is a mixed bag. Industrial production and export data exceeded expectations, growing by 5.3% and 9.7% year-on-year, respectively, indicating that external demand remains an important driver of the economy. However, the growth rates of fixed asset investment and retail sales have both slowed down, with the former growing by 5.7% year-on-year and the latter by 2.7%, both below expectations.

Market reaction: After the release of July economic data, the RMB exchange rate against the US dollar rose slightly. The A-share market fluctuated and declined, with the Shanghai Composite Index falling by 0.8%. Investor confidence in the economic outlook was somewhat affected. The bond market showed differentiation, with the yield on 10-year government bonds rising slightly, while the yield on high-grade corporate bonds decreased.

Expert Opinion: The macro research team at CICC believes that the July data reflects that the momentum of economic recovery remains insufficient. They expect that in the second half of the year, the government will increase policy support, including moderately expanding the fiscal deficit and boosting infrastructure investment, to solidify the foundation for economic stabilization and recovery.

3. Eurozone inflation unexpectedly falls, easing pressure on the ECB to raise interest rates.

Economic Background: The Eurozone economy entered a mild recession in the first half of 2025, with a 0.1% quarter-on-quarter decline in GDP in the second quarter. However, the job market remained relatively robust, with the unemployment rate staying low at 6.5%. Inflationary pressure is the main challenge facing the European economy, with annualized inflation rates exceeding 6% in both May and June.

Important event: Eurozone inflation data for July unexpectedly fell, with the annual inflation rate dropping to 5.5%, below expectations. Energy prices rose by 23.8% year-on-year, significantly dragging down inflation. However, the increase in prices for food, services, and industrial goods has all slowed down.

Market reaction: After the release of inflation data from the Eurozone, the euro rose slightly against the US dollar. European stock markets climbed, with the Stoxx Europe 600 index closing up 0.6%. Yields on European sovereign bonds generally declined, with the yield on Germany's 10-year government bonds falling 5 basis points to 2.45%. Investors expect that the pressure for a rate hike from the ECB may ease.

Expert Opinion: The macro research team at Deutsche Bank indicates that the July inflation data suggests that inflation in the Eurozone may have peaked. However, they believe that the process of declining inflation may be slow and winding. The ECB still needs to continue raising interest rates to ensure that inflation falls back to the target range of 2% by the end of 2025.

5. Regulation & Policy

1. The Federal Reserve terminates the special regulatory program for banks' cryptocurrency business.

The U.S. Federal Reserve Board announced on Friday that it will terminate the "novel activities" regulatory program for banks related to cryptocurrency and fintech businesses. Launched in 2023, the program was designed to specifically regulate banks' activities in emerging fields such as cryptocurrency.

Background: With the rapid development of cryptocurrency and financial technology, banking is gradually venturing into these emerging fields. To address potential risks, the Federal Reserve launched a "novel activities" regulatory program in 2023 to specifically supervise banks' related operations.

Policy content: The Federal Reserve stated that after two years of operation, the agency has deepened its understanding of banks' cryptocurrency and financial technology operations, mastering the related risks and banks' risk management practices. Therefore, it has decided to terminate the "novel activities" regulatory program and incorporate related businesses into the regular banking regulatory process.

Market reaction: This move is seen as the Federal Reserve relaxing its regulation on banks' cryptocurrency businesses, allowing banks to operate more freely in this area. The cryptocurrency market reacted positively, with major cryptocurrencies like Bitcoin experiencing a slight increase in the short term.

Expert analysis: Goldman Sachs analysts point out that this move is beneficial for banks to more actively embrace cryptocurrencies and blockchain technology, providing related services to clients. However, it is also necessary to strengthen risk management to ensure business compliance. Oppenheimer analysts believe that this initiative reflects the increasing importance and recognition of cryptocurrencies by regulatory agencies.

2. The Hong Kong Securities and Futures Commission tightens cryptocurrency custody rules.

The Hong Kong Securities and Futures Commission has recently introduced stricter digital asset custody rules for licensed virtual asset trading platforms to enhance customer fund protection and ensure safety.

Background: As an international financial center, Hong Kong has maintained a cautious attitude towards cryptocurrency regulation. With the rapid development of the cryptocurrency market, the Hong Kong Securities and Futures Commission believes it is necessary to strengthen the regulation of trading platforms.

Policy content: The new regulations require licensed virtual asset trading platforms to strengthen infrastructure, supervision, and independent audits to ensure the security of customer assets. In addition, the Hong Kong Securities and Futures Commission is developing a licensing system for cryptocurrency custodians.

Market reaction: Hong Kong cryptocurrency exchanges welcome the new regulations, believing they will enhance industry transparency and trust. However, some industry insiders are concerned that overly strict regulations may hinder the development of the Hong Kong cryptocurrency market.

Expert Opinion: Financial legal experts in Hong Kong state that the new regulations aim to protect investors' interests while also reflecting the regulators' attention to the risks of cryptocurrencies. They recommend that exchanges strengthen internal controls and risk management to comply with the new regulations. The Hong Kong Science and Technology Parks Corporation believes that moderate regulation is beneficial for Hong Kong to develop into a blockchain and cryptocurrency hub.

3. New York State considers taxing cryptocurrency transactions

According to reports, New York State is considering imposing new taxes on cryptocurrency transactions, including digital assets such as NFTs, mining, and staking income.

Background: As cryptocurrencies gain popularity in New York State, local governments hope to regulate the market and generate revenue through taxation. Currently, 8 states treat cryptocurrencies as cash equivalents and impose capital gains taxes on them.

Policy content: The New York State Department of Finance has proposed a 7% tax rate on cryptocurrency transactions. It is expected to generate approximately $158 million in tax revenue for the state government each year. Specific implementation details and effective dates have not yet been determined.

Market Reaction: Cryptocurrency companies and investors in New York State oppose this, believing it will increase the burden on the industry and hinder development. However, there are also opinions that moderate taxation is beneficial for regulating market order.

Expert Analysis: A law professor from New York University stated that taxation is a way to regulate cryptocurrencies, but it is necessary to balance promoting industry development and protecting investors' interests. The tax rate should not be too high to avoid the outflow of cryptocurrency businesses. An economist from Purdue University believes that taxation will drive cryptocurrencies into the mainstream financial system.