Regulatory Dynamics

1. The U.S. Financial Crimes Enforcement Network proposes new regulations for cryptocurrencies.

The U.S. Treasury Department's Financial Crimes Enforcement Network recently proposed a new rule draft requiring users to provide personal information when transferring cryptocurrencies from exchanges to private wallets. Exchanges will also need to record and retain relevant transaction records. The draft is scheduled to be published on December 23, and the public will have 15 days to provide feedback. This regulation aligns with last year's guidance from the Financial Action Task Force, which suggested that personal crypto wallets be regarded as virtual asset service providers.

2. Hong Kong issues licenses to virtual asset trading platforms for the first time.

The Hong Kong Securities and Futures Commission announced the issuance of the first virtual asset trading platform license to OSL Digital Securities Limited. The platform is a subsidiary of the Hong Kong listed company BC Technology Group. According to regulations, the platform can only provide services to professional investors and must comply with regulatory requirements similar to those for securities brokers.

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

The Estonian Ministry of Finance has revealed that the country's Financial Intelligence Unit has revoked the licenses of more than 1,000 cryptocurrency companies this year. This measure is aimed at addressing the growing issue of money laundering. The government's Anti-Money Laundering Committee emphasizes that the regulation of cryptocurrency service providers still requires a high level of attention.

Industry News

1. Bitcoin's market value jumped to 12th place globally.

As Bitcoin's price breaks through the $20,000 mark, its market capitalization reaches $445.442 billion, ranking 12th among global assets, surpassing retail giant Walmart. If the price of Bitcoin reaches $28,000, its market cap will enter the global top ten; if it reaches $42,500, it could enter the top five. CCTV analysis suggests that the demand for safe-haven assets driven by the global pandemic and monetary easing policies is the main factor behind Bitcoin's surge.

2. Coinbase selects Goldman Sachs to lead IPO

The trading platform Coinbase has chosen Goldman Sachs to lead its upcoming IPO. The platform has submitted its listing application to the U.S. Securities and Exchange Commission. Researchers estimate that Coinbase's potential valuation could reach $28 billion. Notably, Goldman Sachs has previously taken a cautious stance on Bitcoin, believing that cryptocurrencies do not belong to any asset class.

3. Wall Street investment banks adjust investment strategies

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. If the price of Bitcoin significantly declines, the team may increase this position.

4. Mt.Gox Liquidation Compensation Plan Progress

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

5. The Chicago Exchange will launch Ethereum futures.

CME Group announced plans to launch Ethereum futures contracts on February 8, 2021, with cash settlement, and is currently awaiting regulatory review. So far this year, the average daily trading volume of CME Bitcoin futures contracts has been approximately 42,800 Bitcoins.

6. Grayscale Ethereum Trust Completes Share Split

Grayscale has completed the share split of its Ethereum Trust Fund at a ratio of 9 to 1. After the split, the amount of Ethereum corresponding to each share has decreased from 0.09 to approximately 0.01. In the past month, Grayscale has purchased over $1 billion worth of various cryptocurrencies from investors. The total value of digital assets managed by the company is now $15.5 billion.

7. DeFi insurance protocol attacked

The personal address of the founder of a certain DeFi insurance protocol was attacked, resulting in a loss of over $8 million. The official statement indicated that this was a targeted attack, affecting only the founder's address. The attacker modified the wallet plugin through remote access, deceiving the founder into signing a funds transfer transaction.

8. Canadian company completes Bitcoin fund IPO

A Canadian wealth management firm has completed a $72 million Bitcoin fund IPO. The fund has attracted participation from various parties including institutions, individual investors, high-net-worth clients, and financial advisors. Fund shares will be traded on the Toronto Stock Exchange in USD and CAD.

9. Adult websites only accept cryptocurrency payments

The world's largest adult website has modified its paid membership rules and now only accepts cryptocurrency payments. Previously, major credit card companies stopped their settlement services for the site due to public pressure. According to statistics, the site has an annual visit volume of as high as 42 billion times, ranking 10th in global website traffic.

10. Internal restructuring of a mining machine company

According to reports, a well-known mining machine company is undergoing internal restructuring. The two main shareholders of the company have reached an agreement, with one returning to the company to take over the main business, while the other gains control over part of the business. 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. Financial data shows that the company had a net loss of nearly 400 million yuan in 2019, while it achieved a profit of 3 billion yuan in 2018.