Regulatory Dynamics

1. The U.S. tax agency is evaluating a cryptocurrency taxation plan.

The IRS is currently exploring various taxation schemes for cryptocurrencies. Officials have stated that they are weighing the impact of different options on stakeholders, as well as the potential benefits such as enhanced compliance. Previously, the IRS required taxpayers to disclose their virtual currency transactions on the 2020 individual income tax return, including activities such as trading, exchanging, selling, and acquiring virtual currencies through airdrops and hard forks.

2. Singapore focuses on developing wholesale central bank digital currency

Senior officials from the Monetary Authority of Singapore have stated that the country is ready to launch a central bank digital currency (CBDC). Due to the existing payment system infrastructure being able to facilitate fast and low-cost personal payments, there is little demand for a retail CBDC in Singapore. Currently, the Monetary Authority of Singapore is focusing on developing a wholesale CBDC to facilitate securities settlement and payments between financial institutions.

3. Kyrgyzstan drafts cryptocurrency regulatory bill

The Central Bank of Kyrgyzstan is drafting a bill aimed at regulating the country's cryptocurrency industry. The bill will regulate the buying and selling of cryptocurrencies to combat fraud and financial crime, protecting the rights of consumers and investors. The central bank is also aware that, due to the cross-border nature of many cryptocurrencies, law enforcement may face challenges in the absence of appropriate regulatory infrastructure.

4. The Office of the Comptroller of the Currency nominates a new director

The Office of the Comptroller of the Currency in the United States has proposed a draft opinion aimed at preventing banks from discriminating against businesses based on factors other than risk. This could benefit cryptocurrency companies that currently have difficulty accessing banking services. The new regulations will make it easier for crypto businesses to use banking services, unless they involve specific risks. In addition, the current Acting Comptroller Brooks has been nominated to serve as the official Comptroller for a term of five years. Brooks is seen as an advocate for crypto-friendly reforms.

Industry News

1. A certain trading platform has announced that it will resume the withdrawal function.

A well-known cryptocurrency exchange platform announced that it will resume withdrawal functions before November 27. The platform stated that the withdrawal was suspended for a period due to special reasons, but the issues have now been resolved and relevant personnel have returned to their positions. Before resuming withdrawals, the platform will conduct strict security checks to ensure the hot wallet system operates safely and stably. The platform emphasized that it has maintained a 100% reserve since its establishment and will not experience a run on the bank.

2. Multiple institutions have launched Bitcoin fund products.

Cryptocurrency commercial bank Galaxy Digital has partnered with asset management firm CI GAM to launch a new Bitcoin fund called CI Galaxy. The fund will price according to the Bloomberg Galaxy Bitcoin Index. Additionally, asset management giants Morgan Creek and Exos have also submitted Bitcoin fund applications to the U.S. Securities and Exchange Commission. If approved, this will provide institutional investors with another way to go long on Bitcoin without having to hold Bitcoin directly.

3. An American company launches the first Bitcoin 401(k) plan.

The American digital asset investment management company DAiM has announced the launch of the first Bitcoin 401(k) plan. This plan allows individuals to increase their Bitcoin investments in their retirement funds, up to 10%. The Bitcoin will be stored by Gemini Trust. This provides a new Bitcoin investment channel for American retirees.

4. Polkadot Parachain Code Completion

The Polkadot Parachain 1.0 code has been completed and is ready for public testing at any time. This marks an important step forward for the Polkadot ecosystem and lays the foundation for the future integration of more parachains.

5. Ethereum Foundation launches staking tool subsidy program

The Ethereum Foundation launched the "Ethereum 2.0 Staking Community Grant" initiative to encourage the community to submit staking tools, documentation, and resources. The program aims to simplify the staking process, expand the number of stakers and validators, and provide visual tools for non-technical users, among other objectives. All proposals need to be submitted by December 22 and must be fully open-source.

6. Payment giants see a surge in cryptocurrency trading volume

Less than a month after a certain payment giant began supporting cryptocurrency services, its trading volume may have reached over 85% of a well-known exchange's US branch. Data shows that the trading volume of the exchange providing custody services for this payment company grew from less than $5 million in October to $25 million by mid-November. This indicates that traditional financial institutions entering the crypto space are having a significant impact.

7. DeFi project suffers a loss of 7 million dollars due to an attack

A decentralized finance project suffered a flash loan attack, resulting in a loss of approximately 7 million dollars. This once again highlights the security risks in the DeFi space, reminding project teams and users to pay close attention to smart contract security.