Regulatory Dynamics

1. The IRS is evaluating cryptocurrency tax policies.

A senior advisor at the U.S. Department of the Treasury's Office of Tax Policy stated that the IRS is evaluating different methods of taxing cryptocurrencies. They are focusing on the impact and benefits of various proposals for stakeholders, such as increasing compliance. Previously, the IRS required taxpayers to disclose transactions involving virtual currencies on their 2020 individual income tax returns, including activities such as trading, exchanging, selling, and acquiring virtual currencies through airdrops and hard forks.

2. Singapore Focuses on the Development of 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. Due to the existing payment systems being able to facilitate fast and inexpensive personal payments, there is little demand for retail central bank digital currency in Singapore. Currently, the Monetary Authority of Singapore is focusing on developing a wholesale central bank digital currency to facilitate securities settlement and payment between financial institutions.

3. Kyrgyzstan Drafts Cryptocurrency Regulation Bill

The Central Bank of Kyrgyzstan is drafting a bill to regulate the country's cryptocurrency industry. The bill will govern the buying and selling of cryptocurrencies, aiming to combat fraud and financial crime while protecting the rights of consumers and investors. The central bank anticipates that legal enforcement may face challenges due to the cross-border nature of many cryptocurrencies and the lack of appropriate regulation and infrastructure.

4. The Office of the Comptroller of the Currency nominates a new director to encourage banks to open up to cryptocurrency enterprises.

The Office of the Comptroller of the Currency ( OCC ) has proposed a draft opinion aimed at preventing banks from discriminating against businesses based on factors other than risk. This may make it easier for cryptocurrency companies to obtain banking services. Meanwhile, the Acting Comptroller has been nominated as the official Comptroller for a five-year term. He is seen as an advocate for crypto-friendly reforms.

Industry News

1. A trading platform announces the resumption of withdrawal functions.

A well-known cryptocurrency exchange platform announced that it will resume withdrawal functions before November 27. The platform stated that the relevant issues have been resolved and the personnel have returned to their posts. Before resuming withdrawals, the platform will conduct strict security checks to ensure the secure and stable operation of the hot wallet system. The platform emphasizes that since its establishment, it has adhered to a 100% reserve policy and there will be no run on the exchange.

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

Cryptocurrency commercial bank Galaxy Digital has partnered with global asset management firm 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 is priced based on the Bloomberg Galaxy Bitcoin Index and will offer Class A and Class F shares at a price of $10 per share.

3. Morgan Creek and Exos apply for Bitcoin fund

Asset management firms Morgan Creek and Exos Financial have submitted a Bitcoin fund application to the U.S. Securities and Exchange Commission. If approved, the fund will provide institutional investors with another way to go long on Bitcoin while reducing the volatility risk of directly holding Bitcoin.

4. The first Bitcoin 401(k) plan in the United States is launched.

The American digital asset investment management company DAiM announced the launch of the first Bitcoin 401(k) plan. Individuals can choose to increase their Bitcoin investment ratio, up to a maximum of 10%. Bitcoin is stored by Gemini Trust, and Bitcoin in the pension can be transferred upon leaving the job.

5. Polkadot Parachain 1.0 code completed

The Polkadot parachain 1.0 code has been completed and is ready for public testing. Parity engineers announced the latest progress of Rococo in the official chat room, and the Cumulus master code has been upgraded to version v1.

6. The Ethereum Foundation launches a staking tool incentive program

The Ethereum Foundation has launched the "Ethereum 2.0 Staking Community Grants" initiative to encourage the community to submit tools, documentation, and resources that simplify the staking process. The deadline is December 22, with considerations including expanding the number of stakers and enriching the staking tool ecosystem. All proposals must be submitted in English and be fully open source.

7. The trading volume of cryptocurrencies on a certain payment platform is growing rapidly.

A well-known payment platform began supporting cryptocurrency services less than a month ago, and its trading volume may have already reached over 85% of a certain American cryptocurrency exchange. The trading volume of itBit exchange, which provides custody for the platform's Paxos trading services, grew from less than $5 million in October to $25 million by mid-November.

8. OUSD suffered a flash loan attack with a loss of 7 million USD

The decentralized stablecoin OUSD suffered a flash loan attack, resulting in a loss of approximately 7 million dollars. This highlights the security challenges faced by DeFi projects once again, reminding investors to carefully assess risks.