Regulatory Dynamics

1. The U.S. tax authorities are evaluating various options for taxing cryptocurrencies. Senior advisors from the Treasury Department's Office of Tax Policy are focusing on the impact of each option on stakeholders and the benefits it brings, such as increased compliance. Previously, U.S. tax agencies required taxpayers to disclose all transactions involving virtual currencies for the year 2020 in their individual income tax filing guidance.

2. The Singapore central bank is focusing on developing wholesale central bank digital currency. The chief fintech officer of the central bank stated that Singapore is ready to launch a central bank digital currency, but there is not much demand for retail type. The wholesale central bank digital currency will be used to facilitate securities settlement and payment between financial institutions.

3. The Central Bank of Kyrgyzstan is drafting a bill to regulate the cryptocurrency industry. The bill aims to regulate the buying and selling of cryptocurrencies, combat fraud and financial crimes, and protect the rights of consumers and investors. The Central Bank expects that the implementation of cryptocurrency legislation may face challenges, especially in terms of cross-border transaction regulation.

4. The Office of the Comptroller of the Currency (OCC) has proposed a draft to prevent banks from discriminating against businesses based on factors other than risk. This could make it easier for cryptocurrency companies to access banking services. The acting head of the agency has been nominated to serve as the official director for a five-year term. He is seen as an advocate for crypto-friendly reforms.

Industry News

1. A well-known cryptocurrency exchange platform announced that it will resume withdrawal functions. The platform stated that it will open free withdrawals before November 27, and will conduct strict security checks beforehand to ensure the safe and stable operation of the hot wallet system. The platform emphasized its commitment to a 100% reserve system and that there will be no run on the bank.

2. Galaxy Digital has partnered with CI GAM to launch a new Bitcoin fund. The fund will be managed by CI GAM, with Galaxy Digital serving as a sub-advisor. The fund pricing will use the Bloomberg Galaxy Bitcoin Index, offering Class A and Class F funds at a price of $10 per share.

3. Two asset management companies have submitted applications to the U.S. Securities and Exchange Commission for a Bitcoin fund. If approved, the fund will provide institutional investors with opportunities to invest in Bitcoin while reducing the volatility risk of directly holding Bitcoin.

4. A U.S. digital asset investment management company has launched the first Bitcoin 401(k) plan. This plan allows individuals to invest up to 10% of their retirement funds in Bitcoin, which will be stored by a well-known custodian.

5. The Polkadot Parachain 1.0 code has been completed and is ready for public testing at any time. This marks an important milestone in the development of the Polkadot ecosystem.

6. The Ethereum Foundation has launched a grant program to encourage the community to develop Ethereum 2.0 staking tools and documentation. The program aims to simplify the staking process, increase the number of validators, and enhance the visibility of the network.

7. After a major payment giant launched cryptocurrency services, the transaction volume surged in the first month. It is estimated that its cryptocurrency trading volume may have reached over 85% of a certain American cryptocurrency exchange.

8. A certain 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.