Regulatory Dynamics

ECB President Lagarde's Views on Bitcoin and the Digital Euro

The President of the European Central Bank, Christine Lagarde, recently stated that Bitcoin is a speculative asset that requires regulation. She believes that Bitcoin has facilitated some interesting and representative business activities. Regarding the digital euro, Lagarde hopes to launch it within five years.

Previously, the Governing Council of the European Central Bank discussed whether to advance the digitalization of the euro, but no clear decision has been made. However, the ECB's Governing Council pointed out that the euro system is moving in the direction of potentially creating a digital euro. This indicates that the institution is paying attention to the potential impact of digital currencies on the market.

IMF Report: Most Countries Lack Legal Basis for Issuing Central Bank Digital Currencies

The latest report from the International Monetary Fund ( IMF ) shows that nearly 80% of central banks globally are either not allowed to issue digital currencies under current laws or the legal framework is unclear. The IMF reviewed the central bank laws of 174 member countries and found that only about 40 member countries are legally permitted to issue digital currencies.

The IMF also emphasized that if a country issues a digital currency, everyone within that jurisdiction must be able to easily access that payment system, which could pose certain challenges to the financial infrastructure.

Russia Plans to Authorize Banks to Freeze Accounts Involved in Cryptocurrency Transactions

Russia plans to amend its banking regulations to allow financial institutions to freeze the bank accounts of individuals or companies they believe are related to cryptocurrency activities. Under the new regulations from the central bank, commercial banks will be able to intervene and block access to accounts if signs of "digital currency circulation" are detected.

The Central Bank of Russia stated that bank transactions related to cryptocurrencies typically have "routine and one-way" characteristics and may be flagged as "suspicious transactions" related to "money laundering or terrorist financing." Unless the government decides to intervene, this amendment may be issued in October this year.

Industry News

The BSN Open Permissioned Chain is about to launch, and the development plan for the next five years has been revealed.

The BSN Open Permissioned Chain will be officially launched on January 31 on the BSN China official website. The BSN official recently released the "BSN 2021 Outlook," outlining the project roadmap for the next five years:

1. Plan to collaborate with multiple international banks and technology companies within 5 years to establish a universal digital payment network based on the CBDC of various countries (UDPN).

2. More public city nodes ( PCN ) will be created and more frameworks will be integrated, with at least 3 new cross-chain protocols launched. BSN China will have 150 PCNs and 30 portals; the number of PCNs for BSN International will reach about 50, distributed across 10 countries/regions.

3. Promote the private BSN and authorized platforms. The private BSN has been deployed in 6 provinces in China, with the goal of covering 23 provinces by 2021.

4. Continue to strengthen cooperation with cloud service providers, framework providers, and portal providers.

Bitcoin Core releases version 0.21.0, the next version will be renamed to 22.0

The Bitcoin Core client has released the official version 0.21.0 source code on GitHub, nearly 6 months after the release of the previous major version 0.20.0. The most significant change in version 0.21.0 is the implementation of features related to Schnorr Signature and Taproot proposals.

According to the current plan, the next major version will remove the leading 0 from the version number, changing from "0.22.0" to "22.0", scheduled for release on August 1.

Mentougou creditors may receive up to 90% BTC compensation

Reports indicate that creditors will be able to demand that Mentougou pay up to 90% of the remaining BTC as compensation. Investors are not required to accept this payment in advance and can wait for a settlement regarding the lawsuit against Mentougou. If a large amount of BTC from claims flows into the market, it could trigger price fluctuations.

Anchorage becomes the first national digital asset bank in the United States

Cryptocurrency custodian Anchorage announced that the Office of the Comptroller of the Currency (OCC) has conditionally approved its application for a national trust charter, making it the first federally chartered digital asset bank in the United States. Anchorage is a U.S.-based digital asset custodian offering digital asset storage solutions for institutions and investors.

Miami Mayor Considers Investing Part of Treasury Reserves in Bitcoin

Francis Suarez, the mayor of Miami, is considering investing a portion of the city's treasury reserves in Bitcoin. He stated: "We are looking at diversifying the portfolio and holding Bitcoin investments. If I had done this last year, I would have achieved a 200% return." Suarez hopes to make Miami one of the "most crypto-forward and technologically advanced cities in the United States" and is seeking to establish a regulatory framework to make it the "easiest place to conduct crypto business in America."

Osprey Funds Launches Bitcoin Trust Fund with Management Fees Only a Quarter of Grayscale's

Osprey Funds, a digital asset subsidiary of REX Shares, will launch the "Osprey Bitcoin Trust ( OBTC )" in the over-the-counter market, charging a management fee of 0.49%, about a quarter of its main competitor, the "Grayscale Bitcoin Trust ( GBTC )". Fidelity Digital Assets will provide custody services. The minimum purchase amount for qualified investors is $25,000, with a one-year lock-up period before selling on the secondary market.

Biden will nominate Gary Gensler as SEC Chair

According to reports, Biden is expected to nominate former U.S. Commodity Futures Trading Commission ( CFTC ) Chairman Gary Gensler to serve as Chairman of the U.S. Securities and Exchange Commission ( SEC ) in the coming days. Gensler is currently leading Biden's financial policy transition team and is said to be very familiar with the widespread application of crypto technology.

Grayscale Restarts Most Crypto Trust Fund Subscriptions, Dissolves XRP Trust

Grayscale has resumed the purchase of cryptocurrency trust funds, excluding ETH and XRP. The minimum limit for BTC is $50,000, while the minimum limits for BCH, ETC, LTC, ZEN, ZEC, and XLM are $25,000. At the same time, Grayscale announced the liquidation and dissolution of its XRP trust, which is a response to the lawsuit filed by the SEC against Ripple.

Grayscale Q4 inflow reaches a new high, institutional investors account for 93%

Grayscale's Q4 2020 report shows that the total inflow of funds for all its products reached $3.3 billion, a record high. Institutional investors accounted for 93%, totaling $3 billion. Over 87% of institutional funds flowed into the Grayscale Bitcoin Trust. In 2020, Grayscale's total inflow exceeded $5.7 billion, more than four times the cumulative inflow from 2013 to 2019.

Forbes Releases Cryptocurrency Billionaires List

The latest Forbes cryptocurrency billionaire list shows that Gemini co-founders Winklevoss brothers rank first with a net worth of $1.4 billion each in cryptocurrency. Other notable figures on the list include Bloq co-founder Matthew Roszak $1.12 billion (, venture capitalist Tim Draper $1.11 billion ), MicroStrategy CEO Michael Saylor $1.6 billion (, Galaxy Digital founder Mike Novogratz $1.478 billion ), and Ethereum founder Vitalik Buterin $1.36 billion (. The list only accounts for individual cryptocurrency investments and does not include the value of company shares.

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