Daily Quotes (21:05, December 14, 2023)
ChainDD's market data on December 14 shows that the combined DD index and CoinMarketCap quotes are:
BTC was at $42,997.10, up about 4.35% in 24 hours;
ETH was at $2,296.39, up about 5.20% in 24 hours;
BNB reported $252.41, up about 0.99% in 24 hours;
DOGE was at $0.09699, up about 4.55% in 24 hours;
DOT was trading at $7.38, up about 8.27% in 24 hours.
Chain Circle Dynamics
Sushi CTO: Ledger connector is damaged, please do not interact with any Dapp for the time being
Sushi CTO Matthew Lilley warned on the X platform, "Please do not interact with any Dapp until further notice. A commonly used connector in Web3 is suspected to have been damaged and can now be injected with malicious code that affects many DApps." Later, Matthew Lilley revealed that the connector was the Ledger connector. Currently, some Dapps, including Trader Joe, have stated that they have proactively suspended integration with the Ledger connector until further notice.
Aave community has started voting on the proposal to activate Aave Governance V3
The official governance page shows that the Aave community’s proposal on “Aave Governance V3 Activation” has been opened for voting, and the current support rate is 100%.
The proposal proposes to migrate Aave Governance V2.5 to V3, transferring all permissions from the V2 system to V3, performing all required smart contract upgrades and different miscellaneous preparations.
Additionally, the Aave Robot system is activated, which is necessary for Governance V3 to function optimally.
Paxos releases USDP November transparency report: Total outstanding amount rises to approximately $446 million
Paxos officially released the November Pax Dollar (USDP) transparency report, which disclosed the unaudited financial data of USDP as of 6:00 Beijing time on December 1, mainly including:
1. Total Tokens Outstanding is approximately $446,640,157, an increase of nearly $8 million from October;
2. The current market value of U.S. Treasury bonds is approximately $148 million;
3. The current market value of the collateral in the U.S. Treasury reverse repurchase agreements (overnight maturity and overcollateralization) is approximately $112 million, and the notional position value of the collateral provided is approximately $110 million;
4. Cash deposits through the FDIC deposit network exceed $185 million, and other cash deposits in insured depository institutions are approximately $4.25 million.
Paxos said a U.S. Treasury reverse repurchase agreement is a contractual arrangement between two parties in which one party agrees to sell a security to the other at a specified price, with the promise to buy it back later at another (usually higher) specified price. If the counterparty defaults, Paxos is able to liquidate the U.S. Treasury collateral to cover the loss, and since all transactions are overcollateralized, the risk of loss is not considered material.
Cryptocurrency News
Coinbase International: BTC-USD and ETH-USDC markets are in full trading mode
Coinbase International Exchange has announced that the BTC-USD and ETH-USDC markets are now in full trading mode.
Yesterday, Coinbase said it would launch spot cryptocurrency trading on its international exchanges as part of its global expansion. Coinbase said that due to the uncertain regulatory background in the United States, some users are cautious about U.S. trading venues. According to a Coinbase document, starting Thursday, institutional investors can trade BTC and ETH with USDC on international platforms.
A large amount of WLD was withdrawn from CEX after Worldcoin announced the launch of World ID 2.0
According to Scopescan, after Worldcoin launched World ID 2.0, a large amount of WLD was withdrawn from CEX. The price of WLD rose from $2.3 to $2.5.
Basel Committee proposes revised standards to allow stablecoins to be considered less risky than unbacked cryptocurrencies
In a consultation paper published Thursday, the Basel Committee on Banking Supervision (BCBS) proposed revising standards to allow stablecoins to be considered less risky than unbacked cryptocurrencies such as bitcoin.
According to news last week, the BCBS is considering revising its stablecoin classification standards, and a draft for comments released on Thursday detailed the proposed revisions.
So far, the BCBS has taken a hard line on cryptocurrencies, recommending a maximum risk weight of 1,250% for free-floating digital assets such as Bitcoin, meaning banks must issue capital to match their risk exposure. Banks are also not allowed to allocate more than 2% of their core capital to these riskier assets. The BCBS said in a statement that it would not make any changes to these standards.
However, cryptocurrencies with “effective stablecoins” qualify for “Group 1b priority regulatory treatment,” meaning that stablecoins can be subject to “capital requirements based on underlying risk weights set out in the existing Basel framework” (rather than stricter requirements for, say, Bitcoin).
Currently, stablecoins must be “readily convertible” to qualify for this regulatory treatment. The BCBS said this ensures that “only stablecoins issued by regulated entities with strong redemption rights and governance are eligible for inclusion.”
The Philippines SEC’s ban on Binance will take effect three months from November 29
Kelvin Lee, chairman of the Philippines Securities and Exchange Commission (SEC), clarified at a panel on Dec. 13 that the ban on Binance will take effect three months after the recommendation is issued.
Lee reportedly said there was a lot of confusion in the industry about the ban after the regulator issued an advisory to Binance on unlicensed operations on November 28. He was asked to clarify the matter and said the ban “should take effect three months after the date of issuance.” The ban was reportedly issued on November 29.
Earlier on November 29, according to an official statement, the Philippine Securities and Exchange Commission (SEC) stated that Binance is not registered as a company in the Philippines and operates without the necessary licenses or authorizations.
ARK Invest increases position to $150 million this month as Coinbase stock hits 20-month high
ARK Invest has sold more than $150 million worth of Coinbase shares (COIN) since December 5. On Wednesday, COIN rose more than 7.7%, breaking through $150 for the first time since April 2022. Despite the recent reduction, Coinbase still accounts for more than 10% of ARK's portfolio and ranks first in its top ten holdings list.
Coinbase shares have risen 325% this year, far outperforming the best performing companies in the S&P 500 and tech giant NVIDIA, which has risen 226% this year. According to some observers, Coinbase stock could rise to $200 in the coming months.
Earlier today, it was reported that ARK Invest, owned by Cathie Wood, continued to reduce its holdings of Coinbase shares on December 13, selling a total of 283,104 shares worth approximately US$42.59 million.
Turkish Finance Minister: Cryptocurrency regulations have entered the final stage and will formulate rules for related platform operations
Turkish Finance Minister Mehmet Şimşek said in an interview that the development of cryptocurrency-related regulations has entered the final stage. Şimşek pointed out that in the upcoming law, cryptocurrency will first be defined, and the CMB law will also change.
According to it, crypto assets are defined as "intangible assets that can express value or rights", and crypto asset service providers and crypto asset custody services are also defined, and relevant regulations are expected to be formulated for the operation of the platform.
Earlier in October, Turkey's official gazette released the 2024 Presidential Annual Plan, which aims to complete the country's encryption regulations within the next year.
Xinhuo Technology issued a profit warning: Affected by FTX, the annual net loss is expected to increase to HK$280 million
Hong Kong-listed company Xinhuo Technology issued a profit warning for the end of September 2023, stating that based on a preliminary review of its annual unaudited consolidated management accounts and currently available information, it is expected that Xinhuo Technology will record a net loss of not less than approximately HK$280 million for the year ending September 30, 2023, compared with a loss of approximately HK$200 million in the same period last year.
The report stated that the increase in net losses was mainly due to the inability to extract cryptocurrency assets from the cryptocurrency exchange FTX for impairment loss provisions of approximately 86 million yuan, as well as employment severance expenses and one-time company personnel restructuring, and cost management plan-related expenses of approximately 15 million yuan. In addition, Xinhuo Technology also announced that it will hold a board meeting on December 28, when it will review, approve and announce the annual results for the year ending September 30, 2023.
Russia’s Ministry of Finance proposes exporting cryptocurrencies as a commodity similar to natural gas
Russia’s Finance Ministry has proposed exporting cryptocurrencies as products of mining activities, a move aimed at putting them on an equal footing with traditional exports such as natural gas.
Deputy Finance Minister Ivan Chebeskov outlined that the proposed cryptocurrency export regulations would be very similar to natural gas export regulations, enabling miners to sell their digital assets as exportable products.
The proposal comes after a bill was submitted to the State Duma in November 2022 that seeks to legalize BTC mining and create a sales mechanism. The bill includes provisions prohibiting cryptocurrency advertising and requires sales to be conducted through foreign platforms, excluding the use of Russian information infrastructure.
Gary Gensler: The size of the crypto securities market is much smaller than the U.S. bond market, and non-compliant behavior has caused investors to suffer losses
U.S. Securities and Exchange Commission Chairman Gary Gensler didn’t seem to want to talk about cryptocurrencies in an interview with Bloomberg Television following a meeting on the U.S. Treasury market on Wednesday.
When asked about the application for a Bitcoin spot ETF, he said, "The $26 trillion U.S. Treasury market is actually the foundation of our entire capital market. It's how we fund the government and how the Federal Reserve makes monetary policy. It's how we maintain the dollar's dominance around the world. Do you want to ask me about cryptocurrencies? What's your top priority? The U.S. Treasury market is a very important, very important market. The crypto securities market is not only much smaller, but it's not how we fund the government. It's not how we conduct monetary policy. For many investors, they've been hurt in this market. They've been hurt because there's so much non-compliance in that market. It's not just a matter of not complying with securities laws, but a lot of other laws."
South Korea plans to implement a market review system for the issuance and circulation of virtual assets next year
Kim So-young, vice chairman of the Financial Services Commission (FSC) of South Korea, said at the international conference on the future of digital currency and CBDC promotion strategy on Thursday that it will consider further market regulatory system review on virtual asset issuance (public offering, ICO) and circulation. The Virtual Asset User Protection Act clarifies the obligations of virtual asset operators and prohibits unfair trading practices at a level similar to the capital market. It is planned to be implemented from July next year. The South Korean National Assembly is discussing the improvement of the system for applying existing capital market law provisions to tokenized securities.
He said, “The general framework of the regulatory system has been formed, and we will further review the issuance and circulation of virtual assets, as well as the business activities and market supervision of virtual asset operators.”
In addition, South Korea will supplement the reliability and stability of the digital asset market by establishing a separate regulatory system for stablecoins, which may threaten the existing monetary sovereignty and financial markets.
Michael Saylor: US accounting standards upgrade will promote global companies to adopt BTC as a reserve asset
Michael Saylor, founder of MicroStrategy, posted on the X platform that the new regulations of the US Financial Accounting Standards Board (FASB) require the formal use of Bitcoin fair value accounting in fiscal years starting after December 15, 2024. This upgrade of accounting standards will promote global companies to adopt Bitcoin as a treasury reserve asset.
David Marcus, former president of PayPal and former head of Meta cryptocurrency, commented that this seemingly minor accounting rule change is actually significant, as it removes a major obstacle for companies to include Bitcoin in their balance sheets. 2024 will be an important milestone for Bitcoin.
Earlier news, the United States will introduce the first version of the cryptocurrency accounting system. According to the new FASB system, cryptocurrencies will be measured at fair value. MicroStrategy, Tesla and Block need to disclose the high and low data of their cryptocurrency holdings.
CFTC proposes rule requiring derivatives clearing organizations to separate customer funds from their own funds
The U.S. Commodity Futures Trading Commission (CFTC) voted to approve a rule to “protect clearing member funds held by derivatives clearing organizations,” which will strengthen protections for customers who trade through derivatives clearing organizations, including requiring clearing organizations that are registered with the CFTC and clear transactions to separate customer funds (including retail investors’ funds) from their own funds.
“In my humble opinion, an important motivation for taking the action we are taking today is the FTX bankruptcy and significant risk management corporate governance failures that illustrate the potential for significant customer losses in the absence of regulatory prohibitions against commingling of customer funds or member property,” CFTC Commissioner Kristin Johnson said at the conference.
