Regulatory Dynamics

1. The President of the European Central Bank stated that Bitcoin is a speculative asset that requires regulation. She hopes to launch a digital euro within 5 years. The ECB Governing Council is discussing whether to advance the digitalization of the euro, but no clear decision has been made yet. However, the ECB leadership has hinted that they are paying attention to the potential impact of this move on the market.

2. The International Monetary Fund report indicates that nearly 80% of central banks worldwide either do not have legal permission to issue digital currencies or have unclear legal frameworks. A review of the central bank laws of 174 member countries revealed that only about 40 member countries are legally allowed to issue digital currencies. The IMF emphasizes that if a country issues a digital currency, everyone within that jurisdiction must be able to conveniently access that payment system, which could pose challenges to financial infrastructure.

3. New banking regulations in Russia will allow financial institutions to freeze the bank accounts of individuals or companies they believe are related to cryptocurrency activities. This rule change implemented by the central bank outlines modifications to existing banking codes. Under the new regulations, cryptocurrency-related banking transactions may be flagged as "suspicious transactions" involving "money laundering or terrorist financing." Unless government intervention occurs, the amendments may be issued this October.

Industry News

1. The BSN Open Permissioned Chain will officially launch on January 31 on the BSN China official website. BSN plans to collaborate with multiple international banks and technology companies to establish a universal digital payment network within 5 years. BSN will create more public city nodes, integrate more frameworks, and launch at least 3 new cross-chain protocols. BSN will also promote private BSN and authorized platforms, aiming to cover 23 provinces in China by 2021.

2. Bitcoin Core has released the official version 0.21.0 source code, nearly 6 months since the last major version release. This version has implemented features related to Schnorr Signature and Taproot proposals. The next major version will remove the leading 0 from the version number, changing it to "22.0", planned for release on August 1.

3. Creditors will be able to claim up to 90% of the remaining BTC from Mentougou. Investors can wait for the lawsuit settlement against Mentougou without having to accept compensation in advance. A large influx of BTC into the market may cause price fluctuations.

4. Cryptocurrency custodian Anchorage has received approval from the Office of the Comptroller of the Currency (OCC) to become the first federally chartered digital asset bank. Anchorage applied for a license from the OCC last November with the aim of becoming a digital asset bank.

5. The mayor of Miami, Florida is considering investing a portion of the city's treasury reserves in Bitcoin. He stated that he is looking to diversify the investment portfolio and hold Bitcoin investments. The city is seeking to establish a regulatory framework to make it the "easiest place to do crypto business in the United States."

6. Osprey Funds will launch the "Osprey Bitcoin Trust" in the over-the-counter market, with a management fee of 0.49%, approximately one-fourth of its main competitor Grayscale Bitcoin Trust. The minimum purchase amount for qualified investors is $25,000, with a one-year lock-up period before selling on the secondary market.

7. Biden will appoint former U.S. Commodity Futures Trading Commission Chairman Gary Gensler as the Chairman of the SEC. Gensler is leading Biden's financial policy transition team and is said to have a deep understanding of cryptocurrency technology.

8. Grayscale has resumed the subscription of crypto trust funds excluding ETH and XRP, and has dissolved the XRP trust. The minimum subscription limit for BTC is $50,000, while for most other cryptocurrencies it is $25,000. Grayscale has decided to liquidate and dissolve the XRP trust following the lawsuit filed by the SEC against Ripple.

9. Grayscale Investments had a total fund inflow of $3.3 billion in the fourth quarter of 2020, reaching a historic high. Institutional investors accounted for 93%, amounting to $3 billion. Over 87% of the institutional funds flowed into the Grayscale Bitcoin Trust. The total fund inflow for the year 2020 exceeded $5.7 billion, which is more than four times the cumulative inflow from 2013 to 2019.

10. Forbes released the cryptocurrency billionaire list. Gemini co-founders Tyler and Cameron Winklevoss are tied for first place, each with a net worth of about $1.4 billion. They are followed by Bloq co-founder Matthew Roszak and Bitcoin supporter Tim Draper, among others. This list only accounts for the investment value of cryptocurrencies.