11.26 AI Daily Global encryption regulation intensifies, the encryption industry faces a significant turning point.

1. Headlines

1. Google's AI chip raises concerns about Nvidia's “throne shaking”.

Google recently launched three language model chips, raising industry concerns about NVIDIA's dominant position in the AI chip sector. Although NVIDIA claims its technology is still a generation ahead, the market is worried that self-developed chips by tech giants like Google could shake its kingly status.

The release of 3 self-developed AI chips by Google showcases its strength in the AI hardware sector. Previously, there were reports that Meta is considering deploying Google's AI chips in data centers, which further worried Nvidia. Nvidia's stock price fell by 2.5%, resulting in a market value loss of nearly $30 billion.

Analysts point out that NVIDIA has long held an advantage in AI training and inference with its GPUs, but tech giants developing their own chips may eat into this market. Companies like Google have vast amounts of data and computing power, and are expected to make breakthroughs in customized AI chips. However, the NVIDIA GPU ecosystem is mature and is unlikely to be completely replaced in the short term.

NVIDIA faces challenges including questions about accounting methods and concerns over chip lifespan. In the future, NVIDIA needs to increase investment in chip innovation and expand integrated AI hardware and software solutions to consolidate its leading position in the AI era.

2. The new Federal Reserve Chairman nominee Hassett may drive a major shift in cryptocurrency regulation.

According to reports, Kevin Hassett, the Director of the White House National Economic Council, is seen as the frontrunner for the next Federal Reserve Chair. If Hassett is elected, he will become the first Federal Reserve leader to be deeply involved in crypto assets, which may lead to significant changes in cryptocurrency regulatory policies.

Hassett previously served as a member of the Coinbase Global Advisory Board and holds over $1 million in Coinbase stock. He is believed to be highly aligned with Trump's economic views, including the belief that interest rates need to be lowered. If Hassett takes the helm at the Federal Reserve, Trump's interest rate cut philosophy is likely to be implemented.

Analysts point out that Hasett's appointment will bring historic opportunities for cryptocurrency. As a proponent of crypto assets, he is expected to promote a more open and inclusive policy from the Federal Reserve in terms of regulation. At the same time, Hasett's appointment may also exacerbate the controversy over the independence of the Federal Reserve.

However, Trump is known for his unexpected personnel decisions, and everything remains uncertain until the official nomination is announced. In any case, the new chairperson of the Federal Reserve will have a profound impact on the development of the cryptocurrency industry.

3. Vietnam plans to impose heavy fines for cryptocurrency violations, up to $270 million.

The Vietnamese government recently announced a draft law for the regulation of crypto assets, issuing hefty fines to non-compliant crypto companies and individuals. The draft stipulates that the maximum fine can reach 200 million Vietnamese dong (, equivalent to about 2.7 million USD ), aimed at strengthening the regulation of the crypto industry.

According to the draft, providing products to ineligible investors, conducting unlicensed insurance business, and failing to disclose necessary information will face the highest penalties. In addition, individuals in the country using unlicensed platforms may also be fined up to 30 million Vietnamese dong.

Analysts say that this move reflects the Vietnamese government's high regard for the risks of crypto assets. On one hand, strict punitive measures help curb illegal activities and protect investor interests; on the other hand, excessively harsh regulations may hinder the development of the crypto industry in Vietnam.

The Vietnamese cryptocurrency market is still in its infancy, and establishing a clear regulatory framework is undoubtedly a top priority. However, finding the right balance between risk prevention and supporting innovation will be a matter that the Vietnamese government needs to consider carefully.

4. Large capital outflow from major investors raises liquidity concerns.

According to a report from an on-chain analysis company, cryptocurrency exchanges have recently experienced large outflows of funds. On November 24, an institutional wallet transferred approximately $400 million worth of Bitcoin, setting a record for the largest single-day outflow in history.

This transfer has raised concerns in the market about liquidity. Although the exchange has repeatedly stated that its financial condition is sound, it is still difficult to completely dispel users' distrust of centralized exchanges.

Analysts point out that cryptocurrency exchanges are facing unprecedented liquidity pressure. The FTX collapse has led to users accelerating their “move away from exchanges” behavior, putting centralized exchanges in a dual dilemma of capital outflow and user loss.

At the same time, analysts also remind that as an industry leader, its liquidity status is directly related to the healthy development of the entire cryptocurrency market. Once a liquidity crisis occurs, it will deal a heavy blow to the market. Therefore, ensuring the liquidity safety of exchanges has become a top priority.

5. The prevalence of crypto scams has led to public skepticism about the industry's prospects.

At the TOKEN2049 conference in Singapore, a wave of “crypto scam” rhetoric is spreading. More and more entrepreneurs and investors are expressing doubts about the industry's prospects, believing that the development logic of the past few years is coming to an end.

Some participants bluntly stated that the current predicament of the industry is not only due to the broader environment but also the phased death of the underlying logic. The previous development model, such as creating projects, VC packaging, user growth hacking, and then lying flat after exit, is no longer viable.

Analysts believe that the crypto industry is at its darkest moment, and hoping for a major bull market to save it is unrealistic. The industry needs to reassess innovation and real application scenarios, breaking away from the past development model of chasing short-term hotspots.

At the same time, there are views that the industry's low periods often give birth to new opportunities. Only by staying away from the noise and focusing on true infrastructure construction can the industry regain its momentum for development. In any case, the cryptocurrency industry is facing an unprecedented major turning point.

2. Industry News

1. Bitcoin faces short-term pressure, market sentiment is cautious.

Bitcoin has fallen below the $87,000 mark in the last 24 hours, with a decline of over 1%. Analysts point out that Bitcoin is facing certain short-term pressure, mainly due to:

1. On a macro level, there is uncertainty regarding the Federal Reserve's interest rate hike expectations in December, which has intensified the market's risk-averse sentiment. The recent weakness in tech stocks has also exerted some pressure on the crypto market.

2. On-chain data shows that a large amount of Bitcoin has flowed out of exchanges in the past 24 hours, reflecting that some investors are taking profits.

3. The demand for put options in the options market has increased, indicating heightened concerns about future volatility.

Analysts indicate that Bitcoin will continue to maintain a range-bound oscillation pattern in the short term. If it can hold above the $87,500 level, the upward oscillation structure may continue. However, if it falls below $87,000, it may come under pressure again. Overall, market sentiment is relatively cautious, and investors are adopting a wait-and-see attitude towards future market trends.

2. Activity on the Ethereum chain is picking up, but the OBV indicator still appears weak.

Ethereum rose slightly by 1.24% in the last 24 hours, breaking through the $2,900 mark. On-chain activity has shown signs of recovery, but the OBV indicator derived from trading volume remains weak, signaling potential downside risks.

Analysts point out that Ethereum is currently in a critical price range, with market sentiment trending neutral. Future movements depend on whether it can break through significant resistance levels.

On one hand, if Ethereum can effectively break through the resistance at $3,100, it will open up upward space. The recovery of on-chain activity will also provide supportive momentum for price increases.

On the other hand, if Ethereum fails to break through the resistance level and the OBV indicator continues to weaken, it will trigger further downward pressure. At that time, Ethereum may revisit the support area around the $2,700 level.

Overall, Ethereum is currently at a critical turning point. Investors need to closely monitor whether the price can break through the resistance level to determine the future development trend.

3. The Solana ecosystem continues to heat up, and the SOL price has rebounded in the short term.

The Solana ecosystem continues to heat up, with the SOL price rebounding nearly 3% within 24 hours. Analysts believe that the ongoing development of the Solana ecosystem provides support for the SOL price.

Specifically, there are the following highlights in the Solana ecosystem recently:

1. The Solana ecosystem project Bonk has received a lot of attention, boosting the activity of the Solana network.

2. The Solana Foundation announced that it will invest $100 million for ecosystem development and project incubation.

3. Well-known institutions such as FTX are increasingly investing in the Solana ecosystem, injecting new funds into it.

Analysts indicate that the continued warming of the Solana ecosystem will bring medium to long-term upward momentum to the SOL price. However, in the short term, SOL may still face some retracement pressure. Investors should closely monitor the key support level for SOL at the $65 line; if it falls below this level, further downside risk will be faced.

Overall, the development prospects of the Solana ecosystem are promising, but investors should also be cautious about managing risks.

3. Project News

1. Sentient: A New Paradigm for Practical AI

Sentient is a decentralized artificial intelligence network aimed at realizing the practical value of AI through We technology. The project was founded by Yuliya Fedorov, with the goal of creating an open, transparent, and accessible AI ecosystem.

The Sentient network utilizes blockchain technology and a token economic model, allowing anyone to contribute computing power and data and receive corresponding token rewards. This incentive mechanism helps attract more participants, thereby expanding the network's computing power and data set, improving the performance and accuracy of AI models. Unlike traditional closed AI systems, all data, models, and algorithms in the Sentient network are open source and transparent, allowing anyone to review and verify.

Recent developments show that Sentient has developed a series of AI applications, including natural language processing, computer vision, and reasoning. These applications can be widely applied in industries such as finance, healthcare, and education, providing users with efficient and intelligent services. At the same time, Sentient is also continuously optimizing its underlying technology architecture to improve the system's scalability and security.

The emergence of Sentient has injected new vitality into AI development. Through We technology, it is expected to address issues such as data monopolies and algorithmic black boxes in traditional AI systems, promoting AI towards a more open, transparent, and democratic direction. However, Sentient also faces some challenges, such as how to attract sufficient computing power and data contributions, and how to ensure the security of the network, which requires continuous efforts from the project team.

Industry insiders have a cautiously optimistic attitude towards Sentient. On one hand, the project's vision and technological roadmap have received widespread recognition; on the other hand, the feasibility of its business model still needs to be tested over time. Overall, Sentient opens up new possibilities for AI development and is worth ongoing attention.

2. Gensyn: AI computing platform on the blockchain

Gensyn is a blockchain-based distributed AI computing platform designed to provide AI developers with efficient, secure, and cost-effective computing resources. The project was founded by former Google engineers and has currently raised tens of millions of dollars in funding from top venture capital firms.

The core concept of Gensyn is to distribute AI computing tasks across computing nodes around the world, thereby making full use of idle computing resources. Developers only need to submit tasks to the Gensyn network, and the system will automatically assign the tasks to nodes with the corresponding computing power. After completing the tasks, the nodes will receive corresponding token rewards. This decentralized computing model not only reduces costs but also improves computing efficiency and reliability.

Latest news shows that Gensyn has partnered with several well-known companies to provide AI computing services. For example, it is developing quantitative trading algorithms for a financial institution and conducting molecular simulations for a pharmaceutical company. Meanwhile, Gensyn is continuously expanding its network of computing nodes, which now covers over 100 countries and regions.

The emergence of Gensyn has brought new development opportunities for AI computing. Traditional AI computing often relies on expensive data centers, while Gensyn offers a more economical and flexible computing method. However, Gensyn also faces some challenges, such as how to ensure the accuracy of computational results and how to prevent attacks from malicious nodes, which requires the project team to continuously optimize and improve.

Industry insiders are optimistic about the prospects of Gensyn. On one hand, the project addresses the pain point of high AI computing costs; on the other hand, its decentralized architecture also helps to improve computing efficiency and reliability. Overall, Gensyn opens up new avenues for AI computing and is worth continued attention.

3. Hyperbolic: The Innovative Fusion of AI and We

Hyperbolic is an innovative company focused on the integration of AI and We technology, aiming to create the next generation of intelligent applications. The company was founded by former Google and OpenAI engineers and has secured tens of millions of dollars in funding from top venture capital firms.

The core concept of Hyperbolic is to combine AI technology with blockchain, token economy, and other Web elements to create entirely new application scenarios. For example, the company is developing an AI-based decentralized exchange that can automatically execute smart routing and arbitrage strategies. Additionally, it is exploring the integration of AI with NFTs, DAOs, and other fields, aiming to provide users with a more intelligent experience.

Recent news shows that Hyperbolic has launched its first product—a crypto trading assistant based on AI. This assistant can analyze market conditions in real time and provide users with personalized trading suggestions. Meanwhile, Hyperbolic is also continuously developing other innovative applications, including an AI-driven NFT creation platform, smart contract optimization tools, and more.

The emergence of Hyperbolic marks the deep integration of AI and We technology. By combining the advantages of both, the company is expected to bring a new experience and value to users. However, Hyperbolic also faces some challenges, such as how to ensure the fairness and transparency of AI algorithms, and how to balance innovation with compliance. This requires the project team to continue exploring and practicing.

Insiders have an open and expectant attitude towards Hyperbolic. On one hand, the company's innovative ideas have gained widespread recognition; on the other hand, the feasibility of its business model still needs to be tested over time. Overall, Hyperbolic represents the future trend of the integration of AI and We, and is worth continued attention.

4. Economic Dynamics

1. The U.S. November PCE price data may remain high, with inflation pressures continuing.

The U.S. economy maintained moderate growth in the third quarter of 2025, but inflationary pressures remained high. According to the latest data, the Personal Consumption Expenditures Price Index ( PCE ) rose by 2.8% year-on-year in September, just slightly down from the previous month. The core PCE price index increased by 4.5% year-on-year, exceeding the Federal Reserve's target level of 2%.

The Federal Reserve is closely monitoring the PCE price index as a measure of inflationary pressures. Although energy and food prices pushed the Producer Price Index ( PPI ) up by 0.3% month-on-month, several key items covered by the PCE index may keep core inflation at recent high levels. This means that the pressure for a rate hike by the Federal Reserve in December remains.

Goldman Sachs Chief Economist Jan Hatzius stated that the PCE data may become the last important inflation assessment obtained before the Federal Reserve's policy meeting in December. He expects the Federal Reserve to raise interest rates by 50 basis points in December and to increase rates to a peak range of 5.25%-5.5% in the first half of 2026.

However, some analysts believe that signs of an economic slowdown are becoming apparent. Bank of America Merrill Lynch's global research department points out that a weak job market may prompt the Federal Reserve to begin a rate-cutting cycle in the second half of 2026. Overall, there remains considerable uncertainty regarding the inflation outlook, and investors are closely watching the Federal Reserve's policy direction in December.

2. The European Central Bank may intensify interest rate hikes to address the risk of “stagflation”.

The President of the European Central Bank, Christine Lagarde, recently reiterated in a speech that it will continue to raise interest rates significantly to combat inflation. She warned that if inflation expectations continue to rise, Europe could fall into a “stagflation” dilemma.

The inflation rate in the Eurozone reached 10.6% in October, far exceeding the European Central Bank's target of 2%. The surge in energy prices is the main driver of inflation. However, the tightening labor market and rising wages have also intensified inflationary pressures.

Goldman Sachs analysts expect the European Central Bank to raise interest rates by 75 basis points in December, bringing the benchmark rate up to 3%. They anticipate that rates will further increase to 3.75% by 2026.

Fabio Balboni, Chief Economist for Europe at HSBC, stated that the challenge facing the European Central Bank is to curb inflation expectations without triggering a severe economic recession. He believes that the ECB may need to raise interest rates to a “restrictive” level above 4%.

Investor expectations for the European Central Bank's policy path have also been revised upwards. The yield on 2-year government bonds in the eurozone has risen by nearly 100 basis points since mid-October, reflecting market expectations for more aggressive rate hikes. However, some analysts are concerned that excessive tightening may exacerbate the risk of economic recession.

3. The Bank of Japan may end its ultra-loose monetary policy to address the pressure of yen depreciation.

Recently, the exchange rate of the yen against the US dollar has continued to weaken, raising market expectations for the Bank of Japan to adjust its ultra-loose monetary policy. Analysts believe that the Bank of Japan may begin a gradual exit from ultra-loose policy in the first half of 2026.

Japan's core inflation rate reached 3.6% in October, the highest level since 1982. The depreciation of the yen and rising energy prices are the main drivers of inflation. The Bank of Japan has maintained an easy monetary policy to stimulate economic growth, but this has also intensified the pressure on the yen's depreciation.

Goldman Sachs analysts have stated that if the Bank of Japan maintains its current policy, the yen could further depreciate to a level of 150 yen per 1 dollar. They expect the Bank of Japan to raise interest rates by 10 basis points in April 2026 and gradually increase the rate to 1%.

Citigroup expects the Bank of Japan to start raising interest rates in July 2026 and to increase the rate to 1.25% by the end of 2027. Citigroup analysts point out that the Bank of Japan needs to seek a balance between supporting economic growth and curbing inflation expectations.

However, the Governor of the Bank of Japan, Haruhiko Kuroda, previously stated that the rise in inflation is mainly due to one-off factors and is expected to fall back in 2024. He emphasized that it is reasonable to maintain the current accommodative policy. There is significant divergence in the market regarding the outlook for the Bank of Japan's policy, and investors will closely monitor the central bank's policy direction.

5. Regulation & Policy

1. The new financial law in the UAE will include DeFi regulations, with a maximum fine of $270 million for violations.

The newly revised financial law in the UAE is about to officially take effect, which includes bringing decentralized finance ( DeFi ) and the broader Web3 industry under regulatory oversight. This marks a significant shift in the UAE's regulatory framework aimed at addressing the rapid development of crypto assets and blockchain technology.

The new regulations grant the Securities and Commodities Authority of the UAE (SCA) extensive regulatory powers, including supervision of DeFi protocols, decentralized autonomous organizations (DAO), NFT platforms, and more. The maximum fine for violations of relevant regulations can reach $270 million. The bill also stipulates that the SCA has the authority to request any entity to provide relevant information and documents to ensure compliance with the regulations.

The introduction of this bill aims to protect investor rights, prevent financial crime risks, and provide a compliant regulatory environment for crypto assets and Web3 innovation. Industry insiders believe that this move will lay the foundation for the UAE to attract more blockchain and crypto companies, benefiting its goal of becoming a regional crypto hub. However, there are also concerns that excessive regulation may stifle innovation.

Khaled Al Khazraji, the director of the UAE Crypto Assets Regulatory Office, stated that the new regulations will bring greater certainty and confidence to the UAE's crypto assets and Web3 ecosystem. He emphasized that the regulatory authority will work closely with the industry to ensure that the implementation of the regulations is conducive to innovative development.

2. Russia plans to relax the threshold for cryptocurrency investments, ordinary investors are expected to participate legally.

Ivan Chebeskov, Deputy Minister of Finance of Russia, recently revealed that Russia plans to cancel the current strict regulations that limit participation in the cryptocurrency market to “high-qualified” investors and intends to establish a tiered access mechanism to expand the range of legitimate investors.

According to current regulations, individual investors must hold at least 100 million rubles in bank deposits and securities, and have a verifiable income of more than 50 million rubles in the past year to obtain “high qualification” certification, thereby qualifying to invest in crypto assets. However, Russian regulatory authorities have reached a basic consensus on easing restrictions, and in the future, differentiated access standards will be set for non-qualified, qualified, and high-qualified investors.

This move marks a significant shift in Russia's stance on cryptocurrency regulation, with the Ministry of Finance and the Central Bank reaching a consensus on key regulatory issues. Analysts predict that by 2026, the market for compliant cryptocurrency investment products in Russia could surpass 2 trillion rubles, opening the door for ordinary investors to legally participate in the digital asset market.

Although the Central Bank of Russia still opposes the free circulation of cryptocurrencies within the country, it has gradually relaxed its policies this year, proposing in March to allow cross-border settlements using cryptocurrencies under an “experimental legal framework” and approving in May the opening of crypto derivatives to highly qualified investors.

Anatoly Aksakov, chairman of the Financial Market Committee of the State Duma of Russia, believes that the regulation of crypto assets should balance investor protection with the needs of industry development. He stated that the new tiered access mechanism will provide more participation channels for ordinary investors, while also strengthening risk disclosure and investor education.

3. The South African Reserve Bank lists cryptocurrencies and stablecoins as emerging financial risks.

The South African Reserve Bank has listed cryptocurrencies and USD stablecoins as sources of financial risk in its latest report, pointing out that as the number of users and transaction volumes increase, an inadequate regulatory framework may threaten financial stability.

The central bank pointed out in its semi-annual “Financial Stability Assessment Report” that the digitalization and cross-border characteristics of cryptocurrencies allow them to circumvent existing foreign exchange control laws, while digital assets have not yet been included in regulation. The central bank's chief macroprudential expert, Herco Steyn, stated that the risks stem from “the regulatory framework being incomplete.” He expects progress next year but warns that if progress stalls, “regulation will be powerless.”

Currently, the South African Reserve Bank is working with the Treasury to develop new regulations to oversee cross-border cryptocurrency transactions and amend foreign exchange control laws to include digital assets. The central bank emphasizes that as the adoption of cryptocurrency assets increases, the domestic regulatory framework must continuously adjust to market developments and risks.

Data shows that the South African cryptocurrency industry is dominated by three major platforms: Luno, VALR, and Ovex. Stablecoins have replaced Bitcoin as the main trading pair, but disagreements between the government and the central bank regarding cryptocurrency policies have increased market uncertainty.

Sean Sanders, the chairman of the South African Crypto Assets Industry Association, stated that the industry is maintaining close communication with regulatory authorities, calling for the establishment of a clear regulatory framework. He believes that reasonable regulation will benefit the long-term development of crypto assets in South Africa.

4. Spain plans to implement a tiered system for cryptocurrency investors, establishing a risk signal system.

The Spanish government is advancing a regulatory framework for crypto assets, planning to set differentiated access standards for different types of investors, and establish a visual risk signal system.

According to reports, the Spanish Ministry of Economy is drafting a cryptocurrency asset bill that categorizes investors into three classes: non-qualified investors, qualified investors, and high-qualified investors. Investors of different levels will face different investment thresholds and restrictions.

The proposal also stipulates that the Spanish National Securities Market Commission ( CNMV ) will create a visual risk signal light system for cryptocurrencies, which must be displayed on investor platforms in Spain. The assessment factors include official registration, regulation, guarantees, and liquidity.

The proposal aims to strengthen investor protection while creating an orderly regulatory environment for the cryptocurrency industry. Spain's Minister of Economy, Nadia Calvino, stated that the government hopes to provide necessary protection for investors without stifling innovation.

Industry professionals in the cryptocurrency asset sector welcome this. Pablo Gómez, a partner at Adan Capital, believes that the tiered system will help attract more investors to the crypto market. However, he also pointed out that regulation should not be too rigid and needs to be adjusted in line with the times.

Isidro Prieto, the chairman of the Spanish Digital Asset Commission, called on the government to maintain close communication with the industry when formulating regulations to ensure the feasibility and effectiveness of regulatory measures. He emphasized that reasonable regulation will create a favorable environment for the long-term development of the Spanish cryptocurrency industry.