8.7 AI Daily AI helps to lead the new direction of the encryption industry, and regulatory policies are becoming clearer.

1. Headline

1. OpenAI may release GPT-5 at 12:00 AM Beijing time on August 8.

OpenAI's official account posted on social media platform X that a live event will be held at 10 AM Pacific Time on Thursday, (, and at 1 AM Beijing Time on Friday, ). The official tweet replaces the letter "S" in the word "LIVESTREAM" with the number "5", which may indicate that the GPT-5 model will be released during this live stream.

The GPT series is a large language model developed by OpenAI, featuring powerful natural language processing capabilities. GPT-4 was released in March this year and has performed excellently in multiple benchmark tests, being considered the strongest general artificial intelligence system to date. If GPT-5 debuts as expected, its performance improvements may further widen the gap with other AI models.

Industry insiders generally expect that GPT-5 will make breakthroughs in areas such as multimodality, reasoning, and common sense knowledge, and is likely to replace artificial intelligence in more fields. However, the GPT series of models has always had potential risks, such as generating harmful content and exacerbating the competition for computational power. The release of GPT-5 may also trigger new ethical controversies. Overall, the arrival of GPT-5 will be another milestone in the development of artificial intelligence, and its impact will be tested over time.

2. Scammers use AI-generated videos to induce users to deploy malicious contracts, over a million dollars stolen.

According to a report by cybersecurity company SentinelLABS, scammers are using AI-generated YouTube videos to promote malicious smart contracts disguised as MEV trading robots, having stolen over 1 million USD in cryptocurrency funds. In the most successful case, address 0x8725...6831 stole 244.9 ETH, approximately 902,000 USD, through a related video with 387,000 views (.

Scam methods include using AI to generate avatars/voices, manipulating comment sections, and employing techniques such as XOR obfuscation in contract codes to hide the attacker's wallet. Victims are guided through YouTube tutorials to deploy the contract using Remix, recharge with ETH, and call the "Start)(" function. But in reality, the contract routes funds to the hidden attacker's wallet.

This scam serves as a warning once again about the severe security risks of AI in the cryptocurrency field. The double-edged sword nature of AI technology not only enhances the efficiency of crime but also increases the difficulty of prevention. Experts urge the cryptocurrency community to pay close attention to AI security risks, strengthen user education, and collaborate with regulatory agencies to improve laws and regulations to jointly maintain the healthy development of the industry.

) 3. Vitalik: Layer2 will achieve a new era of 12-second rapid withdrawals on Ethereum using ZK technology.

Ethereum co-founder Vitalik Buterin recently published an article, clearly pointing out the next key goal of Layer 2 solutions - to significantly shorten withdrawal times to within one hour through zero-knowledge proof (ZK) systems, with a medium-term goal aimed at 12 seconds. This innovation will fundamentally change the asset flow experience for users in the Ethereum ecosystem and further strengthen Ethereum's position as the center for digital asset issuance and economy.

Vitalik stated that it is encouraging that most mainstream L2s have reached the first stage of security standards. The next core goal should be to achieve rapid withdrawals through ZK systems. The speed of withdrawals is crucial, as it will reduce the capital costs for liquidity providers. If the native withdrawal time can be shortened to under 1 hour in the short term and to 12 seconds in the medium term, it will further consolidate Ethereum Layer 1 as the default platform for issuing assets and the economic center of the Ethereum ecosystem.

Vitalik's remarks once again highlight the Ethereum Foundation's emphasis on the importance of Layer 2 scaling. Layer 2 is seen as the key to solving Ethereum's scalability issues, and its continued performance improvements will bring new growth momentum to the Ethereum ecosystem.

4. By CEO Ben's mid-year summary: Daily order processing increased by 75%, By card will be launched.

The cryptocurrency exchange By held a live broadcast themed "Reshaping the Future" on the evening of August 6, where co-founder and CEO Ben Zhou reviewed several advancements By has made by 2025.

• By fully complying with the EU's Markets in Crypto-Assets Regulation (MiCAR), and obtaining registration with the Indian Financial Intelligence Unit ###FIU( in the first half of 2025;
• After experiencing the largest hacker attack in the history of the cryptocurrency industry in February this year, By has comprehensively upgraded its security standards: although its own infrastructure was not affected, it completed 9 rounds of comprehensive security audits in a matter of weeks with the joint efforts of internal and external experts, and implemented more than 50 enhanced protective measures.
• The upgraded matching engine now supports 3.5 million transactions per second, processing nearly 200 billion orders daily, an increase of 75% compared to the first half of 2025.
• The newly launched wealth management platform has surpassed $150 million in assets under management, offering customized investment portfolios and strategy services.

Another highlight of the presentation is the newly upgraded, truly "crypto-native universal card" By Card, which seamlessly connects enterprise and individual consumption scenarios. It supports Visa and Mastercard networks, equipped with intelligent security features and real-time expense tracking.

The rapid development of By highlights the important position of cryptocurrency exchanges in the industry. As the infrastructure of the industry, the innovations of exchanges directly affect user experience and will also drive the wider application of crypto assets.

) 5. SEC Commissioner: New liquidity staking statement may not reflect the actual situation

The U.S. Securities and Exchange Commission ( SEC ) Commissioner Caroline Crenshaw stated on the SEC's official website that the new liquid staking statement fails to clarify the applicability of federal securities laws to crypto assets and instead exacerbates confusion. The statement is based on a series of assumptions that have not been validated against industry realities, and the legal conclusions apply only if these assumptions hold true.

Crenshaw pointed out that the statement overlooks the unique nature of crypto assets, such as decentralization and non-fungibility, which may render them incompatible with the definitions under traditional securities law. At the same time, the statement also fails to account for the complexity of the crypto asset ecosystem, such as emerging concepts like trustlessness and code as law.

She calls on the SEC to maintain open communication with the industry, fully understand the operational logic of crypto assets, and formulate reasonable regulations based on empirical evidence. Overly simplistic or excessively strict regulations could stifle innovation and hinder the healthy development of the industry.

Crenshaw's remarks again reflect the immense challenges regulators face when formulating regulations for crypto assets. The novelty of crypto assets makes it difficult to incorporate them into existing regulatory frameworks, and seeking a balance between innovation and risk management is a long-term systemic project.

2. Industry News

( 1. Bitcoin price briefly surpassed the $120,000 mark, and market sentiment turned greedy.

The price of Bitcoin briefly broke past the $120,000 mark in the past 24 hours, setting a new high since 2025. Analysts believe that this surge is mainly driven by better-than-expected US inflation data, the Federal Reserve hinting at a rate cut in September, and continued buying from institutional investors.

According to on-chain data, the number of active Bitcoin addresses and the trading volume have both seen significant growth, reflecting a surge in market participation enthusiasm. At the same time, the Fear and Greed Index has soared to 62, indicating that investor sentiment has shifted from neutral to greedy. However, some analysts warn that Bitcoin may still face profit-taking pressure in the short term, advising investors to remain cautious.

According to Glassnode data, despite Bitcoin's price breaking through $120,000, it has not been able to completely break free from the supply dense zone of $116,000 to $123,000. If it cannot maintain operations above this range, Bitcoin may face further retracement risks.

Overall, there is still uncertainty for Bitcoin in the short term. Investors need to closely monitor subsequent changes in fundamentals and capital flows, and cautiously grasp potential profit or risk exposure.

) 2. The activity on the Ethereum chain has reached a new high, but the price of ETH has failed to break through.

The recent network activity on the Ethereum blockchain has surged, with daily trading volume skyrocketing to a historical high, and on-chain participation and the number of unique addresses hitting record levels. However, despite the strong fundamentals, the price of ETH has struggled to break through key resistance, leading the market to have doubts about its future trend.

Etherscan data shows that on August 7, the daily trading volume of Ethereum rose to 1.87 million transactions, approaching a historical high. Nansen analysis states that the active trading of USDC, Tether, and Uniswap is the main reason. DappRadar analysts indicate that the "GENIUS Act" provides regulatory clarity, boosts confidence in stablecoin liquidity, and drives an increase in on-chain activity.

However, despite the encouraging on-chain data, the price of ETH has failed to break through the $3700 mark. Analysts at Kronos Research point out that the price movement of ETH is relatively cautious, and the market is undergoing a valuation reassessment. Some institutions believe that the current on-chain activity of ETH has not yet been fully reflected in its price, and if a staking ETF is approved, it could further unleash the potential for ETH to rise.

Overall, the activity on the Ethereum chain continues to rise, but the performance of ETH prices lags behind, reflecting a divergence in market valuation. Investors need to closely monitor regulatory policies, institutional capital flows, and changes in on-chain data to grasp the future trends of ETH.

3. The inflow of funds into altcoins has surged, is the selling pressure increasing or is it a sign of a bull market?

According to the latest data from CryptoQuant, the influx of altcoins into major exchanges has recently surged to an 8-month high, and trading activity has noticeably intensified. Although the altcoin season index is only at 35 and has not officially entered the "altcoin season," analysts have differing views on the market outlook.

Some individuals warn that the surge in the inflow of altcoins may indicate increased selling pressure. On-chain data shows that whale addresses are gradually reducing their holdings, and retail investor enthusiasm has also cooled down. Meanwhile, the latest report reveals that the altcoin market is facing structural weaknesses, making it difficult to attract large-scale capital inflows.

However, some analysts believe that this phenomenon may be a precursor to the arrival of a altcoin bull market. They point out that the inflow of funds into altcoins often signals optimistic sentiment among investors about the future market, which could become a catalyst for the bull market to start.

Overall, the altcoin market is currently at a critical juncture. Investors need to closely monitor capital flows, on-chain activities, and changes in market sentiment, carefully assessing whether a bull market cycle has begun. At the same time, be wary of potential selling pressure and manage risk exposure appropriately.

( 4. The DeFi ecosystem has exploded with a growth flywheel of billions of dollars, with Ethena, Pendle, and Aave leading the way.

In the past 20 days, the supply of Ethena's decentralized stablecoin USDe has increased by approximately $3.7 billion, primarily driven by the Pendle-Aave PT-USDe looping strategy. This strategy utilizes Pendle's cross-chain swap feature to exchange DAI borrowed from Aave for USDe, and then deposits the USDe back into Aave to earn yields, creating a self-growing positive feedback loop.

Analysts point out that this growth flywheel has not only increased the market value of USDe but also driven the deposit and lending volumes of Aave to rise simultaneously. Data shows that Aave's net deposit volume has grown by nearly $10 billion in the past month, surpassing the $60 billion mark for the first time.

Pendle founder Carl stated that this strategy helps improve capital efficiency in the DeFi ecosystem and attracts more funds. However, some individuals are concerned that this high-leverage cycle may amplify systemic risks.

Overall, the growth flywheel created by Ethena, Pendle, and Aave has injected billions of dollars in liquidity into the DeFi ecosystem, but it has also brought new risks. Investors need to carefully assess the risk-reward ratio while closely monitoring changes in regulatory policies.

) 5. The Solana ecosystem RWA explosion, xStocks platform total trading volume exceeds 2 billion USD

The Solana ecosystem tokenized stock platform xStocks has reached a significant milestone! The latest data shows that the total trading volume on the xStocks platform has exceeded $2 billion, with the number of Tesla tokenized stock holders surpassing 10,000, leading the entire platform.

Analysts say that the surge in trading volume for xStocks is mainly due to its unique RWA design. Users can stake Solana ecosystem tokens to receive equivalent tokenized stocks, which can be freely traded on the platform. This model not only enhances asset liquidity but also brings new investment opportunities to users.

Meanwhile, other RWA projects in the Solana ecosystem, such as Pyth and Parrot, have also seen varying degrees of capital inflow. Analysts believe this reflects investors' preference for the RWA concept and their long-term confidence in the Solana ecosystem.

However, some individuals express concerns about the regulatory prospects of RWA projects. They believe that the tokenization of traditional assets may attract the attention of regulatory authorities, and even face the risk of being banned.

Overall, the Solana ecosystem RWA projects are developing rapidly, but potential regulatory risks must still be taken seriously. Investors need to comprehensively assess the risk and return when participating, while closely monitoring changes in regulatory policies.

6. The Meme coin market is experiencing a frenzy again, with Fartcoin, Pepe, and Shiba Inu leading the surge.

The meme coin craze has swept the crypto market again. The three most noteworthy meme coins to watch in August 2025 are Fartcoin, Pepe Coin, and Shiba Inu. These three tokens have not only stood out due to their strong price performance and active community support, but they also demonstrate enormous growth potential in terms of liquidity, trading activity, and brand influence.

Data shows that the price of Fartcoin has increased by over 300% in the past 7 days, with trading volume soaring by several times. The increases for Pepe Coin and Shiba Inu are also both over 100%. Analysts believe this is mainly due to the strong influence of the Meme coin community and investors' enthusiasm for the "next Dogecoin."

At the same time, the number of newly issued tokens on the Meme coin exchange Pump.fun has exceeded 13,000 in the past 24 hours, and the daily trading volume has surpassed LetsBonk, reflecting the booming state of the Meme coin market.

However, some analysts warn that Meme coins often lack real use cases, and their price fluctuations are mainly driven by speculative sentiment, posing extremely high investment risks. They advise investors to operate cautiously and manage their risk exposure.

Overall, the Meme coin market has seen a resurgence of excitement, but investors need to be aware of its high-risk nature and approach potential profit opportunities with caution.

7. DOT, LINK and UNI become "safety multipliers", analysts are optimistic about challenging the 100 dollar mark.

As the cryptocurrency market gradually recovers, Polkadot###DOT###, Chainlink###LINK###, and Uniswap###UNI( have once again become the focus of analysts. Several experts predict that these three major altcoins are likely to challenge the $100 mark in this bull market cycle and are seen as "safe multiplier" assets that offer both high returns and low risks.

Analysts point out that DOT, as a leading blockchain interoperability protocol, has an advantage in infrastructure construction; LINK, on the other hand, is the leader in blockchain oracles and can provide critical data support for applications such as DeFi; while UNI, as the largest decentralized exchange in the Ethereum ecosystem, will continue to benefit from ecological prosperity.

Meanwhile, the technical indicators of these three major tokens are also showing positive signals. Both DOT/BTC and LINK/BTC have broken through key resistance levels, while the ETH dominance continues to decline, all of which signal the start of an altcoin season.

However, some analysts are skeptical about the $100 target price. They believe that, despite the strong fundamentals of the three major tokens, one must remain cautious of the impact of Bitcoin's dominance and the risks associated with regulatory uncertainty.

Overall, DOT, LINK, and UNI are considered "safe multipliers" in this bull market, but investors

Three. Project News

) 1. ALLINDOGE AI Assistant welcomes the Ultra version major update, significantly enhancing Web research efficiency.

ALLINDOGE is an AI smart assistant tool aimed at web users. With its powerful natural language processing capabilities, it helps users efficiently obtain information on crypto assets, interpret on-chain data, generate investment analysis reports, and more. Recently, ALLINDOGE launched the Ultra version, which comprehensively upgrades product features, bringing users a smarter and more efficient web investment research experience.

The core highlight of this update is the integration of the MCP(Multi-Chain Processing) module, which achieves integrated investment research and market analysis functions. Users can directly command the AI to perform a series of tasks such as retrieving on-chain data, project inquiries, market viewing, and document interpretation without the need to switch between multiple platforms, thus obtaining multi-dimensional cross-analysis results. It has upgraded from a simple chat tool to a comprehensive AI assistant that "can listen to commands, understand needs, and execute tasks," significantly improving usage efficiency.

The new version simultaneously implements: new features for historical conversations and session records, completely solving the problem of chat data loss; supports one-click sharing of conversation content, breaking down information dissemination barriers; integrates multiple models, file parsing, and search scheduling systems, expanding scenarios such as document uploading and tool invocation; completes comprehensive visual and operational optimization, with a cleaner and more refreshing interface.

The ALLINDOGE team stated that the Ultra version marks a turning point from "passive querying" to "active service," and will continue to iterate and upgrade around web usage scenarios. The launch of this product is expected to further improve the research and investment efficiency of web users and promote industry development. Several KOLs and analysts have welcomed this update, believing that ALLINDOGE is becoming an indispensable smart tool in the web field.

( 2. The Solana ecosystem is revitalized, with new projects emerging one after another.

Solana is one of the most active public chain ecosystems currently. Although it once fell into a low point, the Solana ecosystem has recently regained its vitality, with new projects emerging one after another, attracting the attention of numerous developers and funds.

During the TOKEN2049 conference in Singapore, the Solana ecosystem showcased strong development momentum. Several new projects were unveiled at the conference, covering multiple fields such as DeFi, GameFi, and infrastructure, including Cub, FlashTrade, SonicSVM, Solayer.labs, and Compute.Labs. The emergence of these projects marks the continuous growth and improvement of the Solana ecosystem.

It is worth mentioning that the Solana ecosystem is attracting more and more fresh blood. Statistics show that nearly half of the attendees at the Breakpoint event are first-time participants, reflecting the rapid expansion of the developer community. Solana, which has risen again from its lows, has a community that has become more resilient, and confidence is continuously increasing.

Many industry insiders believe that the continued vibrancy of the Solana ecosystem will further drive innovation and development across the entire industry. The advantages of Solana in terms of performance, cost, and other aspects provide a good development environment for emerging projects. In the future, more valuable applications may be incubated within the Solana ecosystem.

) 3. The ecological environment becomes a new hotbed of development, attracting attention to SUI and Aptos.

Move is a resource-oriented programming language developed by Meta, primarily used in the blockchain field. Recently, the Move ecosystem has seen explosive growth, becoming a new hotbed of development and attracting widespread attention in the industry.

Among them, the two public chain projects SUI and Aptos performed the most outstanding. SUI's price skyrocketed during the TOKEN2049 conference, and the Sui Builder House also became one of the most popular events before the conference. Aptos is also a highly regarded project, with its token APTOS recently experiencing a 14% increase.

The Move ecosystem is highly sought after mainly due to its technological advantages. The Move language is closely related to Rust, making it not difficult to transition from Rust to Move, which has attracted many Solana ecosystem projects to join. In addition, the technical documentation and infrastructure of the Move ecosystem are considered to be well-crafted, providing good support for developers.

Many analysts believe that the Move ecosystem is likely to become the next Alpha, attracting more quality projects and funding. In the future, the Move ecosystem may become another important public chain ecological high ground after Solana.

However, the Move ecosystem currently faces some development bottlenecks. For example, there are fewer tradable assets within the SUI ecosystem, and the development direction of the Aptos ecosystem still needs to be clarified. As the only Move project that has not yet issued a token, Movement's development deserves ongoing attention.

4. The cryptocurrency industry seeks new tracks, with AI and Web social becoming new hotspots.

After experiencing a downturn lasting half a year, the cryptocurrency industry is actively seeking new development tracks. Among them, AI and Web social are considered the most promising emerging fields, attracting the attention of numerous projects and funds.

At the TOKEN2049 conference, many founders of traditional AI companies joined the Web camp, such as Gensyn, Hyperbolic, Schelling AI, etc. They have launched AI computing and consumer applications aimed at Web users. In addition, some projects dedicated to image/video generation have emerged, such as Title.xyz.

At the same time, Web social has also become the new darling of the industry. Despite the fact that the field has experienced multiple setbacks in the past, more participants are still trying to innovate. For example, Discord founder Yawn has proposed the idea of "Connect to Earn," hoping to achieve mass adoption of Web social through new gameplay such as map social.

However, the development path of AI and web social tracks is not smooth. Some investors are cautious about this, believing that most existing projects are of a meme nature and have a long way to go before they can truly materialize.

Overall, AI and Web social are viewed as the two major hot tracks for the future of the crypto industry. They represent new directions for industry development, attracting a large influx of innovators and capital. However, at the same time, these emerging fields also face numerous challenges, requiring more exploration and innovation.

( 5. Industry divergences are intensifying, and entrepreneurs and investors are left in confusion.

The TOKEN2049 conference not only showcased the latest development trends in the cryptocurrency industry, but also exposed the internal divisions and confusion within the industry.

On one hand, entrepreneurs lack confidence in the future of the industry. Over the past year, popular sectors such as full-chain gaming, NFTs, Web social, and Ethereum L2 have encountered setbacks to varying degrees, with development stagnating. In the face of frequent failures, entrepreneurs appear increasingly pessimistic.

On the other hand, investors have differing views on the prospects of emerging tracks. Some investors believe that 98% of AI+Web applications have been disproven, and there are currently no truly promising projects in sight. However, there are also investors who have high hopes for the integration of AI and cryptocurrency, believing that a project "on par with Ethereum" will surely emerge in the future.

Against the backdrop of frequent disproof of projects on the track, many "serious" project parties and investors have begun to turn to the Meme track. The Meme coin market has shown active performance recently, seemingly becoming the new darling of the industry. However, this short-term behavior has also been criticized by some, who believe it lacks long-term value.

Overall, the TOKEN2049 conference reflected the increasing divisions within the cryptocurrency industry. Entrepreneurs and investors are both confused about the future of the industry, making it urgent to seek new development directions. In this process, the industry needs more innovation and practice, rather than simply chasing trends.

4. Economic Dynamics

) 1. Federal Reserve officials release hawkish signals, inflation pressures persist.

The current U.S. economy is facing severe challenges with persistently high inflationary pressures. The latest data shows that the core Personal Consumption Expenditures Price Index ###PCE### in June rose by 4.8% year-on-year, up from 4.6% in May, significantly above the Federal Reserve's target level of 2%. GDP growth slowed to 2.4% in the second quarter, and there are also signs of a slowdown in the job market.

Recently, several Federal Reserve officials have made hawkish remarks, suggesting that they will continue to raise interest rates to curb inflation. Among them, Minneapolis Fed President Kashkari stated that inflationary pressures remain "very high," and further rate hikes are needed to achieve the 2% inflation target. He expects the federal funds rate to reach about 4.4% by the end of this year.

Investors are worried about the Federal Reserve accelerating interest rate hikes, fearing that excessive tightening could lead to an economic hard landing. The three major U.S. stock indexes closed lower on Friday, with the Dow Jones falling 0.38%, the S&P 500 down 0.77%, and the Nasdaq down 1.23%. Bond yields rose, with the 10-year Treasury yield climbing to 4.24%.

Goldman Sachs chief economist Jan Hatzius believes that the Federal Reserve may need to raise interest rates above 5% to effectively control inflation. He warned that: "Inflationary pressures are still spreading, and the labor market remains too tight." Meanwhile, JPMorgan chief economist Michael Feroli thinks that the Federal Reserve should stop raising interest rates before the end of this year to avoid triggering an economic recession.

2. The U.S. imposes a new round of tariffs on China, escalating trade tensions.

The U.S. government recently announced a 10% tariff on approximately $300 billion worth of imports from China, escalating trade tensions between the two countries. This move is the latest action taken by the Trump administration to reduce the trade deficit.

This tariff measure will take effect on September 24 and may be further increased to 25% on January 1, 2019. Affected products include a wide range of consumer goods such as mobile phones, computers, clothing, and furniture. The Chinese government has stated that it will take countermeasures, which may include imposing tariffs on approximately $60 billion worth of U.S. imports.

Investors expressed concerns about the escalation of the trade war, leading to a significant decline in the three major U.S. stock indices on Wednesday. The Dow fell by 0.54%, the S&P 500 index dropped by 0.76%, and the Nasdaq fell by 1.18%. The U.S. dollar index rose slightly.

Goldman Sachs analysts have stated that if the trade war escalates further, it could drag down U.S. GDP growth by 0.5 percentage points. They warned: "Trade tensions may affect corporate investment and consumer confidence, thereby having a negative impact on the economy."

Former U.S. Treasury Secretary Summers holds a different view, believing that the impact of the trade war on the U.S. economy is limited. He stated: "Tariff measures are primarily aimed at increasing bargaining chips, and ultimately both sides may reach an agreement."

3. The collapse of the Turkish lira triggers turmoil in emerging markets

Recently, the Turkish lira has plummeted, triggering turmoil in emerging markets. The lira has fallen more than 40% against the US dollar since the beginning of the year, hitting a historic low. This is mainly due to heightened investor concerns about Turkey's political and economic outlook.

Turkey's inflation rate has risen to nearly 20%, while the government's economic policies have failed to respond effectively. Meanwhile, President Erdoğan's diplomatic disputes with the United States have also intensified market uncertainty.

The depreciation of the lira has triggered a spillover effect on the currencies of other emerging market countries. Currencies such as the South African rand, Russian ruble, and Indian rupee have all seen significant declines over the past week.

Investors are fleeing emerging market assets in favor of safe-haven assets. The yield on the 10-year U.S. Treasury bond has dropped to 2.82%, hitting a near three-week low. Gold futures prices rose 0.5% on Thursday, closing at $1176.70 per ounce.

Goldman Sachs analysts stated: "Emerging markets are facing pressure from multiple fronts, including trade tensions, geopolitical risks, and a strengthening dollar." They warned that if the Turkish crisis spreads further, it could trigger a new round of global financial turmoil.

However, Citibank analysts are optimistic about this. They believe that although the Turkish crisis may cause short-term shocks to emerging markets, it is unlikely to evolve into a systemic crisis.

5. Regulation & Policy

1. South Korean financial regulators launch research on anti-money laundering for stablecoins

The Financial Supervisory Commission (FSC) of South Korea entrusted the Financial Intelligence Unit (FIU) to conduct the second phase of research on virtual asset legislation on August 6, focusing on anti-money laundering (AML) measures for stablecoins.

As the highest decision-making body for financial regulation in South Korea, the FSC is responsible for formulating and implementing financial regulatory policies. With the increasing popularity of cryptocurrencies and stablecoins in South Korea, establishing a relevant regulatory framework has become an urgent task. This study aims to review global regulatory approaches to stablecoins and examine applicable anti-money laundering and anti-terrorist financing standards.

FSC stated that the upcoming regulations are expected to bring stablecoins under the regulatory framework, allowing them to be used for payments and cross-border transfers. This move reflects the South Korean government's emphasis on the development of stablecoins and the recognition of the need to strengthen anti-money laundering regulations.

Insiders welcome this policy. The head of the legal department of the humb exchange stated: "Stablecoins are becoming increasingly popular in South Korea, and establishing relevant regulations helps maintain market order and promotes healthy industry development." However, some experts are concerned that excessive regulation may hinder innovation and call for leaving room for the development of stablecoins while preventing risks.

( 2. The U.S. SEC has released a new plan to clarify the direction for cryptocurrency regulation.

The U.S. Securities and Exchange Commission (SEC) has recently launched the "Project Crypto" initiative, bringing unprecedented regulatory clarity and investment opportunities to the cryptocurrency industry.

As the highest regulatory authority in the US securities market, the SEC has long maintained a cautious approach to cryptocurrency regulation. However, with the continuous development of the industry and the influx of institutional investors, the establishment of a clear regulatory framework is imminent. "Project Crypto" aims to create a roadmap for cryptocurrency regulation over the next five years, clarifying the SEC's regulatory priorities and principles.

According to the plan, the SEC will prioritize the regulation of Layer-1 tokens and cryptocurrency exchange stocks. Wise Chief Investment Officer Matt Hougan stated that this initiative provides a clear investment direction for investors, which is beneficial for attracting more institutional funds into the crypto market.

However, some industry insiders have expressed concerns about the SEC's regulatory scope. Ripple Labs warns that the plan could permanently place mainstream crypto assets like Ethereum and Solana under SEC oversight, which may hinder innovation and harm industry development.

SEC Chairman Gary Gensler emphasized that "Project Crypto" aims to provide protection for investors while leaving room for innovation. He called for crypto companies to work with the SEC to jointly promote industry compliance.

) 3. The Hong Kong Monetary Authority has issued regulations for stablecoins, establishing strict standards for issuers.

The Hong Kong Monetary Authority has recently officially released the "Stablecoin Regulation," establishing strict licensing standards and compliance requirements for stablecoin issuers.

As the highest authority in financial regulation in Hong Kong, the Monetary Authority widely solicited industry opinions when formulating the regulation. The regulation stipulates that only licensed institutions can issue stablecoins in Hong Kong, and they must meet multiple compliance standards, including real-name authentication, reserve requirements, and audit disclosures.

The head of the Monetary Authority stated that the regulation aims to maintain Hong Kong's status as a financial center and promote the healthy development of stablecoins in the region. "Stablecoins have broad application prospects, but there are also potential risks. We hope to provide adequate protection for investors through a clear regulatory framework."

Industry insiders have mixed reactions to this policy. Hong Kong listed companies are like a tiger with wings, expressing their intention to apply for stablecoin issuance licenses. However, some crypto companies are concerned that overly strict regulations will hinder innovation.

Experts believe that the impact of the stablecoin regulations in Hong Kong will extend far beyond the local market. Li Ka-shing, a partner at Deloitte, stated: "As an international financial center, Hong Kong's regulatory measures will have a profound effect on the global development of stablecoins. This provides a reference for other regions to formulate related policies."

Overall, regulatory agencies in various regions have taken a cautious approach to stablecoins, aiming to mitigate risks while allowing space for innovation. The industry looks forward to all stakeholders working together to promote the healthy and orderly development of stablecoins.