Regulatory Dynamics

1. ECB President's Comments on Bitcoin and Digital Euro

European Central Bank President Christine Lagarde stated that Bitcoin is a speculative asset that has facilitated some interesting business activities, but it requires regulation. She expressed hope to launch a digital euro within five years. Previously, the ECB's Governing Council discussed whether to advance the digitization of the euro, but no clear decision has been made. However, the latest statements from the ECB leadership suggest that the institution is paying attention to the potential impact of this move on the market.

2. IMF Report: Only 40 Countries Can Legally Issue Central Bank Digital Currencies

The International Monetary Fund recently released a report stating that, according to a survey, an increasing number of central banks are exploring the possibility of issuing central bank digital currencies ( CBDC ). However, nearly 80% of central banks globally are either not allowed to issue digital currencies under existing 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 emphasized that if a country issues a digital currency, everyone in that jurisdiction must have convenient access to that payment system, which could pose challenges to financial infrastructure.

3. Russia plans to authorize banks to freeze cryptocurrency-related accounts.

Russia's new banking regulations will allow financial institutions to freeze bank accounts of individuals or companies that they believe are related to cryptocurrency activities. This rule change is implemented by the central bank and outlines modifications to existing banking codes. The new regulations state that if there are signs of "digital currency circulation," commercial banks will be able to intervene and prevent access to the accounts. The Central Bank of Russia has stated that under the new regulations, cryptocurrency-related bank transactions generally exhibit "routine and one-way" characteristics and may be flagged as "suspicious transactions" involving "money laundering or terrorist financing." Unless there is government intervention, the amendments may be issued in October this year, but the likelihood of this at the current stage is low.

Industry News

1. The BSN Open Permissioned Chain is about to be launched.

The BSN Open Permissioned Chain will officially launch on January 31 on its Chinese official website. BSN recently released the "2021 Outlook" outlining the project roadmap: 1) plans to establish a universal digital payment network within 5 years in collaboration with various countries' CBDCs and multiple international banks and technology companies; 2) will create more public urban nodes, integrate more frameworks, and launch at least 3 new cross-chain protocols; 3) will promote private BSN and authorized platforms; 4) will strengthen cooperation with cloud service, framework, and portal providers.

2. Bitcoin Core releases a new version

The Bitcoin Core client has released the official version 0.21.0 source code, nearly 6 months since the last major version release. The new version has implemented Schnorr signatures and Taproot-related proposal functionalities. The next version will change from "0.22.0" to "22.0" and is scheduled for release on August 1.

3. Mentougou creditors can demand high BTC compensation.

According to reports, creditors will be able to claim up to 90% of the remaining BTC from Mentougou. CoinLab states that investors can wait for a lawsuit settlement and do not have to accept compensation in advance. If a large number of claims for BTC flood the market, it may trigger price fluctuations.

4. Anchorage becomes the first federally chartered digital asset bank in the United States.

Cryptocurrency custodian Anchorage has received conditional approval for a national trust charter from the U.S. Office of the Comptroller of the Currency ( OCC ), becoming the first federally chartered digital asset bank in the United States. Anchorage had previously applied for a charter in hopes of becoming a digital asset bank like Kraken and Avanti. BitPay and Paxos also submitted applications at the same time.

5. Miami's mayor considers investing in Bitcoin

Miami Mayor Francis Suarez is considering investing a portion of the city’s treasury reserves in Bitcoin. He stated that if this had been done last year, a 200% return could have been achieved. Suarez aims to make Miami one of the "most crypto-forward and tech-driven cities" in the United States and is seeking to establish a regulatory framework to make it the "easiest place to do crypto business" in the country.

6. Osprey Funds launches low-fee Bitcoin trust

Osprey Funds under REX Shares will launch the "Osprey Bitcoin Trust ( OBTC )" off-exchange, with a management fee of 0.49%, which is about a quarter of its main competitor Grayscale Bitcoin Trust. Fidelity Digital Assets provides custody services. The minimum purchase amount for qualified investors is $25,000, with a one-year lockup period before selling on the secondary market.

7. Biden may appoint Gary Gensler as SEC Chairman

Biden may appoint former Chairman of the U.S. Commodity Futures Trading Commission Gary Gensler as SEC Chairman. Gensler is leading Biden's financial policy transition team and has a deep understanding of the application of cryptocurrency technology.

8. Gray scale recovery of part of the encrypted trust subscription and dissolution of the XRP trust

Grayscale has reopened to new investments after a 20-day pause, but the ETH and XRP trusts are currently not available for purchase. Additionally, Grayscale has decided to liquidate and dissolve its XRP trust in response to the SEC's lawsuit against Ripple.

9. Grayscale Q4 fund inflows hit record high

Grayscale Investments saw a total inflow of $3.3 billion across all products in Q4, setting a new historical high. Institutions accounted for 93%, reaching $3 billion. The total inflow for the year 2020 exceeded $5.7 billion, more than four times the cumulative inflow from 2013 to 2019.

10. Forbes releases the cryptocurrency billionaire list

Forbes released the cryptocurrency billionaires list, calculating only the value of cryptocurrency investments. Gemini co-founder ranks first with a net worth of $1.4 billion. Following him are Bloq co-founder Matthew Roszak ( at $1.2 billion ) and Bitcoin supporter Tim Draper ( at $1.1 billion ).