Daily Digest - 1 November 2022

Headlines

▌Hong Kong Sets New Rules for Cryptocurrency Futures ETF Issuers

Hong Kong has set new rules for cryptocurrency futures ETF issuers. Any product needs to meet the requirements for managing unit trusts, mutual funds, and unlisted structured products. ETF issuers need to demonstrate at least three years of track record and compliance with regulations. The issuer will need to prove that the digital asset ETF has sufficient liquidity, the net derivative risk cannot exceed 100% of the total net asset value of the ETF, and the issuer will need to carry out investor education work before launch.

Policy

▌DOJ Re-Examines Tether Bank Fraud Investigation

According to Bloomberg, citing people familiar with the matter, federal prosecutors in Manhattan are taking over Tether’s bank fraud investigation and will investigate whether the executives behind the stablecoin Tether committed crimes. Tether said it had "open conversations" with law enforcement. Last year, federal prosecutors in Washington warned senior Tether officials that they could be charged for allegedly defrauding the banks they used to move cash. But after months of legal wrangling, the case has been handed over within the department, according to people familiar with the matter.

▌Singapore Reminds Its Crypto Firms of Financial Sanctions Against Russia

All approved cryptocurrency exchanges in Singapore have been reminded to comply with financial restrictions imposed by the Monetary Authority of Singapore (MAS) on Russia, Oct. 31. Earlier investigations revealed that pro-Russian groups had raised millions of dollars in cryptocurrency donations to support the ongoing conflict in Ukraine, subjecting Russia to tougher international financial sanctions. MAS is also reported to have taken measures against Russian banks and other companies with operations in Russia before and after the first round of EU sanctions.

Blockchain Application

▌The Monetary Authority of Singapore (MAS) Has Completed the First Phase of the CBDC Project

The Monetary Authority of Singapore (MAS) has completed the first phase of its central bank digital currency (CBDC) project, according to a report on Monday. This phase explores potential use cases for a digital Singapore dollar and the infrastructure required to implement a digital Singapore dollar. "MAS's vision is to build an innovative and responsible digital asset ecosystem in Singapore," the report said. The country has been collaborating with the cryptocurrency industry, issuing licenses to big players like Coinbase and Blockchain.com, and continuing to explore retail CBDCs.

Cryptocurrency

▌Buterin: Large Institutional Capital Should Not Be Pursued Excessively

Ethereum co-founder Vitalik Buterin (Vitalin) expressed his views on the regulatory debate around cryptocurrencies on Sunday. Buterin said, “I don’t think large institutional capital should be pursued excessively. In fact, I am happy that many ETFs have been delayed. The ecosystem needs more time to mature before we get more attention. Basically, especially at this time, the regulation that allows the crypto space to flourish internally but makes it harder for crypto projects to enter the mainstream is nowhere near as bad as the regulation that intrudes into how the inside of crypto works. Also, I would like to see the rules written in such a way that as much as possible the requirements are met by zero-knowledge proofs. ZKPs offer many new opportunities to meet regulatory policy goals while protecting privacy, and we should take advantage of this.”

▌Meta Has Exited the Ranks of the World's Top 20 Companies

As Mark Zuckerberg’s personal assets shrunk by $100 billion, Meta has also suffered a huge blow. Bloomberg reported that the company’s valuation has plummeted by $677 billion in 2022, and it has now withdrawn from the world’s top 20 companies ranking. The sixth-largest U.S. company by market cap in early 2022, with a market cap of $1 trillion, has now fallen to $258 billion, ranking 26th behind Chevron, Eli Lilly, Procter & Gamble, Tencent and others. In addition, Morgan Stanley, Cowen and KeyBanc Capital Markets have previously downgraded Meta shares.

▌GameStop Officially Launched the NFT market

GameStop’s NFT marketplace went live on Immutable X, a platform built using the Immutable X Layer 2 extension protocol that will provide digital assets from major web3 games. GameStop's marketplace will offer assets from Immutable X games such as Gods Unchained, Guild of Guardians, and Illuvium, as well as other web3 games.