Uruguay passes cryptocurrency law; geopolitical conflict may attract investors

Headlines

▌Uruguay Passes Cryptocurrency Law

Uruguayan President Luis Lacalle Pou recently signed Bill 20.345, a bill regulating the use of Bitcoin and cryptocurrencies in the country. The law puts Uruguay in a privileged position, providing clear regulations for companies that want to provide crypto-related services. The Central Bank of Uruguay will supervise Virtual Asset Service Providers (VASPs) and will have to issue operating licenses to such organizations. The issuance of these licenses will take into account "legality, opportunity and convenience". Similarly, the Financial Services Superintendent (SSF) must identify exchanges, wallets and even miners that fall into the VASP category. The law amends the current regulations on money laundering and terrorist financing control to include virtual assets as an object of control and supervision by current law enforcement agencies. In addition, it reformed securities laws and introduced the concept of decentralized securities, which are "issued, stored, transferred and traded electronically through distributed ledger technology."

▌JP Morgan: Geopolitical conflicts may attract investors to favor gold and Bitcoin

JPMorgan analysts said that the growing geopolitical tensions and the November presidential election are prompting investors to view gold and Bitcoin as safe-haven assets, or "depreciation trades." Analysts said that this "depreciation trade" was driven by a variety of factors, including increased geopolitical uncertainty since 2022, continued inflation concerns, huge government deficits in major economies, and weakening confidence in fiat currencies, especially in some emerging markets.

Market

As of press time, according to Coingecko data:

BTC's latest transaction price is $60,728.56, with a daily increase or decrease of -0.6%;

ETH's latest transaction price is $2,351.79, with a daily increase or decrease of -1.5%;

BNB's latest transaction price is $545.52, with a daily increase or decrease of -0.4%；

SOL's latest transaction price is 137.26 US dollars, and its intraday increase or decrease is -2.8%；

DOGE's latest transaction price is 0.1054 yuan, and its intraday increase or decrease is -0.4%；

XPR's latest transaction price is 0.5184 US dollars, and its intraday increase or decrease is -2.6%。

Policy

▌HKMA and Qatar Central Bank strengthen financial cooperation

The Hong Kong Monetary Authority and the Central Bank of Qatar held a bilateral meeting in Doha on October 3 (Doha time) to strengthen cooperation in the financial services sector between the two places. During the meeting, the HKMA and the Central Bank of Qatar discussed a number of cooperation plans to strengthen cooperation in the field of financial infrastructure, and shared experiences on capital market connectivity, sustainable finance, bond market development, digital assets and talent cultivation. The HKMA hopes to work closely with the Central Bank of Qatar to promote connectivity and further exchanges between the two financial markets.

▌US Federal Appeals Court Approves Legalization of Election Prediction Market

Despite opposition from regulators, the US Federal Appeals Court approved derivatives exchange Kalshi to list event contracts related to US election results in an October 2 ruling. The ruling paves the way for the operation of election prediction markets, potentially including Web3 platforms like Polymarket, to operate in the United States. On October 2, the District of Columbia Circuit Court of Appeals rejected the US Commodity Futures Trading Commission’s (CFTC) request to prevent Kalshi from listing derivatives related to political results, just before the US presidential election.

Blockchain Applications

▌Sui Mainnet Upgraded to V1.34.2

According to official news, the Sui mainnet has been upgraded to version V1.34.2, and the protocol has been upgraded to version 60. Other upgrade highlights include increasing the size of the maximum type layout in the virtual machine, and starting from protocol version 60, transactions containing unparseable types will no longer be signed by verification nodes.

▌More than half of DePIN projects were launched on Ethereum

More than half (57.5%) of DePIN projects were launched on Ethereum, with Solana accounting for 5.4% of DePIN projects, Polygon accounting for 5.1%, Binance accounting for 0.6%, Arbitrum and Cosmos accounting for 2.4% and 1.8% respectively. These non-Ethereum platforms together account for about 42.5% of the projects launched, leaving room for competition.

Cryptocurrency

▌Standard Chartered Bank Analyst: Investors should buy dips when Bitcoin prices are affected by geopolitics

Geoff Kendrick, global head of digital asset research at Standard Chartered Bank, said that although risks in the Middle East may cause Bitcoin prices to fall, investors should view it as a buying opportunity as Donald Trump's chances of winning the US presidential election continue to rise.

▌FBI: North Korean hackers are launching sophisticated attacks on crypto ETF companies

MetaMask posted on the X platform that the FBI warned that North Korean hackers (such as Lazarus Group) are launching sophisticated attacks on crypto ETF companies. Tay urged ETF issuers and related companies to review internal controls now, suggesting that the PSA could prevent hacker attacks.

▌Binance Cryptocurrency Market Share Drops to Four-Year Low

According to CCData data, Binance's combined market share in spot and derivatives trading volumes in September fell to its lowest level since September 2020. Its spot trading volume fell by nearly 23% from August, bringing its spot market share to 27%, the lowest value since January 2021. The platform's derivatives trading also fell by 21%, with a market share of 40.7% in CEX, the lowest level since September 2020. As of press time, Binance representatives have not responded to requests for comment.

▌Fidelity Bitcoin ETF FBTC had a net outflow of 37.2 million US dollars yesterday

According to Farside Investors data, Fidelity Bitcoin ETF FBTC had a net outflow of 37.2 million US dollars yesterday.

Important Economic Dynamics

▌JP Morgan Chase: US non-agricultural employment is expected to increase by 125,000 in September, and a 50 basis point interest rate cut is still possible

JP Morgan Chase said that the US non-agricultural employment is expected to increase by 125,000 in September, and a 50 basis point interest rate cut is still possible.

▌Fed's Goolsbee: A 25bp or 50bp cut is not as important as a sharp cut in interest rates over the next 12 months to reach a neutral rate

Fed's Goolsbee said that a 25bp or 50bp cut is not as important as a sharp cut in interest rates over the next 12 months to reach a neutral rate. The latest inflation data has reached the Fed's target; the labor market is at full employment.

Golden Encyclopedia

▌What is Algorithm of Thought (AoT)?

Algorithms of Thought (AoT) is a breakthrough approach in the field of artificial intelligence (AI) that revolutionizes the way AI models think and reason. Developed by Microsoft Research, AoT introduces a new paradigm for large language models (LLMs) to enhance reasoning capabilities to solve complex problems. It aims to combine the best of both worlds: a nuanced, intuitive understanding of the human thought process with a structured, systematic algorithmic approach.

Disclaimer: As a blockchain information platform, Golden Finance publishes articles for informational reference only and is not intended as actual investment advice. Please establish the correct investment philosophy and be sure to increase risk awareness.