Chinese rush to invest into banned Bitcoin amid economic downturn

 Residents of China have begun actively converting their savings into cryptocurrencies, using creative ways to own Bitcoin (BTC) and other crypto assets prohibited in the country.

According to Reuters, although cryptocurrency is banned in mainland China and there are strict controls on the movement of capital across borders, people can still trade tokens such as Bitcoin on crypto exchanges such as OKX and Binance or through other over-the-counter channels. In addition, Mainland China investors can also open overseas bank accounts to purchase crypto assets.

Following Hong Kong’s open approval of digital assets last year, Chinese citizens use their annual $50,000 currency purchase quota to transfer money into cryptocurrency accounts in the territory.

As a senior executive at a Hong Kong cryptocurrency exchange, who wished to remain anonymous, explained, the economic downturn in China has made investing on the mainland risky, uncertain and disappointing, so people are looking to place assets offshore.

In 2017, China closed its local cryptocurrency exchanges, stifling the speculative market that accounted for 90% of global bitcoin trading. In September 2021, the Chinese government introduced a complete ban on all cryptocurrency transactions.

However, government bans did not prevent residents of mainland China from remaining active crypto users, as Chainalysis experts previously said. According to them, China can use the Hong Kong market as a “testing ground for rapprochement with cryptocurrencies.”

Thus, from July 2022 to June 2023, Hong Kong took fifth place in the volume of cryptocurrency transactions, with an indicator of about $64 billion. It was second only to South Korea, Japan, China and Taiwan. Analysts emphasized that Hong Kong’s indicators are comparable to those of China, but the region’s population is 0.5% of the population of mainland China. In the administrative area, a large share of the volume comes from large institutional transactions of $10 million or more.

ARB buy signal emerges after a week of constant declines

 Arbitrum (ARB) has gained momentum with a strong buy signal surfacing after recording a 13.6% decline over the past week.

ARB is up by 1.5% in the past 24 hours and is trading at $1.7 at the time of writing. The asset’s market cap surged to $2.17 billion with a daily trading volume of $535 million. 

Notably, ARB’s bullish momentum comes as the global crypto market cap sees a 0.4% surge over the past 24 hours — currently standing at $1.63 trillion. The global daily trading volume, however, has declined by 32% — hovering around the $57 billion mark at the reporting time. 

According to data provided by Santiment, Arbitrum’s social volume increased by 126% in the past 24 hours. Data shows that the social activity around Arbitrum recorded sharp declines along with its price over the past week.

Borroe Finance presale draws XRP and Solana holders

 Several popular cryptocurrencies have posted sharp gains over the past few years. One such example is Solana (SOL).

 Meanwhile, investors are closely monitoring Borroe Finance (ROE). The platform aims to redefine web3 fundraising and has garnered support from XRP investors. 

The AI-powered fundraising marketplace allows web3 businesses to raise cash by selling future earnings to supportive communities at discounted prices. 

Donald Trump’s Opposition to CBDCs

 Introduction

The recent declaration by Donald Trump to block the introduction of a Central Bank Digital Currency (CBDC) in the United States has sparked considerable debate and interest in the world of finance and politics. In a speech delivered in Portsmouth, New Hampshire, Trump made his position clear against the adoption of a CBDC, citing concerns over government control and the threat to personal freedom.

Trump’s Vow Against CBDCs

During his speech, Trump expressed his commitment to protecting Americans from what he perceives as government tyranny. He stated, “As your President, I will never allow the creation of a central bank digital currency.” Trump elaborated on his concerns, suggesting that a CBDC would give the federal government complete control over citizens’ money, potentially leading to abuses of power. This statement reflects a broader skepticism among Republicans and some Democrats regarding the adoption of a CBDC.

Legal Actions Against CBDCs

In line with Trump’s stance, several Republican-led initiatives aim to hinder the development of a CBDC. Notably, a bill was recently introduced in the Tennessee State Senate to exclude a CBDC from being legally recognized as money under the Uniform Commercial Code. This move, similar to actions taken in Florida and Indiana, aims to discourage the use of CBDCs by state governments and businesses.

Beyond CBDC: Protecting Political Beliefs

Trump also touched on another key issue: the protection of individuals from being targeted by banks and regulators based on their political beliefs. This statement reflects a growing concern among conservatives about the politicization of financial services and the need for safeguards to prevent discrimination based on political views.

The Need for Clarity: Wholesale vs. Retail CBDCs

The debate around CBDCs often lacks clarity regarding the difference between wholesale and retail CBDCs. A retail CBDC, which is directly available to consumers, could potentially offer benefits without compromising privacy. In contrast, a wholesale CBDC is intended for transactions between financial institutions. This distinction is crucial for understanding the implications of a CBDC on privacy and consumer rights.

The Federal Reserve’s Position

Anticipating these debates, the Federal Reserve has explored various types of DLT-based central bank money, including the distinctions between tokenized reserves and a wholesale CBDC. This research indicates an ongoing effort to understand and navigate the complexities associated with digital currencies.

Conclusion

Donald Trump’s firm opposition to CBDCs reflects a significant political stance on the future of digital currencies in the United States. His concerns about government overreach and the protection of individual liberties resonate with a broader conservative viewpoint. As the conversation around digital currencies evolves, it will be essential to consider the diverse perspectives and potential implications of CBDCs on economic policies, personal freedoms, and the financial landscape.

 Swiss crypto bank Sygnum bags $41m to expand services, acquisitions

Switzerland-based crypto bank Sygnum AG has secured over $40 million in a funding round led by asset manager Azimut Holding. The Zurich-headquartered crypto-friendly bank Sygnum AG is set to double down on its acquisition plans and expansion, with the latest.

Switzerland-based crypto bank Sygnum AG has secured over $40 million in a funding round led by asset manager Azimut Holding.

The Zurich-headquartered crypto-friendly bank Sygnum AG is set to double down on its acquisition plans and expansion, with the latest funding round valuing the lender at about $900 million. In a blog post on Jan. 25, the bank said it has raised $41 million against an initial target of $35 million in an interim close of its latest funding round, which is named the Strategic Growth Round.

While Sygnum did not disclose the full list of backers, it noted that the latest funding was supported by new investors and led by Azimut Holding, a global asset management group. Sygnum employees — who also participated in the funding — together with the co-founders, board members, and management team continue to hold majority ownership of the company, the blog post reads.

The proceeds are expected to help Sygnum expand its services into new markets and further extend its suite of regulated products and services in order “to take advantage of the increasingly positive market developments in the digital asset industry.”

Founded in 2018, Sygnum says its assets under administration have surpassed the $4 billion mark as it boasts a clientele exceeding 1,700 from over 60 countries. The current team size is close to 250 members.

The bank offers services in Switzerland, Singapore, and holds licenses to operate in the UAE and Luxembourg. In an interview with Bloomberg, Sygnum Singapore CEO Gerald Goh said in 2024 the bank wants to enter “one more European jurisdiction as well as one more Asian jurisdiction.”

North Korea set new record by number of crypto hacks in 2023, data shows

North Korea-linked hackers stole nearly $430 million from decentralized finance and also targeted centralized services, exchanges, and wallet providers in 2023.

Chainalysis, a blockchain forensic firm, says North Korea-affiliated hacking groups hit record in terms of attempted attacks against decentralized finance (defi) as well as centralized platforms like exchanges in 2023.

According to the firm’s latest report, hacking groups Kimsuky and Lazarus Group have deployed 20 successful attacks against various platforms, netting around $1 billion worth of crypto in 2023, a 41.7% decrease in terms of stolen money compared to 2022.

 North Korea-linked hackers stole nearly $430 million from decentralized finance and also targeted centralized services, exchanges, and wallet providers in 2023. Chainalysis, a blockchain forensic firm, says North Korea-affiliated hacking groups hit record in terms of attempted attacks against decentralized…

SEC delays decision on BlackRock’s Ethereum spot ETF launch

 The Securities and Exchange Commission (SEC) has delayed its decision on BlackRock’s application to launch a spot Ethereum (ETH) ETF to March.

According to a document on the SEC website, a new decision on the application, which was supposed to be made on Jan. 25, is now expected on March 10, 2024. SEC representatives explained their decision due to the lack of time to review all the application details.

On Jan. 19, 2024, the Commission postponed the decision on the application to launch a spot Ethereum-ETF from Fidelity. A new deadline has also been set for March.

Several companies, including BlackRock, have filed papers to open an Ethereum-based spot fund. Company CEO Larry Fink said he supports the launch of this product category. JPMorgan Chase noted that the SEC will unlikely approve this class of funds in the spring of 2024. Among other things, they also pointed out the uncertain status of Ethereum.

The media expects the SEC to approve the launch of spot Ethereum ETFs by the end of summer 2024. In citing her sources, Fox Business journalist Eleanor Terrett noted that Ethereum’s “opaque” status may complicate the process. However, her source doesn’t think so. According to him, the Commodity Futures Trading Commission already positions the asset as a commodity.