PA Daily | The FTX debtor and the liquidator reached a global settlement agreement, and the Ministry of Industry and Information Technology said that it would formulate a Web 3.0 development strategy document in line with China's national conditions

Today’s News Tips:

Ministry of Industry and Information Technology: will formulate a Web 3.0 development strategy document in line with China’s national conditions

IOSCO Issues DeFi Regulatory Advice, Organizing as a DAO Does Not Mean Exemption from Regulatory Responsibilities

SEC Meets with BlackRock Again for BTC Spot ETF

FTX Debtor Enters Global Settlement Agreement with FTX Joint Official Liquidators

Upbit will go live on BTC market SPURS

Matrixport: BTC holders’ wealth will increase by $500 billion this year, and the macro economy may be positive in 2024 BTC

CME Group BTC options open interest of nearly $2 billion, an all-time high

BTC Network Daily Transaction Fees at $23.6 Million, Record High

Regulatory News

The International Organization of Securities Commissions (IOSCO) has issued advice on DeFi regulation, and organizing in the form of a DAO does not mean that it is exempt from regulatory responsibilities

The International Organization of Securities Commissions (IOSCO), an international securities regulator, noted in its latest decentralized finance (DeFi) policy recommendations that many of the existing international policies, standards, and judicial regulatory frameworks apply to DeFi activities and their governance mechanisms due to the similarities between DeFi and traditional financial markets in terms of economic functions and activities, CoinDesk reported. IOSCO proposes that if the existing rules do not apply to DeFi, they should be amended accordingly. The guidance highlights the importance of identifying responsible persons, setting clear disclosure requirements, and enforcing the law. Responsible persons include any person or entity that exercises control over or has sufficient influence over the financial products, services, or activities offered by DeFi arrangements.

The International Organization of Securities Commissions (IOSCO) notes that even if it operates as a decentralized autonomous organization (DAO) instead of forming a company, it does not exempt these individuals and entities from their regulatory responsibilities. IOSCO emphasizes that those who provide financial products and services and engage in financial activities should comply with applicable laws, regardless of the label, organizational form or technology used.

Ministry of Industry and Information Technology: will formulate a Web 3.0 development strategy document in line with China’s national conditions

In its reply to Proposal No. 02969 of the First Session of the 14th National Committee of the Chinese People’s Political Consultative Conference, the Ministry of Industry and Information Technology said that in the next step, the Ministry of Industry and Information Technology will strengthen collaborative interaction with relevant departments to promote Web3.0 technological innovation and high-quality industrial development. 1. Improve the top-level design. Strengthen Web3.0 investigation and research, formulate Web3.0 development strategy documents in line with China’s national conditions, clarify the development path, technical focus, and application mode of Web3.0, and handle the relationship between inheritance and innovation, development and security, government and market, and supply and demand. Focus on key areas such as government affairs and industry, encourage the development of new business models such as NFTs and distributed applications (DApps), and accelerate the innovative application of Web 3.0 and the construction of a digital ecosystem. 2. Strengthen technical research and supervision. Support enterprises, universities, and research institutions to carry out research on the Web3.0 technology system, and achieve breakthroughs in key core technologies in cross-chain, privacy computing, and smart contracts. Deploy research on blockchain security supervision and governance technology, carry out research on the technical convergence and cross-chain mutual recognition of alliance chains, and explore the blockchain technology architecture that takes into account the open characteristics of public chains and the easy supervision characteristics of alliance chains. Increase support for the research and development of data security products, strengthen the management of network product security vulnerabilities, and improve network and data security protection capabilities in the development of Web 3.0. 3. Carry out international exchanges and cooperation. Closely follow the cutting-edge trends of Web 3.0 from all walks of life in the international government, industry, academia and research circles. Encourage scientific research institutes, universities, enterprises, etc. to participate in Web3.0-related global standardization activities, promote participation in and lead the formulation of Web3.0-related international standards, de facto standards, and international alliance standards, and enhance the right of international discourse and rule-making. Accelerate the cultivation of compound talents, cultivate high-end talents with innovative ability, and build a high-level talent team. 4. Increase technical publicity and promotion. Build and make good use of the resources of the existing popular science platform, and continue to improve the public’s understanding and awareness of Web3.0 technology through the dissemination of official new media platforms such as popular science China. Promote the development of distributed digital identity (DID) and other application pilots, explore institutions and individuals Web 3.0 digital identity authentication and digital asset management systems, establish data governance and transaction circulation mechanisms, and form typical demonstration projects that can be replicated and promoted. Promote the academic progress of Web3.0 and the application of technological achievements, build a platform for the exchange of technology and industrial applications, and promote the innovation and development of the Web3.0 industry.

The SEC met with BlackRock again about BTC spot ETFs

Bloomberg analyst James Seyffart tweeted that according to the public regulatory memorandum document, BlackRock met again with the U.S. Securities and Exchange Commission’s (SEC) Market Supervision Office and the Trading and Markets Department on December 19 local time to discuss the details of BTC spot ETF. Analysts said the total number of official meetings held by the SEC with applicants for BTC spot ETFs has reached 24.

Hong Kong’s Securities and Futures Commission warns the public about suspected virtual asset-related fraud by LonShiX and Bitbank

The Hong Kong Securities and Futures Commission (SFC) today warned the public to beware of entities operating under the names “LonShiX” and “Bitbank (Global) Financial Holding Group” respectively for suspected fraudulent acts purporting to be related to virtual assets.

The SFC noted that LonShiX claimed on its website that its address was located in Hong Kong, but the address was false. The name adopted by Bitbank is very similar to the name of a Japanese cryptocurrency exchange, but the two are not actually related. At the request of the SFC, the Hong Kong Police Force has taken action to block their websites, as well as their Twitter accounts.

Project News

The FTX debtor entered into a global settlement agreement with the FTX joint official liquidators

FTX Trading Ltd. (FTX.com) and its associated debtors (collectively, the “FTX Debtors”) announced that they have entered into a global settlement with Brian C. Simms KC, Peter Greaves and Kevin Cambridge, the joint official liquidators representing FTX Digital Markets Ltd. The settlement is reflected in the global settlement agreement signed today by the parties, which is subject to approval by the U.S. District Bankruptcy Court for the District of Delaware and the Supreme Court of the Bahamas.

Under the settlement agreement, FTX debtors and FTX Digital Markets will jointly handle the assets, ensuring that FTX.com clients receive nearly the same relative distribution in both programs. FTX debtors and FTX Digital Markets have agreed to seek to reconcile their valuations of FTX.com customer claims in order to maximize resource recovery. All FTX.com customer claims (with the exception of NFT-related claims) will be denominated in U.S. dollars, and FTT benefits are treated as equity and will not receive any recycling. The global settlement also includes an important agreement between FTX debtors and FTX Digital Markets regarding the realization of FTX Group’s assets and cross-sector funding, with the aim of maximizing recovery benefits for customers and creditors.

Michael Saylor: BTC Spot ETFs have been the most significant development on Wall Street in the last 30 years

According to CoinDesk, Michael Saylor, executive chairman of MicroStrategy (MSTR), said in an interview that the market should not underestimate the importance of the upcoming BTC spot ETF, which could be the most significant development on Wall Street in the past 30 years. He believes that the last comparable new product is the S&P 500 ETF, which allows investors to gain one-click exposure to this widely followed index.

So far, mainstream investors – both individuals and institutions – have not had a “high-bandwidth” compliant channel to invest in BTC, and that will all change with the advent of spot ETFs, Saylor said. This new tool will bring a demand shock to BTC, followed by a supply shock from the halving event in April next year, which will add up to prepare BTC for a big bull market next year.

VanEck: The opportunity cost of investing in BTC advertising is high, preferring to buy and hold BTC

VanEck, an investment management company, said in response to a question from a netizen on the X platform that the opportunity cost of investing in BTC advertising is high, and he would rather buy and hold BTC. Previously, on December 18, it was reported that Bitwise, a crypto asset management company, released a BTC ETF marketing promotional video.

Frame has opened its token initial airdrop claim, with mainnet and token launch at the end of January next year

ETH L2 Network Frame announced on the X platform that users who have traded NFTs and paid royalties on the ETH Network in the past two years are eligible to apply for the initial airdrop of FRAME tokens, which is currently open for claim, the Frame mainnet and the token will be launched at the same time on January 31, 2024, and the FRAME token is non-transferable until the next chapter opens.

In addition, Frame announced the completion of an initial funding round led by Electric Capital and community members, with angel investors and advisors including Dingaling, 9GAG CEO Chen Zhancheng, and Azuki Project Founder Zagabond.

It is reported that Frame is a Layer2 Rollup designed specifically for NFTs and based on the Arbitrum Nitro stack, providing a platform for artists and enthusiasts to explore and test NFT-centric experiences.

Upbit will launch SPURS on the BTC market

South Korean crypto exchange Upbit has announced that it will add support for SPURS tokens in the BTC market, SPURS only supports deposits on the Chiliz Chain network and does not support deposits through other networks such as ETH and Chiliz Legacy Chain. Trading is expected to start at 15:00 today. It is reported that the SPURS is a fan token issued by Chiliz under an exclusive contract with Tottenham Hotspur for a certain period.

Stellar intends to introduce smart contract functionality through upgrades, which will be rolled out in phases in the first half of 2024

According to CoinDesk, public chain Stellar announced that it plans to upgrade to introduce smart contract functionality, which will be rolled out in phases in the first half of 2024, and network validator voting will take place on January 30. “To ensure that this launch provides a high-quality experience for developers, Stellar will evaluate trial contract deployments and communicate with developers when the smart contract platform, known as Soroban, reaches user-ready levels of transactions per second,” the team said. ”

Injective appealed not to participate in the inscription project INJS, which also called for the cessation of the inscription and promised to return the funds

PANews reported on December 19 that Injective issued a warning on its official Twitter, urging users not to participate in the INJS inscription. Injective points out that the INJS team is not honest and that they charge fees during the minting process and deposit those fees into unverified wallets.

Through its official Twitter account @inj_inion, INJS posted a message calling for an end to the inscription process. This decision was made after listening to the community and discussing it with Injective. INJS has announced that it will return all funds and plans to relaunch a free fair distribution afterward. INJS then said it was currently collecting information on the transfer and would initiate the refund process as soon as possible.

Matrixport: Holders’ wealth will increase by $500 billion in BTC this year, and the macro economy may be favorable to BTC in 2024

Matrixport released a new report saying that the US inflation rate is expected to fall to 2% in 2024. The macro economy should support BTC prices higher in 2024. BTC miners tend to limit the supply of new BTC around the halving cycle, BTC set to hit an all-time high six months after the halving (which is expected to take place in April next year). BTC funding rates remain high, suggesting that traders are expecting prices to rise, while implied volatility remains high even though the SP500’s volatility has fallen to multi-year lows. As a result, funding rates are expected to fall during the Christmas holidays, but volatility is likely to remain elevated as traders hedge potential BTC spot ETF approvals.

According to the report’s analysis, the BTC has been in a sideways range since Dec. 8. However BTC the lower support level of the range ($40,000) is expected to remain unchanged due to the expectation that the spot ETF will be approved in early January 2024. At the same time, the report remains cautious about whether BTC can break higher over the Christmas period. Historically, BTC have risen by 3% between December 24 and December 31, but returns have been affected by strong returns in the early years of BTC, where BTC prices have been lower for four of the last five years. This means that we may have seen this year’s highs, and the price may continue to consolidate into the end of the year. The market capitalization of BTC rose from $320 billion to $827 billion, adding about $500 billion to the wealth of BTC holders. On October 31, 2017, when CME Group announced the launch of Q4 BTC futures, CBOE BTC futures were listed on December 10 and CME on December 17. From announcement to launch, BTC is up +212%. A similar situation can occur when a BTC spot ETF is approved. The most likely approval periods are January 8, 9 and 10. Given the frequent meetings between the SEC and BlackRock in particular, the expectation that BTC spot ETFs will be approved in January has increased. Coincidentally, Tether’s stablecoin minting has slowed since December 8 – suggesting that institutional funds flowing from fiat to crypto may be waiting for new demand in early January.

The report also said that TVL, which was $38 billion at the beginning of 2023, has now increased to $51 billion, which is the highest level before the collapse of FTX. With staking becoming a key value proposition for ETH, Lido’s TVL has risen significantly. Lido’s TVL increased from $6 billion to $20 billion. But overall, DeFi performance in 2023 has been disappointing. This year’s deal of the year has to be the Grayscale BTC Trust (GBTC), as its discount narrowed from -47% to just -8%, and while the BTC price was up +154%, GBTC was up +326%.

IMPORTANT FIGURES

CME Group BTC options open interest reached an all-time high of nearly $2 billion

Open interest in BTC options on the Chicago Mercantile Exchange (CME) has reached a record high of nearly $2 billion, according to The Block. An increase in open interest heralds higher liquidity and more market participants. According to Coinglass, 65% of the options expiring at the end of December were calls and 35% were puts. When the number of call options exceeds the number of put options, it is generally considered a bullish indicator.

BTC network daily transaction fees reached a record high of $23.6 million

According to Glassnode, BTC-day transaction fees just hit an all-time high, with a whopping $23.6 million in a single day.

The negative premium rate of grayscale GBTC has narrowed to 7.57%

Coinglass data shows that the negative premium rate of grayscale GBTC has narrowed to 7.57%, and the negative premium rate of ETH trust is 13.36%. In addition, the negative premium of ETC trust was 29.03%, the positive premium of LTC trust was 70.72%, and the positive premium of BCH trust was 89.23%.

FTX’s mega-bond trading price rose to 57 to 73 cents per dollar

According to Bloomberg, the price of FTX’s bankruptcy claims has risen significantly as the FTX Group bankruptcy liquidation process progresses, as well as the price of digital assets rises. FTX claim prices are now trading between 57 and 73 cents per dollar, depending on size, up from 50 to 53 cents at the end of October, according to bankruptcy claims brokerage Cherokee Acquisition. Other factors driving the price of the claim include FTX’s stake in artificial intelligence start-up Anthropic, which is backed by investors such as Google and Amazon. FTX is also a large holder of the token Solana, which is up more than 650% this year. Solana is currently trading at more than double the price it was before FTX’s bankruptcy.

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