Investment Learning

August 16, 2024

Ghana Central Bank Proposes New Cryptocurrency Regulations

According to Odaily, the Bank of Ghana (BoG) has introduced new regulatory measures for digital assets following an extensive internal review of Bitcoin, USDT, and other cryptocurrencies. On August 16, the central bank released draft guidelines for digital assets and is seeking feedback from the public and industry stakeholders on the forthcoming cryptocurrency regulations.The Bank of Ghana's data collected over the past three years indicates a significant increase in the demand for cryptocurrencies within the country. In response, the bank plans to implement laws addressing risks associated with money laundering, terrorism financing, and fraud, alongside other measures aimed at protecting consumers.The central bank has proposed an eight-pillar framework for cryptocurrency regulation, focusing primarily on enhancing registration and reporting requirements for cryptocurrency trading platforms or virtual asset service providers (VASPs).

August 15, 2024

Russia Considers Establishing Legal Cryptocurrency Exchange

According to PANews, Russian officials are discussing the creation of a legal cryptocurrency exchange as the country continues to pivot towards digital assets. Moscow's ministers and the central bank are in talks about establishing a 'Russian crypto exchange.' Finance Minister Anton Siluanov has been in discussions with the central bank regarding the proposal to set up a legal cryptocurrency exchange in Russia. Siluanov mentioned that while no mutually acceptable solution has been reached yet, a breakthrough might be imminent, with relevant legislation potentially ready for submission to the State Duma during the autumn session. He also noted that existing Russian cryptocurrency exchanges operate in a regulatory 'gray area,' but recent legislative efforts in cryptocurrency regulation mark significant progress for the country.Long-serving Finance Minister Siluanov and Central Bank Governor Elvira Nabiullina, both close allies of President Putin, have historically had differing views on cryptocurrency regulation. Nabiullina is a staunch cryptocurrency skeptic, whereas Siluanov favors a more progressive approach. This divergence has led to a prolonged stalemate in cryptocurrency policy. However, this deadlock was recently broken when President Putin ordered an acceleration in regulatory efforts. This directive has resulted in the swift introduction of regulations concerning cryptocurrency mining and the use of cryptocurrencies in cross-border trade.

August 15, 2024

Economists Predict Slight Increase in US Unemployment Claims

According to Odaily, the latest unemployment claims data is set to be released at 8:30 PM Beijing time on Thursday. Economists forecast that initial claims will reach 235,000, a slight increase from last week's 233,000. Last week, the unexpected drop in initial claims provided some relief to those concerned about further deterioration in the US labor market. Moody's Chief Economist Mark Zandi believes that while the Federal Reserve's focus on inflation remains, the risks to the labor market are higher than those posed by inflation. If this trend continues, further deterioration in the labor market could prompt the Federal Reserve to begin cutting interest rates sooner.

August 15, 2024

Hong Kong Accelerates Stablecoin Regulation Framework

According to BlockBeats, Hong Kong is rapidly advancing the establishment of a regulatory framework for stablecoin issuers. Recently, the city released a public consultation summary on stablecoin regulation. The report highlights that the next phase of development for Web3.0 in Hong Kong and globally focuses on bridging the gap between the virtual and real worlds, enabling seamless asset and fund transfers between the two systems. Real-World Assets (RWA) are seen as a crucial innovation to overcome technical barriers and accelerate the integration of virtual and real economies. In the foreseeable future, the majority of RWA transactions in Hong Kong are expected to be conducted using compliant Hong Kong dollar stablecoins, facilitating connections and interoperability with traditional finance. Without a compliant Hong Kong dollar stablecoin, the convenience and security of Hong Kong's RWA practices would face significant challenges. Therefore, the introduction of a stablecoin regulatory framework may lay the foundation for innovative development within Hong Kong's RWA ecosystem. As the RWA ecosystem thrives, the role and value of the Hong Kong dollar stablecoin as a bridge for Hong Kong's Web3.0 external connections will become increasingly prominent.

August 15, 2024

Switzerland Considers Including Crypto Tax Data In International Exchange Protocols

According to PANews, Switzerland is contemplating the inclusion of cryptocurrency tax data in its international information exchange agreements. The Swiss Federal Council initiated a consultation process on Wednesday for a new bill aimed at facilitating the sharing of crypto asset information with 111 jurisdictions. These jurisdictions are currently part of the automatic information exchange framework. The sharing will be contingent on their compliance with the OECD's crypto asset reporting framework.Switzerland has long been a leader in cryptocurrency adoption. Regions like Lugano have pioneered the acceptance of cryptocurrencies such as Tether (USDT) and Bitcoin for tax payments. The country's political framework allows the Federal Tax Administration to classify Bitcoin as a payment method, thereby exempting it from Value Added Tax (VAT).The Swiss Federal Council aims to determine the start date for the automatic exchange of crypto-related information with partner states. The consultation period for this legislative proposal will conclude on November 15, 2024.

August 14, 2024

Bank Of America Increases Holdings in IBIT and FBTC

According to Odaily, Bank of America has increased its holdings in IBIT and FBTC as per its second-quarter 13-F filing submitted to the SEC. As of June 30, the bank holds $2.8 million worth of IBIT, marking a 31% increase. Additionally, it holds $1.5 million worth of FBTC, reflecting a 21% increase.

August 14, 2024

Singapore To Charge Former Bankers In Major Money-Laundering Case

According to Bloomberg, Singapore is preparing to charge two former Chinese bankers on Thursday in connection with the country's largest money-laundering case. The individuals, who were relationship managers at two foreign banks in Singapore, are accused of serving criminals involved in a S$3 billion ($2.3 billion) laundering scheme, as stated by the Singapore Police Force in an emailed statement on Wednesday. The names of the banks were not disclosed.The case has caused significant concern in the Asian financial hub, following the authorities' seizure of cash, properties, cryptocurrencies, and other assets totaling S$3 billion last year. Ten individuals of Chinese origin were imprisoned for laundering illicit funds from illegal overseas gambling operations and other offenses, while additional suspects remain at large.David Chew, director of the police force’s commercial affairs department, emphasized the seriousness with which Singapore views the laundering of criminal proceeds through its financial system. “Those who help clients circumvent their financial institutions’ due diligence processes or who help clients forge documents to conceal the true nature of their assets, must be dealt with robustly under our laws,” Chew stated.The first banker is a 26-year-old male, and the second is a 35-year-old male. Additionally, a Singaporean driver is also set to be charged in connection with the case.

August 14, 2024

SEC Investigates Drive Planning LLC And CEO For Alleged Ponzi Scheme

According to BlockBeats, on August 14, the U.S. Securities and Exchange Commission (SEC) announced that it has obtained a preliminary injunction and asset freeze to investigate Drive Planning LLC and its founder and CEO, Russell Todd Burkhalter. The SEC alleges that from 2020 to June 2024, Drive Planning and Burkhalter raised over $300 million from more than 2,000 investors by promising high returns, such as '10% interest every three months,' for supposed real estate investments. However, this was a typical Ponzi scheme, where funds from new investors were used to pay returns to existing investors. Additionally, the SEC accuses Burkhalter of misappropriating millions of investor funds to purchase a $3.1 million yacht, $4.6 million in private jet and luxury car services, and $2 million for a luxury apartment to support his lavish lifestyle.Nekia Hackworth Jones, Director of the SEC's Atlanta Regional Office, stated that Drive Planning and Burkhalter gained the trust of ordinary investors through false promises, executing a classic Ponzi scheme. She urged investors to be wary of sellers who excessively promote high returns. Besides obtaining emergency relief, the SEC is also seeking a permanent injunction against the defendants, the return of ill-gotten gains, civil penalties, and a ban on Burkhalter from serving as a corporate officer. The case is currently under further investigation.

August 13, 2024

Bank of America CEO Urges Fed to Lower Interest Rates Amid Economic Slowdown

According to Odaily, Bank of America CEO Brian Moynihan has called for the Federal Reserve to lower interest rates promptly in response to the current economic slowdown and reduced consumer spending. Moynihan emphasized the importance of caution, noting that while inflation has decreased, it has not yet reached the desired levels. He warned against striving for perfection in inflation control at the risk of triggering a recession.Moynihan highlighted that a delay in reducing interest rates could negatively impact consumer confidence in the United States. He pointed out that investors are looking for data that falls within a 'sweet spot'—cool enough to justify a rate cut in September but warm enough to alleviate recent recession fears affecting the market.

August 12, 2024

BOJ Expected To Delay Further Rate Hikes Until Next Year

According to CoinDesk, former Bank of Japan (BOJ) official Makoto Sakurai has indicated that the central bank will likely postpone additional interest rate hikes until next year, prioritizing market stability in the near term. Sakurai, a former board member, stated on Friday that the BOJ could not implement another rate hike for the remainder of the year. He suggested that the next potential rate hike might occur by March 2023.The BOJ recently raised its key interest rate to approximately 0.25% from a range of zero on July 31, marking the first increase in over a decade. This move signalled the possibility of further rate hikes. The shift away from the zero interest rate policy led to an appreciation of the Japanese yen, which in turn caused an unwinding of the