Hong Kong to Regulate Stablecoin Issuers: Algorithmic Coins Not Allowed

• Hong Kong is planning to require licensing for stablecoin issuers
• The HKMA plans to supervise the governance, issuance and stabilization of fiat-backed stablecoins
• Algorithmic stablecoins like terraUSD will not be accepted under the planned regulatory regime

Hong Kong Plans to Require Licensing for Stablecoin Issuers

The Hong Kong Monetary Authority (HKMA) announced it will set up a regime to supervise stablecoins, which are cryptocurrencies whose value is pegged to other assets. Entities conducting regulated activity in Hong Kong will have to obtain a license to operate stablecoin services.

Stablecoin Reserves Must Be Maintained

The HKMA stipulates that the issuer must maintain reserves matching the amount of the crypto in circulation. Stablecoin reserves have come under heavy regulatory scrutiny around the world since 2021, when the issuer of the top stablecoin by market capitalization, Tether, revealed much of its USDT reserves were made up of unsecured short-term debt. Major economies such as the U.S., the European Union and Japan also are working on controls for stablecoin issuers.

Algorithmic Stablecoins Will Not Be Permitted

The report stated that “the value of the reserve assets of a stablecoin arrangement should meet the value of outstanding stablecoins at all times” and “stablecoins that derive their value based on arbitrage or algorithm will not be accepted.” TerraUSD, an algorithmic stablecoin whose value was supposed to be maintained through another crypto asset, luno, collapsed last May.

Specific Regulatory Arrangements Will Be Considered

In drawing up specific regulatory arrangements, the HKMA said it will consider feedback received from respondents as well as latest market development and international standards while taking into account local circumstances and interests.

Conclusion

Overall, Hong Kong’s move towards mandatory licensing for stablecoin issuers seeks to ensure more secure issuance and stabilization of fiat-backed cryptocurrencies within its jurisdiction while preventing algorithmic ones from gaining traction.

SEC Probing Investment Advisers on Crypto Custody: Report

• The U.S. Securities and Exchange Commission (SEC) is reportedly investigating investment advisers for their crypto asset custody practices.
• The SEC wants to know if firms that have custody of client funds meet the criteria of being a „qualified custodian“.
• This latest development is another sign of the market regulator increasing scrutiny at the intersection of traditional finance and crypto.

SEC Investigating Investment Advisers Over Crypto Custody

The U.S. Securities and Exchange Commission (SEC) is reportedly looking into registered investment advisers to determine whether they are following rules around custody of client crypto assets, according to a Reuters report citing three unnamed sources. This investigation was initiated in response to the recent implosion of FTX, a cryptocurrency exchange platform.

Why Is The SEC Investigating?

The SEC has been warning public companies about any risks posed by the recent crypto contagion, urging them to tell investors in case they have any stake in it as CoinDesk previously reported. The regulator asked if companies face any risks due to excessive redemptions, withdrawals or suspension of redemptions or withdrawals regarding their crypto assets. This latest development is another sign that the market regulator is increasing scrutiny at the intersection of traditional finance and cryptocurrencies by inquiring into registered investment advisers about their custodial practices for clients‘ digital assets which are typically stored with a third party provider.

What Are Some Criteria For Custodianship?

One criterion for investment advisers to be able to have custody of client funds or securities is that they must meet certain regulatory requirements under federal laws such as the Investment Advisers Act 1940 and its related regulations, like those outlined in Rule 206(4)-2 (the Custody Rule). Additionally, there may also be state laws governing such matters as well as associated regulations from FINRA (Financial Industry Regulatory Authority). These include but are not limited to ensuring proper recordkeeping, providing independent surprise examinations on an annual basis, maintaining insurance coverage against potential losses from theft or fraud among other things.

What Impact Could This Investigation Have?

If there are violations discovered during this investigation it could potentially lead to enforcement actions against those found guilty by either imposing fines or revoking registration which would effectively bar them from conducting business related activities involving securities regulated by the SEC altogether. It could also result in further investigations into other players within this space who may not necessarily be registered with but still offering services related investments tied up with cryptocurrencies both domestically and abroad depending on where these firms operate out of.

Conclusion

Overall this inquiry shows that regulators are taking an increasingly active interest when it comes cryptos as well as other types financial services provided by entities connected with them like investment advisors no matter where they might be located geographically speaking – something which shouldn’t come as much surprise given how quickly these technologies have risen popularity over past few years now more than ever before

Cryptos Stay Steady Despite Cooling Economy, Jobs Data; Bitcoin Hovers at $22.9K

Summary of the Article:
• The latest US productivity and jobs data had little effect on cryptocurrencies.
• Litecoin has seen strong performance over the past year compared to bitcoin and ether.
• Bitcoin was trading just below $23,000 despite cooling economic conditions.

Cryptos Shrug Off Latest US Productivity and Jobs Data

Table of Contents

shutterstock image

Crypto Prices

CoinDesk Market Index (CMI) 1,078.95 −14.7 ▼ 1.3% Bitcoin (BTC) $22,892 −322.5 ▼ 1.4% Ethereum (ETH) $1,582 −41.5 ▼ 2.6% S&P 500 daily close 4,060.43 +44.2 ▲ 1.1% Gold $1,931 −10.1 ▼ 0.5% Treasury Yield 10 Years 3.49% ▲ 0.

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Insights

Litecoin has operated largely out of the spotlight, even as its price has held up better than other cryptocurrencies.

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GDP Data

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The latest U

Polygon’s MATIC Token Surges 48% Amid Spike in Transactions

Summary:
– The Ethereum scaling tool Polygon’s MATIC token has surged 12% over the past 24 hours.
– The blockchain has the second-most number of daily active users, according to data from Token Terminal.
– Partnerships and launches have increased DAUs, as well as anticipation of Polygon’s mainnet launch.

Polygon’s MATIC Token Surges Amid Spike in Transactions

Table of Contents


Overview

Ethereum scaling tool Polygon’s MATIC token has surged 12% over the past 24 hours, continuing its strong momentum this year.MATIC was recently trading at $1.11. It is up 48% since Dec. 31 amid a spike in daily transactions that have made the blockchain the second largest for daily active users (DAU), according to data from Token Terminal.The rally comes amid a January upturn in the crypto market that has seen Aptos‘ APT token skyrocketing more than 400%, Fantom’s FTM jumping about 145% and bitcoin rising nearly 40%.

Price Increase

The price increase is due to several factors, including Polygon’s announced partnerships and launches over the last month that have increased DAUs, as well as anticipation of Polygon’s mainnet launch of its zero-knowledge EVM. The mainnet launch is scheduled for early this year.

Spike in Transactions

According to Nansen, the Ethereum scaling tool Polygon saw wide swings in daily transactions and active addresses during the fourth quarter as users scrambled to move funds during the epic meltdown of Sam Bankman-Fried’s FTX crypto exchange.

Partnerships and Launches

The tremendous addition of daily addresses was also partly due to Polygon’s zero-knowledge EVM public testnet launch.

Hash Panel Discussion

According to Charles Storry, head of growth at crypto index platform Phuture: “We’re starting to see users and interest come back to these kinds of networks and seeing activity again…There’s also a lot of projects that have built on top of Polygon that haven’t released their tokens yet, which will be coming out soon and add to the already increasing activity levels.“

Aegis Adds Custodial Coverage for Lido’s Liquid Staking Services

Summary:
• Crypto Custodian Aegis is offering custody of liquid staking derivatives issued by decentralized finance (DeFi) protocol Lido.
• The partnership is in response to an increased interest in liquid staking derivatives from family offices and regulated businesses.
• Aegis‘ end-to-end custody now includes liquid staking services through Lido for its institutional users.

Crypto Custodian Aegis to Add Coverage of Lido’s Staked Token Derivatives

Table of Contents

Introduction

Crypto custodian Aegis is launching a new partnership with decentralized finance (DeFi) protocol Lido, allowing institutional investors to access liquidity for their staked assets in a secure manner. Through the collaboration, Aegis will offer custody for liquid staking derivatives issued by the protocol, which has recently seen an increase in demand from family offices and regulated businesses looking to benefit from the Ethereum blockchain’s transition to proof-of-stake (PoS).

Custody Services

Aegis offers end-to-end digital asset management services, including safe storage and fiat-to-cryptocurrency conversion. With the partnership with Lido, clients will now be able to access liquid staking as part of their custodial services. This means that they can benefit from liquidity without having to expose themselves or their funds to any additional risk.

Increasing Demand

The growing demand for liquid staking derivatives comes from those who are wary of regulation, such as family offices and other regulated businesses. To accommodate this need, Aegis CEO Serra Wei said entities „subject to regulations specifically want to access staking benefits and services through a secured gateway.“ This need has been met with the launch of Aegis‘ new service offering with Lido.

Improved Security Features

By providing custody solutions for Lido’s digital assets, Aegis is able to increase the security of user’s digital assets, said co-founder Vasiliy Shapovalov. As it stands, $8 billion worth of ether is currently locked up in the DeFi app alone – all of which could benefit from improved security features provided by a trusted custodial service like that offered by Aegis.

Conclusion

The move by crypto custodian Aegis into offering coverage on liquid staking derivatives issued by DeFi protocol Lido provides an important solution for institutional investors who are looking for ways to access liquidity while avoiding additional regulatory risks associated with certain assets. By providing secure storage solutions backed up by insurance policies and other security features, users can now feel confident about investing in these tokens knowing that their funds are protected at all times.

Bitcoin Clings to $23K as FTX Creditor List Revealed

FTX’s Creditor List Revealed

Table of Contents:

  1. Summary
  2. Markets
  3. Top Story
  4. Latest Prices

Summary

  • Bitcoin clings to $23K, FTX’s Creditor List Revealed.
  • Ether traded flat above $1,600 and Equities closed up after solid GDP data.
  • FTX owes money to media companies, universities, airlines and charities among others.

Markets

Crypto markets today saw Bitcoin clinging to a price point of around $23K while Ether traded flat above the $1,600 mark. Equities closed up after news of positive GDP data. Jocelyn Yang is a markets reporter at CoinDesk who recently graduated from Emerson College’s journalism program. Follow her on Twitter @_jocelynyang_.

Top Story

The FTX creditor list was released this week with 116 pages naming companies such as Netflix (NFLX), Apple (AAPL), The Wall Street Journal, Fortune, Fox Broadcasting, Coinbase (COIN) and Binance. Judge John Dorsey allowed names of individual creditors to remain sealed for three months during a hearing in early January. American Airlines Group (AAL), Spirit Airlines (SAVE) and Southwest Airlines (LUV), as well as Stanford University were also included in the list. Gisele Bundchen Charitable Giving was another name on the list – the Brazilian supermodel was previously known to have invested in FTX before its bankruptcy proceedings began.

Latest Prices

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The CoinDesk Market Index currently stands at 1,087.49 with Bitcoin trading at around $23K and down 0.6% in the past 24 hours. Ethereum is trading at about $1,604 with a 0.3% rise in the last 24 hours while S&P 500 closed at 4,060.43 with an increase of 1.1%. Gold is worth about $1,930 with a decrease of 0.6% while Treasury Yield 10 Years stands at 3.49%.

Crypto Coming to Capitol Hill: Vending Machines to Accept Bitcoin!

Table of Contents

I. Introduction
II. Summary of Article
III. Re-Writing the Article
IV. Conclusion

I. Introduction
Sen Ted Cruz (R-Texas) has proposed a resolution that would require vendors on Capitol Hill to accept cryptocurrency as payment, a move which could have far reaching consequences for cryptocurrencies acceptance in the United States and abroad. In this article, we will summarize the proposal and discuss its implications before re-writing it with different headings and formatting elements.

II. Summary of Article
• Sen Ted Cruz (R-Texas) proposes resolution requiring vendors on Capitol Hill to accept cryptocurrency as payment
• If passed, congressional colleagues and visitors could buy products with bitcoin while burning the midnight oil
• Panel discusses implications of Cruz’s pro-crypto advocacy and potential impact on crypto on Capitol Hill

III. Re-Writing the Article
Cryptocurrency Comes to Capitol Hill: Senator Ted Cruz’s Proposal Explored

Table of Contents
I. Overview
II. Financial Implications for Crypto Acceptance
III. What This Could Mean for Congress’s Understanding of Crypto
IV .Conclusion

I. Overview
Senator Ted Cruz (R-Texas) recently proposed a resolution that would require vendors on Capitol Hill to accept cryptocurrency for payments made in the capitol complex in Washington D.C.. The resolution is intended to promote the use and acceptance of cryptocurrency among government officials and citizens alike, allowing them to purchase goods with bitcoin while they are working or visiting their representatives in Congress.. If passed, this would be a major step forward for crypto adoption in America, giving lawmakers more direct access to digital currency technology than ever before.

II .Financial Implications for Crypto Acceptance
If approved by Congress, this resolution could have huge financial implications for both businesses operating within the capitol complex as well as individuals wanting to spend their crypto holdings at vending machines located in the area., According to reports from CoinDesk, some analysts predict that by accepting cryptocurrencies more widely there could be an increase in demand for those assets due to greater accessibility — not just from members of Congress but from visitors as well,. This increased demand could lead to higher prices across all coin markets and potentially increased investment opportunities stemming from wider public awareness about digital currencies.. As such, passing this resolution would be a major step forward towards full mainstream acceptance of cryptocurrency payments across America – giving greater legitimacy and trustworthiness to digital assets used around the world today..

III .What This Could Mean For Congress’s Understanding Of Crypto
The introduction of this new proposal also has important implications regarding how members of Congress view cryptocurrency technology., By introducing legislation requiring vendors on Capitol Hill accept crypto payments, Senator Cruz is demonstrating his commitment towards furthering understanding about blockchain technology amongst policy makers – creating an opportunity for them learn more about cryptographic systems first hand., In addition,, if passed it may provide incentives for other lawmakers who do not yet understand blockchain technology or cryptocurrencies – encouraging them join conversations related digital assets so they can better understand why some are pushing so hard its adoption by governments worldwide.. This level education regarding Bitcoin could ultimately lead change how many perceive these new technologies – leading greater acceptance not just amongst congress but citizens at large too..

IV .Conclusion
The passage of Senator Ted Cruz’s concurrent resolution promoting widespread usage crypto payments amongst government entities is sure signify a major milestone American politics., Not only will it open up opportunities members congress gain firsthand experience using cutting edge blockchain technology but also incentivize others learn more about underlying cryptography – paving way full mainstream adoption nationwide.. As such,, should Senate approve this measure then one thing certain: buying Pringles with Bitcoin become much easier Burning midnight oil Capitol building very near future!

Optimism’s OP Token Hits All-Time High on Layer 2 Adoption Boom

## Optimism’s OP Token Reaches All-Time High

### Summary
• Optimism’s OP token surged to its all-time high of over $2.50 on Wednesday amid rising adoption of layer 2 networks.
• Daily transactions on the platform recently dropped significantly, attributed to the completion of Optimism Quests.
• Layer 2 networks are designed to improve scalability and performance of blockchain systems.

### Introduction
Optimism’s OP token surged to an all-time high of over $2.50 in January 2021, a 140% gain since the start of the year when it was hovering below one dollar according to CoinDesk data. The surge is attributed to increasing interest and adoption in layer 2 networks as traders show bullish sentiment with positive funding rates for the token, according to Arca and Kaiko respectively. The sharp drop in transaction activities recently is linked to the completion of the successful Optimism Quests that ran from September through Jan 17th that onboarded many new users into their network. Layer 2 networks are designed to improve scalability and performance of blockchain systems and are becoming increasingly attractive options for developers who want to take advantages of these benefits without sacrificing security or decentralization.

### What are Layer 2 Networks?
A layer 2 network is a companion blockchain system that sits atop another blockchain like Ethereum, and can be used for scaling purposes allowing more transactions per second at cheaper costs than would be possible on the base chain alone. By using layer 2 solutions instead of relying solely on Ethereum’s mainnet, developers can optimize their applications for throughput while still leveraging Ethereum’s secure infrastructure as a base layer. Popular protocols such as Optimistic Rollups or Plasma have been developed as solutions within this area in order to address issues relating specifically with scalability and cost efficiency on Ethereum mainnet.

### Adoption Interests Grow
The recent spike in transaction volumes seen by Optimism speaks well for Layer 2 solutions as investors flock towards these tokens while they show bullish sentiment with positive funding rates according to Arca’s Nick Hotz which reflects market optimism towards this technology sector overall despite recent declines seen in daily transaction activities due mainly from their quests program coming full circle after successfully onboarding many new users onto their platform during its run time from September through Jan 17th 2021 respectively .

### Conclusion

Layer 2 technologies have tremendous potential for revolutionizing dApp development across various industries including DeFi, NFTs, gaming, enterprise applications etc., making them attractive options for developers looking for better scalability and performance without sacrificing security or decentralization. As optimistic sentiment continues among traders amidst rising adoption interests in Layer 2 networks we should expect further developments along this front going forward bringing even greater utility value out of these tokens over time while still leveraging secure base layers like Ethereum’s mainnet at its foundation.

Loyalty Programs: Unlocking the Benefits of Web3

Table of Contents

I. Introduction
II. Benefits of Web3 Loyalty Programs
A. Ownership
B. Control
C. Interoperability
III. Conclusion
IV. Summary

I. Introduction
Crypto’s three pillars of ownership, control and interoperability are likely to resonate with policymakers the most, writes Josh Rosenblatt of Co:Create. By emphasizing these aspects of crypto in the form of Web3 loyalty programs, companies can create a pro-consumer narrative that will help them reach their desired audience and build trust in the technology overall. In this article, we will explore the benefits of Web3 loyalty programs and how they can be used to foster good crypto policy practices.

II. Benefits Of Web3 Loyalty Programs
A. Ownership
With a Web3-based loyalty program, users have true ownership of their points, tier status and brand-related collectables – all of which come in various forms of „loyalty tokens“. Users also have the ability to transfer, trade or sell their property – as the brands see fit.
B. Control
Because companies can make their loyalty tokens subject to transfer restrictions, they have granular control over how their loyalty programs operate and who can participate. Brands can choose what wallets can receive tokens based upon set requirements; this goes far in showing that Web3 loyalty tokens are not securities because they cannot necessarily be traded for a profit but instead are a consumable good .
C . Interoperability
Another benefit of Web3 loyalty programs is that brands can choose to make their loyalty programs interoperable . This means that loyalty tokens can be earned or redeemed by any brand that wants to participate in a particular program; examples exist today but are limited by Web2 technology requiring manual collaborations which take up time and resources .

III . Conclusion

Web3 loyalty programs offer numerous advantages over traditional rewards systems due to user ownership , granular control , and interoperability . With these features at its disposal , crypto has an opportunity to appeal more directly to policymakers by emphasizing pro-consumer narratives while still maintaining its core values such as decentralization and self – sovereignty .

IV . Summary

• User ownership : With a Web 3 – based system , users have true ownership over their points , tier status , and collectables as well as the ability to transfer , trade or sell them according to brand specifications . • Granular control : Brands are able to set requirements for which wallets may receive tokens ; this helps demonstrate that these tokens are not securities due to lack of potential profitability from trading them . • Interoperability : Loyalty tokens may be earned or redeemed by any brand participating in a specific program without needing manual collaborations between each party involved .

Pussy Riot and Shepard Fairey Team Up to Raise Money for Ukraine Through NFT Collection

Table of Contents
Introduction
Pussy Riot and Shepard Fairey Join Forces
Putin’s Ashes NFT Collection
All Proceeds Being Donated To Ukraine
Conclusion

Introduction
Pussy Riot, a Russian protest group, and street artist Shepard Fairey have teamed up to raise money for the people of Ukraine in an unprecedented way. Through the sale of their open-edition Putin’s Ashes Non-Fungible Token (NFT) collection, all proceeds will be donated to Ukrainian troops currently fighting against Russian invasion. This article will explore the details of this collaboration, including what is being offered in the collection and how it will benefit those in need. Let’s take a closer look.

Pussy Riot and Shepard Fairey Join Forces
The collaboration between Pussy Riot and Shepard Fairey began with an artwork created by Nadya Tolokonnikova from Pussy Riot titled “Putin’s Ashes”. The artwork was made by collecting ashes from an image of Russian President Vladimir Putin that had been burned during a protest event organized by Pussy Riot. After creating the work, Tolokonnikova contacted Fairey to ask him to help create the open-edition Putin’s Ashes NFT collection to support Ukrainian soldiers battling against Russia’s invasion since February 2022. In response, Fairey agreed to contribute his signature style artworks depicting Tolokonnikova wearing a corset with Putin on the front that appears to be in flames. The two are now encouraging supporters to express their „proof of protest“ on the blockchain through this special collection.

Putin’s Ashes NFT Collection
The open edition of the Putin’s Ashes NFT collection begins minting on Friday at 10:00 AM Pacific Time (PT) and ends on February 3rd 2021 with each token priced at 10 TEZ (approximately $11). Additionally, Pussy Riot plans to open the collection with a live performance at Jeffrey Deitch Gallery in Los Angeles on Friday morning as well as host protests throughout other cities around United States in order for supporters worldwide to show their support for Ukraine against Russian invasion. It is also worth noting that this initiative represents one of many ways that cryptocurrencies and blockchain technology can be used for good rather than simply speculative investments or illicit activities such as money laundering or cybercrime.

All Proceeds Being Donated To Ukraine
As mentioned above, all proceeds from the sale of tokens will be donated directly towards Ukrainian soldiers who have been fighting against Russia since 2022. This is not only great news for those bravely defending their country but also serves as an example for how cryptocurrencies can be used for charitable causes such as this one. Furthermore, it provides further incentive for more mainstream adoption as more people become aware of just how powerful these technologies can be when utilized properly within our society today!

Conclusion
In conclusion, Pussy Riot and Shepard Fairey are teaming up once again in order to raise funds for Ukrainian troops battling Russian forces through an open edition Putin’s Ashes Non-Fungible Token (NFT) collection which will start minting on Friday at 10:00 AM PT until February 3rd 2021 with each token priced at 10 TEZ (approximately $11). All proceeds will go directly towards helping those bravely defending their country while also providing another great example of how cryptocurrency and blockchain technology can be used positively within our society today!