Regulatory Dynamics

1. The Dubai Financial Services Authority is developing a regulatory framework for digital assets.

The Dubai Financial Services Authority (DFSA) is working on developing a comprehensive regulatory framework for digital assets. The agency revealed this initiative in its latest published business plan for 2021/22. The Strategic Director of the DFSA's Policy and Risk Department stated that the regulatory scope will cover a wide range of digital assets, including security tokens, utility tokens, various types of exchange or payment tokens, and related service providers. The DFSA plans to publish two consultation papers in the first and second quarters of this year to seek opinions on the proposed rules.

2. The Vice President of Panama proposed a cryptocurrency regulation bill.

The Vice President of Panama has proposed a draft cryptocurrency regulatory bill during a legislative plenary session. The bill aims to regulate the use and trading forms of cryptocurrency within Panama and considers incorporating cryptocurrency into a nationally supported social security fund to increase the financial freedom of the populace. The Vice President emphasized that Panama is lagging behind other countries in cryptocurrency regulation and urged the committee on trade and economic affairs to give the bill due attention.

3. The Beijing and Shanghai Two Sessions focus on the development of digital currency

Members of the Beijing Municipal Committee of the Chinese People's Political Consultative Conference pointed out at the CPPCC meeting that advancing the pilot application of digital renminbi and promoting the construction of a digital factor market are two important directions for the development of Beijing's digital economy. Digital renminbi is expected to reduce operating costs for small and medium-sized enterprises.

The Mayor of Shanghai stated in the government work report that Shanghai will focus on strengthening its global resource allocation capabilities, continuously promote the opening up of the financial sector, attract more functional and headquarters-based institutions, and advance the pilot work of the digital yuan.

4. ECB President Talks About Digital Euro

The President of the European Central Bank stated that a properly implemented digital euro will benefit all citizens, not just elites and young people. She acknowledged that more work is needed to address relevant issues. The President hopes to launch the digital euro within five years, while she believes that Bitcoin is a speculative asset that needs regulation.

Industry News

1. The phenomenon of stale blocks in Bitcoin

At block height 666,833, a stale block appeared in Bitcoin. Two mining pools mined blocks simultaneously, but ultimately one party's block prevailed in the competition. Industry experts explain that this is a combination of two common phenomena: competition among blocks at the same height and RBF (Replace-By-Fee) transactions. A transaction failed to confirm due to a low fee, and the initiator subsequently initiated an RBF transaction with a higher fee, which happened to be included in the block that did not prevail.

2. Bitcoin Core website removes link to Bitcoin whitepaper

The Bitcoin Core website removed the link to the Bitcoin white paper, sparking discussions within the community. The chief maintainer stated that this decision aids in the decentralization of Bitcoin, emphasizing that there should be no leaders in Bitcoin. On the other hand, a co-owner of the Bitcoin.org website is calling for community support to address potential legal challenges, insisting on continuing to host the Bitcoin white paper.

3. Russia's largest state-owned bank plans to launch a stablecoin

The State Savings Bank of the Russian Federation has submitted an application to the central bank to launch a blockchain platform for its Sbercoin stablecoin. The head of the bank's trading operations stated that the registration process usually does not exceed 45 days, and the platform and stablecoin are expected to be launched this spring. Issues such as the taxation of digital financial assets still need to be resolved.

4. The Thai stock exchange plans to launch a digital asset trading platform.

The Stock Exchange of Thailand plans to launch a digital asset trading platform in the second half of this year, but the platform will not include cryptocurrency trading.