Regulatory Dynamics

1. The European Commission is seeking public feedback on the standard for reporting crypto asset taxation. The OECD plans to introduce a common reporting standard for crypto asset taxation in 2021, which will be similar to the existing anti-tax evasion CRS. The proposal was published on November 23, and the European Commission will collect public feedback before December 21. The new rules are expected to be launched in the third quarter of 2021.

2. The Central Bank of Kazakhstan is studying the introduction of Central Bank Digital Currency (CBDC). According to a survey, as of early 2020, 80% of the participating central banks have begun research or pilot projects on digital currencies. The Central Bank of Kazakhstan is working with the Bank for International Settlements and the International Monetary Fund to study regulatory approaches for digital currencies and is participating in observations of multi-country digital currency pilot projects. The Central Bank of Kazakhstan plans to publish a report on scenarios for the introduction of digital currency in the second half of 2021.

3. Nigeria is building a new regulatory framework for cryptocurrency and blockchain. The country's Ministry of Finance is working with the securities regulatory body to create a regulatory environment for blockchain and digital assets. The regulatory goal is not to hinder technology or innovation, but to establish standards that encourage ethical norms to create a fair and effective market.

4. Suzhou will launch a digital renminbi red envelope test on Double Twelve. Currently, many merchants in Suzhou's Xiangcheng District have installed NFC QR codes, and testers have experienced digital renminbi payments, including "offline" and "tap to pay" functions. The internal testing in Chengdu is also ongoing, adopting a whitelist invitation system, where users can recharge digital renminbi and top up phone credits through the "Panda Wallet".

5. Queen Elizabeth II of the United Kingdom expressed interest in blockchain. The UK Blockchain Association sent the Queen the sixth volume of the "UK Blockchain Association Journal," and the Queen replied that she was interested in the journal because it is the first open-access blockchain research journal available in both print and online formats.

Industry News

1. The PlusToken Ponzi scheme has seized approximately $4.2 billion in cryptocurrency, and the confiscated assets have been legally processed. The seized assets include 194,775 BTC, 833,083 ETH, and 1.4 million LTC among various cryptocurrencies. According to reports, most of these digital currencies were sold between the end of 2019 and mid-2020, but there may still be about 15,000 BTC unsold. The defendant, Chen Bo, had applied to authorize a company to legally sell the confiscated digital currencies as restitution.

2. The minimum staking requirement for the Ethereum 2.0 genesis block launch has reached 100%. Data from the Ethereum blockchain explorer shows that 524,288 ETH have been deposited in the staking contract, meeting the minimum requirement to launch the genesis block. This means Ethereum 2.0 is on track to launch as scheduled on December 1.

3. Facebook plans to launch the cryptocurrency Libra in a limited form as early as January 2021. According to informants, Libra may initially issue a single stablecoin pegged to the US dollar, with other fiat currency-pegged Libras to be launched later. The specific issuance time depends on obtaining approval from the Swiss Financial Market Supervisory Authority.

4. The Labuan branch of China Construction Bank has withdrawn its previous plan to issue digital bonds. Hong Kong fintech company Fuso Securities Trading Platform stated that at the issuer's request, the issuance of the Ethereum-based digital bond Longbond SR Notes USD Feb 2021 has been canceled. The exchange has suspended the listing process and started to return funds to investors.

5. The South Korean government is actively promoting the formulation of regulations related to cryptocurrencies. With the rapid development of the global cryptocurrency market, South Korean regulators recognize the importance of establishing a clear legal framework. The new regulatory measures are expected to include registration requirements for cryptocurrency exchanges, anti-money laundering regulations, and investor protection mechanisms. These initiatives aim to enhance market transparency while fostering the healthy development of the cryptocurrency industry.