Ripple Receives In-Principle Approval From Singaporean Regulator

NEOPIN Partners with Lena Network for NFT-Fi Service DevelopmentNEOPIN, the global CeDeFi platform of South Korean investment holding company Neowiz Holdings, announced on Tuesday that it is teaming up with Lena Network, a Japanese developer of non-fungible token finance (NFT-Fi) services.Photo by Choong Deng Xiang on UnsplashFostering NFT-Fi and DeFi synergyIn this collaboration, the companies plan to promote NFT-Fi usage by onboarding NEOPIN onto Lena’s service framework and by launching NEOPIN as a decentralized finance (DeFi) product based on Lena’s governance token $LENA. They will also strengthen cooperative ventures by channeling NEOPIN and Lena Network’s NFT-Fi products. Both companies’ worldwide partners will also receive collective support as part of this agreement.“This partnership is meaningful in many ways. We have been able to secure an important Web3 partner in Japan, expand our global DeFi products, and grow our NFT-Fi business,” explained Ethan Kim, CEO of NEOPIN.This comes as part of NEOPIN’s bigger efforts to broaden its global user demographic by launching DeFi products associated with global projects, the first of which is the latest collaboration with Lena. This move will create a strong base for the entry of NEOPIN’s Web3 projects into the Japanese market.“We will continue to strengthen our partnerships with outstanding Japanese Web3 projects such as Lena Network, and establish a foundation for our success in the Japanese market,” CEO Kim added.Innovation at Lena NetworkLena Network is operated by professionals who formerly worked at institutions like SBI Holdings and JP Morgan. It plans to officially launch its new service, LENA, in the third quarter of this year, which offers loans in Ethereum or stablecoins against collaterals such as NFTs, tokens, and real-world assets (RWA).Key partners for this service include NFT collections such as Monkey Kingdom — the first Asian NFT collection and one of Solana’s chart-toppers — and Trekki, a collaborative travel-themed collection made by Polygon and Trip.com.“By onboarding NEOPIN, we aim to provide a seamless NFT-Fi adoption and launch DeFi products based on LENA tokens,” said Casper Cheng, CSO of Lena Network. “Following NFT-Fi, Lena Network’s next product will be RWA-Fi. Together with NEOPIN, we will continue to drive innovation in the Web3 space and explore new possibilities for NFT utilization.”The current NFT market capitalization is approximately $4.9 billion as of today, according to insights from the NFT analysis site NFTGo. While these assets have historically been liquidated through trading, NFT-Fi opens up various methods of liquidation, thereby expanding access to ownership of these assets.

Authorities in China have disclosed that Yao Qian, a prominent figure in the country's blockchain industry and former head of China's central bank digital currency institute, is under investigation by the nation's anti-graft watchdog. The announcement was made on Friday, revealing that Yao is "suspected of serious violations of discipline and law." However, specific details regarding the nature of the investigation were not provided.Photo by Max van den Oetelaar on UnsplashCareer and recent roleYao Qian currently holds the position of head of the technology regulation department at the China Securities Regulatory Commission. Earlier in the month, he authored an opinion piece titled “Warnings Mount Over Novel Bitcoin ETFs That Have Taken the U.S. by Storm” on Caixin, a prominent Chinese financial news platform. Born in 1970, Yao initially served as the inaugural head of China's central bank digital currency research institute in 2017 before transitioning to the securities regulator in 2018. Contributions to blockchain discourseThroughout his career, Yao Qian has been actively involved in discussions surrounding blockchain technology. In 2022, he published a book covering various topics within the blockchain space, including DAOs, DeFi, NFTs and X-to-earn models. In the foreword of his book, Yao emphasized the growing significance of Web3 innovation, noting it as a development direction of high importance and value for nations. Lack of specifics surrounding investigationThe announcement of Yao Qian's investigation has left many observers in the blockchain industry with questions, as authorities did not provide clear reasons for the probe. Despite his past contributions and current role in technology regulation, the investigation raises uncertainties about Yao's future involvement in the blockchain sector and his standing within Chinese regulatory circles. As developments unfold, stakeholders within the blockchain community will continue to monitor the situation surrounding Yao Qian's investigation and its potential implications for China's blockchain policies and initiatives. 

Korean Crypto Exchange Presents Bitcoin Forecasts for Three ScenariosRecently, concerns over a potential US default have heightened due to the ongoing disagreement between Republicans and Democrats in the US Congress regarding the necessity of increasing the debt ceiling. Democrats, along with the Biden administration, advocate for authorizing additional debt, while Republicans propose spending cuts.Considering the historical patterns observed in the US and the inherently political nature of this matter, it is improbable that the uncertainty surrounding the debt ceiling raise will endure for an extended period. In the past, when faced with a similar situation in 2011, the debt ceiling was ultimately approved despite significant political divisions. Particularly with upcoming elections next year and escalating concerns of an economic downturn, it is likely that a resolution to the debt ceiling issue will be reached soon.In light of these circumstances, the economic research institute at one of South Korea’s major crypto exchanges Bithumb released a report that outlines three distinct scenarios depicting the potential unfolding of the debt ceiling issue in the US. Additionally, it has offered insights into the potential implications for Bitcoin under each scenario.Photo by Shubham’s Web3 on UnsplashBipartisan agreement to increase the debt ceilingIn the scenario where the debt ceiling is promptly raised as a result of a significant bipartisan agreement, the US is anticipated to adopt an expansionary fiscal policy by issuing government bonds to prevent a default. If a debt ceiling deal is reached, it is projected that short-term bond issuance will reach a net amount of $1.4 trillion by the end of the year. There is also a growing consensus that medium- and long-term bond issuance may commence in the third quarter. Additionally, the possibility of interest rate cuts as early as the second half of this year entered the equation. In the long term, this could potentially lead to a depreciation of the dollar as market liquidity increases, thereby weakening the currency. It is worth noting that historically, the value of Bitcoin tended to go up when market liquidity rises.Debt ceiling disagreement and delayed negotiationsAnother scenario entails the failure of the two parties to reach an agreement and a subsequent delay in approving a raise to the debt ceiling. Should the debt ceiling not be raised in a timely manner, the US would potentially encounter an unparalleled default on its debt obligations. This default could trigger a severe credit crunch, resulting from international credit downgrades and a weakened global standing for the US. Such circumstances would further escalate the risk of an economic crisis.As the negotiations on the debt limit continue to be delayed, there will be a prolonged period of uncertainty in both Treasury issuance and secondary markets. This uncertainty poses risks to money market funds (MMFs) that hold a significant portion of short-term Treasuries, potentially resulting in losses. Consequently, there could be a shift towards reverse repo (RRP) transactions as investors seek alternative avenues. In fact, Treasury liquidity has recently exhibited signs of deterioration, with MMFs and RRPs garnering considerable attention in the market.Heightened concerns regarding short-term Treasuries could lead to a higher volume of reverse repo trades compared to repo trades. Repo transactions use Treasuries as collateral, whereas reverse repo transactions involve depositing funds with the Fed or lending money to the Fed in exchange for collateral, which often includes Treasuries, thereby earning interest. In such a scenario, market liquidity could become trapped in the Fed, potentially rekindling risks within the banking system.Given their sensitivity to liquidity conditions, crypto markets are anticipated to experience a temporary decline. However, Bitcoin has exhibited a historical pattern of appreciating in value as an alternative to the US banking system, especially during instances of small and medium-sized bank failures. In the event of prolonged negotiations and an escalating risk of a US default, the demand for safe-haven assets like Bitcoin might surge. As a result, Bitcoin could gain favorability as investors seek refuge in alternative assets amidst uncertain market conditions.Linking debt ceiling increase to spending reductionThe last scenario involves a conditional agreement accompanied by measures aimed at reducing the deficit, as proposed by Republicans. Given the longstanding concerns surrounding excessive US deficits, any agreement to raise the debt ceiling would likely be contingent upon fiscal consolidation and spending cuts. Notably, as of March 31, 2023, the US federal deficit is approximately 8% of GDP, a figure comparable to the 8.3% average observed in 2011 when the possibility of a US default reached its peak.While fiscal consolidation is necessary to ensure fiscal sustainability, unless the US significantly increases tax revenues, an increase in the debt ceiling may be negotiated at the expense of significant cuts to the national budget. In such a case, the US economy would inevitably experience the adverse effects of reduced government spending.The Republican party has put forth a demand of $4.8 trillion in deficit reduction over the next ten years as a condition for raising the debt ceiling. This figure translates to an average of $480 billion per year or approximately 1.8% of the current year’s GDP (as of May). However, it is important to note that in the medium to long term, reductions in government spending without complementary expansionary monetary policies have the potential to accelerate GDP decline. If Congress agrees to cuts in government spending, it could increase the probability of the Fed swiftly reversing its tightening policy. Unless the Fed halts its tightening measures, the likelihood of a US recession may become more pronounced.If the Fed decides to cut interest rates earlier than anticipated in response to the Treasury’s fiscal consolidation efforts, Bitcoin, which is known to be more responsive to long-term monetary policy, might be able to overcome the short-term downturn and experience an upward trend.The authors contend that at present, market attention is primarily directed towards the matter of raising the debt ceiling, taking into account the potential risks of a US default and the possibility of a bond rating downgrade. However, they believe it is unlikely that US politicians will make radical decisions in the run-up to next year’s presidential election.While the issue of raising the debt ceiling will have a short-term impact, the report argues that the main drivers of Bitcoin’s price in the medium to long term will be the Fed’s monetary policy and the occurrence of Bitcoin’s halving event.It is important to note that there is a time lag between the end of the Fed’s tightening measures and the halving of Bitcoin. In the short term, the price trajectory of Bitcoin will likely be influenced by factors such as the potential failure of additional small and medium-sized US banks (which is concerning given recent outflows of US bank deposits) and increased demand for safe-haven assets due to the delay in raising the debt ceiling. These factors will play a greater role in shaping Bitcoin’s short-term performance.