Telcoin makes users whole in exploit recovery

The People’s Bank of China (PBOC) plans to roll out a new structure for its central bank digital currency (CBDC) operations, moving the digital yuan into a deposit-based role within the commercial banking system beginning Jan. 1, 2026. Lu Lei, a deputy governor of the PBOC, announced the update, marking a new direction after nearly a decade of pilot programs. According to a report by FTChinese, the move fits into Beijing’s broader economic planning, as authorities seek to reinforce China’s role in global finance while containing risks tied to loosely regulated digital activity. The deputy governor said China will continue to run the digital yuan under a two-tier system, with the central bank responsible for rules and infrastructure, while commercial banks manage wallets, payments, and compliance. He added that the arrangement is designed to prevent banks from being sidelined and to limit shadow banking risks associated with digital payment platforms outside the regulated system.Photo by Eric Prouzet on UnsplashDigital yuan transactions top $2.3TThe announcement comes as use of the digital yuan, known as the e-CNY, continues to rise. By late November 2025, the system had handled 3.48 billion transactions with a total value of 16.7 trillion yuan ($2.3 trillion). There are about 230 million personal wallets and 18.84 million corporate wallets. Beyond domestic use, the e-CNY is being positioned for international trade. Lu pointed to progress on mBridge, a cross-border payments project involving multiple central banks. The platform has processed 4,047 transactions worth the equivalent of 387.2 billion yuan ($55.3 billion), with the digital yuan accounting for about 95.3% of the settlement value. The deputy governor also sounded a note of caution on private-sector innovation, saying the rapid growth of digital assets and stablecoins could complicate the conduct of monetary policy. He said central banks need to ensure that new payment tools do not undermine macroeconomic stability or allow money to circulate beyond regulated channels. Hong Kong to license crypto dealers, custodiansAs Beijing moves to strengthen its state-backed currency framework, Hong Kong is also tightening oversight of the crypto market. On Dec. 24, the city’s Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) released their conclusions on proposed legislation to regulate virtual asset dealing and custodial services. Following the implementation of the Stablecoins Ordinance in August, regulators are now moving to require firms offering crypto dealing or custody services in Hong Kong to obtain licenses and operate under regulatory supervision. They also began seeking feedback on whether to extend oversight to virtual asset advisory and management providers, with the proposed framework modeled on existing securities market rules. In a separate development underscoring the contrast between state-backed and decentralized digital currencies in the region, reports this month pointed to a sharp drop in Bitcoin network activity linked to mainland China. BTC hashrate drop seen amid China mining changesKong Jianping, CEO of Nasdaq-listed Web3 infrastructure firm Nano Labs, said on the social media platform X that the global Bitcoin network’s hashrate fell by about 100 exahashes per second, or roughly 8%, around Dec. 15. He attributed the decline to the shutdown of an estimated 400,000 mining rigs, mainly in Xinjiang. A lower hashrate means less computing power is securing the network, reducing competition among miners that validate transactions. China has maintained a broad ban on crypto trading and mining since 2021. Industry outlet Wu Blockchain said the reasons for the latest shutdowns were unclear. 

Wintermute Asia executes inaugural options block trade via CMEWintermute Asia Pte. Ltd, the digital asset derivatives trading arm of the well-known algorithmic trading firm and crypto market maker Wintermute Group, has successfully executed its first options block trade through the CME Group.The BTC/USD block trade was conducted in collaboration with U.K.-based liquidity and data solutions specialist TP ICAP. It was successfully cleared by ABN AMRO, marking a significant milestone for Wintermute Asia in the digital assets space.Photo by Kanchanara on UnsplashMeeting institutional investor needsInstitutional interest in secure and alternative avenues for exposure to digital assets continues to build momentum. It’s likely with that in mind that Wintermute Asia is strategically expanding its derivatives product offerings with this latest move. It’s also no surprise that Wintermute’s Singapore-based team was involved in this development, given a recent expansion of its Singapore base and the fact that its derivatives business is dealt with in Singapore.Presently, Wintermute Asia provides vanilla options in BTC, ETH and various altcoins, featuring expiration periods ranging from 1 day to 6 months. The platform also caters to more sophisticated needs with the inclusion of exotic options.Evgeny Gaevoy, CEO of Wintermute Group, expressed enthusiasm about Wintermute Asia’s evolving product offering, stating:“Wintermute Asia is excited to offer a range of OTC derivatives solutions to our counterparties that can accommodate all of their trading needs. Our growing suite of derivative instruments allows investors to easily hedge and manage risks, generate yield, and gain synthetic exposure to the underlying digital assets.”The move towards facilitating options block trades aligns with the increasing diversification of institutional portfolios into the digital asset sector. Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, emphasized the significance of the partnership with Wintermute Asia. He commented:“We are pleased to provide Wintermute and its counterparties with access to our highly liquid, regulated suite of benchmark cryptocurrency futures and options on bitcoin and ether.”Involving TradFi heavyweightsCME is a cornerstone TradFi financial derivatives exchange, first established in 1898 and headquartered in Chicago in the United States. Its CEO Terry Duffy pushed back against proposals from convicted fraudster and FTX Founder Sam Bankman Fried in 2022 to alter the futures clearing model on the basis that such a move would introduce significant risk into the financial system. A year on from the failure of FTX and many other crypto platforms, a move towards involving established TradFi firms like CME, as Wintermute is doing, is far more appealing to institutional investors.Sam Newman, Digital Assets Head of Broking at TP ICAP, acknowledged Wintermute as another participant in block trading CME Group cryptocurrency products. TP ICAP, a key player in digital asset broking services since 2020, has been instrumental in price discovery and liquidity through global coverage on regulated exchanges. Newman expressed excitement about witnessing crypto-native firms like Wintermute accessing traditional products and services, indicating the market’s maturation.Earlier this year, CME Group upgraded its BrokerTec Stream from version 1.5 to 2.0. The upgrade aims to enhance performance and reduce latency for clients, introducing features such as sweepable matching and firm price improvements. Recently, CME became the second largest bitcoin futures exchange, second only to global crypto exchange Binance.

Arthur Hayes: Chinese monetary policy could ignite crypto marketArthur Hayes, Co-Founder of Seychelles-incorporated crypto exchange and derivatives platform BitMEX, suggests that China could inject a substantial amount of credit into its economy, potentially giving a boost to Bitcoin and the broader crypto market.Photo by Eric Prouzet on UnsplashPotential flood of yuan creditThe firebrand crypto OG outlined his thoughts on the matter in a blog post which was published on Monday. Hayes discussed how, although China has currently made credit expensive in order to hold back credit growth and inspire confidence in the economy, its monetary authorities might be gearing up to flood the economy with yuan credit, creating a favorable environment for cryptocurrencies.He outlined a series of factors contributing to this potential surge in Chinese credit. He pointed to the interplay between U.S. monetary policy and the Chinese yuan, emphasizing how recent U.S. actions are laying the groundwork for China to issue substantial credit, particularly to its struggling property sector.Describing U.S. policy as “weakening the dollar by issuing more Treasury bills,” Hayes noted the consequent decline of the dollar index (DXY) throughout November. He argued that the weaker dollar gives China the flexibility to increase yuan credit without significant depreciation, possibly even leading to yuan appreciation.If the Federal Reserve at a minimum holds rates and better still, starts to cut rates, China will be in a position to pursue the stimulus needed for its property market and for infrastructure spending.Hong Kong as the gateway to capital marketsAccording to Hayes, the global monetary dynamics set in motion by these factors could be advantageous for Bitcoin and the broader cryptocurrency market. He explained that the bulk of the financing will trickle down into speculation within the financial markets. If China starts printing yuan, the capital is likely to flow into global markets, supporting the prices of various risk assets.But how can this happen, given that speculation and crypto trading are prohibited in China? Hayes’ view is that Hong Kong is now China’s gateway to the global capital markets. Wealthy Chinese individuals now bank via Hong Kong. As we have seen, the autonomous Chinese territory has a workable regulatory framework in place and is now actively licensing crypto exchanges and brokers. Consequently Bitcoin and crypto, generally, could be among the risk assets benefiting from an influx of capital.Furthermore, the BitMex co-founder believes that as yuan credit becomes abundant, the global demand for dollar credit and liquidity may decrease. Given that the dollar is a primary funding currency, a fall in the price of credit could lead to a rise in fixed-supply assets like Bitcoin and gold in dollar terms.Hayes concluded what is a long and detailed blog post by stating:“I will continue moving money out of T-bills and into crypto because I want to get in now before it becomes apparent through the data that China’s money printer is going brrrrr.”He suggested that Chinese New Year, which occurs in mid-February of next year, could be the time in which that extra credit materializes in China. Hayes’ latest assertion comes on the back of a bold claim he made last month when he suggested that bitcoin could reach a unit price of $1 million by 2026.