Japan's Monex acquires majority stake in Canadian crypto firm

In a recent report, Singaporean digital asset financial services firm Matrixport has made a bold forecast regarding the future of bitcoin prices and the potential rejection of spot bitcoin ETFs by the Securities and Exchange Commission (SEC) in the United States.Photo by André François McKenzie on UnsplashMinority viewWhile most ETF and crypto industry analysts in recent weeks have been suggesting a greater than 90% chance of the imminent approval of a spot bitcoin ETF coming from the SEC, Matrixport has had its say, speculating that the regulator will once again reject all such applications. In a note published to its website on Wednesday, the firm stated:”The current five-person voting Commissioners leadership critical for the ETF approval of the SEC is dominated by Democrats. SEC Chair Gensler is not embracing crypto in the U.S., and it might even be a very long shot to expect that he would vote to approve bitcoin spot ETFs.” The report emphasizes the dominant influence of Democratic leadership within the SEC, particularly Chairman Gary Gensler's cautious approach to crypto regulation. The Democrat-led administration in the United States has been decidedly anti-crypto in its policies throughout the ongoing term of U.S. President Joe Biden. Matrixport also suggests a potential delay in ETF approvals until Q2 2024, dampening hopes of an imminent market boost. Potential bitcoin price slumpShould the company be right in that speculation, it extrapolates that this turn of events will potentially lead to a substantial decline in bitcoin's value, with the bitcoin unit price possibly dropping to as low as $36,000. This revelation has sent shock waves through the market, prompting Matrixport to advise investors to take protective measures. The recommended strategies include purchasing put options or engaging in direct shorting of bitcoin to mitigate potential losses. With an ominous Jan. 5, 2024 deadline looming, traders could decide to hedge their long exposure by purchasing $40,000 strike put options expiring at the end of January or opting for outright short positions through options. Matrixport's report challenges the previously optimistic expectations surrounding bitcoin's future, highlighting the SEC's likely rejection of spot ETFs as a significant factor. Despite the platform's earlier bullish stance, it now expresses skepticism about the SEC's willingness to embrace cryptocurrencies. The firm contends that the current influx of funds into crypto, driven by expectations of ETF approval, could result in significant liquidations if the SEC denies the proposals. The report estimates that about $10 billion of the $14 billion additional investments might be linked to optimistic ETF prospects. Notably, Matrixport foresees a rapid 20% decline in bitcoin's price, reverting to a range of around $36,000 to $38,000 should the SEC reject the ETFs. Positive long-term outlookDespite the potential setback with the SEC, Matrixport maintains a positive long-term outlook for bitcoin, expecting the BTC price to end 2024 above the $42,000 mark, where it started the year. The analysis also considers historical trends in U.S. election years and bitcoin mining cycles for the potential rally. At the time of writing, the bitcoin unit price is down 4.75% over the course of the past 24 hours, now standing at $42,838. Investors are closely monitoring the upcoming SEC decision and may well be heeding Matrixport's advice to navigate potential market volatility.  

In a global effort to bolster regulatory control over the cryptocurrency sector, Asian nations feature prominently among 17 jurisdictions globally, who have implemented tighter cryptocurrency regulations in 2023. That’s the view expressed by blockchain analytics firm TRM Labs in a report published on Monday.Photo by CARTER SAUNDERS on Unsplash2023 notable for regulatory tighteningThe increased scrutiny comes on the heels of several crypto meltdowns in 2022, including the collapse of major platforms like Terraform Labs, Celsius, BlockFi and FTX, resulting in a market rout that wiped out trillions of dollars in value. The subsequent year witnessed an extraordinary surge in regulatory measures globally, with governments prioritizing consumer protection in the volatile crypto space. TRM Labs' report indicates that the jurisdictions strengthening consumer protection measures accounted for 80% of the 21 studied, representing 70% of global exposure to cryptocurrencies. As the crypto ecosystem grappled with the aftermath of the FTX collapse at the beginning of 2023, regulatory actions surged, shaping a transformative year for the industry. The TRM Labs report emphasizes that nearly half of the jurisdictions tightening crypto regulations in 2023 prioritized increasing consumer protection measures. Additionally, international organizations, including the G20, Financial Action Task Force, Financial Stability Board, International Monetary Fund and the International Organization of Securities Commissions, played a role in shaping global frameworks and policy recommendations for cryptocurrency regulation. While prominent regulatory moves included the European Union's implementation of the Markets in Crypto Assets Regulation (MiCA) in June, Asian countries were particularly active in rolling out regulatory controls and measures relative to digital asset markets.  Stronger measures in SingaporeSingapore, recognized as an early adopter of crypto regulation, took significant steps in November to curb retail speculation in cryptocurrencies. The city-state’s central bank and financial regulator, the Monetary Authority of Singapore (MAS), brought in these restrictions following a year-long public consultation process, together with a review of cryptocurrency platforms. The country set itself apart from other jurisdictions by becoming one of the first to finalize rules governing stablecoins. That regulatory action included the establishment of a comprehensive framework relative to stablecoin operations. South Korea and Australia increased scrutiny of the cryptocurrency sector, contributing to the global trend of regulatory tightening. Hong Kong licensingHong Kong introduced a new licensing regime for centralized crypto exchanges, aligning with its goal to become a global hub for virtual asset businesses. Following its major initiative in October 2022 to support the virtual asset sector, it has since implemented a mandatory licensing regime for centralized crypto exchanges, allowing them to accept retail investors. Eleven companies, including OKX, one of the largest exchanges by trading volume, have submitted applications for the license in the city. In December, Hong Kong followed Singapore’s lead, by proposing stringent rules for stablecoin issuers, prohibiting unlicensed companies from selling stablecoins to the city's retail investors through regulated channels or actively marketing their tokens within the city. These rules are considered challenging for stablecoin issuers and may potentially deter major stablecoin operators like Tether and USDC from entering the city, according to experts. As Hong Kong solidifies its regulatory stance, it positions itself alongside other major players, contributing to the global evolution of cryptocurrency oversight.

LG Group Hosts Super Start Day to Promote Innovation and Collaboration in Blockchain and MoreSouth Korean conglomerate LG Group recently hosted its open innovation festival at LG Science Park in Seoul from Thursday to Friday. The festival, dubbed Super Start Day, is an annual event dedicated to discovering and supporting promising startups. Since its inception in 2018, it has welcomed more than 260 startups from 26 countries and over 20,000 participants.Photo by Johannes Plenio on UnsplashForging novel technologiesThis year, 40 startups from various fields, including artificial intelligence (AI), biotechnology, clean technology, and lifestyle, as well as small and medium-sized enterprises (SMEs), showcased their technologies and services while seeking out opportunities for collaboration. Among the participants were companies like Zkrypto, which developed a public blockchain voting system that prevents fraudulent voting; Basgen Bio, which created a drug development platform based on genomic data; and Netspa, which possesses the technology to extract recycled materials from fishing nets.Nine startups supported by LG Group also shared their joint achievements from over the past year. Some noteworthy examples include Ujura Company, which is developing technology to detect and predict the development of diseases in domestic pets based on behavioral data, and We Meet Mobility, which offers AI-based solutions for optimal logistics operations and transportation.Additionally, speakers like Ahn Ikkjin, CEO of Moloco, the first unicorn company in Silicon Valley founded by a Korean, and Kim Dong-Su, CEO of LG Technology Ventures, LG’s corporate venture capital arm in Silicon Valley, shared their insights on global expansion strategies and investment trends.Month-long celebration of innovationLG is set to host more events this month at LG Science Park, including the LG Software Developer Conference from September 14 to 15, aimed at sharing achievements in research and development, as well as Culture Week from September 20 to 22, where LG employees, families, local residents, and industrial experts can interact. These events, along with Super Start Day, are collectively referred to as LG SPARK, which is dedicated to promoting innovation and collaboration across diverse sectors.