QCP Capital: Bitcoin Has $34K Price Potential

Recognition of Donald Trump’s victory in the U.S. presidential election on Nov. 6 has led to many crypto proponents in Asia foreseeing a positive outcome for crypto within the Asian region, and globally.Photo by Kevin Lanceplaine on UnsplashBright future for cryptoAccording to a report published by the South China Morning Post (SCMP), crypto proponents in China are expectant of a bright future for crypto both on the Chinese mainland and in Hong Kong. The mindset seems to be that a pro-crypto stance in the U.S. will lead to other jurisdictions taking a similar approach. HashKey CEO Livio Weng expressed such a view, stating:“Trump’s pro-crypto stance is expected not only to invigorate the US virtual-asset industry, but also to encourage Hong Kong to further relax its own virtual-asset policies in its quest to become a global Web3 hub.”  Prior to being elected, Trump had promised to fire Gary Gensler, who as Chair of the Securities and Exchange Commission (SEC) has pursued a strategy of regulation by enforcement, a course of action that has been broadly criticized by crypto market participants in the United States. Ripple CEO Brad Garlinghouse wasted no time in calling on Trump to act, and to fire Gensler. Influencing regulatory attitudesThere seems to be a consensus among commentators that the regulatory approach to crypto in the U.S. is going to become crypto-friendly. Crypto analyst Miles Deutscher suggests that “a Trump victory is a WIN for US tech innovation, as it would solidify [the United States’] status as a crypto powerhouse.” Weng believes that “this shift could also positively influence regulatory attitudes toward virtual assets in mainland China.” That view is mirrored in South Korea by KP Jang, head of Xangle Research. Jang asserts that “if Trump implements bold virtual asset policies while improving existing regulations, it is expected to accelerate regulatory reforms in Korea as well.” Sumit Gupta, CEO and co-founder of India’s largest crypto exchange, CoinDCX, outlined on X that Trump’s victory is a pivotal moment for global crypto, adding:”The direct effects of Trump’s policies might not alter India’s regulatory environment right away. However, global sentiment and investor behaviour will be influenced, eventually reaching India.” The CoinDCX CEO believes that should Trump now appoint regulatory leadership that’s crypto-positive, any resultant crypto regulatory framework adopted by the U.S. could become a blueprint for use by other nations. Gupta identified further potential upside insofar as the implementation of positive crypto policies by Trump would lead to a more attractive environment for crypto, “potentially opening up enhanced funding opportunities and partnerships for Indian startups as investors seek global growth.” Bitcoin price surgeAt the time of writing, the Bitcoin unit price is up 0.64% over the course of the past 24 hours, at $74,884. American business news channel CNBC reported that Bitcoin could reach $100,000 before Trump even takes office.  Matthew Hougan, chief investment officer (CIO) at crypto asset fund manager Bitwise, said that Trump’s election victory could herald in a “golden age of crypto,” with a friendlier regulatory environment leading to greater institutional investment and mainstream adoption.

MAS Offers Guidelines for Banks Handling Crypto-Related ClientsThe Monetary Authority of Singapore (MAS) has released a comprehensive set of guidelines to assist banks in managing clients who are involved in digital assets, such as cryptocurrency exchanges or individuals whose wealth is derived from cryptocurrencies.Photo by Meriç Dağlı on UnsplashIndustry working groupAccording to a report in local media source, The Straits Times, these non-mandatory guidelines, developed by an industry working group, aim to provide best practices for financial institutions to address concerns related to money laundering, terrorism financing, and sanctions risks associated with cryptocurrencies.The working group suggests that enhanced due diligence may be necessary for firms closely connected to facilitating crypto transactions. For instance, conducting site visits or walk-throughs of a client’s anti-money laundering and anti-terrorism financing processes and controls could be required.During the onboarding process, banks should request information documenting the customer’s crypto exposure and the intended usage of the account. Additionally, banks are advised to establish the source of the client’s funds or wealth.To evaluate the regulatory status of a merchant customer’s crypto-related counterparties, especially if they contribute significantly to the merchant’s transactions, banks should conduct thorough assessments.The working group also highlights the use of blockchain screening tools to review the on-chain activity of digital token payment service providers. Regular screening of new and existing wallet addresses owned or controlled by these providers against the sanctions list and designated wallets is also recommended.Comprehensive guidelinesLoretta Yuen, Head of Legal and Compliance at Oversea-Chinese Banking Corp (OCBC), a Singapore-headquartered bank, describes the guidelines as one of the most comprehensive in the world, providing insights into banks’ management of crypto-related money laundering, terrorism financing, and sanctions risks.She believes the guidelines will raise awareness among prospective customers regarding the key risk considerations banks prioritize and enable customers to proactively fulfill banks’ customer due diligence requirements during the onboarding process.Evy Theunis, DBS Bank’s Head of Digital Assets, views the guidelines as a codification of best practices across the industry, aligning with the bank’s existing protocols. United Overseas Bank (UOB) also acknowledges the benefits of the best practice paper, particularly given the diverse range of digital assets with varying levels of risk.Eight participating banksThe working group responsible for developing these guidelines includes representatives from eight banks, MAS, the Commercial Affairs Department, and Big Four audit firm Ernst & Young. Formed in August 2022 under the anti-money laundering and countering the financing of terrorism industry partnership (ACIP), the group aims to identify, assess, and mitigate money laundering and terrorism financing risks in Singapore through a collaborative private-public partnership involving the financial sector, regulators, law enforcement agencies, and other government entities.Singapore is vying to establish itself as a hub for digital asset business in Asia, alongside other centers such as Hong Kong. The Chinese autonomous territory has been making greater progress over the course of the past year.However, a report in The Wall Street Journal on Monday suggests that banking remains a difficulty for crypto businesses in Hong Kong. Hong Kong’s difficulty may be Singapore’s opportunity, given the work that this working group has carried out in smoothing the way for the banking of digital asset-related businesses.

Rotonda holds blockchain hackathon at GBIC 2023Rotonda, the operator of the digital asset wallet platform Bithumb Buritto Wallet, hosted a hackathon on Monday (local time) at this year’s Global Blockchain Incheon Conference (GBIC), centered around the theme of addressing a variety of local issues, such as carbon reduction, industrial and urban issues and public services using Web3 technology. Contestants from across the country gathered to create blockchain-based prototypes aimed at addressing such issues.Photo by Marvin Meyer on UnsplashOther blockchain and Web3 companies like Roa Core, Ret Games and ReFi Korea also participated as sponsors for the competition, which was held at Songdo Convensia, an international conference complex located in Songdo International Business District.Innovative solutions recognizedThe ten teams that made it to the finals presented a range of ideas related to the theme, which were judged based on how applicable, feasible and influential they are, as well as their potential for development and social contribution.“Through this year’s hackathon, we were introduced to innovative ideas and high-quality technologies to address various local problems. Discovering and supporting passionate entrepreneurs is in line with the values that we uphold within our ecosystem at Bithumb Buritto Wallet,” said Lee Sang-ho, Vice President at Bithumb Burrito Wallet.The grand prize of KRW 5 million (approximately $3,600) was awarded to DIY, a team that developed a project to promote cultural resources, tourism experiences and sports industries in Incheon using dynamic non-fungible tokens (dNFTs). dNFTs can be adapted or changed based on external events and data. The hackathon judges praised the team for adding gamification elements to increase citizen participation and streamlining administrative procedures through smart contracts. The team also won additional benefits like office space in Incheon’s Jemulpo Smart Town.“We are delighted to be recognized for the in-depth discussions we had amongst our members to develop a highly usable and differentiated platform,” the team said in a statement. “We will strive to leverage blockchain technology to create various success stories.”Additional winnersTwo runner-up prizes went to the Caffeine Addiction team, which developed a platform for motivating coffee drinkers to dispose of used coffee grounds, and the Datayo team, which developed dBus, a smart mobility platform with token-based crowdfunding processes. They received KRW 3 million and KRW 2 million, respectively, in prize winnings.