⚠️ India's Central Bank Governor Warns Against Cryptocurrencies

👀 Shaktikanta Das, the Governor of India's central bank, has reiterated his concerns about cryptocurrencies, emphasizing their potential to disrupt financial systems. Speaking at the Peterson Institute for International Economics during Macro Week 2024, he explained why the Reserve Bank of India (RBI) approaches crypto with caution.

💬 Das pointed out that cryptocurrencies were designed to circumvent traditional financial systems. He raised a critical question:

Are authorities or governments comfortable with privately issued cryptocurrencies possessing all the features of currency?

He argued that issuing currency is a sovereign function and that allowing cryptocurrencies to thrive could remove parts of the economy from central bank control, leading to monetary instability.

⚠️ He elaborated on the risks, particularly how crypto could undermine the central bank’s ability to manage the money supply, which is essential for controlling inflation and managing economic cycles.

If the central bank loses control of money supply in the economy… how does the bank check liquidity available in the system?

he queried, highlighting the potential chaos in financial and monetary systems if cryptocurrencies were to become prevalent.

⚡️ India has adopted a cautious and regulated approach to cryptocurrencies. Initially, it banned banks from dealing in these assets, but this restriction was later lifted. Despite this change, India’s stance on crypto remains largely conservative. Finance Minister Nirmala Sitharaman introduced a 30% tax on crypto earnings with no deductions allowed, reflecting a regulatory shift that suggests cryptocurrencies are recognized in India’s financial framework but remain under strict oversight.

🤔 Governor Das has often questioned the intrinsic value of digital assets, suggesting they could be part of a speculative bubble. International developments, like the US SEC’s approval of Bitcoin ETFs, have not altered his stance on cryptocurrencies. However, he has not completely dismissed the idea of digital currencies. The RBI is actively exploring a Central Bank Digital Currency (CBDC) or digital rupee, which would operate under the RBI’s control to maintain the integrity of monetary policy.

🌍 Furthermore, Das has called for international coordination due to the cross-border nature of cryptocurrencies. He envisions a global understanding and possibly regulation of cryptocurrencies to mitigate risks comprehensively.

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🛠 VanEck and Kiln Collaborate for Regulated Solana Staking

➡️ VanEck, a crypto-friendly asset manager known for its spot Bitcoin exchange-traded funds (ETFs) in the U.S., has teamed up with Kiln, an enterprise staking service provider. This partnership aims to provide regulated access to Solana staking rewards as part of VanEck's broader Solana strategy, which includes various investment products like exchange-traded notes (ETNs) and ETFs.

🔗 Staking allows Solana (SOL) holders to earn rewards by participating in the blockchain's validation process. With Kiln's integration, VanEck's institutional clients can incorporate Solana staking into their portfolios without the need to manage or stake SOL tokens directly. Kiln, which manages over 2.5% of the Solana network, offers competitive staking rates through its Jito-Solana integration, all supported by a SOC 2 Type II certified infrastructure.

📈 This announcement comes after a successful year for crypto, driven by the approval of spot Bitcoin ETFs in the U.S. Since January, these products have attracted over $23.35 billion in investments, pushing Bitcoin to a new all-time high in 2024. However, Ether ETFs have not seen the same enthusiasm, experiencing a cumulative net outflow of $485 million.

🌍 The next potential area for crypto ETFs could be Solana, which has a market capitalization exceeding $83 billion and a total value locked (TVL) of over $6.3 billion. Both VanEck and 21Shares have applied for spot Solana ETFs this summer, but discussions with the Securities and Exchange Commission (SEC) have reportedly stalled due to concerns about Solana's classification as a security under U.S. regulations.

➡️ In contrast, Europe offers a more favorable market for regulated Solana investment products. 21Shares’ Solana staking ETP, ASOL, has over $1 billion in assets under management (AUM), while competitors like CoinShares and Valour each manage around $300 million. VanEck’s European Solana fund, VSOL, is smaller with about $86 million in AUM but is positioned for growth through staking rewards.

🚀 The partnership with Kiln enables VanEck to tap into the increasing demand for regulated access to Solana and its staking rewards, especially in Europe. The future of the U.S. market in this regard will likely depend on regulatory clarity and the results of the upcoming presidential election.

🌐 Cross-Border Finance Revolution: Three Nations Pioneer Digital Asset Integration

➡️ The Hong Kong Monetary Authority (HKMA) has announced two major partnerships with the Bank of Thailand (BOT) and Brazil’s Banco Central do Brasil (BCB) to enhance cross-border tokenization. These collaborations are part of HKMA’s Project Ensemble and aim to integrate central bank digital currency (CBDC) infrastructures for streamlined tokenized transactions.

🔗 With the BOT, the HKMA plans to explore Payment versus Payment (PvP) and Delivery versus Payment (DvP) scenarios to facilitate trade payments and manage carbon credits. This builds on a 2019 fintech cooperation agreement. Alisara Mahasandana, Deputy Governor of Corporate Development at the BOT, emphasized the initiative's benefits:

Through our collaborative efforts in exploring the interoperability of tokenisation, mutual benefits for both Hong Kong and Thailand could be reaped.

🌍 In its partnership with BCB, the HKMA will connect the Ensemble Sandbox with Brazil’s Drex pilot platform to investigate PvP and DvP transactions across borders. The Drex CBDC is central to this effort. The HKMA stated:

The Drex pilot aims to support the development of a tokenised financial market in Brazil.

➡️ Alibaba's Metaverse Unit Faces Layoffs Amid Industry Shift

➡️ Alibaba has recently laid off employees at its metaverse unit, Yuanjing, reflecting a broader trend of diminishing interest in metaverse projects among major Chinese corporations. The layoffs primarily affected operations in Shanghai and Hangzhou.

Despite the cuts, a source indicated that Yuanjing will continue to operate but will shift its focus towards metaverse applications and tools.

📉 This move aligns with the strategy of U.S. tech giant Meta, which has persisted in investing in its loss-making Reality Labs division despite significant financial losses. Reality Labs reported a staggering $4.4 billion loss in the third quarter alone, bringing its total losses since 2019 to over $50 billion. Meta founder Mark Zuckerberg continues to emphasize the potential of Reality Labs even as it also laid off some employees in October 2023.

⚖️ Chinese tech companies that have invested in the metaverse, including Tencent, have faced regulatory challenges and a declining economic environment, prompting a reevaluation of their strategies. Tencent has encountered issues related to user data and content regulation since embracing the metaverse trend in 2021.

🔄 In contrast, some Chinese tech firms like Baidu are scaling back their metaverse-related activities to concentrate on artificial intelligence (AI), which is currently generating significant hype.

⚖️ SEC Commissioner Advocates for Reduced Crypto Enforcement Amid Regulatory Shift

🗣 U.S. Securities and Exchange Commission (SEC) Commissioner Mark Uyeda has expressed support for a shift in the SEC's approach to cryptocurrency regulation. He suggests a potential pause on enforcement actions against crypto firms for registration failures, emphasizing the need for clear regulatory guidelines instead.

The Commission’s war on crypto must end, including crypto enforcement actions solely based on a failure to register with no allegation of fraud or harm,

Uyeda stated. He highlighted that President-elect Donald Trump and the American electorate have sent a clear message for the SEC to carry out this mandate starting in 2025.

📉 Uyeda's position aligns with Trump's campaign promise to reduce enforcement efforts led by current SEC Chair Gary Gensler, who has implemented over 100 regulatory actions against crypto companies. While some cases involved serious misconduct, others targeted firms like Coinbase and Ripple for alleged unregistered securities sales.

⚖️ Gensler's assertion that

all crypto tokens aside from bitcoin and ether are securities under the SEC’s jurisdiction

has faced significant opposition. Uyeda and fellow SEC Commissioner Hester Peirce advocate for a framework prioritizing guidance over enforcement. Peirce promotes “safe harbors” for emerging blockchain and AI ventures, allowing them to operate under SEC observation without immediate penalties.

🚀 Trump has pledged to fire Gensler on his first day in office. Peirce, known as “Crypto Mom” for her supportive stance on digital assets, reportedly prefers leading an internal SEC “crypto task force” rather than becoming chair. This task force would focus on re-evaluating the agency’s approach to crypto regulation and establishing open communication with industry participants to promote regulatory clarity.

📈 Bybit Sees Surge in Futures Trading Volume Amid New Listings

📊 In the competitive crypto exchange landscape, Bybit reported a 61% increase in futures trading volume between September and October, reaching $639 billion, according to data from Wu Blockchain. The Dubai-based exchange attributes this growth to its new cryptocurrency listings, which included popular new coins and trending meme coins.

➡️ Bybit highlighted that recent additions like GOAT, MOODENG, and GRASS have broadened the platform’s appeal to a diverse set of retail traders. The company emphasized that embracing the meme coin trend—a significant focus within the crypto sector—has improved its market position. Listings of coins such as MOTHER, NEIROCTO, and SPX attracted substantial trading activity from meme coin communities, enhancing retail engagement.

♾ Additionally, Bybit reported growth in its institutional client base, driven by its commitment to security and regulatory compliance. The exchange stated that institutional investors, including hedge funds and asset managers, increasingly recognize Bybit’s tools and risk management features as advantageous.

📈 Shunyet Jan, Bybit’s head of institutional and derivatives, noted that the increase in volume underscores the strength of Bybit’s derivatives offerings and reflects sustained confidence in the platform. Bybit continues to invest in its trading features to secure a strong position in the competitive digital asset sector.

We are thrilled to see Bybit’s derivatives business achieve such impressive results

the Bybit executive told Bitcoin News.

This underscores the strength of our products and services, as well as the market’s confidence in Bybit. We will continue to invest in our platform and provide an exceptional trading experience for our users, solidifying our position as an industry leader.

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🚀 Trump’s Influence on China’s Crypto Policies

🌐 Xiao Feng, CEO and Chairman of Hashkey, a licensed crypto exchange in Hong Kong, suggests that Trump's recent support for the cryptocurrency sector could lead to a shift in China's anti-crypto stance. In an interview with the South China Morning Post, Feng stated,

If the U.S. Congress and the incoming president make crypto policies clear, constantly legislate and promote the industry, it would certainly be a driving force for China to accept cryptocurrencies.

🔗 He also pointed out that recent sanctions against Russia, which cut it off from the SWIFT system, could accelerate China's adoption of cryptocurrencies. Feng believes these factors could shorten the timeline for China's acceptance of crypto businesses from five or six years to just two.

⚖️ Despite China's long-standing anti-cryptocurrency stance, which links digital assets to crime and illicit activities, there is still a demand for crypto investments among Chinese citizens. This was evident during the recent stock market slump when many investors turned to crypto as an alternative.

⚡️ Quantoz Launches USDQ and EURQ Stablecoins in Compliance with MiCA

🚀 Quantoz Payments, a technology firm based in the Netherlands, has announced the launch of USDQ and EURQ, two stablecoins designed to comply with the Markets in Crypto-Assets Regulation (MiCA) of the European Union (EU). This regulation aims to create a comprehensive framework for the crypto market, ensuring consumer protection, market integrity, and financial stability.

💳 Quantoz holds an Electronic Money Institution (EMI) license from the Dutch Central Bank and will issue USDQ and EURQ as E-Money Tokens (EMTs) on the Ethereum blockchain. These stablecoins will facilitate U.S. Dollar and Euro transfers and payments in secondary markets, as well as transfers across digital asset and crypto exchanges. Trading for USDQ and EURQ will commence on Thursday, Nov. 21 on Bitfinex and Kraken exchanges.

🗣 Arnoud Star Busmann, CEO of Quantoz Payments, emphasized the importance of the MiCA regulation, stating,

The MiCA regulation brings a new level of trust to digital assets markets, not least through its prudential requirements on the issuers of stablecoins.

He added that well-regulated and transparent stablecoins are essential for enabling faster, cheaper, and more secure settlements in an increasingly digital payment landscape.

💼 Quantoz has secured investments from a group of investors, including Fabric Ventures, Kraken, and Tether. Paolo Ardoino, CEO of Tether, remarked,

Our support for Quantoz highlights Tether’s commitment to fostering innovative and regulated solutions within the digital asset landscape.

This partnership may be strategic for Tether, especially if it does not obtain a MiCA license for USDT.

🔒 The entire circulation of EURQ and USDQ is backed 1-to-1 by highly liquid financial instruments such as government bonds and fiat reserves. Under MiCA regulations, Quantoz will maintain 2% of the stablecoins on its balance sheet while keeping 100% reserves to fully back all circulating assets.