The CEO of Hong Kong’s Securities and Futures Commission (SFC), Julia Leung Fung-yee, recently emphasized the importance of incorporating virtual assets into the regulatory system, highlighting that crypto trading is a vital part of the virtual asset ecosystem.
Leung’s remarks came in the wake of the collapse of FTX, a crypto exchange, in November 2022. Leung explained that the introduction of a new licensing system for virtual asset providers would ensure the protection of investors while also considering the risks faced by financial institutions.
She believes that integrating virtual asset providers into the regulatory framework is the only way to foster innovation and enhance market trust following the bankruptcy of FTX.
Hong Kong leveraged the FTX incident to mitigate regulatory risks associated with centralized exchanges.
In December 2022, less than a month after the crisis unfolded, the legislative council of Hong Kong included virtual asset service providers under the same legislation that governs traditional financial institutions.
The new regulations introduce stringent Anti-Money Laundering guidelines and investor protection laws for digital asset exchanges seeking to operate in Hong Kong.
Furthermore, a new licensing scheme has been established to grant retail investors access to trade virtual assets.
Previously, digital asset trading was restricted to professional investors and traders with at least $1 million in bankable assets.
Leung views Hong Kong’s cryptocurrency licensing system as a testament to China’s “one country, two systems” policy.
Mainland China banned cryptocurrencies in 2021, whereas Hong Kong chose a different approach by fostering a welcoming environment for the crypto industry.
In the past year, more than 150 Web3 firms have set up operations in Hong Kong’s Cyberport, a digital hub established by the local government to promote innovation.
This influx of companies followed the government’s allocation of 50 million yuan ($7 million) to expedite the development of Web3.
Leung’s remarks highlight Hong Kong’s commitment to adapting its regulatory framework to the evolving virtual asset landscape.
By embracing cryptocurrencies and implementing appropriate regulations, Hong Kong aims to strike a balance between innovation and investor protection, positioning itself as a hub for the growing crypto industry.
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According to Glassnode data, ETH balances on exchanges have plummeted to just 12.6% in the last 30 days, indicating a significant decrease in available tokens for sale.
Typically, this reduced supply on exchanges is viewed as a positive indicator for price movement, suggesting that there is less selling pressure.
The spike in withdrawals from exchanges at the beginning of June, coinciding with the regulatory crackdown on major platforms like Binance and Coinbase, should be considered alongside this data.
While some investors were prompted to withdraw their funds due to concerns over centralized exchanges, the magnitude of the withdrawals mirrors the situation in November 2022 when ETH experienced a sharp 33% surge following a similar dip in exchange balances.
Additionally, the amount of ETH locked in staking contracts has seen a substantial increase since the Shapella upgrade in April. Currently, over 23 million ETH, equivalent to 19.1% of the total supply, is deposited in staking contracts.
Moreover, Glassnode’s data reveals that nearly 30% of ETH’s supply is now locked in smart contracts, including decentralized finance and staking contracts, up from 25.5% at the start of 2023.
This trend further reduces the liquid supply of ETH, which is positive for its price trajectory.
Analyzing the price action, Ether has broken above the 50-day moving average, indicating a bullish breakout.
Currently facing resistance around the $1,906 level, the ETH/USD pair has shown higher lows since November 2022, with the $1,900-$2,000 range acting as both technical and psychological resistance levels.
A successful breakthrough above $2,000 could potentially propel Ether towards the $3,000 mark, aligning with the targets of the bullish ascending channel pattern.
Meanwhile, the ETH/BTC pair is seeking support around the 2023 lows of 0.06255 in Bitcoin terms. A breach below this level could expose bearish targets of 0.05689 BTC.
However, the relative strength index metric suggests oversold readings for the ETH/BTC pair, hinting at a possible pullback.
Traders should remain cautious as the funding rate for the ETH perpetual swap contract has surged to monthly highs.
This serves as a warning for late buyers, as perpetual swap traders must pay funding rates on their open positions depending on demand.
If short orders outweigh long orders, shorting becomes relatively more expensive, leading short traders to compensate long traders.
While a temporary pullback towards the lower boundary of the ascending triangle pattern around $1,680 is plausible, the overall on-chain movements and market indicators favor an upward trajectory in the short to medium term.
Additionally, Bitcoin’s price action and the ability of BTC buyers to sustain the $30,000 level will play a significant role in maintaining Ethereum’s bullish momentum.
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Credible Crypto, a prominent voice in the cryptocurrency community, predicts Bitcoin’s price may soon surpass its previous high of $69,000, citing patterns in past impulse movements.
The prediction, shared via Twitter, suggests Bitcoin (BTC) could reach this peak within the next four months, potentially by October.
This optimism is based on Bitcoin’s strong performance in recent times, and its successful retest of support on monthly timeframes, implying a potential upcoming “parabolic advance.”
According to Credible Crypto, the trend of parabolic advances is characterized by exponentially increasing momentum that peaks at the top, as previously seen in Bitcoin’s movement from $3,000 to $14,000 and $10,000 to $60,000.
The largest monthly candle seen recently was a $10,000 move that took Bitcoin above the $25,000 level.
Following this trend, the analyst expects a similar magnitude in future monthly moves. The gap between the current price and the prior all-time high, which stands at $40,000, could, therefore, be covered within a few monthly candles.
However, this forecast remains speculative, and the actual timing remains uncertain, even though October has been suggested as a likely timeline.
The analyst clarified that while a new all-time high by the year-end is expected, October was merely a guess.
While many are optimistic about Bitcoin’s potential rise, some remain skeptical about the recent price surge attributed to Bitcoin spot price exchange-traded funds (ETFs) applications by firms like BlackRock.
Regulatory hurdles in the US may impede near-term approvals, a concern voiced by trading firm QCP Capital. Meanwhile, BTC trades around $30,000 as of the latest reports, following a brief period of high volatility.
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Bitcoin mining continues to generate controversy due to its environmental impact, and a recent revelation by a Brooklyn bathhouse has sparked mixed reactions among users on social media.
The bathhouse, located in Brooklyn, New York, announced on Instagram and Twitter that it utilizes Bitcoin mining rigs to heat its spa facilities.
In a post made on June 21, the bathhouse explained its process in three steps: the Bitcoin mining rigs generate heat as a byproduct, the heat is then captured by heat exchangers, and finally, it is circulated to heat the venue’s pools.
Bitcoin mining involves the creation of valid blocks that record transactions on the blockchain, but it consumes a significant amount of energy, often derived from fossil fuels.
This high energy consumption contributes to carbon emissions, raising concerns about the environmental impact of Bitcoin mining.
A report from January 2022 estimated that the Bitcoin mining network emits 42 megatons of carbon dioxide annually, accounting for 0.08% of the world’s total production. Instagram users who follow the Bathhouse account expressed mixed opinions.
Some users, like Annalarranaga, voiced their concerns about who benefits from cryptocurrency mining and called for transparency.
Another user claimed that bathhouse customers preferred “pure, unadulterated heat” for their salt baths, rather than heat generated as a byproduct of mining.
However, some individuals reveled in the negative responses, while others welcomed the idea of using mining-generated heat to warm the pools.
The latter group saw it as an innovative way to reduce energy consumption. Despite the specific example of carbon-neutral Bitcoin mining provided by the bathhouse, concerns about the environmental impact of Bitcoin mining persist among certain individuals, leading to unfavorable reactions.
Interestingly, repurposing the heat generated by Bitcoin mining to save energy is not a new concept. In Europe, miners have found creative ways to recycle the heat produced during the mining process.
For instance, in Norway, a Bitcoin miner and data center named Kryptovault uses the hot air generated by mining rigs to dry chopped logs.
As the debate surrounding Bitcoin mining’s environmental impact rages on, the use of excess heat for other purposes serves as a potential solution to mitigate energy consumption and reduce carbon emissions.
However, addressing the concerns of those worried about the ecological consequences of Bitcoin mining remains crucial for the wider acceptance and sustainability of cryptocurrency.
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In a scathing speech, Fabio Panetta, an executive board member of the European Central Bank (ECB), expressed his belief that cryptocurrencies offer little more than a platform for gambling among investors. Panetta delivered his remarks during a panel at the Bank for International Settlements Annual Conference on June 23.
Panetta highlighted the decline of cryptocurrencies’ perception as a “robust store of value” since late 2021, when the total market capitalization plummeted by over $1 trillion. He attributed this loss of confidence to the highly volatile nature of crypto assets, suggesting that they are more suited for gambling activities than as a stable investment. He emphasized the need for global lawmakers to recognize this reality and treat cryptocurrencies accordingly.
The ECB official criticized the crypto ecosystem, describing it as “deleterious” and plagued by market failures and negative externalities. Panetta warned that without adequate regulatory measures in place, the industry is likely to face further market disruptions. He cautioned policymakers against supporting an industry that, in his view, has yet to deliver any societal benefits and is primarily seeking integration into the traditional financial system for legitimacy and advantage.
Panetta specifically criticized the security, scalability, and decentralization of crypto transactions, arguing that these characteristics are unattainable. He pointed to the immutability of blockchains as a negative aspect, citing instances where transactions cannot be reversed, such as the collapse of FTX and a recent lawsuit by the United States Securities and Exchange Commission against Binance. According to Panetta, these incidents represent fundamental shortcomings within the crypto ecosystem.
The ECB official reminded crypto enthusiasts that new technology does not eliminate financial risks. He used the analogy of pressing a balloon, suggesting that when pressure is applied on one side, it will eventually burst on the other side. Panetta warned that if a balloon is filled with hot air, it may rise temporarily but will ultimately burst.
It is worth noting that Panetta has previously supported aspects of the ECB’s exploration of a potential digital euro. He has also proposed the banning of crypto assets with excessive environmental impact as part of the ECB’s efforts to address environmental risks.
In conclusion, Fabio Panetta’s speech painted a bleak picture of the future of cryptocurrencies, portraying them as platforms for gambling with limited societal benefits.
He called for regulatory safeguards and criticized the perceived limitations and failures of the crypto ecosystem.
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Etherscan, a prominent Ethereum block explorer and analytics platform, made significant strides in the realm of artificial intelligence (AI) during the past week.
Among the notable developments were the launch of their AI-powered code reader and Polygon’s proposal for a zero-knowledge Ethereum Virtual Machine (zkEVM) upgrade to enhance protocol security.
Etherscan’s Code Reader is a groundbreaking tool introduced on June 19. Utilizing AI technology, it allows users to retrieve and interpret the source code of specific contract addresses.
By inputting a prompt, the Code Reader generates responses using OpenAI’s large language model, providing valuable insights into the contract’s source code files.
The tool’s functionalities encompass gaining a deeper understanding of contract code through AI-generated explanations, obtaining comprehensive lists of smart contract functions related to Ethereum data, and comprehending the contract’s interaction with decentralized applications.
Furthermore, users have the option to modify the source code directly within the user interface before sharing it with the AI.
In parallel, Polygon’s co-founder put forward a proposal for a zkEVM upgrade aimed at bolstering the security of the protocol.
The zkEVM upgrade leverages zero-knowledge proofs to enhance privacy and confidentiality, while simultaneously reducing transaction costs.
This development showcases the continuous efforts of blockchain platforms to improve their underlying technology and provide a more robust and secure environment for users.
Meanwhile, ZachXBT, a blockchain investigator, received substantial support from the crypto community in his ongoing legal battle. Binance CEO Changpeng Zhao joined the cause by donating to ZachXBT’s lawsuit fund, which has now surpassed $1 million.
The community-driven initiative aims to assist ZachXBT in defending himself against a defamation case filed by Jeffrey Huang, also known as MachiBigBrother on Twitter.
This display of solidarity among crypto personalities underscores the interconnectedness and collaborative nature of the industry.
These developments coincide with a bullish momentum across the decentralized finance (DeFi) market, led by Bitcoin’s resurgence.
The top 100 DeFi tokens broke free from a three-week-long bearish phase, experiencing substantial price surges throughout the week.
Most DeFi tokens traded in the green, signaling renewed optimism and investor confidence in the market.
In summary, Etherscan’s introduction of the AI-powered Code Reader, Polygon’s proposal for a zkEVM upgrade, and the support rallied behind ZachXBT’s legal battle have been the highlights of the past week in the DeFi ecosystem.
These advancements contribute to the growth, security, and innovation within the blockchain industry, setting the stage for further breakthroughs in the future.
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Coinbase has taken an unconventional legal approach in anticipation of a potential crackdown by the U.S. Securities and Exchange Commission (SEC).
Prior to the SEC’s lawsuit against Coinbase on June 6, the company had submitted “amicus” briefs in two other crypto-related cases, offering its perspective as a friend of the court.
Amicus briefs, although common at the U.S. Supreme Court, are rarely filed in federal trial courts, accounting for just 0.1% of cases, as reported by law firm Gibson Dunn & Crutcher.
However, the crypto industry has seen an increasing number of amicus briefs in SEC cases, with industry groups supporting defendants.
Although a ruling in favor of another crypto defendant would not be legally binding for Coinbase, it could potentially strengthen the company’s defense.
By filing amicus briefs, Coinbase aims to influence legal discussions and steer them in a direction that aligns with its interests.
This strategy is about setting the groundwork for addressing legal issues that the amicus is concerned about. One of the cases in which Coinbase filed an amicus brief was represented by Gibson Dunn, the same law firm that represents Coinbase itself.
The SEC’s recent focus has shifted from targeting developers who sell unregistered digital tokens to larger players like exchanges, in an effort to regulate the cryptocurrency market.
Coinbase has become the SEC’s prime target in the United States. The regulator filed a lawsuit in Manhattan federal court, alleging that Coinbase operated as an unregistered exchange, broker, and clearinghouse.
The SEC claimed that at least 13 of the cryptocurrencies available on Coinbase, including Solana, Cardano, and Polygon, were securities.
Coinbase initiated its legal defense strategy last year when it became the subject of SEC investigation.
The company enlisted the services of prominent law firms Gibson Dunn and Cahill Gordon & Reindel to handle the two cases. In one instance, Coinbase supported the dismissal of an insider trading case involving a former Coinbase product manager.
The primary argument in Coinbase’s amicus brief, which could foreshadow its defense in its own case, is that the SEC lacks the authority to regulate digital assets that are not securities.
The SEC, on the other hand, maintains that the legal test used to determine securities depends on the economic realities of transactions rather than their labels.
The regulator urges judges to consider how digital assets are marketed and highlights promises made by crypto developers regarding potential profits.
Coinbase also argues in its brief that the SEC has failed to provide clear guidelines to cryptocurrency industry participants, violating their right to due process.
Coinbase’s other amicus brief was filed in support of Ripple Labs, a high-profile battle the SEC engaged in prior to the Coinbase case.
The SEC sued Ripple Labs in 2020, accusing the company and its executives of conducting an unregistered securities offering by selling the cryptocurrency XRP. Coinbase urged the judge to allow the fair notice defense in this case, claiming that denying it would impact future cases.
The outcome of these legal battles will have significant implications for the cryptocurrency industry.
It remains to be seen how the courts will interpret and apply existing regulations to the evolving world of digital assets. A ruling in the Ripple case is expected later this year.
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Credit Agricole’s CACEIS, a leading financial services group, has officially registered as a digital asset service provider (DASP) in France.
This move solidifies the company’s entry into the cryptocurrency custody services market and highlights France’s growing support for the crypto industry.
The Autorité des Marchés Financiers (AMF), the French financial watchdog, has witnessed a steady rise in the number of crypto companies seeking registration, with CACEIS joining the ranks of prominent players.
France has been at the forefront of embracing the nascent cryptocurrency sector, demonstrating its progressive stance.
It notably became the first major European country to grant registration to Binance, the world’s largest cryptocurrency exchange.
The registration of subsidiaries from prominent names in French finance, including Societe Generale and AXA, further underscores the country’s commitment to fostering a favorable environment for crypto-related activities.
CACEIS, which boasted an impressive 4.1 trillion euros ($4.51 trillion) in assets under custody by the end of last year, has Credit Agricole SA as its majority owner, holding a 69.5% stake, while Santander possesses a 30.5% stake in the group.
This influential backing coupled with its new DASP status positions CACEIS as a formidable player in the cryptocurrency custody services space.
The registration of CACEIS as a DASP signifies an important milestone for the company and the broader financial industry.
As digital assets gain mainstream recognition, traditional financial institutions are recognizing the need to adapt and expand their service offerings to cater to the growing demand.
By venturing into crypto custody services, CACEIS aligns itself with the evolving financial landscape and positions itself to meet the needs of institutional and individual clients seeking secure and regulated crypto asset storage.
As the crypto market continues to mature, the involvement of established financial institutions brings increased credibility and stability to the industry.
It instills confidence in potential investors and paves the way for further integration of cryptocurrencies into the mainstream economy.
With its extensive experience and substantial assets under custody, CACEIS is well positioned to play a significant role in shaping the future of the crypto custody services sector.
In conclusion, Credit Agricole’s CACEIS has registered as a digital asset service provider in France, joining the expanding list of crypto companies approved by the AMF.
This strategic move demonstrates the institution’s commitment to embracing digital assets and providing secure custody solutions for the growing crypto market.
By leveraging its substantial assets under custody and the support of its majority owner, Credit Agricole SA, CACEIS is poised to become a key player in the evolving landscape of cryptocurrency custody services.
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Just a few years ago, Shiba Inu (SHIB), a cryptocurrency that began as a meme, was becoming mainstream, minting new millionaires, and gaining a substantial following. Yet, the token has now seen a considerable drop in price, leading to questions about its future prospects. In particular, many investors wonder: can Shiba Inu reach $1?
Predicting the future value of a volatile asset like SHIB involves multiple factors, including macroeconomic conditions, adoption rate, and general market forces. Although the phrase “nothing is impossible” often echoes in the crypto market, SHIB reaching $1, despite its potential, is an ambitious target, especially considering its closest competitor, Dogecoin, has reached this feat only sporadically.
As of now, Shiba Inu’s price stands at $0.0000086, indicating a required surge of 116,279 times to reach $1. This achievement could be challenging given the token’s current market capitalization and circulating supply. However, the crypto market is known for its unpredictability, and considering SHIB’s previous rise of over 8,000,000%, a future surge cannot be ruled out.
According to data from Santiment, SHIB’s supply outside of exchanges has surpassed 911 trillion, a significant increase compared to 2021. This development suggests that many investors are holding SHIB for the long term, which could potentially fuel a bullish trend. Additionally, SHIB’s total number of holders has grown to 1.3 million.
The daily chart shows no signs of a downward crossover of the 50 EMA against the 200 EMA, implying that SHIB’s upside potential is still intact. The Chaikin Money Flow (CMF) indicates a value of 0.05, signaling an accumulation of SHIB. Should this accumulation continue, SHIB’s chances of nearing $1 could increase.
Although the journey towards $1 remains formidable, Shiba Inu is using a token burn mechanism to stabilize its value. This method involves sending tokens to dead wallets, rendering them unrecoverable and effectively reducing the total supply. This strategy could increase demand for SHIB in the long term.
Shibburn reports that more than 410 trillion tokens have been burned since the initial supply. The project is also focused on increasing utility with the development of the Shibarium L2 network. Despite being 89.74% down from its All-Time High (ATH) at the time of writing, Bone ShibaSwap suggests that SHIB could potentially hit the $1 milestone with maximum support for burn activity, Shibarium, and tokens within the Shiba Inu ecosystem.
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Global professional services company Accenture has recently announced a hefty $3 billion investment in its Data & AI division over the next three years. This substantial investment aims to empower clients across diverse sectors to leverage AI responsibly and rapidly for improved growth, resilience, and efficiency.
Julie Sweet, Accenture’s CEO, acknowledged the burgeoning interest in all facets of artificial intelligence. The considerable investment in the Data & AI sector will transition this interest into valuable actions, underpinned by sound business cases. Companies laying robust AI foundations now will be better equipped to capitalize on its mature, value-generating stage, leading to a competitive edge and enhanced performance.
Accenture’s Commitment to AI Integration
Accenture has been a pioneer in AI integration, folding AI into its service delivery methodology to deliver augmented efficiency, insights, and value to thousands of clients. Key platforms in this venture include myWizard, SynOps, and MyNav.
The company introduced its responsible AI framework six years ago, which is now integral to its service delivery, ingrained in its code of conduct, and serves as the foundation for its strict AI compliance program.
Accenture has also been working with clients on various generative AI projects, including helping a hotel company handle customer inquiries and aiding a judicial system in synthesizing complex documents.
AI Investment After Accenture Layoffs
Despite announcing 19,000 layoffs earlier this year as part of cost-cutting measures, Accenture is determined to capitalize on AI to spur innovation. Over the following 18 months, these layoffs will be gradually implemented.
Through hiring, acquisitions, and training, Accenture’s Data & AI division aims to double its AI talent to 80,000 employees. It also plans to develop industry-specific accelerators for data and AI preparation across 19 industries and utilize generative AI capabilities to create pre-built industry and functional models.
Accenture’s AI Navigator for Enterprise, a generative AI-powered platform, will help customers outline business cases and select suitable architectures, with additional resources to accelerate ethical AI practices and compliance initiatives.
This historical $3 billion investment signals Accenture’s resolve to pioneer AI-driven transformation.
Industry-Wide Implications
AI is fast becoming a game-changer in the business world, with industry giants like Canva, LinkedIn, Meta, and Google incorporating AI functionality into their product offerings.
According to an Accenture study, integrating AI into economic activities could quadruple the annual GDP growth rate by 2035. Furthermore, it can boost profitability by an average of 38%, helping businesses break free from the low-profit cycle.
Utilizing AI technology like computer vision, machine learning, deep learning, and natural language processing can address diverse problems. However, when combined, they create much more value, enabling businesses to shift towards value-added duties and improve customer service efficiency.
Other AI Investments
Accenture’s sizable investment marks the dawn of a new era of innovation and industry transformation as AI redefines our work. Other industry titans have also jumped on the AI bandwagon. PwC has pledged a $1 billion investment, EY has committed $2.5 billion, and Bain & Company has announced a service alliance with OpenAI. IBM has revealed the establishment of a Center of Excellence for generative AI, while Salesforce has set up a $500 million fund for generative AI startups.
Moreover, China’s Lenovo has committed a $1 billion investment over three years to expedite corporate AI use, signaling the escalating interest in AI’s transformative potential.
Investments in generative AI alone are projected to hit $42.6 billion by year-end, according to PitchBook, highlighting the accelerating pace of AI adoption across industries.
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