Hong Kong’s Securities Watchdog Proposes Allowing Retail Investors to Trade Top Cryptocurrencies
Hong Kong’s securities watchdog, the Securities and Futures Commission (SFC), has proposed a policy that will allow retail investors to trade in large-cap cryptocurrency tokens, such as bitcoin and Ether, through licensed virtual-asset platforms. This move aims to provide regulatory oversight and investor protections to cryptocurrency investment activities that were once vibrant but unregulated, South China Morning Post reported. The virtual-asset platforms that will be licensed through the new cryptocurrency regulatory regime, effective from Jun. 1 this year, can offer only “eligible large-cap virtual assets” to retail investors. These assets should be included in at least two acceptable indices issued by at least two independent index providers, the SFC said. The consultation period for the policy will end on March 31. More here.
Crypto investment firm Galois Capital closes flagship fund after FTX collapse
Galois Capital, an investment firm that gained notoriety for shorting the Terra ecosystem’s Luna token, has announced the closure of its flagship fund due to significant losses caused by the collapse of cryptocurrency exchange FTX. The fund reportedly lost almost 50% of its assets as a result of the FTX disaster and subsequently sold its claims for a fraction of their original value. In a series of tweets, Galois co-founder Kevin Zhou expressed his disappointment in the closure of the fund, but remained optimistic about the firm’s future prospects, stating: “Although this is the end of an era for Galois, the work we have done together for the past few years has not been in vain. I can’t say more than this for now. Details here.
FTX Bankruptcy Claims Available at 20 Cents on the Dollar in Private OTC Markets
According to an anonymous source familiar with the matter, distressed asset funds can purchase FTX bankruptcy claims for up to 20 cents on the dollar in private over-the-counter (OTC) markets. This is similar to the public bankruptcy markets, which have valued FTX assets at around 16 cents on the dollar with individual claims being sold on bankruptcy marketplace XClaim for up to $27 million. FTX filed for bankruptcy last year after its sister company Alameda Research was hit by the market downswing and now owes $3.1 billion to its 50 largest creditors. The anonymous creditor revealed that distressed asset funds are buying in the range of 15 to 20 cents on the dollar in private OTC markets. More here.
Saudi Aramco Partners With droppGroup To Explore Web3 Technologies for Employee Onboarding and Rewards Program
Saudi Aramco, the state-owned energy company worth nearly $2 trillion, has announced a partnership with droppGroup to explore co-developing Web3 technologies to help its employees. The third generation of the internet-driven by blockchain technology, Web3 applications will include potential onboarding, training ecosystems, as well as a tokenized network and rewards program. droppGroup’s Web3 tech stack includes artificial intelligence (AI), machine learning (ML), extended reality (XR), tokenized networks, and metaverse environments. This collaboration is not the first foray of Saudi Aramco into blockchain technology as the company invested $5 million into Vakt, a blockchain-based commodities post-trade processing platform, in early 2020. More here.
A report from the Bank for International Settlements (BIS) released on Monday revealed that most crypto app users worldwide lost money on their Bitcoin holdings after the collapse of the Terra ecosystem and the FTX exchange last year. However, investors outside of major economies experienced the most significant loss. The report noted that more than $450 billion vanished from the crypto market following the collapse of Terra in May 2022, and another $200 billion was lost following FTX’s bankruptcy in November 2022. BIS analyzed data from crypto exchange apps for 95 countries and on-chain data on the daily distribution of bitcoin holdings collected from IntoTheBlock. It was revealed that, from August 2015 to December 2022, almost three-quarters of users downloaded a crypto platform app when the price of bitcoin was above $20,000. More here.[/body]
FTX Japan has announced that it will resume its withdrawal services for both fiat and crypto assets at noon local time on February 21. The move fulfills a pledge made by the exchange in December, as the majority of its assets in Japan were subject to stringent legal requirements. Due to the high volume of customer requests, FTX Japan has cautioned that it may take some time for the withdrawal process to be completed. The company has also promised to announce the resumption of its other services in the country as soon as possible. FTX Japan was forced to close on November 8th, just days before its parent company, FTX, filed for bankruptcy in the United States. More here.
Bitcoin Struggles to Maintain $25,000 Level as Key Technical Hurdle Looms
Bitcoin’s partial recovery from last year’s cryptocurrency market slump is facing a significant technical obstacle at the $25,000 level. Despite briefly surpassing this level on February 16, which was the first time since August, Bitcoin is struggling to maintain its position above it. Currently, the largest digital coin has experienced a 2% increase in value, hovering around the $25,000 mark.
