Global cryptocurrency compliance encounters obstacles, and Singapore has become a “safe haven.”
On July 9, a document submitted by the U.S. regulator showed that the U.S. Securities and Exchange Commission (SEC) has extended its review of SkyBridge Capital’s Bitcoin exchange-traded fund application. The SEC’s move is in response to the listing application submitted by SkyBridge Capital on May 6, 2021.
ZB Research Institute believes that the current attitude of major global economies towards cryptocurrencies is still cautious. U.S. Senator Elizabeth Warren called cryptocurrency a “highly opaque and turbulent” digital asset in a related speech on Thursday, and proposed that if the cryptocurrency market wants to continue to develop, it must accept government supervision. .
At present, Elizabeth Warren’s attitude can be regarded as the relatively conservative attitude of the world’s major economies towards the cryptocurrency market. Related cryptocurrency businesses will still encounter numerous obstacles in the process of applying for supervision and adapting to supervision. The global cryptocurrency compliance process will be delayed, and more related companies are also seeking countries with looser regulatory policies as “safe havens” .
According to the news obtained by the ZB Institute from the British “Financial Times”, major global economies including the United States, Britain, and China continue to tighten their regulatory policies. At present, industry leaders including V God, the founder of Ethereum, have resided or moved to Singapore. Although the Singapore government has not issued a license for cryptocurrency companies, some of the larger industry leaders have already obtained exemptions from the Singapore government, allowing various related companies to carry out cryptocurrency-related financial services in Singapore. It is reported that Singapore’s sovereign wealth fund GIC and state-owned investment company Temasek have invested hundreds of millions of dollars in the cryptocurrency field.
Singapore’s becoming a “safe haven” reflects from the side that the ability of the global cryptocurrency market to adapt to regulation still needs to be strengthened. Affected by this, the global cryptocurrency market also failed to continuously break through, and a buyer’s market was formed for a short time, causing the currency price to continue to approach the long-term currency holding cost. However, most companies in the market will still seek more possibilities to adapt to regulation, and more traditional financial and technology companies are also keen to participate in the global trading market of cryptocurrencies.
On July 9th, Osprey Funds is applying to register its Osprey Bitcoin Trust (OBTC) as a U.S. Securities and Exchange Commission (SEC) reporting company. Some analysts believe that once the relevant application of Osprey is successful, it will help it become the second cryptocurrency investment tool of the SEC reporting company after Grayscale Bitcoin Trust (GBTC).
The registration of the Bitcoin trust will increase the transparency and liquidity of the trust Osprey, but at the same time, more compliant financial statements need to be submitted to the SEC, and the related income from OBTC and GBTC will also be reduced. But this is still the best way for Bitcoin trust funds to be compliant.
After being registered with the Alberta government in Canada, the cryptocurrency asset custodian Tetra Trust successfully adapted to regulation and became the first Canadian crypto asset custodian to be regulated.
News on July 9, according to relevant information obtained by ZB Research from the US Securities and Exchange Commission (SEC). The trust department of First Midwest Bank, headquartered in Illinois, reported that as of June 30, it held 29,498 Grayscale Bitcoin trusts. It is reported that the trust department manages US$14 billion in assets and provides trust, investment and private banking services to individuals, businesses and government clients. The bank is the third largest independent bank headquartered in Illinois.
ZB Research Institute believes that despite the tightening of regulatory policies, the compliance process of related companies is still advancing. Market volatility caused by the slow progress of cryptocurrency compliance will also turn around as more companies adapt to regulatory policies.
On July 9, according to the latest data of ZB Research Institute, whale addresses with 100 to 10000 bitcoins now have about 9.13 million bitcoins, accounting for 48.7% of the total supply, which is the highest level since mid April 2021. The ZB Research Institute believes that the increase in the amount of bitcoin owned by whale addresses may cause the spot bitcoin market to become more upbeat, which will promote the rise of the long-term cryptocurrency market.
