Global supervision is becoming stricter.
On September 27, Gary Gensler, chairman of the securities and Exchange Commission (SEC), called on cryptocurrency trading platforms to register with the agency and warned that if they did not do so, they would be hit by law enforcement actions. Earlier, Senator Pat Toomey, a senior member of the U.S. Senate banking, housing and Urban Affairs Committee, expressed concern about the SEC’s regulatory clarity for emerging technologies such as cryptocurrency (including stablecoin) at last week’s hearing.
ZB Research Institute believes that the U.S. Securities and Exchange Commission (SEC) is taking blind and strict measures on the cryptocurrency trading platform, and promoting these measures to become more stringent regulations. According to the analysis of ZB Research Institute last week, the depression of U.S. real financial economy is forcing more and more capital institutions to accelerate the injection of funds into the cryptocurrency field, and this action of U.S. capital will drive more investor sentiment. Therefore, even in many similar enforcement actions, the SEC does not determine the securities involved or the reasons for them as securities, and will carry out strong regulatory policies in the field of cryptocurrency that should provide much-needed public regulatory clarity. In addition, some analysts believe that the move of the US SEC will drive more countries to tighten their policies on cryptocurrency transactions.
On September 27, Indonesian Trade Minister Muhammad Luthfi said that although Indonesia will not completely ban cryptocurrency, it will tighten supervision. According to the statistics of ZB Research Institute, cryptocurrency trading in Indonesia has developed rapidly in the past 18 months. In the first half of 2021, the trading volume of 13 domestic exchanges authorized by the futures exchange supervision committee increased by 40%.
On September 27, the Swiss financial market regulator (FINMA) will closely supervise local cryptocurrency providers. Swiss platforms and brokers dealing with digital assets must strengthen monitoring and observe whether bad participants use cryptocurrency. Switzerland currently has 130 bitcoin ATMs, ranking sixth in the world.
ZB Research Institute believes that the slow economic growth caused by the global epidemic is one of the reasons why countries have implemented strong cryptocurrency regulatory policies at almost the same time. The more important reason is that the return on cryptocurrency investment is much higher than that of traditional investment. Attracted a large amount of capital into the cryptocurrency trading market. Therefore, it can be analyzed from the series of strong supervision events that the current global capital market presents a relatively obvious duality. On the one hand, the profit-seeking of capital will inevitably be guided by development needs. On the other hand, the cryptocurrency market, where investment returns are much greater than traditional investment fields, will still exist for a long time, and will continue to stand in the first echelon of global capital investment returns.
On September 27, The Economist spoke highly of bitcoin, saying that bitcoin has more attractive investment advantages than other assets. According to the ZB Research Institute, The Economist considers bitcoin as a potential excellent source of diversified investment due to its low correlation with the traditional market. The results show that even during the bitcoin bear market in 2018–2019, the portfolio with 1% bitcoin still provides a higher risk return option than the portfolio without bitcoin.
According to the statistics of ZB Research Institute, in mid-September, the net amount of ETH locked in various decentralized financial agreements soared by 12%, reaching more than 7.8 million, a record high. At the same time, the number of ETH non-zero addresses reached 62715610, a record high, which shows that the global investment in cryptocurrency is still very popular.
On September 27, the Central Bank of Chile is exploring the creation of a central bank digital currency (CBDC). The team will submit a white paper in the first quarter of 2022 describing the objectives, requirements and provisions for the development of digital currency. Last Wednesday, Mario Marcel, President of the Central Bank of Chile, said in a statement that the bank would form a team to analyze the objectives, requirements and regulations of the development of the central bank.