Blocking Weekly is a weekly blockchain industry summary program launched by Blocking, covering industry trends such as key news, mining information, project updates, and technological progress. This article is the news weekly, taking you through the major events in the blockchain industry this week.
Headlines
▌ Hong Kong Securities and Futures Commission Issues Transitional Arrangements for Virtual Asset Trading Platform Licensing System
On June 1st, the Securities and Futures Commission of Hong Kong (SFC) issued a circular on the transitional arrangements for a brand-new licensing system designed specifically for virtual asset trading platforms. The transitional arrangements aim to provide virtual asset trading platforms that are providing virtual asset services in Hong Kong and are ready to comply with the SFC’s guidelines with reasonable and sufficient time to apply for a license, review and revise their virtual asset trading systems and monitoring measures, so as to comply with applicable laws and regulatory requirements. Virtual asset trading platforms that do not intend to apply for a license should begin to wind down their business in an orderly manner. Virtual asset trading platforms that provide virtual asset services in Hong Kong and have meaningful and substantive business operations can continue to provide virtual asset services in Hong Kong during the period from June 1, 2023, to May 31, 2024 (i.e., the first 12 months from June 1, 2023), without violating the licensing requirements under the Anti-Money Laundering Ordinance, subject to compliance with the arrangements. Virtual asset trading platforms must have been providing virtual asset services in Hong Kong by June 1, 2023, in order to be eligible to participate in the transitional arrangements.
▌ National Standard “Reference Architecture for Blockchain and Distributed Ledger Technology” to be Implemented on December 1 , 2023
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Blocking reported that the national standard “Reference Architecture for Blockchain and Distributed Ledger Technology” was officially released and will be implemented on December 1, 2023, according to the National Standards Information Public Service Platform. It is reported that the “Reference Architecture for Blockchain and Distributed Ledger Technology” is under the jurisdiction of the National Blockchain and Distributed Ledger Technology Standardization Technical Committee, and the competent department is the Ministry of Industry and Information Technology. The main drafting units of this standard include China Electronics Standardization Institute, Digital Currency Research Institute of the People’s Bank of China, Shanghai Wanxiang Blockchain Co., Ltd., WeBank Co., Ltd., Ping An Insurance (Group) Company of China, Zhongan Information Technology Services Co., Ltd., and Xiamen Anne Corporation Ltd.; the main drafters include Zhou Ping, Mu Changchun, Li Ming, Yu Xiuming, and Di Gang.
▌ Data: In May, Bitcoin miners’ total income reached $916.6 million, a 13.7% MoM increase, according to data from The Block. It’s worth noting that the Bitcoin NFT craze led by Ordinals has driven a surge in miner transaction fee income, with total income from transaction fees exceeding $120 million in May.
▌ Hong Kong police use metaverse platform to combat cryptocurrency crime.
Blocking reported that the Hong Kong police launched a new Web3 platform called “Cyber Defender Metaverse” on Saturday to combat cryptocurrency crime. At the press conference, Ye Zhuoyu, chief inspector of the Cyber Security and Technology Crime Investigation Bureau (CSTCB), discussed the dangers of Web3. He told attendees that fraud, hacking, theft, and sexual crimes are all threats in the metaverse, and the event also focuses on the use of digital assets by contemporary cybercriminals and progress in combating cryptocurrency crime. The Hong Kong police said in a press release issued at the time of the release that 2,336 virtual asset-related crimes were recorded in the city in 2022, resulting in losses of $1.7 billion to victims.
▌ Russia abandons plans to create a national cryptocurrency exchange.
Blocking reported that Russia is no longer pushing forward with plans to create a national cryptocurrency exchange. Instead, it will focus on formulating rules that allow private companies to establish such exchanges. On May 29, Anatoly Aksakov, chairman of the Russian State Duma Financial Market Committee, revealed that these exchanges will be regulated by local regulations as they can be used to circumvent sanctions. The report suggests that these exchanges will be regulated by the Russian Central Bank, which will introduce new regulatory measures by the end of this year. In November 2022, it was reported that Russian legislators were drafting a proposed amendment to allow the country to launch a national cryptocurrency exchange.
Policy
▌ Bali will crack down on foreign tourists using cryptocurrencies as payment.
On May 29th, the Bali government will crack down on foreign tourists using cryptocurrency as a payment method in hotels, restaurants, tourist attractions, shopping centers, and other places. Bali Governor Wayan Koster stated that inappropriate behavior by foreign tourists, engaging in activities not permitted in visa permits, using cryptocurrency as a payment method, and violating other regulations will be dealt with firmly. Severe measures include deportation, administrative sanctions, criminal penalties, closure of business premises, and other severe sanctions.
▌ US congressmen confirm Bitcoin mining consumption tax plan has been cancelled
Blocking reported that US Ohio Congressman Warren Davidson shared the text of a new proposed debt ceiling agreement on Sunday that would fully suspend the debt ceiling by January 1, 2025. On the other hand, it will implement multiple spending cuts, including limiting non-defense spending and cutting the funds of the US Internal Revenue Service. In response to Davidson, Pierre Rochard, Vice President of Research at Bitcoin mining company Riot Platforms, pointed out that the bill did not mention the previously proposed digital asset mining energy (DAME) tax by the government. Davidson confirmed that the proposal has been cancelled and one of the Republican negotiating victories was to prevent the Democratic Party’s proposed tax.
▌ Hong Kong Monetary Authority and UAE Central Bank agree to strengthen cooperation on financial infrastructure, virtual asset regulation and development, etc.
On May 30th, the Hong Kong Monetary Authority issued a press release stating that the Central Bank of the United Arab Emirates (UAE Central Bank) and the Hong Kong Monetary Authority (HKMA) held a bilateral meeting in Abu Dhabi on May 29th (Abu Dhabi time) to strengthen cooperation in the financial services field of the two places. During the meeting, the UAE Central Bank and the HKMA discussed multiple cooperation plans and agreed to strengthen cooperation in three major categories: financial infrastructure, interconnection of financial markets in the two places, and virtual asset regulation and development. In addition, the two sides facilitated discussions and knowledge sharing on cooperation plans for financial technology development in their respective innovation hubs. The UAE Central Bank and the HKMA will jointly establish a working group to promote the agreed cooperation matters with the support of relevant stakeholders in the two places’ banking industry. Banks attending the seminar include First Abu Dhabi Bank, Abu Dhabi Islamic Bank, Emirates NBD, Industrial and Commercial Bank of China, Bank of China, HSBC and Standard Chartered operating in UAE, as well as Bank of China, Citigroup, HSBC and Standard Chartered operating in Hong Kong.
▌ Korean Exchange Association DAXA has developed “Internal Control Standards” and “Code of Ethical Conduct for Virtual Asset Operators”
On June 1st, the Korean Digital Asset Exchange Association (DAXA), composed of the five largest cryptocurrency exchanges in Korea (Upbit, Bithumb, Coinone, Korbit, and GoBlockingx), has developed the “DAXA Internal Control Standards” and “Code of Ethical Conduct for Virtual Asset Operators,” which will unify and standardize member companies’ self-standards at the company level. The two documents were written based on relevant materials such as those from financial investment companies and data from the five member companies, and were developed through the review processes of each member company and the advisory committee. The “DAXA Internal Control Standards” consists of 68 clauses, including control structures for virtual asset business operators, internal control organizations and standards, compliance supervisors and internal control system operations, and compliance with matters during business execution. The “Code of Ethical Conduct for Virtual Asset Operators” consists of 24 clauses divided into five chapters, covering ethical content for society, among other things.
▌ Texas Passes Two Bills Involving Cryptocurrency Mining
Blocking reported that Texas has passed two bills involving cryptocurrency mining, while a bill that would have been detrimental to miners was blocked in committee. In the past few weeks, two bills indicating support for miners, SB1929 and HB591, have passed the legislative stage and are awaiting Governor Greg Abbott’s signature. If signed, they will take effect on September 1st. The third bill, SB1751, dubbed the “anti-bitcoin mining bill” by some, was stopped in committee.
Blockchain Applications
▌ Dubai National Bank Opens Digital Asset Lab
Blocking reported that Dubai National Bank has opened a digital asset laboratory aimed at developing new ideas for consumer-focused financial services using digital assets and their underlying technology. The bank has signed agreements with PwC and digital asset transfer and direct custody technology platform Fireblocks as founding committee members. Collaborative efforts will focus on four key pillars, including: 1. Strategy and Policy: Compliance, risk, and security frameworks for Web 3.0 technology; 2. Architecture: Business, technical, and security reference architecture for Web 3.0 solutions; 3. Partners: A collection of partners (technical, business, and governance) that can support the systems and processes required to enable Web 3.0 technology; 4. Functionality: Design, build, and test new features and value propositions related to the Web 3.0 ecosystem.
▌ Bank of Japan Confirms Launch of CBDC Pilot Project
On May 30th, the Bank of Japan (BOJ) released the results of the second phase of its CBDC Proof of Concept (PoC) experiment and confirmed that its CBDC pilot project was launched as scheduled in April. The second phase of the PoC experiment will last for one year, from April 2022 to March 2023, and test the technology for implementing a cap on CBDC holdings to ensure financial system stability. A CBDC forum will be established in the future to obtain private sector opinions. The Bank of Japan stated that it will make a final decision on issuing CBDCs by 2026.
▌ Ethereum Programming Language Vyper Releases v0.3.9 Version
On May 30th, the Ethereum programming language Vyper released version v0.3.9, which is a patch fix for v0.3.8 that fixes the code size regression of blueprint contracts and the gas performance degradation issue that caused in v0.3.8.
▌ Hangzhou Subway Adds Digital Yuan Payment Method
According to a report by Blocking, starting today, Hangzhou subway has added another mobile payment method: from now on, you can use the digital yuan ride code to take the subway, and quickly scan the code for entry and exit. This is also the first time that the digital yuan app has been used in transportation scenarios nationwide.
▌ Rosbank in Russia Launches Cross-Border Cryptocurrency Payment Pilot
According to a representative of the credit institution, Rosbank in Russia has launched a pilot project for cross-border cryptocurrency payments. Both corporate and private clients participated in the testing of the transaction, and the settlement agent was B-crypto, a financial technology service in Russia. According to its website, all transactions comply with legal and central bank requirements.
▌ Laos Prioritizes Blockchain Technology for Digital Transformation
According to a report by Blocking, on May 26th, the Lao government held its first ministerial-level conference on blockchain 4.0 digital transformation in the capital, Vientiane. The conference was chaired by Lao Prime Minister Sonexay Siphandone, and attended by blockchain experts and various leaders of the country’s major economic sectors. According to a report by Singaporean software firm MetaBank, the main focus of the conference was on using digital technology to accelerate Laos’ digital transformation. It is worth noting that it introduced the concept of blockchain 4.0, emphasized the importance of open collaboration, and positioned Laos as a catalyst and beneficiary of the emerging global digital landscape.
▌ Digital RMB App Releases Update Adding ” Transit Code ” Functionality
According to Blocking, the digital RMB App released an update on May 30th, adding the “Transit Code” feature in the “Services” section. Currently, it has been supported in Hangzhou, Shaoxing, and supports Hangzhou Metro, Shaoxing Metro, and Hangzhou Bay Inter-city. It is reported that this is the first time that the digital RMB App has updated “transportation travel” services and its first formal application of transportation travel scenarios nationwide.
Cryptocurrency
▌ Bitcoin futures trading volume on cryptocurrency exchanges has declined for 2 consecutive months, with a May trading volume of 691.91 billion US dollars
According to The Block data, the cumulative Bitcoin futures trading volume (in US dollars) on cryptocurrency exchanges in May reached 691.91 billion US dollars, a decrease for the second consecutive month. Among them, Binance’s May futures trading volume was 389.68 billion US dollars, OKX’s April futures trading volume was 115.19 billion US dollars, and ByBit’s April futures trading volume was 106.71 billion US dollars. It is worth noting that the Bitcoin futures trading volume on cryptocurrency exchanges hit a new high in May 2021, reaching 2.69 trillion US dollars, but has since continued to decline. Even when BTC hit a historical high of 69,000 US dollars six months later, the Bitcoin futures trading volume on exchanges did not reach a new high, only 1.59 trillion US dollars.
▌ Data: The market share of USDC has dropped from 34.88% to 23.05%
According to Blocking, in the past year, the market share of USDC has dropped from 34.88% to 23.05%, and its market value has fallen from a peak of 55 billion US dollars to 29 billion US dollars. The market share of BUSD plummeted from 11.68% to 4.18%, while Dai maintained its participation rate at 3.66%, lower than May 2022’s 4.05%. In contrast, the dominance of USDT in the stablecoin market has risen from 47.04% a year ago to 65.89%. Its market value has soared to 83.1 billion US dollars. In a recent interview with Bloomberg, Circle CEO Jeremy Allaire attributed the decline in stablecoin market value to regulatory crackdowns on cryptocurrencies in the United States. The current environment in the United States seems to favor Tether.
▌ The total market value of stablecoins across the entire network has exceeded $130 billion
According to a report by Blocking, as of now, the total market value of stablecoins across the entire network has exceeded $130 billion, reaching $130.322 billion, and the trading volume has also surpassed the $20 billion mark, reaching $20.098 billion. Among them, the market value of USDT ranks first, reaching $83.115 billion.
▌ CertiK: May’s attacks in the encryption field have caused about $59.8 million in losses
On June 1st, according to CertiK Alert data, the attacks in the encryption field in May have caused about $59.8 million in losses, of which exit scams caused about $38.8 million in losses, flash loan attacks caused about $1.7 million in losses, and vulnerability exploitation events caused about $19.3 million in losses.
▌ USDT issuance exceeds $83.2 billion , reaching a new historical high
On June 1st, according to an official announcement from Tether, the stablecoin USDT has an issuance exceeding $83.2 billion, reaching a new historical high. Coingecko data shows that the current market value of USDT is approximately $83.252 billion.
▌ Bitcoin miners’ transaction fee income reaches the highest level in more than two years
According to a report by Blocking, based on The Block’s data dashboard, Bitcoin miners’ transaction fee income soared in May to the highest level in more than two years. As of May 29th, the share of mining revenue from transaction fees was 14.3%. This represents an increase of more than 11% from April and is the highest level since April 2021.
▌ Data: The total amount of inscriptions for Ordinals has exceeded 10 million
According to the latest data from Dune Analytics, the total number of inscriptions for the Bitcoin NFT protocol Ordinals has exceeded 10 million, reaching 10,018,046 at the time of writing. The cumulative fee income is 1,578.4611 BTC, worth approximately $44,143,173.
▌ A user on Binance Australia sold BTC at a price of less than AUD 9,000 below market value
According to a report by Blocking, the BTC price on Binance Australia is around 34,000 Australian dollars ($23,062.20), while the price on Australian cryptocurrency exchange BTC Markets is 43,000 Australian dollars, resulting in a negative premium of 9,000 Australian dollars, indicating that users are seeking to sell quickly. In addition, tokens such as ETH and SOL also experienced negative premiums of about 20%. Earlier this month, Binance said that some of its Australian customers would be unable to deposit or withdraw funds after a third-party service provider cut its services.
▌ Blend First-month trading volume exceeds 170,000 ETH, accounting for 50% of total trading volume of Blur
According to Dune data on May 31, the NFT lending protocol Blend, which is under the NFT market Blur, has facilitated more than 170,000 ETH in trading volume in its first month, accounting for 50% of the total trading volume of the Blur platform. Blend’s first-month trading volume reached 21,962 transactions, with 1,559 independent borrowers and 1,057 independent lenders.
▌ Russian cryptocurrency miners will mine cryptocurrencies worth about $700 million in 2022
According to a report by Blocking, Blockingvel Novikov, the director of Skolkovo Fintech Center, said at the “Future Finance: Challenges and Opportunities” conference organized by Russia’s largest bank, Sberbank, that Russian miners operating last year had minted approximately 50-60 billion rubles ($620 million-$740 million) worth of cryptocurrencies. He also emphasized that Russian miners consumed about 1 GW of electricity during the same period. Earlier, Bitriver, a Russian mining operator, reported that Russia had climbed to second place in global cryptocurrency mining facility power capacity for the first time. Although Russian authorities are still reluctant to legalize many businesses that use decentralized cryptocurrencies such as Bitcoin, the statements by Moscow officials indicate that they are generally positive about cryptocurrency mining.
▌ Ethereum Staking Pool has continued 20 consecutive days of growth, with nearly 590,000 active validators
According to Glassnode data reported by Blocking, the Ethereum Staking Pool has continued to grow for 20 consecutive days, and the number of active validators is close to 590,000, raising the daily pop limit from 1800 to 2025. Therefore, the more than 76,000 validators currently waiting in the activation queue will now be activated within 37 days instead of the previous 42 days.
Disclaimer: Blocking is a blockchain information platform and the content of the articles published is for information reference only and not as actual investment advice. Please establish the correct investment concept and be sure to increase your risk awareness.
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