Weekly Observation | Big Powers Fight for Blockchain Technology Heights, New York State Updates Cryptocurrency Listing Guide

Summary

Event: Recently, the New York Department of Financial Services is issuing detailed instructions on how to renew its controversial virtual currency license; the SEC has issued a new rule to amend existing rules to modernize ETF supervision.

New York State issued updated guidelines for the cryptocurrency listing approval framework to further standardize related processes. According to coindesk, the New York Department of Financial Services (NYDFS) is issuing detailed instructions on how to renew its controversial virtual currency license. The proposed guidelines will modify the approval process for listing new cryptocurrencies. Under the current system, NYDFS approves each cryptocurrency listing application submitted in the state according to the specific conditions of individual exchanges. The guide issued on Wednesday includes two specific updates that the public can comment on: First, any token approved by the regulator for listing in New York can be listed on any exchange operated by the State of New York, as long as the exchange issues a notice to NYDSF; It is the regulatory agency that will release a model framework for token listing, and exchanges should build their own versions based on this model. This is just the first step for the regulator to review the license.

Powers and major financial centers are competing for the high ground of blockchain. Obviously, New York State does not want to lose its leading position in the fast-rising financial highland of blockchain. At the same time, Jay Clayton, chairman of the United States Securities and Exchange Commission (SEC), testified before the Senate Committee on several issues including blockchain technology and cryptocurrencies. Clayton is optimistic that the development of distributed ledger technology (DLT) will help promote capital formation and provide good investment opportunities for institutional investors and major investors. Regarding exchange-traded funds (ETFs), especially bitcoin ETFs, Clayton said the SEC has issued a new rule to amend existing rules to modernize ETF regulation. In addition, according to Caijing.com, on December 11, the China Securities Regulatory Commission is setting up a new functional department of the Technology Supervision Bureau; Yao Qian, former director of the Digital Currency Research Institute of the Central Bank and general manager of China Securities Regulatory Commission, is expected to serve as director.

Last week's market review: Chainext CSI 100 fell 5%, and commercial and financial performance was the best in the segment. In terms of segmentation, commercial finance, entertainment, social networking, AI, basic enhancement, and basic chain performance are better than the average level of Chainext CSI 100, -0.99%, -2.3%, -4.01%, -4.68%, -4.88%, The performance of pure currency, payment transactions, storage & computing, Internet of Things & traceability was inferior to the average level of Chainext CSI 100, -5.17%, -5.38%, -5.48%, -20.99%, respectively.

Risk Warning: Uncertainty of regulatory policies, project technology progress and application landing is less than expected, and cryptocurrency-related risk events occur.

1. Hot Spot Tracking: New York State Updates Cryptocurrency Listing Guidelines, Blockchain Becomes Financial Heights

Event: Recently, the New York Department of Financial Services (NYDFS) is issuing detailed instructions on how to renew its controversial virtual currency license; the SEC has issued a new regulation to amend existing regulations to modernize ETF supervision .

New York State issued updated guidelines for the cryptocurrency listing approval framework to further standardize related processes. According to coindesk, the New York Department of Financial Services (NYDFS) is issuing detailed instructions on how to renew its controversial virtual currency license. On December 11, in a morning newsletter broadcast by Crain's New York, Linda Lacewell, head of NYDFS, announced the guide. The proposed guidelines will modify the approval process for listing new cryptocurrencies. Under the current system, NYDFS approves each cryptocurrency listing application submitted in the state according to the specific conditions of individual exchanges. The guide issued on Wednesday includes two specific updates that the public can comment on: First, any token approved by the regulator for listing in New York can be listed on any exchange operated by the State of New York, as long as the exchange issues a notice to NYDSF; It is the regulatory agency that will release a model framework for token listing, and exchanges should build their own versions based on this model. Leswell explained, "Over time, given the industry's maturity, complexity, and changes in new business models, it's no longer time to simply re-examine the regulation of virtual currencies. It is more important now that we should not Adjustments and changes should be made, and what adjustments and changes we can make. Because although supervision is our obligation, we only want to do this work with sufficient supervision, not too much. "NYDFS The public will be invited to comment on the new framework, and the deadline is January 27, 2020. According to a press release, this is only the first step for the regulator to review licenses.

Powers and major financial centers are competing for the high ground of blockchain. Obviously, New York State does not want to lose its leading position in the fast-rising financial highland of blockchain. At the same time, Jay Clayton, chairman of the United States Securities and Exchange Commission (SEC), testified before the Senate Committee on several issues including blockchain technology and cryptocurrencies. Clayton is optimistic that the development of distributed ledger technology (DLT) will help promote capital formation and provide good investment opportunities for institutional and major investors; he believes that the SEC has adopted a "prudent and active regulation "Method", while considering investors and the market, while solving problems such as innovation and capital formation, Libra should not be bypassed but faced with it. Regarding exchange-traded funds (ETFs), especially bitcoin ETFs, Clayton said the SEC has issued a new rule to amend existing rules to modernize ETF regulation. In addition, according to Caijing.com, on December 11, the China Securities Regulatory Commission is setting up a new functional department of the Technology Supervision Bureau; Yao Qian, former director of the Digital Currency Research Institute of the Central Bank and general manager of China Securities Regulatory Commission, is expected to serve as director.

2. News from governments: China's central bank plans to expand pilot digital currency

The People's Bank of China: The central bank's statutory digital currency pilot project jointly led by the People's Bank of China, the four major state-owned commercial banks of Industry, Agriculture, China, and Construction, and China Telecom, China Telecom, and China Unicom is expected to be in Shenzhen, Suzhou Landing. In this pilot, the central bank's legal digital currency will go out of the central bank system and enter real service scenarios such as transportation, education, and medical treatment, reaching C-end users and generating frequent applications. Pilot banks can choose scenes based on their own advantages. In addition, the testing of relevant standards of fiat digital currencies and payment system access are also progressing simultaneously. A person close to the pilot project team said that the pilot (Shenzhen digital currency pilot) plan is divided into two phases. At the end of this year, it is a phase. The pilot will be closed in a small-scale scenario. Next year will be the second phase, which will be promoted in Shenzhen on a large scale.

South Korea: The South Korean government seeks to tax capital gains on trading cryptocurrencies such as Bitcoin. Related bills have been submitted to the South Korean Parliament. If the bill is passed, it will take effect one year after its publication. Whether or not the bill is passed in Congress, the South Korean government seeks to include cryptocurrency transactions in profits tax. However, if this is reflected in regulatory regulations, the definition of cryptocurrencies needs to be made more accurate, and it is necessary to determine whether the income from trading virtual assets belongs to stocks or real estate transactions.

Rwanda: Allocate part of the budget for the next fiscal year to the Ministry of Information Industry to develop and support blockchain projects. The government is willing to support blockchain and a number of other Fourth Industrial Revolution technologies.

Japan: By 2020, the infrastructure energy level of information commanding heights is beginning to take shape. The landmark project focusing on Lanzhou's 5G commercial network and Silk Road information port cloud computing and big data center clusters has been fully launched, and initially has the basic conditions for a regional key node for information communication. Introduce and cultivate a number of Internet, big data, artificial intelligence, Internet of Things, blockchain, cyberspace security companies related to the construction of the Silk Road Information Port, and initially build major integrated service platforms in areas such as business logistics, humanities exchanges, and ecological and environmental protection And provide services.

3. Industry chain-related developments: BTC miners' earnings fell 5.0% MoM

(The following source website data is updated to December 14.)

Last week, BTC added 2.13 million transactions, down 2.0% from the previous month; ETH added 4.14 million transactions, down 2.5% from the previous month.

Last week, the average daily income of BTC miners was 13.33 million US dollars, down 5.0% from the previous month; the average daily income of ETH miners was 1.74 million US dollars, down 3.9% from the previous month.

Last week, the average daily hashrate of BTC reached 92.5EH / s, a decrease of 4.4% from the previous month; the daily average hashrate of ETH across the network reached 173.9TH / s, a decrease of 0.4% from the previous month.

Last week's BTC network-wide mining difficulty was 12.88T, a drop of 0.5% month-on-month; the next difficulty adjustment day is on December 21, and the expected difficulty value is 13.09T (+ 1.66%); last week, the average ETH network-wide mining difficulty was 2.58T, an increase of 1.6% from the previous month.

4. Last week's market review: Chainext CSI 100 fell 5%, the commercial and financial performance in the segment was the best

We introduced the professional index product of the token market——Chainext CSI series index, where the CSI 100 index [1] represents the overall market trend; the CSI 5 index [2] represents the market's large-cap currency trend; the CSI 21-100 index [3] On behalf of the market in the small cap. The market was sharply lowered this week. As of last Sunday (December 15), the Chainext CSI 100 index was 635.3, a 5.12% decrease from last week, and the total 24-hour trading volume on Sunday was $ 35.9 billion; of which, the global average price of BTC was $ 7152.3, a decrease from the previous month 5.29%; the global average price of ETH was $ 143.11, a 5.32% decrease from the previous quarter.

From the perspective of subdivisions, the average performance of commercial finance, entertainment and social networking, AI, foundation enhancement, and infrastructure chain over Chainext CSI 100 were -0.99%, -2.3%, -4.01%, -4.68%, -4.88%, The performance of pure currency, payment transactions, storage & computing, Internet of Things & traceability was inferior to the average level of Chainext CSI 100, -5.17%, -5.38%, -5.48%, -20.99%, respectively.

risk warning

1. Regulatory policy uncertainty;

2. The technical progress and application of the project fell short of expectations;

3. Risk events related to cryptocurrencies occur.