4.21 AI Daily Report: Web3 Turmoil Resurfaces: Ethereum Innovates the Future, Bitcoin Breaks New Highs

1. Headlines

1. Vitalik Buterin proposed replacing EVM with RISC-V architecture, sparking heated discussions in the Ethereum community.

Ethereum founder Vitalik Buterin proposed a radical suggestion at the Ethereum Magicians forum, aiming to significantly enhance Ethereum's scalability and efficiency by replacing the existing Ethereum Virtual Machine (EVM) with the RISC-V architecture. The proposal immediately sparked enthusiastic discussions within the community.

Buterin believes that the design of the EVM has inherent limitations, making it difficult to meet future demands for high throughput and low latency. He proposed utilizing the openness and flexibility of RISC-V to build a new generation of execution layers, which could reduce on-chain execution costs by 100 times. The proposal ensures backward compatibility, ensuring that existing EVM contracts can coexist with the newly introduced RISC-V contracts.

This initiative closely follows the preliminary exploration of RISC-V in blockchain technology, such as the launch of PolkaVM by Polkadot in August 2023, which supports multiple architectures. Buterin emphasized that this transformation is one of the best ways to simplify the execution layer, helping to address Ethereum's long-term scalability bottlenecks in data availability, block production competitiveness, and ZK-EVM proofs.

Industry insiders point out that although Buterin's proposal has great potential, the road to transformation will be exceptionally difficult. The Ethereum ecosystem is vast, and reform requires broad participation and consensus from the entire community. In addition, the application of RISC-V in the blockchain field is still in its early stages, and large-scale deployment faces many technical challenges.

2. Baidu announces a major initiative: 21,000 AI internship positions will be opened within three years.

In the battle for talent in artificial intelligence (AI), tech giant Baidu announced that it will open 21,000 AI internship positions to society over the next three years and will appropriately increase the conversion rate to full-time positions based on the performance of interns. This significant move aims to bring fresh talent to Baidu and strengthen its position as a hub for AI talent.

With the widespread application of AI technology in various industries, the demand for AI talent has surged. This move by Baidu not only provides valuable practical opportunities for recent graduates but also helps Baidu to reserve outstanding AI talent from the source.

Industry insiders point out that this reflects the importance that tech giants place on AI talent. In the era of AI, talent is the core competitiveness. Baidu's move helps attract more outstanding talent to join and injects new momentum into the continuous development of its AI ecosystem.

However, the cultivation of AI talent is a long-term process that requires collaborative efforts from industry, academia, and research. It is difficult to completely solve the talent shortage problem relying solely on the efforts of enterprises. In the future, governments, universities, and companies need to strengthen collaboration and establish a comprehensive AI talent training system to provide solid talent support for industry development.

3. Ethereum Foundation Adjusts Strategy: Focus on Short-term Scalability Goals

Tomasz Stańczak, the newly appointed co-executive director of the Ethereum Foundation, announced that the foundation is adjusting its strategic focus to direct more research efforts toward recent goals, including layer one scalability, support for layer two scalability, and improving user experience.

Stańczak stated that with the changes in the foundation's leadership, Ethereum founder Vitalik Buterin will reduce his daily coordination work to focus on research promotion, including RISC-V, zkVM, and privacy directions. He emphasized that Buterin's proposals, along with those of other researchers, are exploratory in nature and require community discussion and review, with the goal of accelerating future breakthroughs for Ethereum.

The foundation will prioritize the development of first-layer scaling, support second-layer scaling, and improve user experience during the three protocol upgrades of Pectra, Fusaka, and Glamsterdam. At the same time, the foundation is exploring how to accelerate projects originally planned to take 3-5 years, aiming to achieve partial functionality within 1-2 years through next-generation execution and consensus layer plans.

Analysts believe that this adjustment reflects the Ethereum community's urgent demand for expansion. The Ethereum ecosystem has already grown large enough that scaling is imperative. The foundation's new strategy helps concentrate resources and focus on solving current pain points, laying the groundwork for the long-term development of the ecosystem.

4. The Bank of Korea has stated that it will actively participate in the regulation of stablecoins.

The South Korean central bank stated that it will "actively participate" in the formulation of the country's stablecoin regulatory framework to reduce potential monetary and financial risks.

The Bank of Korea pointed out in a payment system report released on Monday that stablecoins possess the characteristics of a payment tool, and their expanded use may affect the effectiveness of monetary policy. The Financial Services Commission of Korea previously announced that it would begin drafting a new round of cryptocurrency legislation in the second half of this year, focusing on stablecoin regulation and transparency requirements for cryptocurrency service providers.

Stablecoins serve as a bridge between cryptocurrencies and the traditional financial system, and their development has attracted significant attention from regulators. On one hand, stablecoins facilitate the use of crypto assets in areas such as payments and settlements; on the other hand, their issuance and circulation may also pose risks to financial stability.

Industry insiders point out that stablecoin regulation is a global challenge. Due to the lack of unified regulatory standards, there is significant uncertainty in the development of stablecoins. The South Korean central bank's move helps lay the foundation for stablecoin regulation in the country, but it is necessary to strengthen cooperation with other countries and regions to jointly formulate effective regulatory frameworks to promote the healthy development of stablecoins.

5. Cryptocurrency exchange By was hacked for $1.4 billion, some funds have been recovered.

A cryptocurrency exchange, By, recently experienced a theft incident, with approximately $1.4 billion in funds stolen. Some of the funds have now been recovered. Ben Zhou, the CEO of By, revealed in the latest update that 27.59% of the stolen funds are untraceable, but 68.57% can still be traced.

This incident has once again sparked widespread attention to the integrity of cryptocurrency. Analysts point out that although blockchain technology itself has a high level of security, exchanges, as centralized institutions, have always had security vulnerabilities that are a pain point for the industry. Hackers exploit vulnerabilities in exchange systems to carry out attacks, resulting in massive amounts of funds being stolen.

The incident has once again sounded the alarm for the cryptocurrency industry. Insiders are calling for exchanges to increase security investment and improve risk control mechanisms; regulatory agencies should also establish clear safety compliance standards to create a favorable environment for the standardized development of the industry.

At the same time, cryptocurrency anti-money laundering and anti-tax evasion have also become hot topics. Analysts say that cryptocurrency has a certain level of anonymity, which is exploited by criminals for money laundering and other illegal activities. Therefore, strengthening anti-money laundering regulations is also a key part of ensuring the healthy development of the industry.

2. Industry Data

1. BTC

Recent transaction price 84781.2000 USD, intraday change -0.5000% (decrease).

2. ETH

Recent transaction price is 1596.3900 USD, intraday fluctuation is -0.3000% (decrease).

3. SOL

Recent transaction price 139.6000 USD, intraday change +0.6000% (up).

4. USUAL

Recent transaction price 0.1264 USD, intraday price change +5.7000% (up).

5. GT

Recent transaction price is 22.5780 USD, intraday change -0.1000% (decrease).

3. Industry News

1. Bitcoin breaks through the $87,000 mark, triggering bullish sentiment in the market.

The price of Bitcoin broke through the important threshold of $87,000 on April 21, triggering bullish sentiment in the market. Bitcoin has risen by 2.36% in the past 24 hours, reaching a high of $87,528.

Analysts believe that the recent rise in Bitcoin is primarily driven by an increase in global liquidity and a rebound in institutional investor demand. With the Federal Reserve maintaining an accommodative policy and ample market funds, investors are refocusing their attention on risk assets such as Bitcoin. At the same time, well-known companies like MicroStrategy and Tesla continue to increase their Bitcoin holdings, which also injects momentum into the price surge of Bitcoin.

After Bitcoin broke through the $87,000 mark, investor sentiment has clearly turned bullish. Exchange data shows that net inflows of funds into Bitcoin reached $101 million in the past 24 hours, reflecting a continued influx of capital. However, some analysts also warn that Bitcoin may experience a pullback in the short term, and investors should pay attention to risk management.

Overall, after Bitcoin broke through the $87,000 mark, the market holds an optimistic view of its future prospects. However, investors should also be cautious of potential correction risks and closely monitor subsequent price movements.

2. Ethereum founder Vitalik Buterin proposed a radical suggestion to replace EVM with RISC-V.

Ethereum founder Vitalik Buterin made a radical proposal at the Ethereum Magicians forum, suggesting to replace the current contract language of the Ethereum Virtual Machine (EVM) with the RISC-V architecture to improve execution efficiency.

Buterin pointed out in the article that the Ethereum network has long faced scalability bottlenecks, and low execution layer efficiency is a major limiting factor. He believes that replacing the EVM with RISC-V may be one of the best ways to address this issue. According to the data he provided, this transformation could lead to up to a 100-fold performance improvement.

This proposal aims to enhance the competitiveness of Ethereum block production and improve EVM functionality without the need for specialized knowledge. Buterin emphasized that this will help address the challenges Ethereum faces in increasing throughput and competing with the next generation of blockchains.

However, Buterin also acknowledged that this proposal carries certain risks and challenges. It requires a large-scale migration of existing contracts, which may affect the stability of the Ethereum ecosystem. Therefore, he urged the community to engage in extensive discussion and scrutiny of the proposal.

Overall, Buterin's RISC-V proposal has certain prospects, but there are also uncertainties. It reflects Ethereum's efforts on the road to scalability, but its implementation process may bring certain shocks to the ecosystem. Investors need to closely monitor the progress of this proposal and its impact on Ethereum.

3. The Solana ecosystem continues to heat up, with SOL prices breaking through 140 dollars.

The Solana ecosystem continues to heat up, with its token SOL breaking through the key resistance level of $140 on April 21. The price of SOL reached a high of $141.04, increasing by 0.67% within 24 hours.

Analysts believe that the continuous strengthening of the Solana ecosystem is mainly due to its advantages of high performance and low transaction fees. As more and more DeFi, NFT, and GameFi projects settle on Solana, the ecosystem effect is gradually becoming apparent, attracting a significant influx of funds.

Data shows that the Solana ecosystem attracted over $150 million in capital inflow in the past month, with a TVL( of over $11 billion, ranking fourth. Meanwhile, popular projects in the Solana ecosystem, such as Bonk and Aptos, have continued to strengthen, driving up the price of SOL.

However, some analysts have pointed out that the Solana ecosystem still faces challenges such as lower decentralization and network congestion. In addition, after the SOL price breaks through $140, there may be short-term profit-taking, and investors should pay attention to risk control.

Overall, the continued warming of the Solana ecosystem reflects the market's preference for high-performance public chains. However, when investors are positioning themselves in the Solana ecosystem, they also need to pay attention to the challenges and risks it faces and make prudent decisions.

4. Project News

) 1. Vitalik Buterin proposed a revolutionary upgrade plan for the Ethereum execution layer.

Ethereum founder Vitalik Buterin recently proposed a suggestion referred to as "radical" on the Ethereum community forum, aiming to fundamentally enhance Ethereum's scalability and efficiency by adopting the RISC-V architecture to replace the current Ethereum Virtual Machine ###EVM(.

The core of this proposal is to replace the EVM currently used by Ethereum smart contracts with the open-source, modular instruction set architecture RISC-V. RISC-V is considered a simpler and more efficient architecture that can significantly improve Ethereum's execution performance. It is estimated that if this proposal is implemented, the on-chain execution costs of Ethereum could be reduced by 100 times.

Buterin emphasized that this reform aims to address the complexity and efficiency bottlenecks of Ethereum's current execution layer, preparing for future large-scale expansion. He pointed out that the openness and flexibility of the RISC-V architecture will help Ethereum build a modular execution environment that supports the parallel operation of multiple virtual machines.

The proposal has garnered widespread attention and discussion within the Ethereum community. Supporters believe that this is a key step for Ethereum to maintain its leading position in the competition among high-performance public chains, showcasing Ethereum's determination for continuous self-improvement. However, some express concerns over such a radical change, arguing that more technical assessment and community consensus are needed.

Overall, Buterin's proposal has once again sparked heated discussions about the long-term development path of Ethereum. Regardless of the final outcome, this signifies that Ethereum is making brave attempts to address future challenges, leading the technological advancement of the entire industry.

) 2. The Ethereum Foundation adjusts its strategic focus, concentrating on short-term scalability goals.

Tomasz K. Stańczak, the newly appointed co-executive director of the Ethereum Foundation, recently announced that the foundation will adjust its strategic focus to concentrate more efforts on addressing recent scalability and user experience issues.

According to Stańczak's explanation, this adjustment aims to free up more time for Ethereum founder Vitalik Buterin to focus on long-term research and exploration, rather than daily coordination work. Cutting-edge ideas proposed by Buterin, such as RISC-V and zkVM, will help advance Ethereum's long-term breakthroughs.

However, Stańczak emphasized that the proposals by Buterin and other researchers are exploratory in nature and need to be reviewed and discussed by the community. The research focus within the foundation will shift towards short-term goals, aiming to address issues such as scalability and user experience in the upcoming three protocol upgrades: Pectra, Fusaka, and Glamsterdam.

At the same time, the foundation is exploring how to accelerate the current project process, which is expected to take 3-5 years, aiming to achieve partial functionality within 1-2 years through plans such as the next-generation execution layer and consensus layer.

This adjustment reflects the Ethereum Foundation's focus on addressing current practical needs while maintaining a long-term vision. Analysts believe that balancing short-term and long-term goals is crucial for Ethereum to maintain its leading position in the increasingly fierce competition among public chains.

Industry insiders welcomed this, believing that the foundation's decision aligns with community expectations and helps provide better support for ecological development while ensuring innovation momentum.

3. Heurist launched the MCP portal, achieving We combination intelligent applications.

The decentralized AI infrastructure project Heurist recently launched the Heurist Mesh MCP platform, aimed at achieving combinatorial intelligence in the We environment ### Collective Intelligence ( applications.

The platform allows users to deploy customized MCP) Multiplayer Conversational Protocols( servers with one click, seamlessly integrating with over 25 professional AI agents, including mainstream MCP clients such as Claude, Cursor, Wind, and more.

Heurist Mesh integrates multiple partners under a unified MCP protocol standard, allowing AI agents to discover and call tools within the network while maintaining integration and connectivity with external systems. This open architecture helps build a highly collaborative AI ecosystem.

The innovation of Heurist lies in its integration of blockchain technology with artificial intelligence, aiming to create a decentralized AI economy. Through incentive mechanisms, Heurist can ensure that miners and users receive rewards that match their contributions, thereby promoting the development of the entire ecosystem.

The project has garnered widespread attention both within and outside the industry. Analysts believe that Heurist provides a new paradigm for AI applications in the We environment, which is expected to promote the implementation and application of AI technology in the blockchain field.

However, some people have raised doubts about the feasibility and security of Heurist. After all, combining AI with blockchain is a whole new attempt, presenting numerous unknown technical and regulatory challenges. But undoubtedly, Heurist has opened up a path worth exploring for the development of AI in the We era.

) 4. Ambient: Retain the high-performance characteristics of Solana with AI-focused sidechains.

Ambient is an innovative project that combines blockchain and artificial intelligence, aiming to create a decentralized AI economy. As a fork of Solana, Ambient retains the efficient characteristics of Solana while introducing a new Logits proof consensus mechanism.

The core goal of Ambient is to provide a high-performance computing environment for AI reasoning and training. Through incentive mechanisms, Ambient can ensure that miners and users receive rewards that match their contributions, thereby promoting the development of the entire ecosystem.

The project employs an innovative Logits proof algorithm, utilizing logits hash values to capture the model state, building an effective validation mechanism to ensure security and efficiency.

The Ambient team has a diverse background, including professionals from fields such as blockchain, artificial intelligence, and finance. The project has completed its first round of financing and plans to launch a testnet soon.

Analysts believe that Ambient has opened a new path for the application of AI technology in the blockchain field. It combines the advantages of Solana's high performance while addressing specific needs in AI scenarios through an innovative consensus mechanism.

However, some have raised questions about the feasibility and security of Ambient. After all, combining AI with blockchain is a completely new attempt, with many unknown technical and regulatory challenges. But undoubtedly, Ambient contributes an interesting exploration for the development of AI in the We era.

5. Economic Dynamics

1. The independence of the Federal Reserve is under threat, and the sharp decline of the dollar has triggered market turmoil.

The current economic environment is showing an overall recovery trend, but inflationary pressures remain high. The latest data shows that the annualized quarter-on-quarter GDP growth in the United States for the first quarter is 1.1%, slightly lower than the expected 1.2%. At the same time, the core PCE price index rose 4.6% year-on-year in March, far exceeding the target level of 2%. The unemployment rate remains low at 3.6%, indicating a robust job market.

Recently, U.S. President Trump threatened to fire Federal Reserve Chairman Powell, raising concerns in the market about the independence of the Federal Reserve. This move is seen as an attempt by Trump to exert pressure for rate cuts. Previously, Powell had stated multiple times that he would maintain a strict and tight monetary policy stance until inflation shows a clear cooling.

Investors reacted strongly to Trump's remarks, causing the dollar index to plummet over 1%, reaching a nearly three-year low. Meanwhile, safe-haven asset gold surged more than 2%, hitting a historical high. U.S. stock futures also fell in response, with tech stocks leading the decline. Market participants are concerned that if the Federal Reserve is forced to yield to political pressure, it will undermine its credibility and exacerbate turmoil in the financial markets.

Economist Francesco Bianchi stated: "Trump is unlikely to actually fire Powell, but the pressure from the public actions he has initiated to push for interest rate cuts will still affect the Federal Reserve's decision-making." Goldman Sachs warned that trade policies are eroding investor confidence, and it is expected that the dollar will depreciate by 10% against major currencies.

2. The pressure of global economic slowdown is increasing, and the PMI data of major economies is worrying.

Signs of a slowdown in the pace of global economic recovery are becoming increasingly evident. The latest PMI data shows that the preliminary Eurozone Composite PMI for April is 53.5, down from the previous value of 54.6, marking a nearly one-year low. Among them, the Manufacturing PMI fell to 45.5, while the Services PMI was 55.6. The data reflects a further weakening of growth momentum in the Eurozone economy.

The UK's manufacturing PMI preliminary value for April is 48.6, the services PMI is 58.3, and the composite PMI is 57.6, all lower than the previous values. This highlights the weak state of the UK economy following the end of the Brexit transition period.

In addition, Japan's manufacturing PMI for April was 49.7, staying in the contraction zone for the third consecutive month. Singapore's composite PMI for April fell to 51.1, the lowest level in nearly two years.

Economists point out that the pressure of a global economic slowdown is increasing, mainly due to geopolitical tensions, high inflation, and supply chain disruptions. High inflation is eroding corporate profits and disposable income for households, thereby suppressing demand.

Goldman Sachs analysts stated: "Given the bleak outlook for global economic growth, the challenge facing major central banks is to seek a balance between curbing inflation and avoiding a hard landing for the economy." They expect that the Federal Reserve will pause interest rate hikes later this year.

3. The escalation of trade tensions between China and the United States may severely impact the global supply chain.

The trade relationship between China and the United States remains tense, with serious differences between the two sides on issues such as tariffs and export controls. The Trump administration has recently announced a 25% tariff on approximately $300 billion worth of Chinese products, covering a wide range of items, including electronic products and machinery.

This move is seen as a significant escalation of the Trump administration's trade policy towards China. Analysts point out that this action will further intensify the trade disputes between the U.S. and China, and may prompt China to take retaliatory measures, leading to disruptions in the global supply chain and chaos in trade order.

Goldman Sachs report warns that if the China-U.S. trade war further escalates, it will pose a serious threat to global economic growth. The report estimates that in the worst-case scenario, a full-blown trade war could lead to a decline in global GDP growth of about 0.4 percentage points.

The U.S. business community is also concerned about the tariff policies of the Trump administration. Thomas Donohue, president of the U.S. Chamber of Commerce, stated: "Tariff measures will harm the competitiveness of American businesses and ultimately hurt American families and workers. We urge both sides to resolve their differences through constructive dialogue."

4. The European Central Bank plans to introduce a digital euro, which may significantly reduce cash circulation.

To address the challenges of the digital age, the European Central Bank is accelerating the issuance process of the digital euro. It is reported that the European Central Bank plans to issue the digital euro in the coming years, aiming to enhance the efficiency and accessibility of payment systems.

Analysts believe that once the digital euro is put into use, it will greatly reduce the circulation of cash, potentially by more than 50%. This will reshape the asset structure of EU countries and may also change people's demand for cash.

European Central Bank President Christine Lagarde stated that the digital euro will be used alongside cash, providing more options for the public. At the same time, it will enhance the euro's influence in international payments and the digital finance sector.

However, the introduction of the digital euro has also raised some concerns. Privacy rights organizations warn that the digital euro could be misused for mass surveillance of citizens, violating privacy rights. The European Central Bank has pledged to take necessary measures to protect privacy.

In addition, commercial banks have expressed concerns about the impact of the digital euro. They worry that the public will largely turn to using the digital euro, which could affect the banks' deposit base and profitability.

Overall, the launch of the digital euro will have a profound impact on the European financial system, requiring joint efforts from all parties to weigh the pros and cons and establish a reasonable regulatory framework.

6. Regulation & Policy

1. The Bank of Korea will actively participate in the development of a regulatory framework for stablecoins.

The Bank of Korea stated in its latest "2024 Payment and Settlement Report" that it will "actively participate" in the development of the regulatory framework for stablecoins in the country to mitigate potential monetary and financial risks.

As the core institution of the South Korean financial system, the Bank of Korea plays an important role in maintaining financial stability and the effectiveness of monetary policy. With the increasing popularity of cryptocurrencies and stablecoins in South Korea, the central bank believes it is necessary to establish corresponding regulatory measures.

The report points out that, unlike general virtual assets, stablecoins inherently possess the characteristics of a means of payment. If their usage expands, it may undermine the effectiveness of monetary policy. Additionally, stablecoins could transmit the risks associated with cryptocurrency-related crises to traditional financial markets, threatening financial stability and the integrity of payment and settlement systems.

The Financial Services Commission of South Korea announced earlier that it would begin drafting a new round of cryptocurrency legislation in the second half of this year, focusing on stablecoin regulation and transparency requirements for cryptocurrency service providers. This legislation is a supplementary law following the first cryptocurrency law that will come into effect in July 2024.

Market participants generally believe that regulating stablecoins will contribute to the long-term healthy development of the cryptocurrency market. Some businesses and investors welcome this, hoping that the regulatory framework can provide clear guidance for the issuance and use of stablecoins. However, there are also concerns that excessive regulation may hinder innovation.

Lowell Ness, a partner at Perkins Coie law firm, stated that stablecoin regulation should balance innovation and risk control. He believes that transparency and investor protection are key, but it is also necessary to allow room for the development of emerging technologies.

2. U.S. Senator Lummis: Strategically holding Bitcoin could halve the national debt within 20 years.

U.S. Senator Cynthia Lummis stated in an interview that if the U.S. government converts some of its assets into Bitcoin and holds it for the long term, it could have positive fiscal effects and halve the national debt within 20 years.

As a supporter of Bitcoin, Lummis believes that Bitcoin is an asset with the function of value storage. She suggests that the government could consider converting a portion of its foreign exchange reserves or other assets into Bitcoin and holding it long-term to gain appreciation benefits.

Lummis cited a study that simulated the scenario of the government holding Bitcoin for 10 years. The study found that if the government had purchased Bitcoin in 2012, its value would have increased nearly tenfold by 2022. If this profit were used to pay off national debt, it could significantly alleviate the debt burden.

She pointed out that the scarcity and decentralized nature of Bitcoin make it an attractive reserve asset. Compared to traditional currencies, Bitcoin is not controlled by any single entity, making it better able to withstand inflation risks.

However, Lummis's proposal has also raised some doubts. Some economists believe that the government's holding of Bitcoin poses higher risks and could impact the financial system. They suggest that the government should approach cryptocurrency with more caution.

U.S. Treasury Secretary Janet Yellen previously stated that Bitcoin is a highly speculative asset and is not suitable as a reserve asset. She emphasized that the government should focus on traditional reserve assets such as gold and major currencies.

Nevertheless, Lummis's remarks reflect a certain optimism among some politicians towards Bitcoin. As the influence of cryptocurrencies continues to grow in the mainstream financial sector, discussions regarding relevant regulations and policies will also continue to heat up.

3. The South Korean central bank warns that stablecoins may affect the effectiveness of monetary policy.

The South Korean central bank warned in a payment system report released on Monday that an expansion in the use of stablecoins could undermine the effectiveness of monetary policy.

The report states: "Unlike general virtual assets, stablecoins inherently possess the characteristics of a means of payment. If their usage expands, it could undermine the effectiveness of monetary policy."

The concerns of the Bank of Korea stem from the design purpose of stablecoins. As a type of cryptocurrency pegged to fiat currency, stablecoins aim to provide price stability and liquidity. However, if a large amount of stablecoins is in circulation, it could affect the central bank's ability to control the money supply.

In addition, the report also pointed out that stablecoins may transmit the risks of cryptocurrency-related crises to traditional financial markets, threatening financial stability and the integrity of payment settlement systems.

South Korea is currently developing a subsequent legal framework for its first cryptocurrency law. The law will take effect in July 2024 and focuses on protecting cryptocurrency investors by imposing stricter requirements on exchanges. The new legal framework is expected to include regulatory measures for stablecoins.

Market participants understand the concerns of the South Korean central bank. Some industry insiders believe that stablecoin regulation helps maintain financial order, but also call for regulation to be prudent and measured.

Shaun Chong, the founder of Haechi Labs, stated: "Stablecoins do carry certain risks, but they also provide important liquidity for the cryptocurrency ecosystem. Regulation should balance innovation and risk management to create a favorable environment for the development of stablecoins."

At the same time, the Bank of Korea is also actively promoting the research and development of central bank digital currency ###CBDC(. The central bank plans to conduct a second phase of CBDC trials in October this year to explore the application prospects of CBDC in the field of retail payments.

) 4. US SEC warns cryptocurrency exchanges: Unlicensed or facing enforcement action

The U.S. Securities and Exchange Commission ### SEC ( issued a warning that unlicensed cryptocurrency exchanges may face enforcement actions.

SEC Chairman Gary Gensler ) stated in a speech that cryptocurrency exchanges must comply with relevant laws and regulations, or they will face severe penalties. He emphasized that the SEC will continue to closely monitor the cryptocurrency market to ensure that investors receive the protection they deserve.

Gensler pointed out that many cryptocurrency exchanges are involved in securities trading during their operations, and therefore need to obtain permission from the SEC. He warned that engaging in securities trading activities without permission would be considered illegal.

"We will continue to use existing enforcement tools to address these issues," said Gensler. "Unregistered cryptocurrency trading platforms must register and comply with our rules, or they will face potential enforcement actions."

This warning has attracted widespread attention in the cryptocurrency industry. Some exchanges have stated that they have been in communication with the SEC and are committed to complying with relevant regulations. However, some exchanges have questioned the SEC's stance, arguing that the nature of cryptocurrency differs from that of traditional securities.

Faryar Shirzad, the global policy head of Coinbase, stated: "Cryptocurrency is an emerging technology and asset class that requires an appropriate regulatory framework. We urge the SEC to engage in constructive dialogue with the industry to establish clear rules that are favorable to innovation."

At the same time, some investors welcomed the SEC's stance. They believe that strengthening regulation helps to purify the market environment and protect investors' interests.

Former SEC Commissioner Michael Piwowar stated: "The cryptocurrency market currently faces many issues, such as fraud and manipulation. Appropriate regulation will benefit the long-term healthy development of the market."

The SEC's warning may prompt cryptocurrency exchanges to accelerate their compliance processes. However, the specific regulatory details and enforcement efforts remain to be seen. Industry insiders generally hope that the SEC can protect investors while also allowing space for innovation.