4.23 AI Daily Crypto Assets market continues to strengthen, AI and regulation become the focus

1. Headlines

1. ChatGPT exposed for having racial bias, OpenAI promises improvements.

OpenAI's flagship product ChatGPT has been accused of racial bias, showing obvious partiality when answering questions related to race. A study found that ChatGPT used more derogatory terms when describing African Americans, while using positive vocabulary to describe white people. This finding has sparked widespread concern and discussion about the fairness of artificial intelligence systems.

OpenAI stated that it will increase investment to improve the training data and algorithms of ChatGPT to eliminate potential biases. However, experts point out that addressing deep-rooted biases in AI systems is not an easy task and requires ongoing effort and oversight. Some scholars argue that before AI systems are more widely adopted, it is essential to ensure that they remain neutral and fair when dealing with sensitive topics involving race, gender, and other issues.

Moreover, the incident has once again sparked criticism over the lack of explainability and transparency in artificial intelligence systems. Many question how we can ensure that they do not produce harmful biases and discrimination if even the decision-making processes within AI systems cannot be explained. The trust of regulators and the public in AI systems has been challenged.

2. NVIDIA releases the new AI chip H100 leading the next generation of computing.

NVIDIA unveiled its new AI chip H100 at the annual GPU Technology Conference, which will drive the next generation of artificial intelligence computing from cloud computing to edge devices. The computational power of the H100 chip is six times that of the previous generation, with a threefold increase in energy efficiency, marking another milestone in GPU-accelerated computing.

NVIDIA CEO Jensen Huang stated that the H100 will unleash "rocket-like thrust," driving innovation across various fields from autonomous driving to biomedicine. The H100 features NVIDIA's new architecture "Hopper," designed specifically to accelerate transformer models, providing powerful computing capabilities for large-scale language models and generative AI.

Analysts believe that the release of the H100 will further solidify NVIDIA's leading position in the AI chip market. Although companies such as AMD, Intel, and Google are also intensifying their AI chip development, NVIDIA has already gained a first-mover advantage in this field. The H100 is expected to drive the next wave of AI innovation, bringing unprecedented computing power to various industries.

3. Microsoft signs new agreement with OpenAI, betting on the future of artificial intelligence

Microsoft and OpenAI have reached a new "multi-year" cooperation agreement, and both parties will strengthen cooperation in the research, deployment, and commercialization of artificial intelligence systems. This is seen as the latest signal of Microsoft's increased investment in the field of artificial intelligence.

According to the agreement, Microsoft will become OpenAI's exclusive cloud provider and gain commercial rights to OpenAI's future systems. The two parties will also collaborate on aspects such as security and reliability. Analysts believe that this agreement reflects Microsoft's optimistic outlook on the prospects of artificial intelligence technology.

Artificial intelligence is seen as the key driving force behind the future development of technology. Through collaboration with OpenAI, Microsoft is expected to gain an advantage in cutting-edge fields such as large language models and general artificial intelligence. However, some analyses point out that OpenAI's current business model is still unclear, and whether Microsoft can profit from it remains to be seen.

At the same time, tech giants like Google and Amazon are also accelerating their investment in artificial intelligence, and they may engage in fierce competition in this field in the future. The direction of artificial intelligence technology development and the formulation of relevant laws and regulations will both impact the future technological landscape.

4. The EU plans to regulate artificial intelligence, facing opposition from tech giants.

The draft artificial intelligence regulations proposed by the EU have once again sparked strong opposition from tech giants. The draft intends to implement strict regulations on high-risk AI systems, including facial recognition, while the control over low-risk systems is relatively lenient.

Tech companies like Google and Amazon have stated that the classification in the draft is too vague and subjective, which may hinder innovation. They also criticized that the draft lacks specific regulations on the decision-making processes of AI systems, making it difficult to truly protect public interests.

On the other hand, privacy rights organizations believe that the draft's regulation of high-risk AI is still not strict enough. They are calling for a comprehensive ban on the use of privacy-infringing technologies such as facial recognition.

Analysts point out that AI regulation has always been a focal point of conflict between the EU and tech giants. The two sides find it difficult to strike a balance between protecting public interests and promoting innovation. If the final regulations are too lax or too strict, it could affect the EU's position in the global AI competition.

5. Copyright Disputes Arising from AI Writing: Journals Reject AI-Generated Articles

With the rise of AI writing tools, copyright issues have become a new legal challenge. Several top scientific journals have stated that they will refuse to accept articles generated by AI to avoid potential copyright disputes.

Artificial intelligence writing tools like ChatGPT can generate seemingly human-level articles based on prompts. However, there is controversy regarding the sources of its training data, which may contain a large amount of copyrighted content. Therefore, whether AI-generated works constitute infringement is a legal gray area.

In addition, the use of AI writing tools has also raised dilemmas regarding author identity. Some scholars argue that articles generated by AI lack originality and should not be regarded as true "works." However, others point out that AI is merely an auxiliary tool, and the final output still requires human review and editing.

Copyright law has always lagged behind the application of new technologies. Analysts indicate that relevant laws need to be further clarified to balance innovative development and intellectual property protection. The rise of artificial intelligence writing will have a profound impact on traditional publishing models and copyright systems.

2. Industry Data

1. BTC

The recent transaction price of BTC is $88,485.2000, with a daily increase of 1.2000%.

2. DEEP

The recent transaction price of DEEP is $0.1233, with a daily increase of 31.2000%.

3. GT

The recent trading price of GT is $23.1990, with a daily decline of 0.7000%.

4. SOL

The recent transaction price of SOL is $0.0000, skipping this data.

5. ETH

The recent transaction price of ETH is $1621.2400, with a daily decline of 1.5000%.

3. Industry News

1. Bitcoin breaks through the $93,000 mark, sparking market frenzy.

The price of Bitcoin broke through the key resistance level of $93,000 on April 23, reaching a peak of $93,955, the highest level since last November. The strong rebound in Bitcoin was mainly driven by favorable news regarding the Trump administration easing its tariff policy towards China, with market expectations that trade tensions would ease, significantly improving investor sentiment.

Exchange data shows that the futures and options market for bitcoin is also showing signs of a recovery in long demand. A clear sign is that the Bitcoin basis (CME) by CME Group – the difference between the spot price and the futures price – climbed to a three-month high, while open interest grew modestly. This suggests that institutional investors are re-establishing their long positions, betting that Bitcoin will rise further in the future.

Analysts point out that the rise of Bitcoin is mainly driven by improvements in the macro environment, but there are still some risks in the short term. First, the geopolitical situation remains tense, and the final outcome of trade negotiations still has uncertainties. Second, uncertainties in regulation may also impact the cryptocurrency market. In addition, after a rapid rebound in Bitcoin prices recently, there may also be pressure for profit-taking.

Overall, the rebound of Bitcoin has brought new vitality to the cryptocurrency market, but investors should remain cautiously optimistic and closely monitor market trends while prudently managing risks.

2. Ethereum follows closely, with a price breaking through the $1800 mark.

Driven by a strong rebound in Bitcoin, Ethereum has also seen significant gains. On April 23, the price of Ethereum broke through the $1800 mark, reaching as high as around $1850.

The rise in Ethereum's price is mainly driven by several factors. First, the upward trend of Bitcoin has propelled the entire cryptocurrency market, and as the second largest cryptocurrency, Ethereum naturally benefits from this. Second, the activity level of the Ethereum network has continued to increase, with the development of on-chain applications and the DeFi ecosystem bringing new demand for Ethereum. In addition, Ethereum's technology upgrade plans also lay the foundation for its long-term value growth.

However, analysts also point out that Ethereum still faces some challenges in the short term. First, the issues of transaction congestion and high fees on Ethereum have not yet been fundamentally resolved, which may limit its room for growth. Secondly, Ethereum's progress in scalability and expansion has been relatively slow, and the competitive pressure from other public chain projects cannot be ignored.

Overall, Ethereum's price increase reflects the market's optimistic expectations for its long-term prospects, but it is still necessary to be wary of potential risk factors in the short term. Investors should remain rational, pay close attention to the technological progress and ecological development of Ethereum, and prudently grasp the investment opportunity.

3. The meme coin sector has seen a collective surge, with Dogecoin leading the way.

In the bullish trend of the cryptocurrency market, the Meme coin sector has been particularly eye-catching. On April 23, well-known Meme coins such as Dogecoin ( DOGE ) and Shiba Inu ( SHIB ) saw double-digit increases, leading the entire sector to surge collectively.

The surge in the meme coin was driven by two factors. On the one hand, the improvement in the overall sentiment of the cryptocurrency market has brought positive benefits to the meme coin. Under the influence of market optimism, investors favor high-risk and high-return meme coins. On the other hand, Tesla CEO Elon Musk's continued admiration for Dogecoin has also injected new impetus into it. Musk said on social media that he would continue to "work" for Dogecoin, which further stimulated investors' pursuit of the Meme coin.

However, analysts also remind that the price surge of Meme coins often has strong speculative characteristics and lacks long-term fundamental support. Once market sentiment changes, Meme coins are likely to experience a sharp correction. In addition, regulatory risk is also a significant challenge faced by Meme coins; if regulatory policies tighten, it could deal a heavy blow to them.

Overall, the surge of Meme coins reflects investors' enthusiasm for high-risk, high-reward assets, but investors also need to be soberly aware of their high-risk nature, carefully grasp investment timing, and manage risk exposure.

4. AI concept coins collectively strengthen, ZEREBRO leads the rise

On April 23rd, the AI concept coins also showed strong upward momentum. Among them, ZEREBRO surged by 123%, ranking first in terms of percentage increase. Other AI concept coins such as GRIFFAIN and PIPPIN also saw increases of over 20%.

The collective strength of AI concept coins is primarily driven by two factors. On one hand, the broad application prospects of artificial intelligence technology across various industries have attracted a lot of investor attention. With the continuous launch of AI products like ChatGPT, investors' enthusiasm for AI concept coins has been further ignited. On the other hand, the overall improvement in the sentiment of the cryptocurrency market has also brought positive news for AI concept coins.

However, analysts also point out that the surge of AI concept coins may carry certain bubble risks. Currently, most AI concept coin projects are still in the early stages, lacking mature business models and practical application scenarios. Once market sentiment changes, these concept coins are likely to experience severe corrections.

In addition, AI concept coins also face the risk of regulatory uncertainty. As the development of artificial intelligence technology may bring some potential risks and challenges, the regulatory authorities may adopt stricter regulatory measures for related projects, which will undoubtedly have a certain impact on AI concept coins.

Overall, the strengthening of AI concept coins reflects investors' enthusiasm for emerging technologies, but investors also need to be clearly aware of their high-risk nature, cautiously grasp investment timing, and manage their risk exposure.

4. Project News

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

Ethereum co-founder Vitalik Buterin recently took to social media to put forward a radical idea to replace the Ethereum Virtual Machine (EVM) with a RISC-V instruction set architecture. The proposal, which aims to improve Ethereum's performance and simplify the protocol, has sparked a lot of discussion within and outside the Ethereum community.

Vitalik believes that RISC-V, as an open-source instruction set architecture, has advantages such as high performance, optimization for zero-knowledge proofs, and general standards. Adopting RISC-V can significantly improve the execution efficiency of Ethereum and prepare for future scalability. However, this transition also faces potential challenges of performance loss and gas pricing.

The proposal is not intended to replace Ethereum's Layer 2 scaling scheme or data sharding scheme, but is optimized for the underlying architecture. Vitalik stressed that this is just an early idea and requires further research and community feedback.

The Ethereum community has mixed reactions to this. Supporters believe that this is a necessary path for the development of Ethereum, which can inject new vitality into the protocol. However, some are concerned that this may bring compatibility issues, affecting the existing developer ecosystem.

At the same time, other public chain projects, such as Move VM, VM and Nervos CKB, are also exploring similar underlying architecture optimization solutions. In the future, Vitalik's proposal, if implemented, will have a profound impact on Ethereum's developer experience, running costs, ecosystem compatibility, and security, and will need to overcome multiple challenges.

2. Sui ecosystem tokens collectively strengthen, with SUI increasing by over 23% in a single day.

On April 23, the Move ecological public chain Sui and its ecological tokens showed a collective strong market. According to market data, SUI tokens rose by more than 23% in 24 hours, and ecological tokens such as DeepBook, NS, WAL, CETUS, SEND, BLUE, NAVX, and SCA also saw double-digit gains.

Sui is a new public blockchain developed by Mysten Labs, using the Move programming language to write smart contracts, focusing on providing a high throughput and low latency blockchain experience. Since the mainnet launch in September 2022, the Sui ecosystem has continued to develop, attracting numerous developers and projects.

The driving force behind this round of market activity is a series of recent developments in the Sui ecosystem. First, Grayscale Trust announced it will launch USDC on Sui, injecting liquidity into the ecosystem; secondly, the Sui official incubator Cetus launched its first batch of projects, bringing new vitality to the ecosystem; furthermore, Sui expanded its influence at the KBW Game Expo in Korea.

Analysts believe that the strength of the Sui ecosystem token reflects the market's optimistic expectations for the Move ecosystem. As a new generation public chain, Sui has shown impressive performance in terms of efficiency, security, and developer-friendliness, and its future development is worth looking forward to.

However, there are also viewpoints pointing out that the currently investable assets in the Sui ecosystem are overly concentrated and lack the drive of star projects, which may limit its upside potential. Therefore, Sui needs to accelerate ecosystem construction and attract more high-quality projects to truly unleash its potential.

Overall, the rise of the Sui ecosystem once again confirms the characteristic of the cryptocurrency market pursuing new forces. As a representative of the Move ecosystem, how Sui will break through in the future will receive widespread attention from the industry.

3. The Meme coin sector continues to strengthen, and AI concept coins are also showing an upward trend.

On April 23, the cryptocurrency market continued its upward trend from earlier, with the Meme coins and AI concept coins particularly standing out. Data shows that Meme coins like PENGU and TURBO rose by over 40%, while AI concept coins such as GRIFFAIN, SWARMS, and AI16Z also saw significant increases of over 20%.

The continued strength of Meme coins stems, on one hand, from their cultural attributes and fun nature, which to a certain extent attracts retail investors; on the other hand, it also reflects the current market's enthusiasm for chasing new things.

At the same time, the rise of AI concept coins is closely related to the application prospects of artificial intelligence technology in the cryptocurrency field. With the emergence of AI tools like ChatGPT, investors are full of expectations for the future of AI + We and are actively laying out related concept coins.

However, some analysts have questioned the sustainability of Meme coins and AI concept coins. They believe that these tokens lack practical application scenarios, are primarily speculative in nature, have a large bubble, and may experience dramatic declines in the future.

Overall, the strength of Meme coins and AI concept coins again confirms the speculative nature of the cryptocurrency market. While investors chase potential opportunities, they also need to have a sufficient awareness of risks and view market fluctuations rationally.

4. Hong Kong licensed virtual currency exchange layout OTC business

A year later, the Hong Kong Virtual Currency Carnival has once again kicked off. Interestingly, several compliant exchanges that have obtained licenses for virtual asset trading platforms in Hong Kong are surprisingly laying out the groundwork for virtual currency over-the-counter trading ( OTC ) business.

OTC trading refers to large-scale transactions conducted directly between buyers and sellers, without the mediation of a central exchange. This trading method has advantages such as strong confidentiality and flexible transactions, but it also carries certain operational risks and regulatory loopholes.

In the past, OTC trading was mainly dominated by some unlicensed intermediary institutions. However, as regulations have become increasingly strict, licensed exchanges have begun to enter this field, attempting to provide more compliant OTC services for institutional clients.

Analysts believe that the main reason licensed exchanges are developing OTC businesses is to attract high-net-worth clients and institutional funds. Compared to regular centralized trading, OTC trading has a higher threshold, which allows for the locking in of high-quality client resources.

At the same time, OTC business can also bring more revenue to the exchange. Due to the non-standardized nature of OTC transactions, exchanges can develop differentiated fee models based on customer needs, earning higher transaction fees.

However, the development of OTC business also faces some challenges. The first is how to maximize customer privacy while ensuring compliance; the second is how to prevent illegal activities such as money laundering. Therefore, licensed exchanges need to establish a sound internal control system and risk management mechanism.

Overall, the layout of OTC business by licensed exchanges in Hong Kong reflects the growing institutional demand in the cryptocurrency market. In the future, how OTC business will promote and interact with centralized trading is worth the industry's continuous attention.

5. Economic Dynamics

1. The U.S. economic growth is slowing down, and inflationary pressures persist.

Economic Background: According to the latest data, the annualized quarter-on-quarter GDP growth rate in the United States for the first quarter is only 1.1%, far below the expected 2%, indicating that the momentum of economic growth continues to slow down. Meanwhile, the core PCE price index rose by 4.6% year-on-year in March, exceeding the target level of 2%, with inflationary pressures continuing to increase. The unemployment rate remains low at 3.6%, and the job market is still tight.

Important events: The Federal Reserve paused its rate hike after a 25 basis point increase in March to assess the impact of its policies. However, high inflation and a tightening labor market have increased pressure on the Federal Reserve to continue raising rates. Meanwhile, the U.S. government is considering further increasing the debt ceiling to avoid potential default risks.

Market reaction: Investors' concerns about the economic outlook have intensified, leading to significant fluctuations in the three major US stock indices. The US dollar index has risen slightly, reflecting the market's divergence on expectations of Federal Reserve interest rate hikes. The yield curve has further inverted, exacerbating fears of an economic recession.

Expert opinion: Goldman Sachs Chief Economist Jan Hatzius stated that despite the slowdown in economic growth, the job market remains strong, which could drive up wages and further increase inflation. He expects the Federal Reserve to raise interest rates by 25 basis points in June and July, respectively. Meanwhile, JPMorgan economist Michael Feroli believes that weak economic growth may force the Federal Reserve to pause interest rate hikes later this year.

2. Signs of easing tensions in Sino-U.S. trade relations

Economic Background: China and the United States are the two largest economies in the world, and changes in their trade relationship will have a significant impact on the global economy. In recent years, the differences between the two sides in areas such as trade and technology have intensified, leading to a continuous escalation of trade tensions, which has impacted global supply chains and investment confidence.

Important event: U.S. Treasury Secretary Becerra hinted that the U.S. may reduce tariffs on Chinese goods. This signal is seen as a positive sign of easing tensions in U.S.-China trade. Previously, both sides have failed to achieve substantial progress in trade negotiations.

Market Reaction: Bessent's statement has increased market expectations for the improvement of Sino-U.S. trade relations. The three major U.S. stock index futures rose sharply, and European stocks also opened higher. The U.S. dollar index fell slightly, reflecting an improvement in market risk appetite. Commodity prices generally rose.

Expert Opinion: Goldman Sachs analysts state that if the tensions in Sino-U.S. trade truly ease, it will be beneficial for boosting the global economic growth outlook. However, they also warn that the differences between the two sides in the technological sector will persist, and a fundamental improvement in trade relations may take longer. Meanwhile, Morgan Stanley believes that even with tariff reductions, the trend of "decoupling" between the two countries in the technology sector may continue.

3. The European Central Bank intensifies its hawkish stance as inflation in the Eurozone hovers at high levels.

Economic background: The annualized quarter-on-quarter GDP growth rate for the Eurozone in the first quarter is 1%, indicating a slowdown in economic recovery. The inflation rate in March reached 6.9%, far exceeding the European Central Bank's target of 2%. The unemployment rate remains low at 6.5%, and the job market is still tight.

Important event: The European Central Bank will hold an interest rate decision meeting this week, and it is expected to raise rates by another 50 basis points. ECB President Lagarde previously stated that they will maintain a hawkish stance until inflation shows a significant slowdown.

Market reaction: The yield curve of Eurozone government bonds has steepened further, reflecting market expectations for the European Central Bank to continue significantly raising interest rates. The Euro has slightly appreciated against the US dollar. European stock markets have generally declined, reflecting investor concerns about the economic outlook.

Expert Opinion: David Folkerts-Landau, Chief Eurozone Economist at Deutsche Bank, stated that despite the economic slowdown, the job market remains strong, and the pressure for wage increases is growing, which will further push up inflation. He expects the European Central Bank to continue with significant interest rate hikes this year. Conversely, Goldman Sachs believes that the pace of rate hikes by the European Central Bank may slow down to assess the impact of the policy.

4. Inflation in the UK remains high, and the central bank may raise interest rates again.

Economic background: The annualized quarter-on-quarter GDP growth rate for the UK in the first quarter is 0.1%, indicating a state of economic weakness. The inflation rate in March reached 10.1%, far exceeding the Bank of England's target of 2%. The unemployment rate remains low at 3.8%, and the job market is still tight.

Important events: The Bank of England will hold an interest rate decision meeting this week and is expected to raise interest rates by another 25 basis points. Bank of England Governor Bailey previously said that he would stick to a hawkish stance until inflation slows significantly.

Market reaction: The UK government bond yield curve has steepened further, reflecting market expectations that the Bank of England will continue to raise interest rates. The British pound has risen slightly against the US dollar. The UK stock market has generally declined, reflecting investors' concerns about the economic outlook.

Expert Opinion: James Knightley, Chief UK Economist at Standard Chartered Bank, stated that despite the economic slowdown, the labor market remains strong, with increasing wage pressure that will further drive up inflation. He expects the Bank of England to continue raising interest rates this year. However, Barclays believes that the pace of interest rate hikes by the Bank of England may slow down to assess the impact of the policy.

6. Regulation & Policy

1. Trump calls for clear cryptocurrency regulatory policies, with SEC Chair Atkins seen as the best candidate.

U.S. President Trump recently stated that the cryptocurrency industry urgently needs clear regulatory policies. He believes that the new chair of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, is the best candidate to ensure regulatory certainty for cryptocurrencies.

The Trump administration has been seeking to establish a comprehensive regulatory framework for the cryptocurrency industry. The regulation of crypto assets is primarily handled by the SEC and the Commodity Futures Trading Commission (CFTC), which are respectively responsible for securities and derivatives. However, due to the unique nature of cryptocurrencies, there are gray areas in existing regulations, leading to a lack of uniformity in oversight.

After taking office as SEC Chairman, Atkins prioritized establishing clear regulations for digital assets aimed at protecting investors and ensuring market integrity. He stated that he would adopt a "reasonable and clear" approach to provide certainty for cryptocurrency regulation.

The cryptocurrency industry has responded positively to this. Coinbase CEO Brian Armstrong supports Atkins' appointment, believing he will bring the regulatory clarity the industry needs. However, some are concerned that excessive regulation may stifle innovation.

Overall, the Trump administration and SEC Chairman Atkins recognize the importance of cryptocurrency regulation. They are working to find a balance between protecting investors and promoting innovation. Industry insiders generally look forward to a clear regulatory framework to drive healthy development of the industry.

2. The ECB has warned that U.S. policies supporting cryptocurrencies could threaten financial stability in the eurozone

The European Central Bank ( ECB ) has expressed deep concern over the cryptocurrency agenda supported by the Trump administration, warning that the trend of USD-backed stablecoins could threaten the financial stability of the eurozone and undermine the regulatory framework for cryptocurrencies.

Recently, the Trump administration tends to support the narrative of "digital gold", providing a boost to the cryptocurrency market. According to reports, Trump signed an executive order in early March this year, proposing the establishment of a national-level Bitcoin reserve and strategic reserves for other tokens. In addition, any comments questioning the independence of the Federal Reserve have also had a positive spillover effect on Bitcoin.

European Central Bank President Christine Lagarde stated that if the U.S. government supports dollar-backed stablecoins, it would pose a threat to financial stability in the eurozone. She pointed out that this approach could undermine the global cryptocurrency regulatory framework and affect the European Central Bank's control over the euro.

Lagarde emphasized that the European Central Bank will closely monitor the development of this trend and collaborate with global regulatory bodies to ensure the uniformity and effectiveness of cryptocurrency regulation. She called on governments to adopt a coordinated regulatory approach to avoid regulatory arbitrage.

Valdis Dombrovskis, Vice President of the European Commission, also expressed concerns about the United States' cryptocurrency policy. He stated that the EU will strengthen regulation of stablecoins to prevent them from posing risks to the Eurozone financial system.

Overall, the European Central Bank and EU institutions are cautious about the US's supportive policies towards cryptocurrencies. They believe this could impact the status of the euro and the stability of the European financial system, therefore calling for stronger global regulatory coordination.

3. Is the Bitcoin ETF approval imminent? Details of the U.S. Bitcoin strategic reserve may be disclosed.

According to Bloomberg, Trump signed an executive order in early March this year, proposing to establish a national bitcoin reserve and a strategic reserve for other tokens. He asked the Minister of Finance to submit an assessment report on the legal and investment viability of the plan within 60 days. The 60-day deadline set by Trump's executive order is now less than two weeks away, which means that more details of the US bitcoin reserves will be revealed soon.

The idea of the United States establishing a strategic reserve of Bitcoin has sparked widespread attention and discussion in the market. Supporters believe that this move will help enhance Bitcoin's status and prepare it to play a more significant role in the global financial system. Critics, on the other hand, worry that this could exacerbate the instability of the US dollar's position as an international reserve currency.

In addition, the market's expectations regarding this matter may be one of the important catalysts for the recent rebound in cryptocurrency assets. Bitcoin's price saw a significant increase in April, briefly breaking through the $90,000 mark. Analysts believe that investors' expectations of support for cryptocurrency from the U.S. government are one of the main driving forces behind Bitcoin's rise.

Another noteworthy signal is that the Trump administration's questioning of the Federal Reserve's independence has had a positive impact on Bitcoin. Some investors view Bitcoin as a hedge against inflation and currency devaluation, so any changes in Federal Reserve policy could drive demand for Bitcoin.

Overall, the details of the U.S. Bitcoin Strategic Reserve Plan being announced will be an important catalyst for the cryptocurrency market in the coming weeks. Investors will closely monitor this development, as it may impact Bitcoin's position and role in the global financial system.

4. Licensed virtual currency exchanges in Hong Kong are laying out their over-the-counter trading business, highlighting regulatory challenges.

A year later, stepping into the Hong Kong We Carnival venue again, an interesting phenomenon caught attention: several compliant exchanges that have already obtained virtual asset trading platform licenses in Hong Kong are surprisingly laying out the business of virtual currency over-the-counter trading ( OTC ).

Hong Kong's Securities and Futures Commission ( SFC ) enacted a regulatory framework for virtual asset trading platforms in 2022 with the aim of creating a compliant operating environment for cryptocurrency exchanges. Licensed exchanges need to follow strict rules, including preventing money laundering, protecting investors' interests, and more.

However, these licensed exchanges are now getting involved in OTC business, which has raised regulatory challenges. OTC trading is typically private trading between institutional investors, lacking regulation and transparency. This presents a certain contradiction to the regulatory framework set by the Securities Regulatory Commission for exchanges.

Financial legal experts in Hong Kong point out that licensed exchanges conducting OTC business may lead to regulatory loopholes. Due to the privacy of OTC transactions, exchanges find it difficult to monitor them comprehensively, which may be exploited as a means to evade regulation.

On the other hand, the exchange's development of OTC business also has its commercial considerations. OTC trading can meet the bulk trading needs of institutional investors, bringing considerable revenue to the exchange. Some exchanges believe that as long as they combine OTC business with regulatory requirements, they can achieve compliant operations.

However, experts warn that exchanges need to be extra cautious to ensure that OTC operations comply with regulatory requirements and avoid violations. The Hong Kong Securities and Futures Commission may introduce further regulatory measures regarding this issue.

Overall, licensed virtual currency exchanges in Hong Kong engaging in OTC business highlights new challenges in cryptocurrency regulation. Regulators and the industry need to work together to seek a balance between promoting innovation and maintaining market order.