1. Barclays Bank: Expects the Fed to Begin Cutting Interest Rates from March link

Barclays economists anticipate that the seasonally adjusted annual rate of inflation for U.S. Personal Consumption Expenditures (PCE) will be 1.9% in the second half of 2023 and is projected to reach 2.4% by the end of 2024. Given the latest economic data indicating a slowdown in the inflation trend, the Federal Reserve’s Federal Open Market Committee (FOMC) is expected to implement a policy of reducing interest rates by 25 basis points at every other meeting starting from March 2024. Previously, Barclays had forecasted that the Fed would begin cutting interest rates in June.

2. UN Report: USDT Plays a Central Role in Money Laundering Cases in Illegal Casinos in Southeast Asia link

The United Nations Office on Drugs and Crime released a report on Monday, indicating that USDT is at the core of the explosive growth of the fraud industry. The development of cryptocurrencies and the rapid advancement of other technologies have stimulated organized crime groups in Southeast Asia to exploit the practice of laundering illegal funds through black-market casinos for decades. The report highlights how organized crime effectively created a parallel banking system using new technologies, and the proliferation of loosely or completely unregulated online casinos and cryptocurrencies has intensified the crime ecosystem in the region.

Tether responded to the UN assessment, expressing disappointment and noting that the evaluation report specifically emphasizes USDT’s involvement in illegal activities while overlooking its role in aiding the development of emerging market economies. Tether collaborates with global law enforcement agencies, including the U.S. Department of Justice, Federal Bureau of Investigation, and the U.S. National Security Agency, to exert numerous constraints. Additionally, the report overlooks the crucial role of blockchain technology in detecting and preventing illegal activities.

3. EU Temporarily Requires Crypto Companies to Conduct Customer Due Diligence for Transactions of 1000 Euros or More link

European Union policymakers reached a provisional agreement on Wednesday on parts of a comprehensive regulatory framework to combat money laundering, which will require all cryptocurrency firms to conduct due diligence on their customers. According to the agreement, cryptocurrency firms must implement “customer due diligence measures” when executing transactions valued at €1000 or more. The agreement also includes risk-mitigation measures for transactions involving self-hosted wallets. The agreement will come into effect after formal adoption by the European Parliament and the Council.

4. Monetary Authority of Singapore Prohibits Listing of Bitcoin Spot ETFs in the Country link

The Monetary Authority of Singapore (MAS) has stated that it does not permit financial products such as Bitcoin spot ETFs to be listed and offered to retail investors in Singapore because cryptocurrencies like Bitcoin are not qualified assets for ETFs. However, capital market intermediaries licensed by MAS can provide investments related to overseas markets, enabling retail investors to trade Bitcoin spot ETFs listed abroad through local brokerages.

5. Bitcoin’s Network Hashrate Drops by 25% Due to the Impact of the Cold Spell in the United States link

Since last Friday, the estimated global hash rate of Bitcoin has declined by approximately 25%, dropping from around 600 EH/s to 450 EH/s. This reduction is attributed to the request from the Electric Reliability Council of Texas (ERCOT) urging businesses and residents in Texas to conserve electricity due to extreme cold weather conditions. Data from MiningPoolStats and Blockchain.com indicate the decline in hash rate from around 600 EH/s on Friday to 450 EH/s on Tuesday, aligning with the weather alerts issued by ERCOT for the region’s extremely cold weather from January 14 to 17.

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6. Updates on the Status of Spot Ethereum ETFs This Week

a. JPMorgan Executive: Probability of Approval for Spot Ethereum ETF in May is Not Likely to Exceed 50% link

JPMorgan Managing Director Nikolaos Panigirtzoglou stated that the likelihood of approving a spot Ethereum ETF in May is not expected to exceed 50%. He expressed, “In our view, for the SEC to approve a spot Ethereum ETF in May, it needs to classify Ethereum as a commodity (similar to Bitcoin) rather than a security. This is far from certain, and I don’t think the probability of the SEC classifying Ethereum as a commodity before May is over 50%.” According to Panigirtzoglou, the SEC “continues to signal that it views all other cryptocurrencies, excluding Bitcoin, as securities.”

b. TD Cowen: SEC Unlikely to Approve Spot Ethereum ETF in the Short Term link

Investment bank TD Cowen stated that the US Securities and Exchange Commission (SEC) is unlikely to approve a spot Ethereum ETF in the short term. The TD Cowen Washington research team wrote in a report earlier this week, “We expect the SEC not to quickly approve other cryptocurrency exchange-traded products (ETPs) as we believe the SEC will want experience from Bitcoin ETPs before approving Ethereum or other cryptocurrency ETPs.” The research team is led by Jaret Seiberg. “The waiting time may not be as long as 26 months, but it is likely to be after the elections.”

c. US SEC Extends Deadline for Decision on Fidelity’s Spot Ethereum ETF to March 5 link

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Fidelity’s proposed spot Ethereum ETF, with a new deadline set for March 5, 2024. Bloomberg analyst James Seyffart commented, “This move is entirely as expected, and in my view, the truly important date is late May.”

7. Fidelity: Fed Rate Cut Could Benefit DeFi and Stablecoins link

Asset management company Fidelity’s report indicates that an expected rate cut by the Federal Reserve could reignite major institutions’ interest in decentralized finance (DeFi) and stablecoins, provided that the infrastructure in these areas continues to develop further this year. While institutions were initially expected to enter the market last year due to the returns offered by DeFi, they opted for traditional fixed-income products seen as safer, given the Federal Reserve’s rate hikes. The report suggests that if DeFi yields again surpass those of traditional finance (TradFi) and more advanced infrastructure emerges, institutions may develop “new interest” in DeFi in 2024.

8. Binance’s Weekly Summary

a. Binance Records Net Inflows of 4.6 Billion USD Since Reaching Agreement with US Regulatory Authorities in November link

Since reaching an agreement with US regulators on November 21, Binance has recorded a net inflow of $4.6 billion, surpassing the capital inflows of exchanges such as OKX and Bybit. In January alone, the Binance platform has attracted $3.5 billion, exceeding the capital inflow for any full month since November 2022. Additionally, Binance stabilized in December, with its exchange token BNB rising by 30% since November 21, outperforming the market.

b. Some Binance Users Receive Liquidation and Near-Liquidation Messages Due to SMS System Malfunction link

On the evening of January 17, some Binance users received a mass text message stating: “Your USDT-margined account’s margin ratio has reached 80%. Please immediately add margin or reduce your position.” Binance customer service responded in the community, stating that due to a malfunction in the SMS system, many people received liquidation and imminent liquidation messages today. Users were advised to ignore the messages as technical maintenance was underway.

c. Binance and Gulf Energy’s Joint Venture Begins Operating a Cryptocurrency Exchange in Thailand link

Binance’s joint venture with Thailand’s Gulf Energy, named Gulf Binance, has commenced full-scale cryptocurrency exchange operations in Thailand. According to the announcement, Thai users can utilize their Binance TH accounts to buy and sell cryptocurrencies using the local currency.

9. Solana Mobile Announces the Commencement of Pre-Sales for its Second-Generation Saga Phone link

Solana Mobile has announced the commencement of pre-orders for its second-generation Saga phone, requiring a $450 pre-order deposit with an estimated delivery date in 2025. The sale will include various features such as referrals and leaderboards. Earlier, it was stated that the second-generation Saga phone would have similar basic features as its predecessor, Saga.

Solana co-founder and Solana Labs President Raj Gokal mentioned that pre-orders for Solana Mobile’s second-generation phone, Solana Chapter2, reached 30,000 units within the first 30 hours, surpassing the sales of the first-generation phone in its initial 12 months.

10. Elon Musk: Still Holds Dogecoin, SpaceX Holds a Significant Amount of Bitcoin link

Elon Musk recently revealed in a Twitter Space session that he still holds Dogecoin (DOGE), considering it his favorite cryptocurrency in the crypto industry. Additionally, Musk disclosed that SpaceX holds a significant amount of Bitcoin. However, it’s worth noting that Tesla had previously sold off 75% of its Bitcoin holdings.

Fundraising

• HashKey Group has successfully completed nearly $100 million in Series A funding. link

• Web3 tax consulting firm and software service provider InTax announces the completion of its angel round of financing. link

• Renzo, the Ethereum re-staking protocol, has secured $3.2 million in seed funding. link

• Web3 data analytics company 0xScope has closed a $5 million pre-Series A funding round. link

• DePIN, a startup focused on Decentralized Infrastructure, has raised $11.5 million in Series A financing. link

• Canza Finance has completed a $2.3 million strategic funding round led by Polychain. link

• Crypto exchange WOO X has secured $9 million in funding, with participation from market maker Wintemute. link

• Kiln, an Ethereum staking platform, has raised $17 million in funding with 1kx leading the round. link

• Flowdesk, the liquidity provider for Grayscale BTC ETF, has completed a $50 million funding round. link

• Mobile game studio AOFverse has secured $3 million in a private placement round, with Animoca Ventures leading the investment. link

Learn more, check out crypto-fundraising.info.

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