Eagle Crest Asset Management

August 15, 2024

Hong Kong Accelerates Stablecoin Regulation Framework

According to BlockBeats, Hong Kong is rapidly advancing the establishment of a regulatory framework for stablecoin issuers. Recently, the city released a public consultation summary on stablecoin regulation. The report highlights that the next phase of development for Web3.0 in Hong Kong and globally focuses on bridging the gap between the virtual and real worlds, enabling seamless asset and fund transfers between the two systems. Real-World Assets (RWA) are seen as a crucial innovation to overcome technical barriers and accelerate the integration of virtual and real economies. In the foreseeable future, the majority of RWA transactions in Hong Kong are expected to be conducted using compliant Hong Kong dollar stablecoins, facilitating connections and interoperability with traditional finance. Without a compliant Hong Kong dollar stablecoin, the convenience and security of Hong Kong's RWA practices would face significant challenges. Therefore, the introduction of a stablecoin regulatory framework may lay the foundation for innovative development within Hong Kong's RWA ecosystem. As the RWA ecosystem thrives, the role and value of the Hong Kong dollar stablecoin as a bridge for Hong Kong's Web3.0 external connections will become increasingly prominent.

August 15, 2024

Switzerland Considers Including Crypto Tax Data In International Exchange Protocols

According to PANews, Switzerland is contemplating the inclusion of cryptocurrency tax data in its international information exchange agreements. The Swiss Federal Council initiated a consultation process on Wednesday for a new bill aimed at facilitating the sharing of crypto asset information with 111 jurisdictions. These jurisdictions are currently part of the automatic information exchange framework. The sharing will be contingent on their compliance with the OECD's crypto asset reporting framework.Switzerland has long been a leader in cryptocurrency adoption. Regions like Lugano have pioneered the acceptance of cryptocurrencies such as Tether (USDT) and Bitcoin for tax payments. The country's political framework allows the Federal Tax Administration to classify Bitcoin as a payment method, thereby exempting it from Value Added Tax (VAT).The Swiss Federal Council aims to determine the start date for the automatic exchange of crypto-related information with partner states. The consultation period for this legislative proposal will conclude on November 15, 2024.

August 15, 2024

Bank Of America Increases Holdings in IBIT and FBTC

According to Odaily, Bank of America has increased its holdings in IBIT and FBTC as per its second-quarter 13-F filing submitted to the SEC. As of June 30, the bank holds $2.8 million worth of IBIT, marking a 31% increase. Additionally, it holds $1.5 million worth of FBTC, reflecting a 21% increase.

August 14, 2024

Singapore To Charge Former Bankers In Major Money-Laundering Case

According to Bloomberg, Singapore is preparing to charge two former Chinese bankers on Thursday in connection with the country's largest money-laundering case. The individuals, who were relationship managers at two foreign banks in Singapore, are accused of serving criminals involved in a S$3 billion ($2.3 billion) laundering scheme, as stated by the Singapore Police Force in an emailed statement on Wednesday. The names of the banks were not disclosed.The case has caused significant concern in the Asian financial hub, following the authorities' seizure of cash, properties, cryptocurrencies, and other assets totaling S$3 billion last year. Ten individuals of Chinese origin were imprisoned for laundering illicit funds from illegal overseas gambling operations and other offenses, while additional suspects remain at large.David Chew, director of the police force’s commercial affairs department, emphasized the seriousness with which Singapore views the laundering of criminal proceeds through its financial system. “Those who help clients circumvent their financial institutions’ due diligence processes or who help clients forge documents to conceal the true nature of their assets, must be dealt with robustly under our laws,” Chew stated.The first banker is a 26-year-old male, and the second is a 35-year-old male. Additionally, a Singaporean driver is also set to be charged in connection with the case.

August 14, 2024

SEC Investigates Drive Planning LLC And CEO For Alleged Ponzi Scheme

According to BlockBeats, on August 14, the U.S. Securities and Exchange Commission (SEC) announced that it has obtained a preliminary injunction and asset freeze to investigate Drive Planning LLC and its founder and CEO, Russell Todd Burkhalter. The SEC alleges that from 2020 to June 2024, Drive Planning and Burkhalter raised over $300 million from more than 2,000 investors by promising high returns, such as '10% interest every three months,' for supposed real estate investments. However, this was a typical Ponzi scheme, where funds from new investors were used to pay returns to existing investors. Additionally, the SEC accuses Burkhalter of misappropriating millions of investor funds to purchase a $3.1 million yacht, $4.6 million in private jet and luxury car services, and $2 million for a luxury apartment to support his lavish lifestyle.Nekia Hackworth Jones, Director of the SEC's Atlanta Regional Office, stated that Drive Planning and Burkhalter gained the trust of ordinary investors through false promises, executing a classic Ponzi scheme. She urged investors to be wary of sellers who excessively promote high returns. Besides obtaining emergency relief, the SEC is also seeking a permanent injunction against the defendants, the return of ill-gotten gains, civil penalties, and a ban on Burkhalter from serving as a corporate officer. The case is currently under further investigation.

August 13, 2024

Bank of America CEO Urges Fed to Lower Interest Rates Amid Economic Slowdown

According to Odaily, Bank of America CEO Brian Moynihan has called for the Federal Reserve to lower interest rates promptly in response to the current economic slowdown and reduced consumer spending. Moynihan emphasized the importance of caution, noting that while inflation has decreased, it has not yet reached the desired levels. He warned against striving for perfection in inflation control at the risk of triggering a recession.Moynihan highlighted that a delay in reducing interest rates could negatively impact consumer confidence in the United States. He pointed out that investors are looking for data that falls within a 'sweet spot'—cool enough to justify a rate cut in September but warm enough to alleviate recent recession fears affecting the market.

August 12, 2024

BOJ Expected To Delay Further Rate Hikes Until Next Year

According to CoinDesk, former Bank of Japan (BOJ) official Makoto Sakurai has indicated that the central bank will likely postpone additional interest rate hikes until next year, prioritizing market stability in the near term. Sakurai, a former board member, stated on Friday that the BOJ could not implement another rate hike for the remainder of the year. He suggested that the next potential rate hike might occur by March 2023.The BOJ recently raised its key interest rate to approximately 0.25% from a range of zero on July 31, marking the first increase in over a decade. This move signalled the possibility of further rate hikes. The shift away from the zero interest rate policy led to an appreciation of the Japanese yen, which in turn caused an unwinding of the

August 12, 2024

Polish Central Bank Official Sees Potential for Rate Cuts in 2025 Amid Low Growth

According to Odaily, Polish Central Bank member Kotecki has indicated that there is potential for interest rate cuts in 2025 if the country experiences low economic growth. This statement highlights the central bank's readiness to adjust monetary policy in response to economic conditions.

August 12, 2024

US Core CPI Expected to Slightly Decrease in July

According to Odaily, analysts at Malayan Banking Berhad (Maybank) have indicated in a foreign exchange research and strategy report that the market widely anticipates the U.S. core Consumer Price Index (CPI) for July to slightly decrease from 3.3% in June to 3.2%. This expected inflation data is considered most favorable for the market. While such data might reduce the likelihood of aggressive rate cuts by the Federal Reserve and potentially lead to a further rise in the U.S. dollar, an improvement in risk sentiment could slow the dollar's upward momentum.

August 10, 2024

SEC And Ideanomics Settle $40 Million Cryptocurrency Fraud Case

According to Foresight News, the U.S. Securities and Exchange Commission (SEC) has reached a settlement with Ideanomics over a $40 million cryptocurrency revenue fraud case. The SEC accused Ideanomics of fraudulently reporting over $40 million in cryptocurrency revenue in 2019. All parties involved have agreed to the settlement.Former Ideanomics Chairman and CEO Bruno Wu has agreed to pay over $3.3 million in disgorgement, prejudgment interest, and a $200,000 penalty. Additionally, Ideanomics has agreed to pay a $1.4 million penalty and will hire an independent compliance consultant to review and enhance its internal accounting controls.