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Hong Kong is advancing its position as a global crypto hub by streamlining the licensing process for virtual asset trading platforms, with the Securities and Futures Commission (SFC) aiming for initial permits by year-end. The Hong Kong Monetary Authority (HKMA) is also exploring digital bonds and tokenized securities, while discussions about the Exchange Fund's potential crypto interests are gaining traction. Additionally, plans to exempt certain funds and high-net-worth individuals from capital gains taxes on crypto income reflect the city's commitment to fostering a balanced and innovative crypto ecosystem.
President-elect Donald Trump is building a crypto-friendly administration with key appointments, including Republican French Hill as chair of the House Financial Services Committee and Brian Quintenz as a leading candidate for CFTC chair. Hill, a moderate from Arkansas, will advance crypto-friendly legislation, while Quintenz, a former CFTC commissioner, aims to bridge digital assets and traditional finance. These moves signal a significant shift in the administration's approach to the digital economy, with other pro-crypto nominees also announced.
El Salvador and Argentina have formed a strategic partnership to enhance the cryptocurrency industry in Latin America, focusing on regulatory collaboration and innovation. The agreement, signed by leaders from both countries, aims to foster a legitimate crypto market and promote knowledge sharing.El Salvador, a pioneer in adopting Bitcoin as legal tender, is also negotiating a multi-billion-dollar funding deal with the IMF, which may lead to adjustments in its Bitcoin law, allowing businesses to accept Bitcoin voluntarily.
At the Bitcoin MENA 2024 Conference, Eric Trump announced that U.S.-issued cryptocurrencies, including XRP, ADA, ALGO, and HBAR, will be exempt from taxation under his father's administration. This initiative aims to position the U.S. as a global crypto hub, contrasting with Italy's high capital gains tax on Bitcoin. The proposal is expected to attract non-U.S. crypto projects and potentially boost the market, although experts warn of possible volatility.
A report by Sygnum predicts that institutional demand could drive Bitcoin prices to new heights in 2025, fueled by significant capital inflows and a favorable regulatory environment following the upcoming US presidential election. The analysis highlights a potential 'multiplier effect' from Bitcoin ETFs, with every $1 billion in inflows possibly increasing prices by 3-6%. However, risks such as inflation and geopolitical uncertainties could impact this bullish outlook.
Regulated exchanges are increasingly dominating Bitcoin trading volumes, reflecting a market shift towards compliance and stability. The trading volume ratio between KYC and non-KYC exchanges has mirrored Bitcoin's price movements, indicating a growing preference for KYC-compliant platforms, particularly following significant events like the launch of spot Bitcoin ETFs. This trend raises questions about the underlying drivers of market dynamics and trader preferences.
Vancouver's city council has voted to explore the integration of Bitcoin into municipal finances, aiming to address inflation and currency devaluation. Mayor Ken Sim, an investor in cryptocurrency, believes Bitcoin could stabilize the city's finances amid a housing market that has surged 381% since 1995. However, legal restrictions currently prevent municipalities from holding cryptocurrencies or using them for transactions, posing significant challenges ahead.
French Hill, a crypto advocate, has been appointed to lead the House Financial Services Committee, underscoring the GOP's dedication to reforming the crypto market and advancing stablecoin legislation. This move signals a significant focus on regulatory developments in the cryptocurrency space.
Arkansas Representative French Hill is set to chair the House Financial Services Committee in 2025 after winning a party steering committee decision against Republican challengers. He is expected to take over from Chair Patrick McHenry on January 3, coinciding with the start of the new Congress. Senator Tim Scott is anticipated to lead the banking committee, supporting pro-crypto legislation. House Republicans still need to ratify Hill's selection in a full conference vote.
Cryptocurrency ownership is surging globally, particularly in emerging markets, with notable increases in Mexico (8%), the Philippines (7%), and South Africa (7%). Over half of respondents in Nigeria, South Africa, Vietnam, the Philippines, and India own crypto wallets, while interest in investing remains high in Asia and Africa, contrasting with skepticism in Europe and North America. Demographic disparities exist, with younger men showing greater understanding of cryptocurrency compared to women and older individuals.

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