Welcome to The Daily Forkast, January 13th, 2021, presented by Angie Lau. For the latest in blockchain & crypto news. On today's show:
00:00 Coming Up
00:36 Prosecutors demand life sentences in Korean scam case
01:35 Blockchain project set to enhance water supply chains in Australia’s Queensland state
02:23 Hong Kong plans new crypto regulation
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First up, prosecutors in South Korea have demanded life sentences for seven executives involved in a crypto scam. The seven execs from the now defunct V Global crypto exchange have been charged with swindling over 50,000 members out of their money by promising 300% returns on investments. Members were also offered a US$1,000 commission for referring new users. And while users did receive some of the promised returns, it was discovered that those funds were taken from new users deposits, much like a pyramid or Ponzi scheme. Prosecutors said the defendants have not made sincere efforts to recover the losses that total more than get this, US$1.8 billion, nor taken full responsibility for their actions. The verdict and sentencing are due on February 11th, and we will be keeping watch on that.
Now, over in the northeastern Australian state of Queensland, an innovative project is using blockchain technology to improve water market supply chains. Now, more than 1,000 farmers have partnered with blockchain firm Civic Ledger to address water security and fair access issues by incorporating the Water Ledger trading platform into the state's Mareeba-Dimboola Water Supply Scheme. Now, water supplies are vital to the region as it is a major producer of avocados, mangos and bananas. Water management is a critical policy issue in Australia that some experts say hasn't been a priority despite the country frequently experiencing droughts and bushfires.
In Hong Kong, plans for new crypto regulation are on the agenda. The Hong Kong Monetary Authority, or HKMA, is looking for feedback now after publishing a paper on options for regulating the sector. The HK paper says emphasis has been placed on the user protection in developing the proposals. It goes on to note that stablecoins in particular present risks for monetary and financial stability as they have higher potential for becoming widely accepted as a means of payment. One expert told Forkast.News that players in the industry have understood things would change for some time. He thinks Hong Kong is making moves that most global financial centers will also make. The HKMA says it is looking into whether stablecoin issuers should be regulated under the banking ordinance, and Hong Kong isn't alone in going along those lines. Indeed, the US is another example of a country where this has been considered. The consultation is open until the end of March, with the HKMA expecting to formulate a plan by July this year and for the new regime to be in place by 2024.
The new year slump in cryptocurrencies has been grabbing headlines, and while it might be hard to see any silver lining amid all the gloom and doom talk. Is it time to build fresh positions. Michael Wu, CEO and founder of Amber Group, joins me to weigh in on this new economy.
Angie Lau: Major digital currencies, whether it's Solana, Ether, Cardano and, of course, Bitcoin, among many others, Michael, they've had a rough start to the new year. This has got a lot of people questioning the stability of crypto. But do you think this decline is instead an opportunity to build positions and portfolios? What do you think?
Michael Wu: I think we're all more or less understand that this particular volatility and near-term sell-off is driven by Fed's increasing hawkish stance. They are more likely to hike rates for multiple times this year, and all of that, of course, affect all asset prices, including crypto. I do think if we do see a further sell-off from here, let's say Bitcoin go down to say US$30,000 or US$35,000 levels or Ethereum below US$2,500 or US$2,000 level. These are great levels to start building more and more Bitcoin and Ethereum positions or add on to your existing positions in almost like a risk-neutral kind of way. I do not recommend what we would typically call catching the falling knife in trading terms, which means, do not go too crazy. Just take your time, level your bets or wait until the market stabilizes at a favorable level and start to build your positions over time.
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#Crypto #Blockchain #BlockchainTechnology #DigitalAssets #Cryptocurrency #DeFi #CryptoScam #WaterSupply #Stablecoin #Regulation #HongKong #Finance #Australia #Investment #HKMA
00:00 Coming Up
00:36 Prosecutors demand life sentences in Korean scam case
01:35 Blockchain project set to enhance water supply chains in Australia’s Queensland state
02:23 Hong Kong plans new crypto regulation
---
First up, prosecutors in South Korea have demanded life sentences for seven executives involved in a crypto scam. The seven execs from the now defunct V Global crypto exchange have been charged with swindling over 50,000 members out of their money by promising 300% returns on investments. Members were also offered a US$1,000 commission for referring new users. And while users did receive some of the promised returns, it was discovered that those funds were taken from new users deposits, much like a pyramid or Ponzi scheme. Prosecutors said the defendants have not made sincere efforts to recover the losses that total more than get this, US$1.8 billion, nor taken full responsibility for their actions. The verdict and sentencing are due on February 11th, and we will be keeping watch on that.
Now, over in the northeastern Australian state of Queensland, an innovative project is using blockchain technology to improve water market supply chains. Now, more than 1,000 farmers have partnered with blockchain firm Civic Ledger to address water security and fair access issues by incorporating the Water Ledger trading platform into the state's Mareeba-Dimboola Water Supply Scheme. Now, water supplies are vital to the region as it is a major producer of avocados, mangos and bananas. Water management is a critical policy issue in Australia that some experts say hasn't been a priority despite the country frequently experiencing droughts and bushfires.
In Hong Kong, plans for new crypto regulation are on the agenda. The Hong Kong Monetary Authority, or HKMA, is looking for feedback now after publishing a paper on options for regulating the sector. The HK paper says emphasis has been placed on the user protection in developing the proposals. It goes on to note that stablecoins in particular present risks for monetary and financial stability as they have higher potential for becoming widely accepted as a means of payment. One expert told Forkast.News that players in the industry have understood things would change for some time. He thinks Hong Kong is making moves that most global financial centers will also make. The HKMA says it is looking into whether stablecoin issuers should be regulated under the banking ordinance, and Hong Kong isn't alone in going along those lines. Indeed, the US is another example of a country where this has been considered. The consultation is open until the end of March, with the HKMA expecting to formulate a plan by July this year and for the new regime to be in place by 2024.
The new year slump in cryptocurrencies has been grabbing headlines, and while it might be hard to see any silver lining amid all the gloom and doom talk. Is it time to build fresh positions. Michael Wu, CEO and founder of Amber Group, joins me to weigh in on this new economy.
Angie Lau: Major digital currencies, whether it's Solana, Ether, Cardano and, of course, Bitcoin, among many others, Michael, they've had a rough start to the new year. This has got a lot of people questioning the stability of crypto. But do you think this decline is instead an opportunity to build positions and portfolios? What do you think?
Michael Wu: I think we're all more or less understand that this particular volatility and near-term sell-off is driven by Fed's increasing hawkish stance. They are more likely to hike rates for multiple times this year, and all of that, of course, affect all asset prices, including crypto. I do think if we do see a further sell-off from here, let's say Bitcoin go down to say US$30,000 or US$35,000 levels or Ethereum below US$2,500 or US$2,000 level. These are great levels to start building more and more Bitcoin and Ethereum positions or add on to your existing positions in almost like a risk-neutral kind of way. I do not recommend what we would typically call catching the falling knife in trading terms, which means, do not go too crazy. Just take your time, level your bets or wait until the market stabilizes at a favorable level and start to build your positions over time.
---
#Crypto #Blockchain #BlockchainTechnology #DigitalAssets #Cryptocurrency #DeFi #CryptoScam #WaterSupply #Stablecoin #Regulation #HongKong #Finance #Australia #Investment #HKMA
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Francisco Gimeno - BC Analyst Hong Kong stance on crypto regulations coming this year is important for global regulations, even more than US in many aspects, as HK is a key global economic hub and the cross between Western world and China positions. As usual, we stand by regulations which will protect the industry and the users from volatility, scammers, without strangling progress, evolution and iterations which will make digital economy a reality.