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July 18, 2024

South Korea Implements Comprehensive Cryptocurrency Regulation

According to PANews, South Korea's first comprehensive cryptocurrency regulatory framework has come into full effect, focusing on investor protection. The new law, known as the Virtual Asset User Protection Act, was officially approved on July 18, 2024, and includes a one-year grace period to finalize regulatory details. This legislation imposes stricter requirements on digital asset exchanges, mandating that South Korean crypto exchanges store at least 80% of user deposits in cold wallets to separate user funds from the exchange's own assets. Additionally, exchanges must entrust user cash deposits to local licensed banks and maintain cryptocurrency reserves equivalent to the quantity and type of customer deposits. Furthermore, South Korean crypto services are now required to purchase adequate insurance or establish reserve funds to address potential hacking incidents or liquidity crises. Besides measures to protect user funds, the law also mandates exchanges to implement real-time monitoring systems to report suspicious transactions that may be illegal. Companies failing to comply with the new regulations may face penalties from the Financial Services Commission (FSC) or have their services suspended.

July 18, 2024

Investors Shift Focus Amid Speculation Of Fed Rate Cuts

According to Bloomberg, a weeklong decline in almost every major group has led to speculation that the central bank may ease its efforts to control inflation. This has prompted a shift in investor focus. While data suggesting the Federal Reserve is close to cutting rates would typically support this trend, Thursday's market surge did not fully align with that expectation.Investors have moved away from 'over-crowded' megacap leaders and are now exploring 'down-cap' opportunities. In late trading hours, Treasury yields also experienced significant changes. Analysts caution that while there is enthusiasm about the broadening of US equity markets, there is also a risk of potential bull traps. The rotation into smaller-cap stocks is still in its early stages and cannot yet be confirmed as a long-term investment trend.Some digestion of this rotation is necessary after the significant market movements of the past week. Although the rotation could persist for weeks, driven by favorable economic data and an over-owned tech sector, some experts advise against aggressive allocations to cyclicals for anything other than tactical capital. Concerns about economic growth remain, with corporate earnings and Federal Reserve commentary suggesting that investors may be too complacent about slowdown risks.As the Federal Reserve begins a rate-cutting cycle, markets often react positively initially and for a short period afterward. However, the Fed typically cuts rates late in the economic cycle, not early when small-cap stocks usually gain attention. In the near term, the rotation into smaller stocks may continue as markets anticipate easier monetary conditions this fall. The key question is whether this will lead to a gradual cooling of inflation and job markets or a more abrupt and painful adjustment.

July 18, 2024

Cash App To Cease Operations In The UK After Six Years

According to Odaily, Block Inc., the cryptocurrency company founded by Jack Dorsey, has announced plans to shut down its Cash App service in the United Kingdom. The platform, which has been operational in the UK for six years, will cease its services on September 15. The company communicated this decision to its customers on Thursday.

July 18, 2024

Ripple Gains Advantage In Legal Battle With SEC

According to CryptoPotato, Ripple has made significant strides in its ongoing legal battle with the US Securities and Exchange Commission (SEC). The conflict, which began in December 2020, centers around allegations that Ripple and some of its executives conducted an unregistered securities offering through certain XRP sales. The case has seen numerous developments over the years and entered its trial phase in April 2024.Ripple has secured three partial court victories in 2023, which many believe have given the company an upper hand. The most notable of these occurred nearly a year ago when Judge Torres ruled that Ripple’s programmatic sales to secondary trading platforms do not constitute offers of investment contracts. Following this, the court dismissed the SEC's intention to appeal the decision, and Ripple’s CEO Brad Garlinghouse and Executive Chairman Chris Larsen were cleared of all charges.Despite these victories, the final resolution of the case remains pending and could be delayed indefinitely due to the complexity of the legal process and potential appeals. However, some experts are optimistic about a near-term resolution. American lawyer Jeremy Hogan predicts the case could conclude before the end of the summer, while Fred Rispoli has suggested a probable settlement date of July 31. Ripple’s CEO Garlinghouse also expressed hope for a resolution “very soon,” though he did not confirm whether settlement talks are currently underway.The anticipation of a resolution has positively impacted the price of XRP. On July 18, the token’s price briefly surpassed $0.63, a level last seen in March, and its market cap rose above $34 billion before settling at $32.5 billion. This surge temporarily made XRP the sixth-largest cryptocurrency by market capitalization.The outcome of the Ripple v SEC lawsuit remains uncertain, but its resolution could have significant implications for the price of XRP and the broader cryptocurrency market.

July 18, 2024

Greece Plans To Introduce Cryptocurrency Tax Framework

According to Odaily, the Greek government is planning to introduce a tax framework for cryptocurrencies and digital assets. Although the government has not yet officially recognized these assets, a special committee is set to submit its findings on cryptocurrencies and digital assets to the Ministry of Economy and Finance. It is expected that by January 2025, cryptocurrencies will be included in the tax system. Profits from cryptocurrency and digital asset transactions will be taxed as capital gains from the sale of securities at a rate of 15%.

July 18, 2024

SEC Cancels Scheduled Closed-Door Meeting

According to BlockBeats, the U.S. Securities and Exchange Commission (SEC) has canceled a closed-door meeting that was originally scheduled for 2 PM Eastern Time on July 18. The information was disclosed on the SEC's official website.Previously, BlockBeats reported that sources indicated the meeting might address the ongoing Ripple lawsuit and potential settlement options. An internal notice suggested that, given Ripple's significance and the SEC's involvement in multiple legal cases, many in the crypto community speculated that this meeting would be a focal point.

July 17, 2024

Federal Reserve To Discuss Inflation Description In July Meeting

According to Odaily, Federal Reserve's Barkin has expressed confidence that the Fed will discuss whether it is still appropriate to describe inflation as high during its July policy meeting. He stated that a 25 basis point rate cut is insignificant regardless; the key issue is when to change the narrative. Barkin emphasized that the best way to maintain credibility is to do the right thing at the right time.

July 17, 2024

Federal Reserve Official Signals Potential Rate Cuts Amid Economic Uncertainty

According to Odaily, Federal Reserve Governor Christopher Waller indicated on Wednesday that the time for interest rate cuts is approaching, although economic uncertainties make the timing unclear. Waller stated, 'I believe the current data is consistent with achieving a soft landing, and I will be looking for data in the coming months to support this view.' He added, 'While I do not think we have reached the final goal, I do believe we are getting closer to the point where it would be reasonable to lower policy rates.'Waller noted that economic growth is currently progressing at a 'more moderate pace,' the job market is more balanced, and inflation has eased. He mentioned that the most 'optimistic' scenario would be a steady decline in inflation pressures, which is 'significant but not high,' and in such a case, 'I can imagine rate cuts in the near future.' However, Waller cautioned that the more likely scenario involves a more uneven decline in inflation, raising doubts about the ability to consistently return to the 2% target. 'In this case, the uncertainty of near-term rate cuts is greater,' he stated. The least likely but still possible scenario is a resurgence in inflation, which he did not link to the monetary policy path.

July 17, 2024

Senator Bob Menendez Found Guilty Of Accepting Bribes

According to Odaily, U.S. Senator Bob Menendez from New Jersey, a member of the Democratic Party, was found guilty by a jury on Tuesday of accepting bribes, including gold bars and luxury cars, in exchange for his political influence. Menendez is known for his strong criticism of cryptocurrencies, having previously claimed that Bitcoin is an ideal choice for criminals. He is also a co-sponsor of the 'Accountability for Cryptocurrency in El Salvador (ACES) Act,' which requires the U.S. State Department to report on the risks to the U.S. financial system posed by El Salvador's adoption of Bitcoin as legal tender.

July 16, 2024

Fed Official Discusses Potential Rate Cuts Amid Employment Market Rebalancing

According to BlockBeats, on July 17, Federal Reserve Governor Kugler stated that the rebalancing of the employment market indicates that inflation will move towards 2%. If the unemployment rate continues to rise, it would be appropriate for the Federal Reserve to cut interest rates earlier. He reiterated the stance that a rate cut later in 2024 would be suitable.Kugler mentioned that the risks faced by inflation and employment are now more balanced. While inflation has continued to decline, it remains above the target. Data released by non-governmental sectors provide another perspective on the overall economy. Additionally, Kugler expressed cautious optimism that U.S. inflation will make progress towards the 2% target. The Federal Reserve does not wish for the labor market to cool excessively.

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