8.18 AI Daily Report Crypto Assets market Fluctuation intensifies, regulatory policies continue to tighten

1. Headlines

1. Bitcoin breaks through the $117,000 mark, mainstream exchanges face a $558 million liquidation wave.

After experiencing a week of intense fluctuations, Bitcoin finally broke through the $117,000 mark on August 18. Data shows that if Bitcoin continues to rise, short positions on major cryptocurrency exchanges will face liquidation pressure of up to $558 million.

The price of Bitcoin briefly fell below $117,000 after reaching a historic high of $124,000 last week. Analysts pointed out that the unexpectedly high inflation data disrupted market expectations for a rate cut by the Federal Reserve in September, putting short-term pressure on Bitcoin. However, the US economic data to be released this week may inject new momentum into the price of Bitcoin.

If Bitcoin can continue to break through the $117,000 mark, it will help attract more institutional funds, further strengthening the cryptocurrency market. However, one must also be cautious of the liquidity shock risk brought about by the liquidation of a large number of short positions. Overall, Bitcoin breaking through the key resistance zone will add new momentum to the continuation of the bull market.

2. Pi Network community administrators hint at a second mainnet migration possibly starting in 2025.

The Pi Network community administrators recently expressed their stance, hinting that a second mainnet migration may take place in 2025, mainly targeting the un migrated mining rewards and the balances of users who have recently completed KYC verification. This news has sparked heated discussions within the community and is seen as a potential solution to long-standing backlog issues.

However, analysts warn that during the current consolidation period of Pi coin at the price range of 0.3-0.4 USD, if tokens are released too quickly, it may trigger significant selling pressure. At the same time, the team is promoting dual verification and hackathon development to pave the way for ecosystem expansion.

Admin releases signal: Secondary migration pushed to the agenda Woody Lightyear, a well-known influencer in the Pi community, revealed on social media platform X that a Pi Network administrator has explicitly confirmed the possibility of a second mainnet migration. This move aims to transfer unissued referral rewards and new KYC balances to the mainnet.

The news sparked a heated discussion in the community. Supporters believe that the second migration will solve the long-standing token issuance issues that have plagued the Pi ecosystem, clearing the way for future development. However, some users are concerned that the rapid release of the new issuance may bring deflationary pressures, suppressing the price of Pi.

( 3. The traditional regulatory system has become a joke on the blockchain, and cryptocurrency anti-money laundering compliance is caught in a dilemma.

Recently, major financial centers around the world have been implementing regulatory policies intensively. Hong Kong's "Stablecoin Regulation" came into effect on August 1, and the EU's "Regulation on Markets in Crypto-Assets" has entered a phase of full implementation. These regulatory trends will impact the future development of the cryptocurrency industry.

Fiat-collateralized stablecoins are regarded as a "safe haven" in the crypto world due to their claim of "1:1 redemption", but their potential risks cannot be ignored. The latest report from the Bank for International Settlements points out that the existing anti-money laundering compliance schemes are difficult to fully control cryptocurrencies, and regulatory authorities are caught in a dilemma.

On one hand, overly strict regulations will stifle blockchain innovation; on the other hand, lax oversight will fuel illegal activities and undermine the stability of the financial system. The report calls for the establishment of a more flexible regulatory framework that, while protecting investors, should not excessively limit the development space for cryptocurrencies.

Overall, traditional regulatory concepts and methods are no longer effective in the decentralized blockchain world, and innovative regulatory ideas are needed to adapt to this emerging field.

) 4. The leverage in the cryptocurrency market has soared, and the founder of WhaleWire warns of a significant risk of collapse.

Despite Bitcoin's slight decline of 1%, the market liquidation scale has exceeded $360 million in the past 24 hours, with over $100 million liquidated in the last 60 minutes. WhaleWire founder Jacob King warned on social media that this phenomenon highlights the excessive market leverage during times close to historical peaks.

He pointed out that when investors flock to exit at the same time, the market may face an unavoidable risk of a major crash. Data shows that the value of open contracts in cryptocurrency derivatives exchanges has significantly increased over the past week, reflecting that speculative funds are pouring into the market.

Analysts say that high-leverage trading amplifies market volatility, and any sudden events will exacerbate investors' panic, leading to liquidity crises and systemic risks. Therefore, the current high leverage levels may be a precursor to a crisis, requiring close attention to subsequent trends.

5. A large number of Ethereum tokens flowing out of exchanges releases a long-term bullish signal.

On-chain data shows that over $888 million worth of Ethereum tokens have been withdrawn from exchanges in the past few days. Analysts believe that this phenomenon may indicate that the long-term bullish potential of Ethereum is brewing.

The price of Ethereum fell more than 7% after breaking through $4,400 last week, leading to a cautious market sentiment. However, the balance of Ethereum on major exchanges is rapidly shrinking, reflecting that investors are transferring tokens to personal wallets for long-term holding.

Strong institutional investment demand is a key factor supporting the rise of Ethereum. Data shows that last week, Ethereum ETF products recorded a record net inflow of $2.85 billion, indicating that despite price fluctuations, institutions remain confident in the long-term prospects of Ethereum.

Overall, the surge in outflows from Ethereum exchanges has released long-term bullish signals, but in the short term, it is still necessary to be wary of the liquidity risks brought by a large amount of uncollateralization.

2. Industry News

1. The short-term drop in Bitcoin triggered a $1 billion liquidation, revealing market vulnerability.

Bitcoin fell from $124,000 to $118,000, triggering over $1 billion in liquidations in the crypto derivatives market, marking the largest scale of long liquidations since early August. Analysts believe this is more like a healthy profit-taking rather than the beginning of a reversal, but it also highlights the market's fragility when leverage accumulates rapidly.

Galaxy analysts have pointed out that pressure points have begun to emerge. In July, Aave experienced a large number of withdrawals, pushing the ETH lending rate above the Ethereum staking yield, breaking the "circular arbitrage" trading logic—using staked ETH as collateral to borrow more ETH. This deleveraging process triggered a run on staking positions, causing the exit queue of the Ethereum Beacon Chain to set a historical record of 13 days.

At the same time, the Perpetual-Spot Price Gap indicates that aggressive buyers are entering the market, creating an ideal environment for whale sell-offs. Analysts warn that although the long-term upward trend remains unchanged, Bitcoin prices may continue to face significant selling pressure in the next 1-2 weeks, with short-term volatility likely to remain high.

2. Ethereum unstaking wave may trigger 3.9 billion USD selling pressure

Analysts believe that the rapid accumulation of unlocked assets may become an important factor in ETH's recent pullback, as the discount on staking derivatives and liquidity risks could lead to a chain reaction of liquidations and spot selling pressure.

Meanwhile, MicroStrategy founder Michael Saylor once again posted Bitcoin Tracker information on the X platform, hinting that he may disclose new BTC accumulation data next week, with the caption "Insufficient orange quantity," as the market expects the company to continue its long-term accumulation strategy.

In terms of U.S. macro policy, the U.S. July PPI significantly exceeded expectations, disrupting the market's interest rate cut trading. However, if Powell releases dovish signals at the Jackson Hole global central bank annual meeting and announces a rate cut in September, the main line of interest rate cut trading in the U.S. stock market may be redefined, and interest rate-sensitive sectors are expected to strengthen again.

3. China's central bank may launch "strong stimulus" measures in September, triggering a bull market in altcoins

Recent market observations suggest that China's central bank stimulus and global investors' attitudes towards a recession could be key factors in determining whether or not the altcoin season kicks off.

Analysts point out that if the People's Bank of China releases liquidity, it could significantly boost global risk assets, especially providing major benefits to liquidity-sensitive altcoins, and may even drive them to break historical highs. Research shows that the price of Bitcoin has a 94% correlation with global liquidity. China accounts for 19.5% of global GDP and has an M0 monetary base of $5.2 trillion, making its policies crucial to the cryptocurrency market.

With the resilience of the US stock market (S&P 500 hitting new highs) and the rebound of US Treasury yields (improving risk appetite), altcoins may be poised for a perfect storm of price increases. However, caution is warranted regarding economic recession, geopolitical tensions, and regulatory uncertainties.

4. Last week's cryptocurrency gainers and losers: a surge of 160% leads the way, with AERO, SPX, and PENGU in the spotlight.

Last week's cryptocurrency market was thrilling—driven by expectations of interest rate cuts, Bitcoin (BTC) temporarily broke through $123,000, but inflation concerns quickly pulled the price back to $117,000, dragging down some altcoins. However, mid-cap cryptocurrencies and some popular tokens managed to attract attention and became the highlights of the market.

Among them, the token surged 160% within a week under the stimulation of favorable news such as the launch of futures contracts, becoming the token with the largest increase. In addition, popular tokens such as Aerodrome (AERO), SPX (SPX6900), and Pengu (PENGU) also recorded weekly gains of over 20%, attracting market attention.

Analysts point out that despite increased volatility in the market, investors still favor projects with practical application scenarios. In the future, if inflation data continues to improve, the crypto market may welcome a new round of upward opportunities.

5. Bitcoin's market share has fallen to 59.4%, while the market value of altcoins has increased by 3.06% over the past week.

Data shows that Bitcoin's market share (BTC.D) fell by 1.78% in the past week, currently reported at 59.4%. During the same period, the total market capitalization of cryptocurrencies increased by 0.31%, while the total market capitalization excluding Bitcoin (TOTAL 2) rose by 3.06%, and the total market capitalization excluding both Bitcoin and Ethereum (TOTAL 3) increased by 1.91%.

This trend reflects that, despite Bitcoin facing short-term pressure and a decline, altcoins are performing well overall, with funds gradually flowing into other crypto assets. Analysts believe that driven by the macro environment, investors are seeking opportunities for higher risk returns, and altcoins, with their high volatility and potential for explosive growth, have become the focal point of attention.

However, some analysts remind us that altcoins often lack practical application scenarios to support them, and investors need to exercise caution in managing risks. In the future, if the macro environment changes, altcoins may face the risk of a rapid decline.

3. Project News

1. Hyperliquid ###HYPE### is approaching the $50 mark, with a cold wallet locking in a 3421% return on investment.

Hyperliquid is a decentralized liquidity network designed to provide efficient and low-cost liquidity for cryptocurrencies. The project was launched in 2022 and offers users a new way to earn returns through an innovative dual-token model and automated market maker mechanism.

Latest Update: The price of Hyperliquid token HYPE has surged recently, now approaching the $50 mark. Data shows that cold wallet investors have achieved an investment return of up to 3421% by locking HYPE. This astonishing yield is primarily due to Hyperliquid's daily $5 million token buyback program and the highest network fees in the industry.

Market Impact: The success of Hyperliquid has injected new vitality into the DeFi space, proving the importance of innovative models in attracting liquidity and sustaining ecosystem development. The rapid growth of the project has also drawn more investors and project parties to focus on the DeFi sector, which is expected to drive the entire industry towards a more decentralized and efficient direction.

Industry feedback: Crypto analyst Lark Davis stated on social media that Hyperliquid is one of the most promising projects in the DeFi space, with its unique dual-token model and high yield attracting more users to join. Another analyst, CryptoRank, believes that Hyperliquid's success demonstrates the importance of innovative models in the DeFi sector, but also warns investors to be mindful of potential risks.

( 2. Ethereum target price $4850, strong institutional demand

Ethereum is the world's second-largest cryptocurrency and the most popular smart contract platform. Since its launch in 2015, the Ethereum ecosystem has been continuously growing, attracting a large number of developers and projects.

Latest Update: The price of Ethereum has been rising continuously recently, with the current trading price close to $4400. Analysts expect that if the strong demand continues, the price of Ethereum is likely to break the $4850 mark. Data shows that institutional investors' demand for Ethereum continues to grow, becoming the main driving force behind the price increase.

Market Impact: As one of the most important public chains in the cryptocurrency sector, the rise in Ethereum's price will inject vitality into the entire industry. With more institutional funds pouring in, the Ethereum ecosystem is expected to further expand, attracting more innovative projects to settle. At the same time, Ethereum's success will also accelerate the development pace of other public chains, intensifying industry competition.

Industry feedback: Crypto analyst Lark Davis stated that the rise in Ethereum's price reflects the market's confidence in its long-term prospects, and the massive entry of institutional investors will further drive up the price. Another analyst, Plan C, believes that the biggest challenge facing Ethereum is the scalability issue. If Ethereum 2.0 can be successfully implemented, the price is expected to break through the $5000 barrier.

) 3. Sui network welcomes local support for USDC, accelerating ecological development.

Sui is a new public blockchain developed by Mysten Labs, using the Move programming language, and focusing on providing high-performance, low-cost blockchain infrastructure. Since its launch in 2022, Sui has attracted significant attention.

Latest news: Grayscale Trust has announced the launch of USDC native support on the Sui network, marking an important milestone in the Sui ecosystem. USDC is one of the largest stablecoins in the world, and its localized support will bring more liquidity and use cases to the Sui network.

Market Impact: The addition of USDC will further enhance the practicality of the Sui network, paving the way for more DeFi applications and stablecoin payment solutions. This move is expected to attract more developers and project teams to join the Sui ecosystem, promoting the rapid development of the entire network. At the same time, the success of Sui will also set a new development benchmark for other public chains.

Industry feedback: Members of the Sui community reacted enthusiastically to this news, believing that the support for USDC marks a new stage in the construction of the Sui ecosystem. Analyst CryptoBird stated that the innovative design and high-performance characteristics of the Sui network will attract more quality projects to settle in, and future development is worth looking forward to.

4. Layer builds a Bitcoin DeFi ecosystem, TVL exceeds 800 million USD

layer is an ecosystem focused on Bitcoin DeFi, aimed at integrating Bitcoin into DeFi application scenarios. The project achieves a seamless connection between Bitcoin and the Ethereum Virtual Machine through innovative technical architecture.

Latest Update: The total value locked in the layer ecosystem has recently surpassed 800 million USD, marking a milestone that establishes the project as a leader in the Bitcoin DeFi space. Layer also announced partnerships with several well-known institutions to further expand its influence.

Market Impact: The success of layer will drive the application of Bitcoin in the DeFi space, bringing more profit channels for Bitcoin holders. At the same time, the cross-chain architecture of layer also provides a reference for other public chains, which is expected to promote connectivity across the entire industry.

Industry feedback: Bitcoin analyst PlanB stated on social media that layer is one of the most promising projects in the Bitcoin DeFi space, and its innovative technology will drive Bitcoin towards new application scenarios. Another analyst, CryptoRank, believes that the success of layer demonstrates the immense potential of Bitcoin in the DeFi field, but also warns investors to be aware of potential risks.

5. Arrum DAO Ethereum Strategic Reserve Fund holds nearly 100 million USD

Arrum is a second layer scaling solution for Ethereum that uses optimized optimistic rollup technology to significantly improve Ethereum's transaction throughput. Since its launch in 2021, the ecosystem of Arrum has been continuously expanding.

Latest update: The Ethereum strategic reserve fund of Arrum DAO has recently grown to approximately 22,500 ETH, worth nearly 100 million USD, accounting for 0.02% of the current total supply of Ethereum. This large reserve fund will be used to support the long-term development of the Arrum ecosystem.

Market Impact: The large scale of Arrum DAO's strategic reserve fund reflects the project's emphasis on Ethereum scaling. As the Arrum ecosystem continues to develop, more and more DeFi applications and NFT projects will be deployed on this network, further promoting the prosperity of the Ethereum ecosystem.

Industry Feedback: The Ethereum community welcomes the initiatives of Arrum DAO, believing that this will provide strong support for the long-term development of Ethereum. Analyst CryptoBird stated that Arrum, as an important force in Ethereum's scalability, reflects the ambition of the project through the scale of its reserve fund, making it worthy of investors' attention.

6. Surge AI Foundation launches AI project incubator, supporting up to $100,000

Surge is a foundation focused on the integration of AI and We, aimed at promoting the application of AI technology in the blockchain field. The foundation is jointly initiated by several well-known institutions and investors.

Latest news: Surge AI Foundation announces the launch of the AI project incubation program, providing up to $100,000 in funding support for high-quality AI+We projects. The program will also offer technical guidance and community resources to selected projects to help them develop rapidly.

Market Impact: The Surge AI Foundation's incubator program will inject new vitality into the AI+We track, attracting more innovative projects and talent to join. As AI technology continues to penetrate the blockchain field, it is expected to spawn a series of revolutionary applications,推动整个行业向前发展.

Industry feedback: Practitioners in the AI+We field welcome Surge's incubator program, believing it will provide valuable support for startup teams. Analyst CryptoRank stated that although AI+We is still in its early stages, its development prospects are broad and worth investors' attention.

( 7. Tyche Holdings completes TYCHE acquisition, laying out decentralized trading.

Tyche Holdings is a company focused on cryptocurrency and blockchain technology, aimed at promoting the development of this emerging field. The company is registered in Delaware, USA.

Latest news: Tyche Holdings announced that it has completed the acquisition of the decentralized trading platform TYCHE, incorporating it into its business portfolio. This move marks Tyche Holdings' official entry into the field, and in the future, it will focus on the decentralized trading sector.

Market Impact: The acquisition behavior of Tyche Holdings reflects the preference of traditional companies for the sector, believing that decentralized trading is the future development trend. With more capital and talent pouring in, the ecosystem is expected to achieve significant growth, providing users with more choices.

Industry feedback: The community welcomes Tyche Holdings' acquisition initiative, believing it will bring new vitality to the entire sector. Analyst CryptoBird stated that as an important form of cryptocurrency trading, its development prospects are worth looking forward to, and investors should continue to pay attention.

) 8. Lagrange Cross-Chain Computing Network Reshapes We Communication Model

Lagrange is a network focused on cross-chain computation, aimed at addressing the pain points of smart contract communication in the current blockchain world. The project is initiated by well-known institutions and scholars.

Latest Update: The Lagrange network has recently released its latest technical roadmap, planning to achieve interoperability between different blockchains through an innovative cross-chain computing protocol.

4. Economic Trends

1. Expectations for the Federal Reserve to cut interest rates in September rise, while inflationary pressures persist.

Economic Background: The US economy performed strongly in the first half of 2025, with an annualized GDP growth rate of 3.2% in the second quarter, far exceeding expectations. However, inflationary pressures remain high, with the core PCE price index rising 4.7% year-on-year in July, well above the Federal Reserve's target level of 2%. The unemployment rate hovers at a low of 3.5%, and the job market remains robust.

Important event: The Federal Reserve raised interest rates by 25 basis points as expected at the end of July, adjusting the target range for the federal funds rate to 5.25%-5.5%. The post-meeting statement hinted at a pause in the rate hike cycle in September. Recent economic data has been mixed, leading to divergent expectations in the market regarding a rate cut in September.

Market reaction: The inversion of the U.S. Treasury yield curve has intensified, reflecting investors' concerns about an economic recession. The S&P 500 briefly broke above the historical high of 4500 points in mid-August before retreating. The U.S. dollar index experienced significant fluctuations in late August, reflecting market uncertainty regarding the Federal Reserve's policy path.

Expert Opinion: Jan Hatzius, the chief economist of Goldman Sachs, stated that despite ongoing inflationary pressures, the likelihood of the Federal Reserve reducing interest rates by 25 basis points in September has exceeded 50%. He expects the U.S. economy to enter a mild recession by early 2026. Rick Rieder, chief investment officer of BlackRock, believes that the Federal Reserve should pause interest rate hikes at the September meeting to assess the lagging effects of previous policies.

2. The pace of China's economic recovery is slowing, and the intensity of policy stimulus may increase.

Economic Background: In the first half of 2025, China's GDP grew by 5.5% year-on-year, with the pace of economic recovery slowing down. In July, the official manufacturing PMI fell to 49.3, indicating a decline in manufacturing prosperity. In July, the total retail sales of consumer goods increased by 7.9% year-on-year, which was below expectations. Inflationary pressures have eased somewhat, with the CPI rising by 1.8% year-on-year in July.

Important event: The People's Bank of China lowered the 7-day reverse repurchase rate by 10 basis points to 2.1% at the end of July, releasing approximately 500 billion yuan in liquidity. Several central bank officials have recently spoken, suggesting that further policy stimulus will be increased.

Market Reaction: The Chinese A-share market experienced a brief rebound in mid-August, followed by a downward fluctuation. The RMB/USD exchange rate depreciated slightly in late August. The bond market yield curve flattened, reflecting the market's pessimistic outlook on economic growth prospects.

Expert Opinion: Chen Yunliang, Chief Economist of CICC, stated that the growth momentum of China's economy may further slow down in the second half of the year, with an expected annual GDP growth rate of around 5%. He anticipates that the central bank will initiate a new round of targeted reserve requirement ratio cuts and interest rate reductions in September. Zhang Xiaodong, a macro analyst at Guotai Junan Securities, believes that future fiscal policies will be more proactive, with an increase in infrastructure investment.

5. Regulation & Policy

1. The Indian tax authority initiates dialogue on cryptocurrency taxation policies.

The Indian Central Board of Direct Taxes ### CBDT ### recently engaged in discussions with local cryptocurrency industry participants, requesting them to provide feedback on issues such as the regulation of virtual digital assets ### VDA ###, outflow of trading volume, tax framework, loss deductions, the impact of a 30% tax rate, difficulties in TDS enforcement, and tax equity between domestic and foreign exchanges. This is the first formal dialogue in India regarding cryptocurrency tax policy.

As a global pioneer in cryptocurrency regulation, India began imposing a 30% capital gains tax and a 1% TDS on crypto assets in April 2022. However, during the implementation process, the industry has reported numerous challenges, including vague tax policies, lack of enforcement details, and a regulatory vacuum for cross-border transactions. To improve the regulatory framework, the CBDT has actively engaged in dialogue with the industry, aiming to gather feedback and clarify policy details.

Kashif Raza, the founder of an Indian cryptocurrency exchange, stated that this move signifies that regulators are paying attention to industry demands, which is expected to promote the optimization of tax policies. However, he also pointed out that the high tax rate of 30% may exacerbate capital outflow and suggested lowering the tax rate to attract investors. Additionally, industry insiders have called for regulators to not only focus on tax issues but also to pay attention to the innovative attributes of cryptocurrencies, creating a favorable environment for industry development.

Overall, the proactive communication from the Indian tax authorities reflects that the regulators are carefully assessing the existing policies and seeking to reach a consensus with the industry. As the dialogue deepens, it is expected that India's cryptocurrency tax policies will be further refined, injecting new certainty into the industry's development.

( 2. Renmin University of China offers a cryptocurrency law course.

Renmin University of China Law School plans to hold an advanced training course on the legal practices of virtual currency disposition, stablecoins, and RWAs from August 29 to 31, 2025, systematically analyzing the legal attributes, regulatory frameworks, disposal procedures, compliance processes, and investment opportunities of the aforementioned digital assets, assisting practitioners in addressing new legal challenges.

The course includes: the legal attributes and regulatory policy dynamics of cryptocurrencies, disposal models and practical experiences related to cryptocurrencies involved in cases, legal compliance and regulatory dynamics of stablecoins and RWAs, among other topics.

In recent years, the regulatory policies for cryptocurrency in China have continued to tighten, but its legal status still exists in a gray area. The purpose of this course is to provide practitioners with professional guidance, clarify the legal boundaries of digital assets, and regulate related business activities.

Chen Wei, Secretary General of the Internet Finance Association of China, believes that the legal attributes of cryptocurrency have not yet been unified, which poses difficulties for regulatory enforcement. He suggests that its property attributes should be clarified, and differentiated regulatory measures should be formulated based on different types. At the same time, for the disposal of the involved cryptocurrencies, standardized procedures need to be established to avoid asset loss.

Industry insiders point out that with the rise of new digital assets such as stablecoins and RWA, compliance issues are becoming increasingly prominent. Offering relevant courses can help improve the compliance awareness of practitioners and prepare professional resources for regulatory agencies to formulate policies.

Overall, the establishment of this course by Renmin University of China reflects that regulatory authorities are strengthening the rule of law in the field of digital assets, creating a favorable environment for industry development.

) 3. The Hong Kong Securities and Futures Commission warns about the risks associated with stablecoins.

The Hong Kong Securities and Futures Commission ( SFC ) and the Hong Kong Monetary Authority recently issued a joint statement expressing concern over the volatility of the stablecoin-related market.

The statement pointed out that with the implementation of the stablecoin regulations, the market has reacted enthusiastically, but at the same time, the risks of fraud and transaction security vulnerabilities have also increased. Although the specific number of complaints after the regulations came into effect has not been disclosed, data shows that there have been 265 complaints related to virtual asset-related crimes, including fraud, recorded in the first half of the year, and the trend may lead to an annual number exceeding previous years.

Yeh Zhiheng, Executive Director of the Intermediary Agency Department of the China Securities Regulatory Commission, urged investors to remain rational and cautious, and to pay attention to the price volatility risks of related concept stocks. He revealed that in the first half of this year, 265 complaints regarding virtual asset transactions were received, mainly involving overseas fraud, platform infringements, or frozen funds, and warned of the risks of trading on unlicensed platforms.

Chen Jiaqiang, the president of the Hong Kong Financial Society, believes that stablecoins carry certain risks, and investors need to have a thorough understanding of their price anchoring mechanisms. He suggests that regulatory agencies strengthen their scrutiny of stablecoin issuers to ensure they have sufficient reserve assets and improve disclosure transparency.

Overall, the joint statement from Hong Kong regulatory authorities aims to remind the public to remain vigilant about the risks associated with stablecoins, while also reflecting that regulators are closely monitoring developments in this area, with the expectation of further improving relevant policies.

4. The Financial Services Commission of South Korea plans to submit a stablecoin regulatory bill.

The South Korean Financial Services Commission plans to submit a stablecoin regulation bill to the legislature in October, covering issuance, collateral management, and risk control requirements.

Park Min-kyu, a member of the ruling party in South Korea, stated on Monday during a discussion related to stablecoins that he has received a report from the Financial Services Commission, which includes this plan. The bill aims to establish a regulatory framework for the issuance and operation of stablecoins to protect investors' rights.

With the popularity of cryptocurrencies in South Korea, the use of stablecoins is also becoming increasingly widespread. However, due to the lack of specialized regulatory measures, the issuance and operation of stablecoins pose potential risks. The introduction of this bill will fill the regulatory vacuum and inject vitality into the stablecoin market.

The main content of the bill includes: stablecoin issuers must obtain approval and meet certain capital requirements; stablecoins must be pegged to fiat currencies or other assets to ensure price stability; issuers must comply with anti-money laundering and counter-terrorism financing regulations, etc.

Park Siyun, a researcher at the Korea Financial Supervisory Research Institute, stated that the introduction of a stablecoin regulatory bill will help maintain financial stability while also leaving room for innovation. He suggested that the bill should clarify the legal status of stablecoins and adopt differentiated regulation for different types of stablecoins.

Overall, South Korea is establishing a comprehensive regulatory framework for the stablecoin market, aimed at regulating market order, protecting investors' rights, while also leaving room for innovation to promote healthy industry development.

5. Thailand launches "Tourist Wallet" program, cryptocurrency features are in the testing phase.

Thailand has launched a QR code payment "Tourist Wallet" for exchanging foreign currencies into Thai Baht, but the cryptocurrency exchange function will only be enabled after regulatory agencies complete their review in mid-August.

The Bank of Thailand stated that the "tourist wallet" aims to address practical issues, and cross-border QR code payments are currently only interconnected with 8 partner countries such as Singapore and Malaysia. Soon, it will be interconnected with China's payment system through UnionPay.

The plan will run for 18 months initially and will be overseen by the Ministry of Finance, the Securities and Exchange Commission, the Anti-Money Laundering Office, and the Ministry of Tourism and Sports. Tourists can exchange cryptocurrency for local currency through regulated platforms and use it with merchants nationwide. Although the project aims to support the growth of the tourism industry, it does not directly promote cryptocurrency as a means of payment. Participants must comply with strict anti-money laundering and customer verification rules.

In addition, Thailand has previously approved the exemption of capital gains tax on cryptocurrency transactions, with the policy effective until December 31, 2029.

The Minister of Tourism and Sports of Thailand, Phiphat Ratchakitprakarn, stated that the plan will provide tourists with more payment options, enhancing the convenience of travel. He believes that cryptocurrency will play an increasingly important role in the future, and Thailand needs to actively embrace new technologies.

The general manager of Up Thailand, a cryptocurrency exchange in Thailand, Korn Supakalin, stated that clear regulations are the key to the success of the plan. He urged regulatory agencies to expedite the process and enable cryptocurrency functions as soon as possible.

Overall, Thailand's "Tourist Wallet" initiative reflects the country's careful evaluation of the prospects for cryptocurrency applications and creates conditions for its use in specific areas such as tourism. With the gradual implementation of regulations, it is expected that the application of cryptocurrency in Thailand will become more widespread.