Fuzenomics Weekly #9

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Birds Eye View (vs Last 7 Days)

?? Overall Crypto Market Cap: $2.46 Trillion (-6.4%)

?? BTC Dominance: 53.27% (+0.10 PPT)

?? Price Snapshot:

?? Bitcoin: $67747 (-4.55%)

?? Ethereum: $3536 (-7%)

?? BNB: $610 (-12.64%)

?? Solana: $152 (-12%)

Bitcoin just had it's 2nd highest weekly close ever! Here are 5 things you need to know

Bitcoin starts a new week grappling with long-standing resistance after June's unexpected volatility. ?

Bitcoin's price action shows a struggle between bulls and bears around the old 2021 all-time highs at $69,000 — the outcome remains uncertain.

June has seen an increasingly unpredictable market, with U.S. macroeconomic data capable of instantly changing crypto trajectories. Along with liquidity moves by whales, this has kept Bitcoin from breaking the final resistance to price discovery above $74,000.

While this has frustrated many traders, the coming days promise more of the same catalysts.

Significant U.S. inflation data will be released throughout the week, and the Federal Reserve will hold its latest meeting to discuss interest rate changes.

A positive sign is Bitcoin gradually establishing various support/resistance flips on higher timeframes, which has not gone unnoticed. ??

Fuzenomics takes a closer look at some of the key topics surrounding BTC this week:

Bitcoin price: Range-bound but looks ready for a shake-up

Bitcoin experienced a contrastingly quiet weekend after sudden macro-induced volatility hit around last week’s final Wall Street trading session.

The $69,000 mark, Bitcoin’s old all-time high from 2021, remains a key market focus, continuing into the new Asia session, according to data from Cointelegraph Markets Pro and TradingView.

Without a clear breakout in either direction, liquidity has started to concentrate around the spot price, as monitored by CoinGlass. This thickening of liquidity could potentially lead to a hunt for liquidity and, consequently, more volatility. ?

Professional trader Daan Crypto Trades observed that the CME Group Bitcoin futures market closing price was guiding the price into the new week, with price action "as usual" revolving around it. ??

CPI meets Fed meeting in key macro week for crypto

The macro landscape this week is dominated by two key events: the Federal Reserve interest rate decision and its accompanying press conference, along with the release of the May Consumer Price Index (CPI). 2??

In a double whammy for risk-asset volatility, the CPI data is set to be released on the same day that the Federal Open Market Committee (FOMC) convenes. ??

Commenting on how Bitcoin could react to the incoming data, popular trader CrypNuevo flagged two likely scenarios:

Market expectations for Fed policy changes remain largely unchanged. According to data from CME Group’s FedWatch Tool, traders believe that the Federal Open Market Committee (FOMC) will not cut interest rates this month. It is anticipated that it may take several more meetings before the Fed begins cutting rates, following the lead of other central banks. ??

BTC weekly close nears record high

The weekly close for BTC/USD was significant within the broader consolidation structure in place since March’s $73,800 all-time highs.

Popular trader and analyst Matthew Hyland noted that the latest close, at $69,630, was Bitcoin’s second-highest ever recorded.

This came despite a last-minute dip into the weekend, which buyers subsequently managed to reverse. Data from CoinGlass shows that Bitcoin ultimately gained 2.7% last week, with the monthly open still intact as support.

Bitcoin resistance flip is “historical technical feat”

For popular trader and analyst Rekt Capital, there is reason for optimism on BTC price action despite the current rangebound setup. Analyzing monthly timeframes, he highlighted a clear resistance/support flip underway, marking a key victory for the ongoing bull market. ??

An accompanying chart showed the resistance zone in question to be between $58,600 and $61,300, which defeated bulls in 2021. Now, monthly timeframes indicate that the tide has turned in their favor.

“Bitcoin continues to consolidate in the Post-Halving Re-Accumulation Range,” he continued, alongside a chart comparing past and present Bitcoin bull markets.

Whales seek “medium-term profits”

“Re-accumulation” not only describes BTC price action this month, but also the habits of Bitcoin whales. ??

In a research for on-chain analytics platform CryptoQuant on June 5, analyst Cauê Oliveira argued that large-volume BTC investors are currently accumulating coins for “medium-term profits.”

“Unlike convinced Bitcoin investors, who seek to create long-term reserves, whales generally seek medium-term profits,” he wrote.

“We can easily identify this behavior through the monthly variation of Bitcoin reserves of entities with more than 1,000 BTC.”

Although the transaction value reached its peak for the year, the quantity of transactions maintained a steady level. Bitcoin transaction monitor YCharts reported a cumulative total of 596,790 Bitcoin transactions on May 28th.

An accompanying chart illustrated the percentage monthly change in whale holdings on a rolling 30-day basis. It revealed a modest uptick following a sharp distribution phase that occurred after Bitcoin surged to all-time highs in mid-March.

How do you guys see BTC's price moving in the next couple of weeks? Let us know in the comments below! ??

UAE ???? to allow issuance of Dirham-backed Stablecoins

The board of directors of the Central Bank of the United Arab Emirates (CBUAE) has approved a new framework for the oversight and licensing of stablecoins.

This decision was made during a board meeting in Abu Dhabi, which also covered various projects under the government’s financial infrastructure transformation (FIT) program.

At the meeting, the board sanctioned the issuance of regulations for the supervision and licensing of stablecoins. Kokila Alagh, founder of KARM Legal Consultants, informed local media Unlock Blockchain that these new regulations provide clear guidelines on the issuance, licensing, and oversight of dirham-backed payment tokens.

Alagh noted that these tokens must be backed exclusively by UAE dirhams and are not permitted to be linked to other currencies, digital assets, or algorithms. Only merchants and service providers can accept dirham-backed tokens.

While the meeting's specific details were not disclosed, key projects under the FIT program were discussed. Notably, on February 13, the CBUAE announced plans to issue a central bank digital currency (CBDC) as part of the FIT initiative.

The Dubai Financial Services Authority (DFSA) announced amendments to its cryptocurrency token regime this week to advance the regulatory framework for tokens within the UAE's special economic zone.

The DFSA revised its crypto token regime to include changes proposed in Consultation Paper 153, published in January 2024. These amendments address key areas such as the regulation of funds investing in crypto tokens and the recognition process for these tokens.

The amendments affect the ability of external and foreign funds to offer units in recognized crypto tokens. Previously, the DFSA restricted fund activities involving crypto tokens, but feedback from fund and asset managers indicated that the existing regulations were too stringent.

The changes now allow domestic qualified investor funds to invest in unrecognized tokens, provided the exposure does not exceed 10% of the fund’s gross asset value (GAV). Until now, the DFSA had recognized only five crypto tokens: Bitcoin (BTC), Ether (ETH), Litecoin (LTC), XRP (XRP), and Toncoin (TON).

Previously, the application fee for token recognition was $10,000 per token, which many firms found excessively high, especially for those seeking recognition for multiple tokens. In response to this feedback, the DFSA reduced the fee to $5,000 and introduced additional recognition criteria for stablecoins, which are crypto tokens pegged to fiat currencies.

The DFSA emphasized that these changes do not represent a more lenient regulatory stance but rather provide flexibility to recognize fiat-pegged crypto tokens issued in jurisdictions with comparable regulation.

Stablecoins have become an integral part of the digital ecosystem in the previous years. Which currencies around the world are you looking forward to see become stable-coins? Let us know in the comments below! ??

Ethereum's new upgrade Prague-Electra is going live soon!

1. What is the Ethereum Prague-Electra (Pectra) upgrade?

The Ethereum Pectra upgrade encompasses two distinct improvements: the Prague upgrade, focusing on modifications to the network's execution layer, and the Electra upgrade, which affects the consensus layer. When combined, these upgrades are collectively known as Pectra.

Preceding Pectra, the Ethereum network underwent the Dencun upgrade in March 2024, a consolidation of the Deneb and Cancun upgrades. Dencun, constituting a hard fork, aimed to reduce transaction fees for layer-2 solutions and enhance Ethereum's scalability.

Scheduled for deployment in the first quarter of 2025, Pectra represents a significant milestone in Ethereum's development trajectory. This timeline allows for the integration of additional features aimed at enhancing the overall user experience on the Ethereum network.

The Pectra upgrade may incorporate Ethereum Improvement Proposal (EIP) 3074, a set of code modifications aimed at enhancing Ethereum wallets. This proposal enables users to batch their transactions and sign them off in a single step, essentially allowing normal crypto wallets to function similarly to smart contracts. Approved for inclusion in the Pectra upgrade in April 2024, EIP-3074 offers improvements in transaction efficiency and user experience.

Another significant change included in the Pectra upgrade is EIP-7251, which raises the staking limit for validators from the current 32 Ether (ETH) to 2,048 ETH. By expanding the allowable staking balance range, validators now have the flexibility to hold between 32 and 2,048 ETH, reducing the influx of new validators joining the Ethereum network. This adjustment aims to optimize resource allocation for staking and validation processes.

Furthermore, the Pectra upgrade may introduce Peer Data Availability Sampling (PeerDAS) to enhance the scalability of rollups and the EVM Object Format (EOF) to bolster smart contract security and developer experience on both layer 1 and layer 2 of the Ethereum network.

However, Ethereum developers are deliberating potential replacements and enhancements for certain proposals. There are discussions regarding the potential substitution of EIP-3074 with EIP-7702, a new transaction type proposed by developers, including Ethereum co-founder Vitalik Buterin, to enhance account abstraction compatibility. Additionally, consideration is being given to implementing a patch for EIP-2935, which addresses the handling of historical block hashes.

Developers are also contemplating the inclusion of additional EIPs in the Pectra upgrade, such as enabling validator withdrawals from smart contracts and eliminating the deposit window, to further enhance the functionality and efficiency of the Ethereum network.

2. Pectra's features and benefits

• EIP-7251: Increasing the staking limit

Currently, as of June 2024, Ethereum validators face a maximum effective balance limit of 32 ETH. This means that in order to stake more than 32 ETH, staking providers must create multiple validators, with each validator staking 32 ETH. However, this approach may lead to a proliferation of validators, each requiring synchronization with the network. As a result, this increased number of validators could strain the network's communication layer.

With the introduction of the Pectra upgrade, the maximum effective balance for Ethereum validators will be raised to 2,048 ETH. This change will enable staking providers to consolidate their stake into fewer validators. By reducing the number of validators needed to stake a larger amount, the upgrade aims to alleviate the burden on the network's communication layer. Ultimately, this adjustment has the potential to enhance the efficiency and performance of the Ethereum network by minimizing the volume of messages circulated among validators.

• PeerDAS/rollup improvements

Peer Data Availability Sampling (PeerDAS) extends the functionality introduced by Ethereum Improvement Proposal (EIP) 4844, which introduced the concept of "blobs." These blobs serve as a novel method for optimizing transaction data storage within Ethereum layer-2 networks. By implementing blobs, the block space can be increased, and transaction fees can be reduced. This innovation was incorporated into the Ethereum network as part of the Dencun upgrade in March 2024.

Transactions carrying blobs resemble standard Ethereum transactions but come with additional data designed for off-chain storage. By offloading certain data from the main Ethereum chain to off-chain storage solutions, such as layer-2 networks, the burden on the primary Ethereum blockchain is lessened. This approach contributes to improving scalability and efficiency within the Ethereum ecosystem while also mitigating congestion and reducing transaction costs for users.

• EVM Improvements

Improvements to EVM, such as EOF, are planned to innovate and improve UX, developer experience (DevEx), and performance on layer 1 and layer 2.?

3. What are Ethereum Improvement Proposals? (EIPs)

Ethereum Improvement Proposals (EIPs) play a vital role in the ongoing evolution and enhancement of the Ethereum blockchain network. These proposals serve as the primary mechanism through which network upgrades are proposed, discussed, and ultimately implemented.

At its core, an EIP is a formalized proposal or standard that outlines potential new features, improvements, or processes for the Ethereum ecosystem. These proposals contain detailed technical specifications that provide a clear roadmap for implementing changes to the network. As described by Ethereum.org, EIPs serve as a "source of truth" for the Ethereum community, providing a structured framework for discussing and evaluating proposed upgrades.

The process of creating and advancing an EIP typically begins with a member of the Ethereum community, often a developer, who identifies an area for improvement or innovation within the network. The author of the EIP is then responsible for presenting their proposal to the broader Ethereum development community, engaging in discussions, and documenting any feedback or dissenting opinions.

EIPs enable a collaborative and transparent approach to decision-making within the Ethereum ecosystem. Through open debate and consensus-building, proposals are refined and ultimately adopted if they are deemed beneficial to the network as a whole. Once finalized, EIPs are incorporated into Ethereum network upgrades, such as the recent Dencun and upcoming Pectra upgrades, which consist of a collection of approved EIPs that must be implemented by all Ethereum clients to ensure network compatibility and continuity.

4. The Roadmap

Ethereum's Dencun upgrade, which took place in March 2024, marked a significant milestone in the network's ongoing evolution. Following the transition to a proof-of-stake (PoS) consensus mechanism in September 2022, Ethereum embarked on a multi-phase roadmap aimed at enhancing its capabilities and scalability.

The next major upgrade on Ethereum's post-merge roadmap as discussed is the Pectra upgrade, scheduled to go live in 2025. This upgrade is part of a five-step process outlined by Ethereum co-founder Vitalik Buterin, which includes Merge, Surge, Verge, Purge, and Splurge. Each stage represents a crucial step in improving the functionality and efficiency of the Ethereum blockchain.

Despite initial plans to release Pectra before Devcon in November 2024, Ethereum developers opted to prioritize thorough monitoring and testing of the upgrade, drawing from their experiences with previous upgrades. This decision reflects a commitment to ensuring the smooth implementation and compatibility of Pectra with the broader Ethereum ecosystem.

Looking ahead, the subsequent upgrade after Pectra is expected to introduce "Verkle trees," a groundbreaking data system designed to enhance Ethereum's storage capabilities. However, the development of Verkle trees is anticipated to be a complex and time-consuming process, with estimates suggesting it could take over a year to complete. As a result, this upgrade is likely to be a more substantial undertaking, further advancing Ethereum's position as a leading smart contract blockchain.

Vitalik Buterin highlighted the transformative capabilities of Verkle trees in a post on X, noting that they would enable staking nodes to operate with minimal hard disk space and achieve near-instant synchronization. This enhancement aims to significantly improve user experience and facilitate the adoption of user-facing light clients, contributing to Ethereum's overall scalability and accessibility.

Currently in development as part of the "Verge" stage of Ethereum's roadmap, Verkle trees are expected to play a pivotal role in future network upgrades. It is anticipated that these innovative data structures will be incorporated into the "Osaka" upgrade, which is likely to follow the Pectra milestone scheduled for 2025. By leveraging Verkle trees, Ethereum aims to further enhance its efficiency, security, and usability, paving the way for broader adoption and innovation within the ecosystem.

What are your thoughts on Ethereum's development cycle regarding both the timelines and the implementations? Let us know in the comments below! ??

Robinhood to acquire Bitstamp in $200 Million Deal

Robinhood, the commission-free stock trading platform, has announced its agreement to acquire Bitstamp, a global cryptocurrency exchange, for approximately $200 million in cash. Pending regulatory approvals, this acquisition is expected to be finalized in the first half of 2025. The move signifies Robinhood's strategic entry into the institutional side of the cryptocurrency market, expanding its scope beyond retail investors. ??

Bitstamp, with offices in several countries including Luxembourg, the UK, Slovenia, Singapore, and the US, boasts over 50 active licenses and registrations worldwide. Known for its reliable trade execution and deep order books, Bitstamp has become a preferred platform for institutional clients. Its industry-leading API connectivity enhances trading efficiency, while its offerings include over 85 tradable assets, staking, and lending services, all of which will complement Robinhood's existing crypto portfolio. ??

This acquisition aligns with Robinhood's broader strategic objectives of expanding its global footprint and strengthening its institutional business arm. By integrating Bitstamp's operations, Robinhood gains access to a vast customer base across the EU, UK, US, and Asia. This move comes amidst a bullish trend in the cryptocurrency market, with Bitcoin prices surging over 60% since the beginning of the year. Robinhood's crypto revenue has also experienced substantial growth, tripling in the first quarter of 2024. ??

However, the fintech industry as a whole is facing regulatory challenges, and Robinhood is no exception. The company recently received a Wells notice from the US Securities and Exchange Commission (SEC) regarding its token offerings, suggesting potential enforcement actions. This notice underscores the ongoing debate regarding the regulatory classification of crypto tokens, with the SEC arguing for them to be treated as securities, a stance contested by the crypto industry. ?

The acquisition of Bitstamp is poised to revolutionize Robinhood's cryptocurrency operations. By leveraging Bitstamp's crypto reservoir, Robinhood could potentially encourage its clientele to explore Bitstamp's platform, which offers a broader selection of digital assets compared to Robinhood's current offerings. This integration not only grants Robinhood access to established infrastructure but also provides access to industry-leading products tailored for institutional investors. ??

The question remains whether Bitstamp will retain its independent branding or become integrated into Robinhood's ecosystem. ??

Johann Kerbrat, General Manager of Robinhood Crypto, underscored the strategic significance of the acquisition, stating, "The acquisition of Bitstamp marks a pivotal moment in the expansion of our crypto business. Bitstamp's renowned global exchange has demonstrated resilience across market cycles, earning the trust of retail and institutional crypto investors alike. By seamlessly merging user experience with security across diverse geographical regions, the Bitstamp team has cultivated one of the most reputable brands in the industry." Kerbrat further emphasized the user-centric advantages, stating, "Through this strategic amalgamation, we are better positioned to extend our reach beyond the US borders and welcome institutional clients to Robinhood."

JB Graftieaux, CEO of Bitstamp, echoed similar sentiments, stating, "As the longest-standing cryptocurrency exchange globally, Bitstamp has earned a reputation as one of the most trusted and transparent platforms in the crypto sphere. Integrating Bitstamp's platform and expertise into Robinhood's ecosystem will enhance users' trading experience while upholding a steadfast commitment to compliance, security, and customer-centric principles."

Barclays Capital advised Robinhood, while Galaxy Digital Partners represented Bitstamp in this deal. As the acquisition progresses, both entities will need to navigate regulatory complexities and ensure a seamless integration to uphold trust and reliability among their customer base.

What are your thoughts on this massive acquisition by one of the largest players in the consumer finance space? Let us know in the comments below! ??

Arbitrum DAO Approves Massive 225M ARB ($215 Million) Gaming Fund

Arbitrum DAO has approved a proposal to allocate 225M ARB (~$215M) over the next three years to supporting gaming projects. ??

The proposal, championed by Dan Peng, co-founder of Vela Exchange, has gained significant traction within the community. It entails the allocation of 225 million ARB tokens, valued at approximately $215 million based on current market prices, over a three-year period. This allocation is earmarked for the establishment of the Gaming Catalyst Program (GCP), a new initiative aimed at rapidly expanding awareness and adoption of Arbitrum, Orbit, and Stylus among gaming enthusiasts and developers. The proposal emphasizes the importance of fostering a strong presence within the gaming community to drive broader adoption of these platforms. ??

Initially introduced in March, the proposal officially secured approval on Friday, garnering support from over 75% of the voting participants. Key supporters of the proposal include prominent organizations such as L2Beat, Wintermute, and the gaming-focused Treasure DAO. However, there were dissenting voices, with Blockworks Research and Camelot DAO among those who voted against the initiative. ??

In response to the proposal's successful passage, Treasure DAO expressed enthusiasm, affirming Arbitrum's pivotal role in the gaming ecosystem. They emphasized the potential for collaboration and innovation within the gaming space, highlighting the opportunity to create impactful experiences and drive further growth within the community. ??

Much of the fund is earmarked for publishers, with new and early-stage developers getting the chance to apply for grants worth a maximum of 500,000 ARB (about $483,000 at current prices) while more established developers must apply for investments with a value share component through tokens, equity, or similar means. The rest of the funds will be allocated to infrastructure-related bounties and operational expenses. ??

Day-to-day operations will be run by a dedicated GCP team, though the program will be overseen by a council of "5 individuals with deep gaming, venture experience, analytics/reporting, and/or DAO governance skills," elected by the DAO with the capacity to veto investment decisions and team member appointments. The GCP team's budget cap has been set at $25 million for operational expenses, with any excess expenditures requiring approval from the DAO. ?

To conclude, the intersection of gaming and Web3 has long been seen as a fertile ground for innovation and disruption. Despite this promise, the actual adoption of crypto-based games has been relatively slow, with few achieving significant traction. Nonetheless, considerable investment continues to pour into the sector in hopes of realizing the potential of integrating blockchain technology with gaming. ??

Even as returns from the gaming sector within the crypto space have not yet matched those of other areas like artificial intelligence, real-world assets, and Bitcoin Layer 2 solutions, the pursuit of the perfect game remains a driving force. This ongoing quest is further fueled by developments such as Arbitrum's support for Xai Network, a gaming-focused Layer 3 solution on Arbitrum, and initiatives like TreasureDAO, which aims to build a robust gaming ecosystem on the network. ??

Which crypto gaming projects are you most excited about? Let us know in the comments below! ??

Ripple partners with National Bank of Georgia ???? to digitize economy

Ripple, one of the largest players in the cryptocurrency space, is forging stronger bonds with the Republic of Georgia, aiming to explore avenues for digitizing the local economy in collaboration with the National Bank of Georgia (NBG).????

In a significant development, Natia Turnava, the acting Governor of the NBG, and Varlam Ebanoidze, the Head of the bank's Financial and Supervisory Technology Development Department, convened with Ripple Executive James Wallis to discuss opportunities for enhancing cooperation ?? in financial technology and digitalization.

The official announcement of the meeting was made by the Georgian central bank through a LinkedIn post on June 8.

During the meeting, Wallis, who holds the position of Vice President of Central Bank engagements at Ripple, introduced the Georgian officials to Alistair Brown, a representative from Ripple's partner EPAM Systems. ??

The official statement from the NBG highlights the central focus of the discussion, which revolved around identifying potential avenues for collaboration aimed at digitizing the Georgian economy.

This latest collaboration represents a continuation of the existing partnership between the NBG and Ripple. Ripple's role as the technological partner for the NBG's pilot Central Bank Digital Currency (CBDC) initiative, known as the Digital Lari, underscores its commitment to supporting innovative financial solutions.

The groundwork for this collaboration was laid when the NBG announced its intention to advance research on CBDCs in September 2023. In an effort to propel the Digital Lari project forward, the NBG invited nine companies, including Ripple Labs, to participate in the initiative. Following a thorough evaluation process, Ripple Labs was selected by the financial regulator as the official technology partner entrusted with the development of the Digital Lari.

Georgia’s central bank isn’t the only global central bank cooperating with Ripple on CBDC development and related integrations. In addition to Georgia, Ripple Labs has also been involved in CBDC pilots in nations such as?Colombia ????, Bhutan ????, Palau ????, Montenegro ???? and others.

In late 2023, Ripple?doubled down on its public support for the global CBDC development in a 23-page white paper. “CBDCs are needed to support the most significant positive impacts of asset tokenization, an increasingly targeted mechanism for transforming tangible assets into digital tokens stored on the blockchain,” the firm wrote.

What other countries do you see experimenting with CBDCs in the near future? Let us know in the comments below! ??

South Korea ???? labels mass-produced NFTs as virtual assets

South Korea’s Financial Services Commission (FSC) has issued new guidelines that clarify the criterion for a nonfungible token (NFT) to be considered a virtual asset.

The FSC might classify an NFT as cryptocurrency in a regulatory context if it is mass-produced, fairly exchangeable, capable of being fractionalized, or being used for payments for goods and services, according to the guidelines. ??

NFTs with little to no economic value or with economic value that cannot be traded or transferred will be classified as general NFTs and will be treated differently. Examples of this include digital certificates or NFT concert tickets.???

The new guidelines also suggest that an NFT can be classified as a financial security if it exhibits characteristics specified in the country’s Capital Markets Act.?

Jeon Yo-seop, the FSC’s Financial Innovation Planning Head, mentioned (translated from Korean), “For example, if 1 million NFTs were issued, there would be a lot of transactions and there is a possibility that they would be used for payment purposes.”?

Despite this the FSC has emphasised that it will assess NFT collections on a case-by-case basis, meaning that the criterion for interpreting NFTs as cryptocurrencies will not be standardised.

In preparation for the implementation of the new virtual assets regulations that are set to take effect on July 1?9, 2024 - these new guidelines preceded South Korea’s first crypto-centered regulatory framework; The Virtual Asset User Protection Act. This legislation aims to eliminate unlawful market acts, such as manipulating market prices and engaging in fraudulent transactions. ?

The act also requires crypto service providers to hold upwards of 80% of deposits in cold storage to protect user funds, as well as enrollment in insurance programs to compensate users in the event of a security breach.? ??

The law is part of South Korea’s new two-part legislation that aims to establish regulatory frameworks for the cryptocurrency industry. The second part of the regulation is currently being developed, of which the key focus is on standardising crypto token issuance and the disclosure of information to investors. ??

In 2023, the FSC mentioned that by July, virtual assets must accrue interest when funds are deposited into a crypto exchange. However, this does not apply to regular NFTs and central bank digital currencies (CBDCs), but there are still exceptions to this rule.?

The most recent update from the FSC reiterates its previous statements that NFTs classified as virtual assets can earn interest once they are deposited on exchanges.?

This means NFTs issued in large quantities and used for payments are eligible for interest. ??

What are your thoughts on the direction taken by South Korea regarding regulation for crypto and NFTs? Let us know in the comments below! ??

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