10.22 AI Daily The encryption asset market hotspots are frequently emerging, and the regulatory environment continues to evolve.

1. Headlines

1. The transfer of $654 million ETH by the Ethereum Foundation has attracted attention.

The Ethereum Foundation recently transferred $654 million worth of Ether from one wallet to another, attracting widespread attention from the cryptocurrency community. It is reported that this transfer is a routine wallet migration operation by the foundation, aimed at enhancing the security of funds.

The Ethereum Foundation stated that this transfer is purely an internal operation and does not involve any sales or changes in circulating supply. However, this massive transfer has raised concerns among some investors, who question whether the foundation is facing financial difficulties or is preparing to sell ETH.

Cryptocurrency analysts point out that the Ethereum Foundation, as a non-profit organization, holds a large reserve of ETH to support ecosystem development. This transfer aims to enhance the security of funds and does not disclose specific reasons, but it is unlikely to be for cashing out.

Overall, this transfer has sparked some speculation, but it seems to be just a routine operation by the foundation. However, due to the large amount involved, the crypto community will continue to monitor the foundation's subsequent developments.

2. The Hong Kong Stock Exchange tightens regulations, hindering the transformation of cryptocurrency treasury companies.

According to reports, the three major stock exchanges in the Asia-Pacific region, including the Hong Kong Stock Exchange, have recently tightened regulations on the cryptocurrency treasury (DAT), hindering these companies' plans for transformation and listing.

Cryptocurrency treasury companies are an emerging business model that primarily generates profits by holding cryptocurrency assets. Due to the high volatility of cryptocurrency prices, these companies face significant risks.

A spokesperson for the Hong Kong Stock Exchange stated that the listing framework of the exchange requires that all applicants' business operations must be feasible, sustainable, and substantive, and cannot merely hold a large amount of liquid assets. It is reported that the exchange has questioned the plans of at least five companies to transform into cryptocurrency treasury firms.

Analysts have pointed out that the cautious attitude of stock exchanges towards cryptocurrency treasury companies stems from concerns about the risks associated with cryptocurrencies. On one hand, the extreme volatility of cryptocurrency prices could lead to significant losses for these companies; on the other hand, there are also risks of money laundering and tax evasion.

However, there are also views that stock exchanges should create a favorable environment for the development of emerging industries, rather than prohibiting them completely. Cryptocurrency treasury companies can alleviate regulatory concerns by improving risk control mechanisms and increasing transparency.

Overall, the development path of the crypto treasury companies still faces numerous obstacles, requiring joint efforts from the industry itself and regulatory bodies to promote innovation under the premise of manageable risks.

3. The mainstream AI model competition, DeepSeek is currently in the lead

A fierce competition of AI models is underway. The AI research laboratory focused on financial markets, nof1, launched a large model trading test called “Alpha Arena” on October 18.

This test used 6 mainstream AI large models, including GPT-5, DeepSeek V3.1, Grok-4, etc. Each model received $10,000 in real funds on the Hyperliquid exchange and traded using the same prompts and input data.

According to the latest tracking by the on-chain AI analysis tool CoinBob, as of October 22, DeepSeek is currently leading with a return rate of 14.42%, followed closely by Grok and Qwen3 Max with return rates of 5.78% and 3.39%, respectively. Meanwhile, GPT-5 has suffered a loss of 63.75%, placing it at the bottom.

Analysts say that this AI competition aims to test the actual performance of different models in the field of financial trading. Each model has its own algorithmic advantages and focuses; who can ultimately stand out remains to be seen.

It is worth noting that even the top AI models can inevitably make mistakes in actual trading. Therefore, investors should remain cautious when using AI-assisted trading and should not completely rely on model outputs.

In addition, the trading strategies of AI models often carry the risk of being copied and tracked. Once a strategy is leaked, it may be imitated by countless investors, resulting in a loss of advantage. Therefore, AI models need to continuously evolve to maintain their leading position.

4. Alpha will launch APRO, leading a new direction in the oracle track.

According to official news, Alpha will become the first platform to launch APRO (AT) on October 24. Eligible users can claim airdrops using Alpha points on the Alpha event page after trading opens.

APRO is a decentralized oracle network aimed at providing reliable external data for blockchain applications. Recently, APRO completed a round of strategic financing led by YZi Labs.

Analysts believe that the launch of APRO will bring new liquidity and users to Alpha, helping to enhance its influence in the oracle space. At the same time, as an innovative oracle solution, APRO will also drive the development of the entire sector.

Oracles are seen as a key infrastructure for the development of blockchain, capable of securely and reliably transmitting off-chain data to on-chain, supporting applications such as prediction markets and financial derivatives. However, current oracle solutions still face some issues, such as data credibility and scalability.

APRO aims to enhance the reliability and transparency of data through a decentralized approach. At the same time, it is also exploring new business models to attract more data providers and users.

Overall, the addition of APRO will bring new vitality to Alpha and the entire oracle track, and is expected to drive the industry towards a more decentralized, efficient, and reliable direction.

5. Shiba Inu Coin SHIB faces large holder sell-off, triggering a risk of plummeting.

According to on-chain data, 56.68 billion Shiba Inu coins (SHIB) have been transferred to exchanges in the past 24 hours, raising concerns among investors about large holders selling off and a potential price crash.

Shiba Inu Coin, as a community-driven “meme coin”, briefly topped the cryptocurrency market capitalization rankings in 2021, reaching the top five. However, its price has since fallen sharply, currently down over 90% from its peak.

Analysts point out that this significant SHIB transfer behavior may be a precautionary move by holders to cope with market uncertainty. However, if a large-scale sell-off does occur, the price of Shiba Inu may likely decline further.

At the same time, there are also views that Shiba Inu Coin, as a community cultural symbol, derives its value not entirely from speculation, so the possibility of a sharp decline in the short term is low. As long as the community remains active, Shiba Inu Coin is expected to maintain a certain status.

However, the development prospects of Shiba Inu Coin still have many uncertainties. It lacks practical application scenarios and mainly relies on speculative demand. Once the enthusiasm for speculation fades, it will be difficult to maintain the price of Shiba Inu Coin.

Therefore, investors need to maintain sufficient risk awareness regarding Shiba Inu coin and other “meme coins,” and must avoid blindly following the trend. At the same time, they should closely monitor the movements of large holders to prevent being harmed by sudden sell-offs.

2. Industry News

1. Bitcoin has short-term support at $108,000, market sentiment is under pressure.

The price of Bitcoin faced selling pressure again on Wednesday (October 22), dropping to the key support level of $108,000. This pullback follows the market's continued pressure after last month's historic flash crash triggered by the announcement of tariffs. Ongoing geopolitical tensions and ETF capital outflows continue to undermine investor confidence.

Analysts point out that Bitcoin is short-term testing the $108,000 level, mainly affected by macroeconomic uncertainty and tightening market liquidity. If selling pressure persists, Bitcoin may further slide toward the $105,000 level. However, in the long term, Bitcoin is still operating near the upward trend line, and if it can hold the key support at $108,000, the market is expected to see a rebound.

On-chain data shows that despite the increased bearish pressure in recent times, long-term holders have not engaged in large-scale selling. This indicates that the market still maintains confidence in the long-term prospects of Bitcoin. However, in the short term, the main risks facing Bitcoin are uncertainties such as escalating geopolitical conflicts and the Federal Reserve's interest rate hikes exceeding expectations. Investors need to closely monitor changes in the macroeconomic situation.

2. Ethereum's spot trading volume surpasses Bitcoin, with altcoins showing varied performance.

On Wednesday, the cryptocurrency market showed a mixed trend, with Ethereum's spot trading volume surpassing that of Bitcoin. Ethereum was trading at $3,847, with little fluctuation during the day. Meanwhile, altcoins showed extreme differentiation, with LAMBO surging 542.67% to $0.00068, igniting the market.

Analysts point out that Ethereum's trading activity has surpassed that of Bitcoin, reflecting market optimism regarding its long-term development prospects. As the infrastructure for smart contracts and DeFi, Ethereum's ecosystem continues to expand, attracting substantial capital inflows.

At the same time, the altcoin market shows a differentiated performance, with some popular altcoins experiencing a surge, but there are also high risks involved. Analysts remind investors that altcoins often lack real-use case support, and their price fluctuations are mainly influenced by speculative trading. Investors should remain highly vigilant towards altcoins.

Overall, the sentiment in the cryptocurrency market is becoming cautious. The Crypto Fear and Greed Index has dropped to 25, entering the extreme fear zone. However, analysts believe this could create an opportunity for a rebound. Investors need to remain patient and closely monitor the future trends.

3. Tether has once again issued 1 billion USDT, bringing the total issuance to 7 billion USDT.

On Wednesday, Tether issued another $1 billion USDT on the Ethereum chain. Since the market crash on October 11, Tether and Circle, two stablecoin issuers, have cumulatively issued about $7 billion in stablecoins to meet market liquidity demands.

Analysts say that large-scale issuance of stablecoins is beneficial in alleviating market sell-off pressure and providing investors with more liquidity. However, it has also raised questions about the transparency of stablecoins. Some investors worry that if the reserves of stablecoin issuers cannot fully support the issued tokens, it could trigger systemic risks.

Meanwhile, the dominance rate of stablecoins is approaching 5%, which may indicate a peak in dominance. Analysts are focusing on the support levels between 4.8% and 4.4%, where a new phase of market balance may begin.

Overall, the behavior of stablecoin issuers aims to maintain market stability, but it also highlights the necessity of regulation. Investors need to closely monitor changes in regulatory policies and the reserve transparency of stablecoin issuers.

4. The number of cryptocurrency ETF applications has surged to 155, and analysts are optimistic about the prospects of index products.

According to statistics, since 2024, the number of cryptocurrency ETF applications has surged to 155, covering 35 different digital assets. Analysts have a “highly optimistic” outlook on the prospects of both index and actively managed cryptocurrency ETFs.

Analysts believe that traditional financial investors find it difficult to navigate the complex single-token market and are more inclined to adopt diversified and decentralized investment strategies. Therefore, cryptocurrency ETFs based on indices and active management are expected to meet investor demand.

At the same time, the clarification of the regulatory environment has become a major force driving the development of crypto ETFs. Especially in the United States, policy support and regulatory clarity have brought double-digit growth to the market.

However, the surge in cryptocurrency ETF applications also reflects the industry's anxiety about regulatory approvals. Due to the slow approval process, investors' expectations for ETF approvals have declined. Analysts advise investors to remain patient and closely monitor regulatory developments.

5. The Hong Kong Stock Exchange responds to tightening regulations on cryptocurrency treasury companies: it is necessary to ensure that business operations have substantial content.

In response to reports about the tightening of regulations on crypto treasury companies by the three major stock exchanges in the Asia-Pacific region, a spokesperson for the Hong Kong Stock Exchange (HKEX) made a statement. HKEX stated that its framework aims to ensure that the business and operations of all applicants seeking to go public, as well as those already listed, are viable, sustainable, and substantive.

Analysts point out that exchanges such as the Hong Kong Stock Exchange are tightening regulation mainly due to doubts about the business model of crypto treasury companies. Some companies have been accused of holding too many liquid assets and lacking actual business operations.

At the same time, the surge in listings of crypto treasury companies has also raised the vigilance of regulatory authorities. Regulators are concerned that these companies may pose risks such as market manipulation and money laundering. Therefore, they are strengthening reviews to maintain market order.

Overall, cryptocurrency treasury companies need to demonstrate the compliance and sustainability of their business models in order to gain recognition from regulators. In the future, clearer regulatory rules may be introduced to standardize industry development. Investors should closely monitor changes in regulatory policies.

6. The trading volume in prediction markets hits a new high, with financial giants joining the competition.

According to reports, the trading volume on prediction market platforms Polymarket and Kalshi recently surpassed $2 billion, setting a new historical high. This surge has attracted financial giants including CME and ICE, who are actively seeking to enter this emerging hotspot market.

Analysts indicate that the surge in trading volume in prediction markets reflects the increasing attention this field is receiving. With the development of various sectors such as sports betting and political events, the prospects for prediction markets are vast. Meanwhile, the integration of AI technology is also expected to drive prediction markets towards intelligent and refined development.

However, the regulatory issues surrounding prediction markets remain a significant challenge. Some countries and regions hold a cautious attitude towards this. How to promote innovation while ensuring fairness and justice will be a difficult problem for regulators to solve.

Overall, prediction markets are becoming a new hotspot in the fintech sector. Traditional financial institutions and tech companies are increasing their efforts in this area. Investors need to closely monitor the developments and regulatory policy changes in this field.

7. U.S. Senate bipartisan cryptocurrency regulation negotiations have stalled.

According to reports, legislation to establish clear regulatory rules for the cryptocurrency industry has encountered obstacles in the U.S. Senate, and the path forward for the bill has become increasingly unclear. Negotiations between the two parties on cryptocurrency regulation have stalled.

Analysts point out that cryptocurrency regulation has always been a focal point of discussion in American politics. Due to the differences in positions between the two parties, regulatory legislation has struggled to make substantial progress. This has intensified uncertainty in the industry and affected investor confidence.

At the same time, U.S. Securities and Exchange Commission Chairman Paul Atkins acknowledged that the U.S. is at least a decade behind its competitors in crypto regulation and innovation. This highlights the U.S.'s lagging position in the crypto space.

Overall, there are significant differences within the U.S. political landscape regarding cryptocurrency regulation, making it difficult to reach a consensus in the short term. Investors need to closely monitor regulatory developments and assess their potential impact on the market.

8. Global retail crypto trading has grown by 125% for two consecutive years, with regulatory clarity being the main reason.

According to the latest report from TRM Labs, the global retail cryptocurrency trading volume is expected to grow by over 125% for the second consecutive year from 2024 to 2025. The clarification of the regulatory environment has become a major driving factor, especially in the United States, where policy support and regulatory clarity have led to double-digit growth in the market.

The report points out that most cryptocurrency activities are concentrated in practical scenarios such as payments, remittances, and value preservation. Even in countries where cryptocurrencies are restricted or banned, the adoption rate remains high, indicating that grassroots demand may surpass formal restrictions.

Analysts indicate that the continuous growth of retail cryptocurrency trading volume reflects that cryptocurrencies are gradually moving towards the mainstream. Clear regulations help attract more institutional investors into the market, promoting market development. However, it is also necessary to strengthen compliance measures such as anti-money laundering to ensure the healthy development of the industry.

Overall, cryptocurrencies are continuously expanding their influence globally. Regulators need to seek a balance between promoting innovation and mitigating risks to create a favorable environment for industry development. Investors must also pay close attention to regulatory policies.

9. Bitcoin may see a surge, analysts predict a target of $175,000.

Multiple institutional analysts predict that Bitcoin will experience a surge, targeting a price level of $175,000. This expectation is driven by a spike in demand, an expansion in money supply, and a surge in wallet adoption rates, all benefiting from an improved regulatory environment in the United States and a boom in blockchain application cases.

3. Project News

1. Sui Network: The rising star of the Move ecosystem accelerates its emergence.

Sui Network is a brand new blockchain project developed by a team of engineers who were involved in the Diem project. It uses the Move programming language and aims to provide high-performance, low-cost decentralized applications.

Latest news: During the TOKEN2049 conference, the Sui ecosystem received significant attention. Its mainnet launched in May this year and has already attracted dozens of ecological projects. Additionally, Grayscale Trust and Circle have also announced that they will launch the USDC stablecoin on Sui. This marks a rapid development of the Sui ecosystem.

The innovation of Sui lies in its adoption of a brand new execution engine and parallel execution model, significantly enhancing throughput and scalability. At the same time, it introduces a new type of object ownership model that effectively prevents issues such as double spending. These innovative designs give Sui a clear advantage in terms of performance and security.

Market Impact: As a rising star project within the Move ecosystem, the rise of Sui will further promote the development of the Move ecosystem. The Move language is considered a strong competitor for the next generation of smart contract languages due to its security and composability advantages. The success of Sui will lay the foundation for more projects to choose the Move ecosystem.

Industry feedback: Analysts believe that the emergence of Sui has brought new vitality to the Move ecosystem. Although it is still in its infancy compared to the Ethereum ecosystem, Sui has already shown tremendous potential. In the future, whether Sui can attract more quality projects will determine its position in the Move ecosystem.

2. Hyperliquid: AI model trading competition sparks heated discussion

Hyperliquid is a blockchain-based decentralized trading platform that has recently launched an AI model trading competition. The test utilizes six mainstream AI large models, each of which has been allocated $10,000 in real funds for trading.

Latest updates: Within 24 hours of the competition starting, the trading performance of each model showed significant differentiation. DeepSeek and Grok ranked first and second with returns of 14.42% and 5.78%, respectively, while GPT-5 suffered a loss of 63.75%, coming in last. This result has sparked widespread attention and discussion.

Hyperliquid's innovation lies in the combination of AI technology with cryptocurrency trading. Through real fund testing, it is possible to better assess the capabilities of different AI models in trading decision-making. At the same time, this also provides a new practical scenario for the application of AI in the financial sector.

Market Impact: If AI models can demonstrate excellent trading capabilities, it will help promote the application of quantitative trading and algorithmic trading in the cryptocurrency market. This may bring about a transformation in trading strategies and market structures. At the same time, it will also promote the deep application of AI technology in the financial sector.

Industry feedback: Industry insiders have differing opinions on the results of this test. Some believe that the performance of AI models still cannot fully replicate the capabilities of human traders, while others believe that the era of AI trading is about to come. Overall, there is optimism about the application prospects of AI in the field of cryptocurrency trading.

3. Astra Nova releases roadmap: launching TokenplayAI platform

Astra Nova is a project focused on Web3 social and community building. Recently, the team released an update on the product roadmap, announcing the launch of its flagship product TokenplayAI.

Latest news: TokenplayAI is a no-code microprogram launch platform aimed at redefining the way communities build and deploy Web3 experiences. Users can quickly create and publish various Web3 applications and events on this platform.

The innovation of Astra Nova lies in the combination of no-code development and Web3. Traditional Web3 application development often requires specialized programming skills, while TokenplayAI lowers the barrier, allowing ordinary users to participate. This helps to expand the user base of Web3.

Market Impact: The launch of TokenplayAI may promote the development of Web3 social and community building. By lowering the barriers to application development, more individuals and small teams have the opportunity to innovate in the Web3 space. This will bring new vitality and diversity to the entire ecosystem.

Industry Feedback: Industry insiders hold a cautiously optimistic attitude towards TokenplayAI. On one hand, no-code development can indeed attract more users into the Web3 space; on the other hand, there are potential challenges such as security and scalability. Overall, everyone is looking forward to TokenplayAI bringing new possibilities to Web3 social.

4. Limitless announces LMTS token economic model

Limitless is a prediction market project based on the Base chain. Recently, the team announced the economic model details of its token LMTS.

Latest news: LMTS tokens will be used for various operations of the Limitless prediction market. Users can use LMTS to participate in predictions, staking mining, and pay fees, among other things. At the same time, the tokens will also be used for ecological incentives and community governance.

The innovation of Limitless lies in combining prediction markets with blockchain technology. Traditional prediction markets often face issues of trust and transparency, while the blockchain-based Limitless can address these pain points. At the same time, the token economic model also brings new incentive mechanisms to the prediction market.

Market Impact: If Limitless can attract a large number of users to participate, it will help drive the development of prediction markets. Prediction markets are considered a new type of information acquisition and value discovery mechanism, and their development will have a profound impact on society as a whole.

Industry feedback: There is a divergence of opinions among industry insiders regarding the prospects of Limitless. Supporters believe that prediction markets have enormous potential, and that Limitless's design can effectively leverage the advantages of blockchain technology; however, critics are concerned that prediction markets may be misused for speculative and other improper purposes.

5. Keycard completes $38 million financing for AI agent identity management.

Keycard is a startup focused on AI agent identity and access management. Recently, the company completed a $38 million funding round, led by notable venture capital firms a16z and Acrew Capital.

Latest Update: Keycard aims to provide authentication and access control solutions for AI agents. As the application of AI agents becomes increasingly widespread in various fields, ensuring their secure and reliable operation becomes crucial. Keycard's products have entered early access.

The innovation of Keycard lies in applying identity management technology to the AI field. Traditional identity management systems are primarily aimed at human users, while Keycard focuses on the special needs of AI agents. It can provide verifiable identity credentials and fine-grained access control for AI agents.

Market Impact: The emergence of Keycard helps promote the practical application of AI agents across various industries. With reliable identity authentication and access control mechanisms, businesses and users will be more confident in adopting AI agent technology, thus unleashing the immense potential of AI.

Industry feedback: Industry insiders are optimistic about the commercial prospects of Keycard. The security and credibility of AI agents are key factors limiting their development, and Keycard provides solutions for this. However, some are concerned that Keycard may become a tool for regulating AI agents.

4. Economic Dynamics

1. U.S. inflation data may trigger market volatility, and there are differing views on the Federal Reserve's policy outlook.

Economic Background: The US economy experienced a slow recovery in 2025, with GDP growth hovering around 2% and inflation running high at around 5%. Despite a robust job market, consumer confidence remains weak. In response to inflationary pressures, the Federal Reserve has been continuously raising interest rates since 2024, and the current federal funds rate is in the range of 5.25% to 5.5%.

Important event: During the U.S. government shutdown, the Department of Labor suspended the release of important economic data, making the September Consumer Price Index announced on October 24, ( CPI ) a key reference for Federal Reserve decision-making. This CPI report will become the Federal Reserve's only measure of inflation, with its importance elevated to unprecedented levels.

Market Reaction: Investors have differing expectations regarding the CPI data, which may lead to significant market fluctuations. Some analysts believe that the CPI data may indicate a easing of inflationary pressures, setting the tone for the Federal Reserve's last rate hike of the year. However, there are also views that inflation remains sticky, and the Federal Reserve may continue to raise interest rates in 2026.

Expert opinion: Goldman Sachs chief economist Jan Hatzius warns that a weak job market may become a “thorn in the eye” of an optimistic outlook. He believes that employment data reflects current economic growth better than GDP valuations, and that the GDP signals for the second and third quarters are overly optimistic. Analysts from “The Kobeissi Letter” emphasize that the release of CPI data is only 5 days away from the Federal Reserve meeting, elevating its importance to a new high.

2. The US-India trade agreement may trigger a global capital repricing.

Economic Background: Against the backdrop of the China-US trade war, global economic growth is slowing, and investor risk aversion is rising. The United States is advancing a major trade agreement with India to reshape global supply chains and reduce dependence on Russian energy.

Important event: According to reports, the United States and India are set to reach a trade agreement, with India lowering tariff levels on American goods and expanding market access for American agricultural products; in exchange, India will reduce its oil imports from Russia. The agreement may be officially announced during the ASEAN summit from October 26 to 28.

Market Reaction: Analysts believe that once reached, the agreement will further consolidate India’s position as a manufacturing and export alternative to China, prompting a reallocation of global capital within Asian supply chains and emerging markets. This could provide new structural support for the dollar, but emerging market currencies may face short-term pressure. The repricing in the energy and agriculture sectors could trigger a mild re-inflation effect, leading investors to refocus on U.S. Treasuries and dollar liquidity.

Expert Opinion: A Unix analyst stated that if the agreement is confirmed, it will become a key trigger for global capital repricing. Although the risk appetite in the cryptocurrency market may be affected in the short term, efforts towards de-dollarization and regional settlement systems will still support the long-term demand for digital assets.

5. Regulation & Policy

1. US Senator Warren criticizes the regulatory loopholes in the GENIUS Act.

The “GENIUS Act” was signed into law by Trump this July, aiming to establish a regulatory framework for stablecoin issuers. The Act requires stablecoins to have 100% reserves in US dollars or equivalent high-liquid assets, annual audits for issuers with a market capitalization exceeding $50 billion, and guidelines for foreign issuers.

Senator Elizabeth Warren criticized the bill as “lightly regulated” in a letter to the Treasury Secretary, citing loopholes that could threaten financial stability and consumer interests. She called on the Treasury to propose measures to address conflicts of interest involving Trump and his family, combat illegal financial activities, and prevent stablecoin transactions from harming consumer interests.

Warren specifically named the potential conflict of interest associated with World Liberty Financial USD linked to Trump, and mentioned the incident where Paxos mistakenly minted $30 billion PYUSD due to technical issues, believing that operational failures could pose serious risks to issuers, market integrity, and even financial stability. She urged the Treasury to fill the regulatory gaps in broader cryptocurrency legislation.

Industry insiders are paying attention to this. Coinbase's Chief Legal Officer, Paul Grewal, suggested in a letter to the Treasury that outdated anti-money laundering rules in the Bank Secrecy Act should be updated through technologies such as decentralized identity and zero-knowledge proofs, artificial intelligence and APIs, as well as on-chain analysis. Chainlink Labs recommended adopting innovative approaches such as portable digital identities, distinguishing management control from customer relationships, rule-based on-chain compliance, and transparency of crypto-backed reserves to improve the detection efficiency of illegal financial activities and reduce privacy and operational risks.

2. The Russian Ministry of Finance and the Central Bank agree to legalize cryptocurrency for foreign trade payments.

Russian Finance Minister Anton Siluanov announced that the Ministry of Finance and the Central Bank of the Russian Federation have agreed to legalize the use of cryptocurrencies for foreign trade payments. He stated that this area should be legalized and its activities should be regulated by legislation.

Xiliu Annuofu emphasized that using cryptocurrencies in settlements is an important area of work, as cryptocurrencies can not only be used for payments but also for transferring money abroad. As the market becomes legalized, strengthening the control functions of regulatory agencies will be crucial.

This policy will be accompanied by strict regulatory and review measures, with all cryptocurrency transactions conducted under the direct supervision of the Central Bank of Russia, to balance the needs of sanction relief and financial risk control.

Analysts believe that this move signifies a significant policy shift in Russia's adoption of cryptocurrency, opening a new chapter in the country's financial policy. Under Western sanctions, Russia is establishing a legal framework for cryptocurrency to evade these sanctions.

The Governor of the Central Bank of Russia, Elvira Nabiullina, previously expressed opposition to the use of cryptocurrencies in Russia. However, under the pressure of sanctions, the Russian side has had to seek new payment and settlement methods. Industry insiders point out that cryptocurrencies provide Russia with a means to evade sanctions.

3. The Secretary for Financial Services and the Treasury of Hong Kong: The widespread application of digital assets and AI in financial services must take into account investor interests and financial stability.

The Financial Secretary of Hong Kong, Paul Chan, stated at the APEC Finance Ministers' Meeting that blockchain technology and artificial intelligence are leading the rapid development of digital financial services, which not only enhances efficiency and reduces costs but also helps promote inclusive finance.

However, in the context of the increasing application of digital assets and artificial intelligence in financial services, various economies should pay attention to whether the innovations are responsible and sustainable, including taking into account investor interests and financial stability. Chen Maobo stated that Hong Kong is actively participating in cross-border cooperation and policy dialogue in digital finance and is willing to deepen cooperation with regional partners in related areas.

Industry insiders believe that Chan Mo-po's speech reflects the Hong Kong government's focus on promoting financial technology innovation while also emphasizing risk management and regulation. The chairman of the Hong Kong Securities and Futures Commission, Leung Tin-leung, previously stated that regulation of cryptocurrency exchanges would be strengthened.

The Hong Kong Monetary Authority also issued a regulatory policy for crypto assets in January this year, establishing regulatory principles for banking institutions. Hong Kong is gradually establishing a regulatory framework for digital assets to ensure that financial innovation develops in an environment where risks can be controlled.

Experts point out that emerging technologies such as digital assets and artificial intelligence bring new opportunities and challenges to the financial industry. Regulatory agencies need to seek a balance between promoting innovation and maintaining financial stability. As an international financial center, Hong Kong's initiatives in digital asset regulation will have a certain impact globally.