Hong Kong’s financial regulator, the Securities Futures Commission (SFC), has announced plans to grant more licences to crypto exchanges and digital asset firms by the end of the year.
SFC CEO Julia Leung stated that progress would be made in issuing licences to 11 currently operating Virtual Asset Trading Platforms (VATPs) from the regulator’s list of potential licensees, according to an 6 October report from local media outlet HK01. She added that the licences would be granted in batches, aiming to ensure better compliance across exchanges.
Currently, 16 companies await decisions on their VATP applications. Eleven of these firms are already operating under a “deemed to be licensed” status, though the SFC has advised traders against doing business with them until full approval is granted.
The SFC recently revealed its 2024-2026 roadmap, focusing on further regulation of crypto platforms, promoting Real World Asset (RWA) tokenisation, and exploring blockchain technologies. This comes after Hong Kong prioritised the licensing of crypto firms in the wake of a $165 million scandal involving the Dubai-based exchange JPEX.
Telegram recently introduced several new features, including the ability to send gifts, improved moderation tools, and enhanced video chats for iOS and Android users. However, Toncoin (TON) has failed to capitalise on these developments, with the coin’s price continuing to drop despite favourable market conditions. TON has fallen 2.7% in the past 24 hours and over 10% during the last week.
Telegram’s CEO, Pavel Durov, revealed that users could convert some of these limited-edition gifts into TON-based NFTs, adding an extra layer of functionality to the platform. Yet, despite these innovations, TON’s price has struggled to recover from its mid-2024 downturn, following Durov’s arrest.
Though TON traded above $8 earlier this year, it now sits at $5.22. Despite the slow recovery, the community remains hopeful that future developments might turn the tide for the coin.
Bitcoin briefly surpassed the $62,000 mark earlier in October before seeing a slight correction, with the price settling around $61,950. Despite the dip, data shows that large holders, known as whales, didn’t participate in the recent sell-off. Whale transaction volumes also dropped by nearly half, suggesting the possibility of price consolidation and reduced volatility.
Over the past week, Bitcoin has seen a net outflow from centralised exchanges, with around $153 million withdrawn. This could indicate growing accumulation as investors maintain bullish expectations for the cryptocurrency this October.
However, the broader crypto market remains susceptible to external influences, with geopolitical tensions and macroeconomic events likely to affect price movements in the near term.
The International Monetary Fund (IMF) has urged El Salvador to limit its exposure to Bitcoin and to narrow the scope of its Bitcoin law. Julie Kozack, the IMF’s director of communications, stated that recommendations include strengthening the regulatory framework and enhancing oversight of the Bitcoin ecosystem. The IMF has consistently raised concerns about the financial risks associated with Bitcoin, particularly regarding transparency and its potential impact on the country’s financial stability.
Despite projecting a 3% growth for El Salvador’s economy this year, the IMF remains critical of the current Bitcoin programme, which has been linked to risks that could undermine fiscal stability. The organisation has called for further efforts to improve transparency and address potential risks related to Bitcoin, highlighting the need for ongoing discussions in key areas.
El Salvador is currently negotiating a new loan with the IMF, owing the organisation approximately 107.7 million in special drawing rights. This loan aims to stabilise the country’s macroeconomic situation while the government is willing to implement economic reforms. The IMF is working with El Salvador to enhance liquidity reserves, improve public finances, and ensure good governance amid concerns about Bitcoin risks. The government currently holds over $360 million in Bitcoin.
El Salvador’s President Nayib Bukele has met with Argentina’s President Javier Milei in Buenos Aires to discuss shared economic and security challenges. Their discussions included Milei’s zero-deficit budget strategy and Bukele’s experiences with debt management. Both leaders found common ground in their political journeys, particularly Bukele’s struggle with parliamentary opposition when he first took office.
During the visit, Bukele also met with Argentine senators and Vice President Victoria Villarruel to advise on cryptocurrency matters. Villarruel expressed significant interest in Bitcoin and El Salvador’s innovative use of Volcano Bonds for financing. These discussions signal Argentina’s growing interest in digital assets as part of its financial future.
Meanwhile, Uruguay has taken a major step in regulating cryptocurrency, passing a law that creates a clear framework for digital asset use. The law grants the central bank oversight of virtual asset service providers, ensuring compliance with anti-money laundering regulations whilst paving the way for new opportunities in the crypto sector.
The UAE has introduced amendments to its VAT regulations, exempting the transfer and conversion of digital assets, including cryptocurrencies, from VAT. This change, which applies retroactively from January 2018, will also benefit companies involved in managing investment funds. Businesses dealing with virtual assets are urged to review their past VAT positions to ensure proper input tax recovery, which enables them to claim back VAT paid on eligible purchases.
Virtual assets in the UAE are defined as representations of value used for digital trading or investment, excluding fiat currencies or financial securities. Meanwhile, regulators in the UAE have stepped up efforts to refine crypto regulations. Dubai’s VARA and the SCA have agreed to supervise virtual asset service providers jointly, allowing VASPs licensed in Dubai to operate across the wider UAE.
Additionally, the Virtual Asset Regulatory Authority has tightened rules on marketing, requiring firms to include disclaimers highlighting the volatility and potential loss in the value of digital assets. This move aims to ensure greater transparency in the rapidly growing crypto market.
LEGO Group’s website was briefly compromised on 5 October, with a scam promoting a fake ‘LEGO Coin’ token appearing on the homepage. The message encouraged users to purchase the token in exchange for ‘secret rewards’ but redirected them to a phishing site. The scam was removed after about 75 minutes, and LEGO confirmed that no user accounts had been compromised.
LEGO has since assured customers that the issue has been resolved and steps are being taken to prevent future incidents. Despite earlier hints in 2021 about entering the NFT space, LEGO has not officially pursued any crypto-related ventures.
This incident highlights the ongoing threat of cryptocurrency scams, which saw $127 million stolen from victims in the third quarter of 2024, with September alone accounting for $46 million in losses.
Grayscale Investments has unveiled the Grayscale Aave Trust, offering accredited investors an opportunity to indirectly invest in AAVE, the token powering Aave’s decentralised lending protocol. Aave, a leading player in decentralised finance (DeFi), operates on the Ethereum blockchain and allows users to borrow and lend cryptocurrencies without traditional intermediaries like banks. By utilising smart contracts, Aave eliminates credit checks, making lending more transparent and accessible.
The Grayscale Aave Trust functions similarly to the firm’s other single-asset investment trusts, with its primary focus on AAVE. This trust provides a streamlined way for investors to tap into Aave’s lending platform, which has become the largest in the DeFi space by total value locked. Grayscale’s private placements, including this trust, are available only to accredited investors through a daily subscription model.
Grayscale continues to expand its range of crypto investment products, with recent launches of the XRP Trust and Sui Trust. The firm’s Head of Product & Research, Rayhaneh Sharif-Askary, highlighted Aave’s potential to transform traditional finance by cutting out intermediaries and optimising lending processes using blockchain technology.
The excitement around ‘Uptober,’ a historically bullish month for crypto, is fading as the market retreats, sparking a shift in social media chatter towards terms like ‘Selltober’ and ‘Octobear.’ Analytics platform Santiment noted that optimistic sentiment has dropped since the start of October, as traders now face a more bearish outlook. Despite this, some experts suggest there is still potential for a short-term rebound.
Bitcoin has slightly recovered after briefly dipping below $60,000 on 3 October, but overall market conditions remain shaky. The crypto market has shed $200 billion in total value since the start of the month, with technical indicators suggesting overextended rallies and sell-offs driving prices down. Historically, Bitcoin has performed well in October, often seeing gains mid-month, leaving some hoping the pattern will repeat despite current bearish trends.
Visa has introduced a blockchain-based platform designed to help financial institutions integrate fiat-backed tokens. The Visa Tokenized Asset Platform (VTAP) will allow banks to mint, transfer, and redeem tokens on public blockchain networks, such as Ethereum. BBVA, a leading Spanish bank, is set to pilot this platform by 2025, aiming to bridge the gap between traditional banking and blockchain technology.
The platform is designed to integrate with existing banking systems using APIs, allowing banks to explore tokenisation use cases. It also offers programmable features to automate complex credit lines and release payments based on smart contract conditions.
Despite Visa’s cautious approach to stablecoin adoption, citing concerns over automated transactions, the platform marks a significant step toward blending blockchain technology with traditional financial services.
