Appold Market Watch - Week ending 29 November 2024

Market Update & Industry News - Week ending 29 November 2024

Market update and Industry News - Week Ending 29 November 2024
🔷 The Global Stablecoin Market Capitalisation hit an all-time high of $190b since the collapse of TerraUSD in 2022. Trading volume reached $1.8t in November surging 77% amid alleged increased institutional adoption and pro-digital asset rallies.

Appold view: This significant growth is a clear indicator of stablecoins’ increasing role as a foundational part of the evolving digital asset ecosystem.

🔷 The UK Financial Conduct Authority announced a roadmap to fully regulate digital assets by 2026. The plan includes consultation papers, rules for stablecoins and custody, and final policy statements by 2026. The framework will align with international standards like the EU’s MiCA and the U.S. FIT 21 Act. The FCA reported that 12% of UK adults now hold digital assets.

Appold view: This welcome (and overdue) announcement should improve transparency and accelerate institutional adoption, benefitting market participants and the blockchain industry as a whole.

🔷 Hong Kong announced plans to exempt hedge funds, private equity funds, and certain family offices from taxes on investment gains from alternative and digital assets. This initiative allegedly aims to enhance Hong Kong’s appeal as a wealth management hub. It includes a six-week consultation on expanding capital gains tax exemptions to assets such as overseas properties, carbon credits, private credit, and virtual assets.

Appold view: This is quite an announcement and clearly a strategic move to attract more investment funds and family offices, with Singapore being a primary competitor.

🔷 Global exchange, Coinbase will discontinue its USDC Rewards program for customers in the European Economic Area (EEA) effective December 1, 2024, to comply with the EU’s Markets in Crypto-Assets (MiCA) Regulations.

Appold view: This was inevitable and a necessity for a Nasdaq-listed company with a professional market focus. It also highlights the impact of regulatory frameworks on digital asset-related offerings.

#Marketwatch #Blockchain #Investments