Compiled by: Nona
Fear and Greed Index: 53 (Greedy)
Bitcoin Price: $115,504
BTC/ETH Spot ETF Capital Flow (8.18)
BTC Net Outflow: $121.81 M
ETH Net Outflow: $196.62 M
Regulation/Macro
According to the Hong Kong Economic Journal, the non-profit Digital Asset Anti-Money Laundering Professional Committee (DAAMC) announced its establishment with support from the Hong Kong Virtual Asset Industry Association, with participants including Slow Fog and Circular Innovation. The organization is dedicated to developing and promoting Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) standards and practices through collaboration among regulated financial institutions. Circular Innovation Tech stated that the committee brings together expertise from leading institutions to establish global AML/CFT standards. Additionally, the committee will release two stablecoin AML technical reports and host a symposium by the end of the month.
The US Treasury, under the GENIUS Act, is publicly soliciting innovative methods from financial institutions for detecting illegal activities in digital assets, including APIs, artificial intelligence, digital identity verification, and blockchain monitoring. The public has 60 days until October 17 to submit opinions, which will be used to assess the effectiveness, cost, privacy, and cybersecurity of these tools.
Bank of Korea Governor Lee Chang-yang stated on the 19th that "In the future, a Korean won stablecoin is necessary to incorporate programming functions into currency, but it would be wiser to start introducing it from banks and then gradually expand." During the National Assembly's Planning and Finance Committee meeting, Lee addressed potential risks of stablecoins while responding to questions about the timing and issuing entities of stablecoin introduction, demonstrating a cautious attitude.
Community banks can partner with stablecoin development companies to foster innovation and offer new products. The OCC will review and update its regulatory and supervisory approaches as needed to ensure support for banking innovation while maintaining community bank vitality.
Project/Company Dynamics
The Korean Financial Services Commission (FSC) has ordered local cryptocurrency exchanges to suspend lending services starting August 19, 2025. The Financial Management Committee stated that the suspension will continue until official guidelines for cryptocurrency lending are issued. The regulatory body noted that lending businesses have legal uncertainties and user loss risks, pointing out that in the first month after a digital asset company launched lending services, approximately 27,600 investors borrowed 1.5 trillion Korean won (worth $1 billion). The Financial Management Committee indicated that 13% of these borrowers were forced to liquidate due to price fluctuations.
According to watcher.guru, India's largest cryptocurrency exchange WazirX is on the verge of resuming trading. After a successful restructuring plan, the exchange is now awaiting court approval. The restructuring plan received overwhelming support, with 95.7% of voting creditors approving, marking a crucial step in addressing the aftermath of the July 2024 hacking incident. The hack resulted in $235 million being stolen, with a significant portion flowing to North Korea.
ETH Strategy announced a collaboration with DeFi staking protocol Ether.Fi, deploying part of its STRAT vault funds to Ether.Fi for Ethereum re-staking. Ether.Fi currently has a TVL exceeding $12 billion and has launched the first liquidity re-staking token based on EigenLayer, eETH. The collaboration aims to achieve verifiable vault returns through on-chain transparent positions and receipt credentials, with plans to integrate more DeFi protocols to diversify revenue sources.
Depth & Outlook
First, polish compliance and technical stacks in peripheral markets that can seamlessly migrate to the US, then choose the right moment to enter, thoroughly combining Web 3 and Web 2 finance in the US where "narrative and system are in sync" - this is the correct way to cross cycles and share the digital asset dollar dividend.
Today, we delve into Strategy Company's (formerly MicroStrategy) Q2 2025 financial report, the first quarter the company achieved net positive earnings after adopting fair value Bitcoin accounting standards, creating one of the largest quarterly profits in the company's history.
Since the beginning of this year, the key factor determining market direction has been US monetary policy. Throughout the year, expected regulation has been well reflected in the crypto market - market rises with increased rate cut expectations, and falls when expectations decrease. In this context, whether, how much, and how rate cuts will occur have become the most closely watched issues for market observers.
The Federal Reserve maintains a tight policy, fiscal stimulus is gradually weakening, yet risk assets continue to rise. Why? Because capital gains driven by artificial intelligence (AI) and capital expenditure (Capex) in top-tier economics are cascading, and Crypto Treasury Companies (TCos) have designed a new transmission mechanism to convert stock market frenzy into on-chain bidding.
