Market Update — December 31

Source: TechFlow (Shenchao)

Yesterday's Market Dynamics

South Korea's draft "Digital Asset Basic Law" will include investor protection measures, but its submission has been postponed to next year due to controversy.

According to Yonhap News Agency, the South Korean government's draft "Digital Asset Basic Law" (the second phase of the virtual asset bill) will include investor protection measures such as no-fault liability for digital asset operators and bankruptcy risk isolation for stablecoin issuers. The bill requires stablecoin issuers to deposit their assets with banks or other regulatory institutions and to deposit or trust more than 100% of the outstanding balance. However, due to disagreements between the Financial Services Commission (FSC) and the Bank of Korea on core issues such as the issuer and regulatory body of stablecoins, the government's submission of the draft will be postponed until next year. The FSC stated that it is currently working with relevant institutions to gradually narrow the differences in their positions.

OECD Crypto Asset Reporting Framework to Take Effect on January 1, 2026

According to Cointelegraph, the Organization for Economic Cooperation and Development (OECD)'s Crypto Asset Reporting Framework (CARF) will begin collecting data in 48 jurisdictions, including the UK and the EU, on January 1, 2026.

CARF requires cryptocurrency exchanges to collect more detailed customer information, verify tax residency, and report user balances and transactions annually to domestic tax authorities. This data will be shared cross-border through existing information exchange protocols.

Lucy Frew, head of the Global Regulatory and Risk Advisory Group at the international law firm Walkers, stated that CARF will be a "game changer," reshaping compliance requirements for digital asset companies and their clients. Cryptocurrency exchanges will need to integrate CARF requirements into their existing KYC and anti-money laundering processes, redesign their registration processes to capture tax residency information, and upgrade their reporting systems.

Grayscale Submits Form S-1 Registration Statement for Bittensor (TAO) ETF to U.S. SEC

According to official documents, Grayscale has submitted a Form S-1 registration statement for the Grayscale Bittensor Trust (TAO) to the U.S. SEC, intending to rename the product the Grayscale Bittensor Trust ETF after registration becomes effective and the product is listed on the NYSE Arca. The sole asset of the trust is the native token of Bittensor Network, TAO.

Zama Announces Mainnet Launch and First cUSDT Privacy Stablecoin Transfer

According to the official announcement, Zama has officially launched its mainnet and completed its first cUSDT privacy stablecoin transfer on Ethereum.

Zama is an open-source cryptography company dedicated to building advanced fully homomorphic (FHE) encryption solutions for blockchains.

Sui Announces Privacy Transaction Feature in 2026

According to official Sui news, Sui will launch its privacy transaction feature in 2026.

edgeX: TGE Delayed, Until March 31st at the Latest

Decentralized derivatives trading platform edgeX confirmed during yesterday's Community Call that the TGE project will be delayed, until March 31st at the latest.

Stable Pre-Deposit Program Phase 2 Now Open for Withdrawals

Hourglass announced early this morning that the second phase of its Stable pre-deposit program has ended, and deposits are now available for withdrawal. All users who received allocations in Phase 2 can now claim their funds through Merkl. Users with excess refunds can also claim them through the Merkl dashboard. Users not approved for Phase 2 can withdraw their USDC at any time through the application or directly from the underlying smart contract.

PeckShield: Unleash Protocol Hacked, Losses Approximately $3.9 Million

According to PeckShieldAlert monitoring, Unleash Protocol on Story Protocol suffered an unauthorized fund outflow, resulting in a loss of approximately $3.9 million. The attackers subsequently transferred the stolen funds across chains to the Ethereum network and deposited 1337.1 ETH into the Tornado Cash protocol.

SlowMist: Total Losses from Blockchain Security Incidents in 2025 Reached $2.935 Billion, a 46% Year-on-Year Increase

SlowMist's "2025 Blockchain Security and Anti-Money Laundering Annual Report" shows that a total of 200 security incidents occurred throughout the year, causing losses of approximately $2.935 billion, a 46% year-on-year increase. The Ethereum ecosystem suffered the most severe losses, reaching $254 million. DeFi projects were the most frequently attacked sector, experiencing 126 incidents, accounting for 63% of all attacks and resulting in losses of $649 million. While trading platforms only saw 12 incidents, they caused $1.809 billion in losses, with Bybit alone incurring a $1.46 billion loss in a single incident. In terms of the causes of these attacks, contract vulnerabilities were the primary trigger, accounting for 61 incidents; hacking of X accounts followed closely behind, with 48 incidents.

The report also points out that blockchain security in 2025 will exhibit three major characteristics: more professional attack methods, more covert criminal chains, and stronger regulatory enforcement. North Korean hacking activity is frequent, with the amount stolen in the first nine months alone reaching a record high of $1.645 billion.

Crypto mining company Cango receives $10.5 million investment from EWCL; funds will be used to strengthen Bitcoin mining operations.

According to PRNewswire, Bitcoin mining company Cango Inc. (NYSE: CANG) announced it has received a $10.5 million investment from Enduring Wealth Capital Limited (EWCL). Under the agreement, EWCL will purchase 7 million Class B ordinary shares at $1.50 per share, each with 20 votes.

After the transaction, EWCL's stake in Cango is expected to increase from approximately 2.81% to approximately 4.69%, and its voting rights from approximately 36.68% to approximately 49.61%. Cango CEO Paul Yu stated that the funds will be used to strengthen Bitcoin mining operations, improve computing power efficiency, upgrade mining equipment, and selectively acquire strategic mining assets.

Bitcoin treasury company Mogo has announced its name change to Orion Digital, with current holdings valued at approximately $24 million.

According to Businesswire, Nasdaq-listed Bitcoin treasury company Mogo has announced its name change to Orion Digital, and is expected to begin trading on January 2, 2026, under the new ticker symbol ORIO. The company's board of directors had previously authorized $50 million to allocate Bitcoin as a long-term capital preservation and product innovation strategy, and also liquidated $13.8 million worth of WonderFi shares to increase its Bitcoin holdings. According to BitcoinTreasuries data, it currently holds approximately $24 million worth of Bitcoin.