PA Daily News | UK plans to regulate cryptocurrencies by 2027; Yuan exchange rate hits 14-month high

Today's top news highlights:

Spot silver extended its gains to 2.00% on the day, currently trading at $63.21 per ounce.

Japanese media: The Bank of Japan is expected to raise interest rates to 0.75%, the highest in 30 years.

Both onshore and offshore RMB exchange rates against the US dollar hit a 14-month high.

HashKey priced its Hong Kong IPO at HK$6.68, raising approximately US$206 million.

The UK Treasury plans to develop crypto regulatory rules, to be implemented from 2027.

Goldman Sachs: Tech stock valuations are under pressure; the biggest opportunity in the stock market in 2026 is not in AI.

Kong Jianping, founder of Nano Labs: Bitcoin hashrate has plummeted, and at least 400,000 mining machines have been shut down.

Macro

Spot silver extended its gains to 2.00% on the day, currently trading at $63.21 per ounce.

Spot silver extended its gains to 2.00% on the day, currently trading at $63.21 per ounce.

Japanese media: The Bank of Japan is expected to raise interest rates to 0.75%, the highest in 30 years.

According to Nikkei, the Bank of Japan (BOJ) will hold a monetary policy meeting on December 18-19, raising the current policy rate of 0.5%, and is currently in the final coordination stage. The most likely scenario is a 25 basis point increase to 0.75%, reaching the highest interest rate level in 30 years since 1995. BOJ Governor Kazuo Ueda and other senior officials have hinted at submitting a rate hike proposal. Surveys indicate that more than half of the nine policy board members, including the governor and deputy governors, are expected to support the rate hike. Currently, no policy board member has explicitly stated their opposition to the rate hike, and there is widespread approval within the Japanese government. The BOJ will make its final decision after assessing whether there will be market turmoil such as a stock market crash or a sharp appreciation of the yen. If the rate hike is implemented on Friday, it will be the first increase in the BOJ's policy rate in 11 months since January 2025.

Both onshore and offshore RMB exchange rates against the US dollar hit a 14-month high.

According to data from China Foreign Exchange Trading System (CFETS), the spot exchange rate of the RMB against the US dollar rose to a high of 7.0500 during trading, marking the first time it has touched the 7.05 mark since October 9, 2024. In the offshore market, according to Sina's quotes, the offshore RMB exchange rate against the US dollar rose to a high of 7.046 during trading on December 15, a new high since early October 2024. Regarding the central parity rate, the RMB against the US dollar was quoted at 7.0656 on December 15, a depreciation of 18 basis points. Ming Ming, chief economist at CITIC Securities, pointed out that the Central Economic Work Conference mentioned the need to "maintain the basic stability of the RMB exchange rate at a reasonable and balanced level." The external environment for the RMB exchange rate in 2026 is relatively favorable, and the central bank's exchange rate stabilization policy will remain flexible and moderate to ease expectations of one-sided exchange rate movements. The central parity rate of the RMB may rise moderately to around 6.9-7.0.

HashKey priced its Hong Kong IPO at HK$6.68, raising approximately US$206 million.

According to Bloomberg, HashKey, a licensed cryptocurrency exchange in Hong Kong, priced its IPO at HK$6.68 per share on the Hong Kong Stock Exchange, close to the upper limit of its offering range (HK$5.95–6.95). It offered 240.6 million shares, raising a total of HK$1.6 billion (approximately US$206 million). The top 20 institutional investors were allocated about 80% of the shares, resulting in a high overall subscription rate. The company will list on Wednesday, and the funds raised will be used to expand its technology, recruit talent, and strengthen risk control.

The UK Treasury plans to develop crypto regulatory rules, to be implemented from 2027.

According to The Guardian, the UK Treasury is drafting new rules to bring cryptocurrencies under the Financial Conduct Authority (FCA) regulatory framework from 2027, subjecting them to the same regulations as other financial products. Chancellor of the Exchequer Rachel Reeves stated that this move aims to enhance transparency, boost consumer confidence, and combat illicit activities. The UK government also plans to ban the use of cryptocurrencies for political donations, addressing concerns about the unclear origins of crypto funds.

Japanese and South Korean stock markets opened lower across the board, with South Korea's KOSPI index falling 2.67%.

The Nikkei 225 index opened down 404.45 points, or 0.80%, at 50,432.10 on Monday, December 15. The South Korean KOSPI index opened down 111.31 points, or 2.67%, at 4,055.85 on Monday, December 15.

The probability of the Federal Reserve keeping interest rates unchanged in January is 75.6%.

According to CME's "FedWatch": the probability of the Federal Reserve cutting interest rates by 25 basis points in January next year is 24.4%, and the probability of keeping interest rates unchanged is 75.6%. By March next year, the probability of a cumulative rate cut of 25 basis points is 41.9%, the probability of keeping interest rates unchanged is 49.8%, and the probability of a cumulative rate cut of 50 basis points is 8.3%.

Opinion

Goldman Sachs: Tech stock valuations are under pressure; the biggest opportunity in the stock market in 2026 is not in AI.

A recent Goldman Sachs report points out that while investors are currently focused on artificial intelligence and mega-cap tech giants, an economic acceleration in 2026 could bring greater opportunities to cyclical sectors such as industrials, materials, and consumer discretionary. Analysts predict a significant increase in earnings per share (EPS) growth for these sectors, with industrial EPS growth potentially jumping from 4% to 15%, real estate EPS growth rising from 5% to 15%, and consumer discretionary EPS growth expected to increase from 3% to 7%. In contrast, information technology EPS growth is expected to slow from 26% in 2025 to 24% in 2026. Goldman Sachs believes that despite the recent strong performance of cyclical stocks, outperforming defensive stocks for 14 consecutive trading days, the market has not yet fully reflected the potential for an economic acceleration in 2026. Goldman Sachs forecasts that overall US economic growth will accelerate in 2026, driving S&P 500 EPS growth by 12%. Analysts emphasize that although the AI boom continues, the market may have already priced in most of the potential benefits from AI.

Kong Jianping, founder of Nano Labs: Bitcoin hashrate has plummeted, and at least 400,000 mining machines have been shut down.

Kong Jianping, former co-chairman of the board of directors of Canaan Technology and current founder and chairman of Nano Labs, cited his previous tweet about "Bitcoin mining farms in Xinjiang being shut down one after another," stating that the Bitcoin hashrate has decreased by 100 EH/s since yesterday, a drop of 8%. He further analyzed that, based on an average hashrate of 250T, this means that at least 400,000 mining machines have stopped operating. Previous reports from F2Pool indicated that with the network difficulty running at high levels, most older Bitcoin mining machines have fallen below their shutdown price.

Citigroup: Upcoming non-farm payroll report may release more conflicting signals

PANews reported on December 14th that the US non-farm payrolls report, to be released next Tuesday, will include data from October and November, finally providing policymakers and investors with a more complete picture of the US labor market and ending months of partial uncertainty. Following a contentious meeting this week, the Federal Reserve lowered interest rates to a three-year low, with several officials dissenting, the debate centered on whether to prioritize addressing high inflation or a weak job market. Economists at Citigroup pointed out that the upcoming jobs report may release more conflicting signals. The bank expects a loss of about 45,000 jobs in October but an increase of 80,000 in November. Citigroup economists stated that this rebound may be more related to seasonally adjusted data rather than a "real improvement in worker demand." They also predict the unemployment rate will rise from 4.4% to 4.52%, while a Reuters poll of economists showed an unemployment rate of 4.4%. The Fed's own quarterly forecasts indicate a median unemployment rate of approximately 4.5% by the end of this year.

Project Updates

Upbit will launch trading pairs for WET (Korean Won), BTC, and USDT.

Upbit will launch trading pairs for WET (Korean Won), BTC, and USDT.

Bithumb will launch the WET Korean Won trading pair.

Bithumb has announced that it will launch a WET trading pair.

Phantom launched early access to cash and debit cards this week, starting in the US.

Phantom announced the early access launch of its Phantom Cash debit card this week, starting in the US, with an international version coming soon. Users who have completed identity verification can unlock the Phantom debit card (supporting Apple Pay and Google Pay), seamless deposits and withdrawals of fiat currency and crypto assets, and direct bank transfers. Phantom stated that it is still rolling out the card to users on a waiting list. Phantom states that it is not a bank; the prepaid Visa debit card is issued by Lead Bank and managed by Bridge Ventures, and fees may apply.

Robinhood tokenizes its stock on Arbitrum, pushing its market capitalization above $13 million.

According to Token Terminal data, Robinhood has launched its stock tokenization service on Arbitrum One, with the total market capitalization of the tokens recently exceeding $13 million. Johann Kerbrat, head of Robinhood's crypto business, stated that Ethereum offers default security, while Arbitrum provides the necessary engineering flexibility.

Important data

WET surged 33% in a short period, possibly influenced by the launch of Upbit.

According to OKX market data, WET surged 33% in a short period, currently priced at $0.253, possibly influenced by Upbit's listing. Previous reports indicated that Upbit would be listing WET trading pairs with Korean Won, BTC, and USDT.

Lighter TVL surpassed a record high of $1.456 billion, but recently saw a net outflow of over $40.59 million in a single day.

According to DeFiLlama data, Lighter, a decentralized perpetual contract exchange, has reached a record high TVL of $1.456 billion. PANews analyst JAE suggests this growth may be influenced by the upcoming Token Generation Event (TGE). However, Lighter experienced a net outflow of over $40.59 million on December 12th, the second-highest level in its history.

The "66kETH lending whale" strikes again, purchasing nearly 38,600 ETH within 8 hours.

According to Lookonchain, the "66kETH lending whale," which previously spent $1.5 billion to purchase 489,696 ETH, has increased its holdings again during the market correction. In the past 8 hours, it borrowed $85 million USDT from Aave and transferred it to Binance, and withdrew 38,576 ETH, which was worth approximately $119.3 million at the time.

Investment and Financing/Acquisition

Malaysian company Halogen Capital has raised $3.2 million to expand its asset tokenization business.

Halogen Capital, a licensed digital asset fund management company in Malaysia, announced the completion of a RM13.3 million (approximately US$3.2 million) funding round. The round was led by Kenanga Investment Bank, with participation from 500 Global and other institutions. Kenanga, through its private equity arm, acquired a 14.9% stake in Halogen Capital, becoming its largest institutional shareholder. Other investors included 500 Global, Digital Currency Group, The Hive Southeast Asia, Jelawang Capital, and Mythos Venture Partners. Halogen Capital stated that the funding will be used to expand its tokenization business of real assets, including mutual funds, bonds, Islamic bonds, private lending, and real estate. As of November 2025, the company's assets under management are expected to reach approximately RM400 million (approximately US$97.81 million). Founded in 2023, Halogen Capital currently manages eight wholesale and privately managed funds, serving high-net-worth individuals, corporations, and institutional investors. Previously, fintech company Jirnexu co-founded Halogen Capital, Malaysia's first digital asset fund management company.

TestMachine raises $6.5 million to power its AI-driven on-chain security platform.

According to an official announcement from TestMachine, the company recently completed a $6.5 million funding round, which it plans to use to accelerate the global expansion of its AI security platform, Predator. This round was led by BlockChange Ventures, New Form Capital, Decasonic, and Delphi Digital, with participation from Baboon, UDHC, Auros Global, Generative Ventures, Contango Digital, and Santiago Santos. Predator is now integrated into Coinbase's CEX and DEX for real-time monitoring of over one million tokens. The company claims that the system accurately identified all $12 million in rug pull cases from a sample of 11,000 tokens.

YO Labs, the development team behind YO Protocol, has completed a $10 million Series A funding round, led by Foundation Capital.

PANews reported on December 14th that YO Labs, the development team behind YO Protocol, announced the completion of a $10 million Series A funding round, led by Foundation Capital, with participation from Coinbase Ventures, Scribble Ventures, and Launchpad Capital. This brings their total funding to $24 million. The company plans to use the funds to expand its yield-optimizing protocol to more blockchains and improve its infrastructure.