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Chainalysis' latest report shows that the potential taxable on-chain cryptocurrency activity globally will reach at least $457 billion by 2025, while the OECD's Crypto Asset Reporting Framework (CARF) covers only about 14% of the on-chain taxable activities. The report estimates that the United States contributes approximately $112.6 billion, with North America leading at $134.6 billion, followed closely by the European Union at $125.1 billion.This estimate includes income generated from realized gains, mining, staking, and lending, as well as payments denominated in crypto assets, but does not include trading activities within centralized exchanges. The CARF will start data collection on January 1, 2026, across 48 jurisdictions, including the UK and EU, requiring eligible crypto platforms to collect customer and tax resident information and report transaction data to domestic tax authorities for cross-border sharing.The report points out that the CARF's design, centered around crypto intermediaries, is the main reason for the coverage gap. Colby Mangels, a former OECD advisor involved in the development of the CARF, stated that the framework is designed around intermediaries that conduct crypto transactions as their business, which leaves a significant amount of decentralized finance activities outside the reporting scope due to the lack of centralized operators or custodial relationships. Mangels noted that tax authorities are focusing on the progress of anti-money laundering regulations, including when DeFi platforms or their operators should be considered regulated crypto service providers.

Fairlead Strategies Managing Partner Katie Stockton stated that Bitcoin is no longer in an oversold state, but it has not yet reached an overbought state. She pointed out that Bitcoin broke through the 200-day moving average in May, and a potential breakout may be imminent. Last week, Bitcoin began to rise due to news that the U.S. Treasury would at least double the scale of liquidity support repurchase operations, with a 7-day increase of over 22%, and the latest trading price is around $78,915, having previously surpassed $81,000 on Monday.For most of June and July, Bitcoin traded below $65,000 and experienced the lowest volatility in 17 years. Analysts believe that the so-called "devaluation trade" may heat up again, where investors buy assets when they believe fiat currencies are devaluing. The dollar declined after the Treasury's announcement, while gold and Bitcoin rose accordingly. U.S. investors re-entered Bitcoin ETFs last week, with inflows nearing $2 billion.Additionally, President Trump met with crypto executives at the White House last week, stating that pushing the Clarity Act through would keep the U.S. ahead. The bill was originally scheduled for a vote in August but has now been postponed to September, and it will establish a framework for distinguishing between securities, commodities, and payment stablecoins in digital assets.

On August 24, according to Caixin, the National Development and Reform Commission released the "Measures for the Administration of Foreign Investment (Revised Draft for Public Comment)" and is publicly soliciting opinions from society, from August 21 to September 20, 2026. The "Draft for Comments" expands the definition of investors from enterprises to domestic enterprises, other organizations, and individual residents, and clarifies that reinvestment by investors abroad also falls under foreign investment.In the section on foreign investment regulation, regarding the classification and regulatory division of foreign investment, the procedures for approval and filing, and other matters, investors must obtain foreign investment approval documents or filing notices before implementing foreign investments. For individual residents newly included as investors, the approval authority is the National Development and Reform Commission, and the filing authority is the provincial development and reform department of their registered residence or habitual residence.

On August 24, according to the Shanghai Securities Journal, Alibaba announced the completion of the pricing for a new share placement of HKD 80 billion (approximately USD 10.2 billion), with 100% of the net proceeds from the placement to be used for investing in full-stack AI capabilities and strengthening AI infrastructure construction.According to sources close to the transaction, this placement was nearly 3 times oversubscribed, exceeding HKD 200 billion. Sovereign and long-term funds ultimately accounted for over 40% of the subscription, with high order quality. Major sovereign funds from regions such as the Middle East, Europe, and Asia actively participated in this subscription.

Real Vision founder Raoul Pal stated that the charts he closely monitors show that Bitcoin has entered an oversold zone of more than two standard deviations relative to the Nasdaq and is currently rising rapidly. He mentioned that he will continue to observe but believes that in the long term, crypto assets should outperform the Nasdaq.Raoul Pal pointed out that such long-term structural trends are of significant reference value for asset allocation. This view is based on the relative strength performance of Bitcoin against the Nasdaq.

According to CoinDesk, a governance proposal from the Optimism community has been approved, reallocating 546.9 million OP tokens originally planned for user airdrops to the "Strategic Ecosystem Fund" managed by the Optimism Foundation, sparking discussions in the community about governance transparency and user rights. The OP tokens involved account for approximately 12.7% of the total supply, valued at about $49.7 million at current prices.The Optimism Foundation stated that as the ecological strategy shifts towards institutional adoption and corporate partnerships, large-scale user airdrops are no longer fully aligned with the current development direction. Unused tokens can be utilized for ecosystem incentives, partnership building, and enterprise-level project expansion. The final vote resulted in 17.974 million OP in support and 10.931 million OP against the proposal.A key turning point occurred 16 minutes and 52 seconds before the voting ended, when the Optimism core development team Test in Prod (delegate.testinprod-io.eth) cast 8.486 million OP in support, raising the approval rate from 45.77% to 61.84%, ultimately pushing the proposal through.If the vote from Test in Prod were excluded, the support rate for the proposal would only be 46.47%, which would not have passed, and the related tokens might have remained in the user allocation pool. The Optimism Foundation previously committed to disclosing the cumulative usage of the fund and related results through an annual budget report. This vote has also reignited discussions about the influence of "large delegated voting rights" in DAO governance and the balance of rights for token holders.

According to Digital Asset, the South Korean government stated that digital assets held by residents through personal wallets or overseas exchanges, as long as they generate income from transfers or lending, are generally subject to taxation.The digital asset tax will be implemented starting January 1, 2027, taxed as other income, with a deduction of 2.5 million won and a tax rate of 20%, including local taxes up to a maximum of 22%.

According to a report by the Korean News Agency, global virtual asset infrastructure company BitGo announced that its Korean entity BitGo Korea has received acceptance of its VASP (Virtual Asset Service Provider) registration application from the Financial Intelligence Unit (FIU) of Korea on August 18, becoming the first foreign cryptocurrency corporate entity to complete VASP registration directly in Korea.BitGo Korea was established in 2024, and this time chose to directly meet regulatory requirements to enter the market, rather than adopting the industry norm of acquiring existing VASP companies. Subsequently, it will use this as a foundation to officially launch virtual asset custody and transfer services in Korea, focusing on expanding business towards financial institutions and corporate clients.

Kaito AI founder Yu Hu responded to the community's privacy concerns regarding the Pulse browser extension. Yu Hu stated that Pulse's verification feature is based on zkTLS technology and generates encrypted proofs only when users actively initiate verification. Kaito only receives the final proof and not the complete account data or browsing history. The interactive data collection of Pulse on the X platform (such as content exposure, duration of stay, interactions) has been clearly authorized at the time of user installation and will not send browsing activities from other web pages to Kaito.Regarding the Chrome prompt "can read and write all website data," Yu Hu acknowledged that its displayed scope is broader than actual use and will be corrected in the next version to "can read and write X website data," which critics like Ultra have recognized. Kaito Pulse will be open-sourced this week for community review. Yu Hu stated that Pulse's device fingerprinting feature is only used to prevent abuse behaviors such as click fraud and witch attacks, and is not used for analysis or other purposes. This statement serves as Kaito's official response to recent community concerns, with the specific features of Pulse to be confirmed by the open-source code.

The attention economy platform Kaito AI launched the browser extension Kaito Pulse on August 18, which can directly integrate users' public holdings and other off-chain activities on platforms like Polymarket and Hyperliquid into the X timeline, and synchronously introduce the attention metric Aura to measure the attention signals generated by users' statements and actual behaviors. Users can accumulate Aura by installing the extension, using Yaps to receive initial Aura, verifying transactions, or engaging in creator activities.Subsequently, well-known analyst @0x_ultra released a source code analysis stating that the extension has multiple data collection behaviors, including generating a unique device fingerprint through GPU rendering, device model, and audio tests, and associating it with the X account; recording user behaviors such as scrolling duration, clicks, searches, bookmarks, etc., during X sessions, and sending heartbeat packets every 30 seconds; reading subscription plans and usage for ChatGPT and Claude during verification, as well as wallet balances, holdings, profits and losses, and deposit/withdrawal records on platforms like Binance. The extension only allows communication with the Kaito domain, and the ZKTLS part is based on the open-source project Primus branch. Kaito officials have not yet responded to this.

U.S. Trade Representative Tai stated that the agreement reached with Canada will include comprehensive market access for all U.S. goods, commitments to economic security, and digital trade integration.

According to CoinDesk, Robinhood CEO Vlad Tenev posted on the X platform, urging U.S. regulators to establish a regulatory framework for tokenized stocks, warning that the U.S. may hand over the dominance of next-generation financial market infrastructure to overseas markets. Tenev stated that the financial system is in the early stages of a "tokenization supercycle," and Robinhood has provided tokenized versions of over 190 U.S. stocks to users in more than 120 countries, allowing investors to gain economic exposure and enjoy dividends.He pointed out three major advantages of tokenization: real-time settlement (which can further reduce settlement risk compared to the current T+1 system), 24/7 trading, and seamless transfer of assets across different platforms. Tenev bluntly stated that if the U.S. does not take action, other regions around the world may build the future financial system around U.S. assets, while Americans may be excluded.

Decred official X account (@decredproject) released a security notice, stating that a security vulnerability has been discovered in the Decred (DCR) network, and a patch will be released on August 18 at 10 AM Eastern Time.For security reasons, the official recommends that users suspend voting and mining operations until the upgrade is completed. An announcement will be synchronized on the official X account as soon as the patch is released.

According to a report by Reuters, influenced by multiple factors such as the tense Sino-U.S. relations, China's push for domestic software alternatives, and U.S. export controls, Microsoft has closed at least 15 branches and joint ventures in China over the past five years, executing a strategic contraction. In 2023, the company internally considered exiting the Chinese market, as some executives believed that "the geopolitical risks outweighed the limited economic returns," but ultimately did not proceed with the exit. Microsoft disclosed in 2024 that its business in China accounted for only about 1.5% of its global revenue.The report states that Microsoft's final decision to remain in China was primarily due to the establishment of a profitable path—providing Azure cloud and AI services to Chinese companies like ByteDance and Shein, helping them operate compliantly in overseas markets. Additionally, the company believes that retaining its business in China remains strategically significant for acquiring engineering talent. However, analysts question the sustainability of this AI business model: the service relies on third-party models like OpenAI, and Chinese companies are increasingly adopting domestic alternatives like Kimi, which offer comparable performance at lower costs.Microsoft's research and development presence in China is also contracting. Its predecessor, Microsoft Research Asia, has successively established new labs in Vancouver, Singapore, and Tokyo. In 2024, the company offered job opportunities to 1,000 top engineers to relocate to the U.S. and three other countries, but only about one-third accepted, with most senior engineers moving to domestic universities and tech companies. A Microsoft spokesperson responded that the company will continue to commit to the Chinese market but did not comment on specific decision details. ByteDance and Shein did not respond to related inquiries.

After the overseas CEX Apps like Bybit and OKX were removed from the local Google Play in South Korea, the country is further tightening the process of transferring crypto assets to overseas platforms. According to the latest amendment to the Enforcement Decree of the Specific Financial Information Act, South Korean trading platforms will need to determine whether to allow transfers based on the risk level of the overseas platforms; when transferring to certain overseas trading platforms or personal wallets, users may be required to prove that the account belongs to them and explain the purpose of the transaction and the source of funds. If the information is insufficient, the transfer may be delayed or refused.Transactions reaching 10 million Korean won or more will also be included in the suspicious transaction monitoring system established by the exchanges, and the relevant regulations will be implemented six months after their announcement.

Grayscale Research Director Zach Pandl stated that even if the Clarity Act does not pass, the main blockchain operations, the demand for Bitcoin as a store of value, and the growth of stablecoin payments will not be immediately affected, and regulators will fill the regulatory gaps through rule-making.Zach Pandl pointed out that the lack of comprehensive market structure legislation may suppress new investment activities in the U.S., prompting participants in the crypto industry and startups to turn to overseas jurisdictions with clear regulatory frameworks. The U.S. government will continue to support the development of the crypto ecosystem. Strategy co-founder and Executive Chairman Michael Saylor previously stated that regardless of whether the Clarity Act passes, Bitcoin will continue to evolve, but the U.S. needs clarity in digital asset regulation. Senator Bernie Moreno stated that Senate Democrats and Republicans have concluded relevant negotiations and will proceed to a vote.

The South African National Treasury and the South African Reserve Bank (SARB) have released a draft regulation for cross-border transfers of crypto assets. Farzam Ehsani, co-founder and CEO of the crypto asset trading platform VALR, stated that unless key terms are significantly modified, the relevant framework could harm the domestic digital asset industry and drive funds overseas.The draft allows individual residents to transfer crypto assets abroad within the existing foreign exchange limits but restricts companies from engaging in cross-border crypto asset transactions and categorizes some deposits from private non-custodial wallets as unacceptable transfers for local crypto asset service providers (CASP). Ehsani believes this could prompt businesses and retail investors to turn to overseas platforms.Ehsani pointed out that prohibiting regulated entities from processing legitimate business transactions, especially cross-border stablecoin payments, could push transactions underground or abroad, thereby undermining the visibility and monitoring capabilities that regulators hope to achieve. The South African National Treasury and SARB have opened a public consultation, with the feedback deadline set for September 30.

According to South Korean media NATE, the Korea Regulatory Reform Committee has proposed amendments to the enforcement decree of the Specific Financial Transaction Information Act, excluding minor violations from the qualification restrictions for major shareholders of Virtual Asset Service Providers (VASP).This move has sparked discussions in the market regarding exchange mergers and acquisitions, the entry of new businesses, and the fairness of regulation. The proposal to relax restrictions also involves issues related to the boundaries of the enforcement decree's authority.

The State Taxation Administration of China responded to the recent discussions on taxing insurance income in Hong Kong, stating that Chinese tax residents are required to fulfill their tax obligations on global income according to the law, and that overseas insurance income also falls within the scope of taxable income. This is not a new policy and is not specifically aimed at the Hong Kong insurance market. The tax authority indicated that residents must declare and pay taxes on overseas insurance income and other investment income in accordance with the law, and the relevant rules treat overseas income from different countries and regions equally.Yesterday, Caixin reported that with the normalization of CRS information exchange, Chinese tax authorities can now fully obtain data on dividends and cash value from overseas insurance policies, gradually filling the gaps in tax administration. Currently, the taxation of insurance income from overseas sources has been initiated.

According to Bloomberg, informed sources revealed that the U.S. government department responsible for investigating violations of chip export controls is currently conducting a systematic review of how Chinese AI companies obtain advanced chips from Nvidia through legal means, focusing on their behavior of renting computing power in third countries. This move stems from recent technological breakthroughs achieved by Chinese AI companies, indicating that they still have the capability to acquire and use top-tier hardware despite U.S. export restrictions on chips to China. Analysts believe that this review may prompt the U.S. to further tighten regulatory rules on computing power leasing in third countries to close existing loopholes in the export control system.