October 27, 2023

Markets Insights

Economic Calendar

Next FOMC meeting: Nov 1st 2023

  • Probability of a 25bps ease → 1%
  • Probability of a 0bps hike → 99%

The News Room

Taiwan Takes Step Toward Crypto Regulation with First Reading of Proposed Bill

Taiwan's Legislative Yuan (parliament) has passed the first reading of a draft act aiming to regulate cryptocurrency assets. Yung-Chang Chiang, one of the legislators backing the bill, expressed hope that the Financial Supervisory Commission (FSC) would submit their version of the draft for further consensus building. Although the FSC recently issued guidelines suggesting the crypto industry self-regulate via an industry association, such guidelines lack the force of law.

This proposed legislation empowers regulatory authorities to impose administrative penalties on violators of the self-regulation rules. The draft mandates that all crypto platforms in Taiwan must acquire a permit to operate, or face potential shutdown. While the date for the second reading remains uncertain, aside from adhering to anti-money laundering rules set in July 2021, the Taiwanese crypto industry is currently largely unregulated.

UK Bill for Seizing Illicit Crypto Becomes Law

The UK's Economic Crime and Corporate Transparency Bill, which aims to empower law enforcement agencies to seize and freeze cryptocurrency linked to criminal activities, has received the King's approval and is now law. Introduced in September and recently passed by Parliament, the bill addresses a range of illegal activities including drug trafficking, cybercrime, and now, after amendments, terrorism. This legislation not only allows authorities to seize crypto without a conviction but also introduces provisions to identify other assets connected to crypto crime. While the UK is taking steps to become a major crypto hub, the country is also actively cracking down on related illegal activities, as evidenced by the seizure of millions of pounds in cryptocurrency and the deployment of crypto tactical advisers in police departments.

Citadel Securities Denies Involvement in Terraform Labs' UST Stablecoin Depegging

Citadel Securities has responded to Terraform Labs' allegations, firmly denying any involvement in the 2022 depegging incident of the UST stablecoin. In their court filing, Citadel criticized Terraform's reliance on unverified social media claims, especially a post from a pseudonymous user suggesting a clandestine interaction with Citadel's CEO, Ken Griffin. Despite Terraform's insinuations, Citadel underlined its negligible cryptocurrency transactions, pointing out two test trades amounting to roughly $0.13. Furthermore, Citadel is not only asking the court to dismiss Terraform's motion but is also seeking sanctions against Terraform for what it deems a baseless and misleading claim. This legal tussle emerges amidst Terraform's larger legal challenges as the US Securities and Exchange Commission has also filed a lawsuit against the firm over the 2022 depeg event.

Trading Desk Insights

Nasdaq attempted a rebound on Friday, aiming to mitigate some of this week's sharp declines. Tech shares received a lift, with Amazon leading the charge due to impressive quarterly figures. However, Wall Street's atmosphere remains somber, given Thursday's setbacks where both the S&P 500 and the Nasdaq shed over 1% of their value. Nasdaq's slide further entrenched it into correctional territory.

Surveying the week, the broad indices portray a bleak picture. With the S&P 500 depreciating 1.8% and the Nasdaq receding by 2% over the week. Heavyweights like Meta and Alphabet (Google's parent firm) significantly influenced this downward trajectory.

Bitcoin, though exhibiting a bullish demeanor, especially on extended timeframes, seems to be awaiting another spark for a leap. Notably, with equities experiencing a downturn and absent any groundbreaking shifts in the crypto realm, Bitcoin might start to take a breather. This assumption gains traction considering the dip in trading volume from $120 billion to a mere $30 billion. While market players have amplified their positions, the sentiment suggests a possibility of re-entry at a more favorable juncture. Notwithstanding the upbeat chatter, the anticipated BTC spot ETF might still have a couple of months before realization. If equities persist with their downward trend, Bitcoin might retrace towards the $29k-$32k range before any significant surge.

Shifting the lens to the options space, contracts worth $4.5 billion are poised for expiration this Friday, which may translate into additional volatility in the markets. Historical patterns indicate that monthly and quarterly settlements typically induce tremors in the crypto marketplace. Highlighting the options arena further, the aggregate notional open interest across bitcoin and ether options on Deribit has crossed the $20 billion mark.

In regulatory developments, Taiwan has initiated its foray into crypto regulations, tabling a crypto-oriented bill for preliminary scrutiny. This legislation endeavors to categorize virtual assets and chart out a framework for the operational dynamics of exchanges within its jurisdiction.

Technical Charts


This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.

Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.

The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.

Unless otherwise provided in a separate agreement, Secure Digital Markets does not represent that the report contents meet all of the presentation and/or disclosure standards applicable in the jurisdiction the recipient is located. Secure Digital Markets and their officers, directors and employees shall not be responsible or liable for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses, or opinions within the report.

Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.

Contact Us

Sign up to receive more exclusive market coverage:


Start trading with Secure Digital Markets today by e-mailing:


Was this content helpful?
Announcing the Release of the 2023 Market Outlook
April 23, 2023
9 min
April 23, 2023
Crypto Industry Reeling After 3 Banks Collapsed Over the Weekend
March 24, 2023
9 min
March 24, 2023