Monday🌕Web3 Roundup: Hong Kong's Tax Breaks, Tether's BTC Reserves, Hayes' Election Hedge, & Metaplanet's BTC Milestone!

Happy Monday! As we kick off the week, it’s time to dive into the latest developments shaping the Web3 landscape. From Hong Kong considering tax incentives for top crypto investors to Tether reinforcing its stability with significant Bitcoin reserves, the crypto world is buzzing with activity. Meanwhile, Arthur Hayes is strategically hedging against U.S. election risks using staked USDe, while Metaplanet has emerged as a leader in Asia with over 1,000 BTC holdings. Join us as we unpack these exciting stories and explore their potential impact on the digital asset ecosystem!

1. Hong Kong eyes tax breaks for top crypto investors

Hong Kong is set to introduce new tax incentives by year-end, targeting family offices and private funds investing in crypto for wealthy clients. The goal is to foster a favorable environment for blockchain and digital finance, solidifying the region as a global hub for digital assets. Existing incentives include profit tax exemptions and near-zero tax on private equity carried interest. Alongside these initiatives, Hong Kong will roll out policies on stablecoins and establish a regulatory framework for custodians and OTC crypto trading in 2024. These efforts build on the region’s recent licensing regime to enhance investor protection and platform compliance.

Hong Kong Mulls Tax Incentives for Sophisticated Crypto Investors - Decrypt

The policy aims to support the development and investment of crypto as Hong Kong attempts to shape itself into a global digital assets hub.

DecryptSebastian Sinclair

2. Tether secures stability with 82K+ BTC reserves

Tether has strengthened USDT’s stability by adding over 82,000 Bitcoin (valued at $5.58B) and $3.87B in gold to its reserves. This move signals confidence in Bitcoin and aims to diversify risk, ensuring stronger backing for the stablecoin. By holding BTC and gold, Tether seeks to reduce volatility impacts from traditional and crypto markets, providing more stable trading conditions. The increased Bitcoin reserves could also influence BTC’s price through higher demand and improve investor confidence. While reliance on Bitcoin carries some risk, Tether’s strategy reflects a commitment to transparency and long-term stability, supporting trust during uncertain market conditions.

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Dogecoin’s breakout above $0.14789 has sparked renewed bullish sentiment, with indicators pointing to upward momentum.

AMBCryptoErastus Chami

3. Arthur Hayes hedges U.S. election risk via staked USDe

Arthur Hayes, CIO of Maelstrom and BitMEX co-founder, is hedging U.S. election uncertainty by allocating 5% of the fund to staked USDe, earning 13% yield, while maintaining large bullish positions in Bitcoin (BTC), Ether (ETH), and other cryptocurrencies. Hayes believes the election outcome won’t change crypto’s long-term bullish trajectory, as both candidates are expected to continue heavy spending. However, short-term volatility could arise if social unrest follows the election or if geopolitical tensions escalate. Maelstrom plans to deploy more funds into crypto after the election settles, emphasizing careful position sizing and low leverage to navigate market risks effectively.

Arthur Hayes’ Maelstrom Hedges U.S. Election Uncertainty With Staked USDe; Holds Large BTC, ETH Bullish Bets

“Given the uncertainty, Maelstrom has 5% of the fund in staked USDe (Ethena USD), earning roughly 13%,” Hayes told CoinDesk.

CoinDeskOmkar Godbole

4. Metaplanet leads Asia with 1,000+ BTC holdings

Japan-based Metaplanet has achieved a significant milestone by surpassing 1,000 Bitcoin (BTC) holdings. On October 28, the company announced it acquired 156.78 BTC for $10.4 million, raising its total to 1,018.17 BTC, valued at approximately $68.8 million. This move aligns with Metaplanet’s strategy to make Bitcoin a strategic reserve asset, leading to rapid accumulation, particularly from September 30 to October 28. The firm’s Bitcoin yield surged to 155.8% during this period, establishing it as Asia's largest publicly traded Bitcoin holder and ranking it among the top 20 globally. CEO Simon Gerovich indicated plans for further accumulation.

Metaplanet becomes Asia’s largest Bitcoin holder with over 1,000 BTC

Japan-based Metaplanet secures top spot as Asia’s leading public Bitcoin holder, with over 1000 BTC in holdings.

CryptoSlateOluwapelumi Adejumo

As we wrap up this week's Web3 roundup, it's clear that the landscape is evolving rapidly, with significant moves from key players like Hong Kong, Tether, Arthur Hayes, and Metaplanet. These developments not only reflect the growing institutional interest in cryptocurrencies but also highlight the strategic shifts being made to navigate the current market uncertainties. As the industry continues to mature, staying informed will be crucial for investors and enthusiasts alike. Be sure to join us next time for more insights and updates on the ever-changing world of Web3. Until then, keep exploring and engaging with the crypto community!

WEB3 AI ML