What CLARITY Actually Is

The CLARITY Act (H.R. 3633) is a US crypto market structure bill designed to create clearer federal rules for digital assets and resolve years of conflict between the SEC and the CFTC over who regulates the industry.

Passed by the House in 2025, the bill would formally divide oversight between securities regulators and commodity regulators, ending much of the legal uncertainty that has shaped the US crypto market for years.

The SEC/CFTC Jurisdictional Split

Right now, two regulators - the SEC and the CFTC - both claim authority over crypto, and nobody has been sure which rules apply to which assets.

For years, the two agencies have taken overlapping positions on digital assets, with the SEC arguing that many tokens function as securities while the CFTC has pushed for a larger role overseeing commodity-style crypto markets.

In practice, the overlap often left exchanges and trading platforms facing competing interpretations and potentially duplicative compliance obligations.

The CLARITY Act is designed to formally divide responsibilities between the two agencies, giving the SEC oversight of digital asset securities while expanding the CFTC's authority over digital commodity spot markets.

The bill also requires the two agencies to jointly define key terms, determine how mixed platforms should be regulated, and establish rules for delisting assets.

Digital Commodity vs. Security: Where the Line Gets Drawn

In practice, the classification question comes down largely to how a token derives its value. Under §103 of the bill, a digital commodity is a digital asset whose value is "intrinsically linked" to the use of the blockchain to which it relates.

If a token instead depends mainly on the efforts of a central team - the model covered by §201, which defines investment contract assets - it is more likely to be treated as a security.

A project does not become a digital commodity simply by calling itself decentralised. The bill introduces a "maturity" test designed to measure how much control the founding team still has over the network.

To qualify for the CFTC framework, no insider group can control more than 20% of voting power or hold more than 20% of the token supply. For older blockchains that already existed before the bill, at least half of all tokens must be held outside the founding team.

The bill also allows crypto projects to raise money under securities rules without automatically classifying their tokens as securities forever.

In practice, this means a project could initially sell tokens to investors under SEC oversight, while later allowing those same tokens to qualify as digital commodities if the network becomes sufficiently decentralised.

Which Companies Are Directly Affected by the CLARITY Act

The bill mainly targets the companies that sit between crypto users and the market: exchanges, brokers, trading platforms, and stablecoin firms.

Crypto trading platforms such as Coinbase and Kraken would have to register with the CFTC as digital commodity exchanges and follow new rules around customer asset protection, market surveillance, reporting, and anti-money-laundering controls.

Futures commission merchants (FCMs) and designated contract markets (DCMs) - the futures-focused firms already regulated by the CFTC - would also be brought into the updated digital commodity framework under the bill's Commodity Exchange Act amendments.

For alternative trading systems (ATSs), the bill takes a lighter approach: under §304, SEC-registered ATSs may trade digital commodities upon notification to the CFTC rather than full dual registration, provided oversight across the two agencies remains consistent. Broker-dealers, custodians, and ETF issuers could find it easier to expand crypto-related products under a clearer regulatory framework.

The bill focuses mainly on centralised intermediaries rather than ordinary wallet users, blockchain validators, or many open-source software developers, which are largely carved out of the framework.

What Changes for Stablecoin Issuers

The CLARITY Act will define how stablecoins fit into the broader crypto market structure, affecting operations of stablecoin issuers such as Circle, Tether, and Paxos.

The bill largely leaves stablecoin issuance rules to the separate GENIUS Act enacted in 2025. CLARITY instead focuses on how stablecoins are traded and used across regulated crypto platforms.

One of the biggest debates around the bill involves yield-bearing stablecoins that pay users interest simply for holding a token. On May 1, 2026, Senators Thom Tillis and Angela Alsobrooks proposed a compromise that would restrict crypto firms from offering returns that function too much like traditional bank deposits.

In practice, that could force stablecoin companies to rethink some business models built around passive yield products. Instead of paying users simply for holding a stablecoin, firms may need to tie rewards more closely to trading activity, liquidity provision, or other on-chain services.

Coinbase and other crypto firms have also pushed back against parts of the proposed stablecoin framework, particularly around restrictions tied to yield-bearing products and reserve requirements.

We submitted our response to the @USOCC’s proposed rules for permitted payment stablecoin issuers (PPSIs). We appreciate the work that the Administration is doing to ensure that GENIUS stablecoins gain broad adoption, and the US leads in digital innovation. To that end, we made… pic.twitter.com/ho8qJkQ9o8

— Faryar Shirzad ????️ (@faryarshirzad) May 6, 2026

Where It Sits in the Legislative Pipeline

The CLARITY Act still faces several major hurdles before it can become law. The immediate question is not a final Senate vote, but whether the bill can first advance through committee markup.

Despite the remaining hurdles, some lawmakers argue momentum is building. Senator Cynthia Lummis described the latest compromise language on stablecoin yield as "the culmination of months of hard work," adding that lawmakers were "closer than ever to getting the CLARITY Act across the finish line."

This finalized, bipartisan text is the culmination of months of hard work to deliver a compromise on yield we can all live with. We are closer than ever to getting the Clarity Act across the finish line. https://t.co/8vF7tzpxpy

— Senator Cynthia Lummis (@SenLummis) May 4, 2026

Supporters of the bill argue that clearer market structure rules are necessary to keep crypto activity inside the United States rather than pushing it offshore. Faryar Shirzad, chief policy officer at Coinbase, described the planned Senate markup as a "big step forward," adding that "clear market structure rules are essential for protecting consumers, supporting innovation, and ensuring this technology develops in the United States rather than offshore."

Big step forward. Appreciate @SenatorTimScott and the Senate Banking Committee moving toward markup of the CLARITY Act on May 14. Clear market structure rules are essential for protecting consumers, supporting innovation, and ensuring this technology develops in the United… pic.twitter.com/ngqCOZmJZi

— Faryar Shirzad ????️ (@faryarshirzad) May 8, 2026

Here is where it actually stands as of May 12, 2026:

• House: Passed 294-134 in July 2025.
• Senate Banking Committee: Released a new 309-page draft on May 12, 2026. Committee members have until close of business May 13 to file amendments, with a markup scheduled for Thursday, May 14.
• Senate Agriculture Committee: Passed its own related bill, the Digital Commodity Intermediaries Act, out of committee on January 29, 2026.
• Reconciliation: The two Senate committee versions must be merged, then that merged bill must pass the full Senate with a 60-vote threshold.
• House re-vote: Any Senate-approved text that differs from H.R. 3633 must go back to the House.

Earlier versions of the Senate draft also faced criticism from Coinbase CEO Brian Armstrong, particularly around stablecoin rewards and SEC authority, although he later welcomed compromise talks on the legislation.

We agree. Thank you @SecScottBessent for saying it. It's time to pass the Clarity Act.Grateful for all the bipartisan work among Senators and staff over the past several months to make this a strong bill. https://t.co/jHoZ1bfLVZ pic.twitter.com/YBKebDkq8B

— Brian Armstrong (@brian_armstrong) April 10, 2026

What the CLARITY Act Would Not Do

The CLARITY Act would still leave several major areas of crypto regulation unresolved. It would not determine how digital assets are taxed. Even if a token qualifies as a digital commodity under the bill, the IRS could still apply separate tax rules.

The bill also does not directly regulate most decentralised finance (DeFi) protocols, particularly those operating without centralised custodians or issuers.

It would not replace existing state-level crypto licensing rules, meaning companies could still face overlapping federal and state requirements.

The SEC could also continue pursuing enforcement cases involving conduct that took place before the law's effective date, or against assets that continue to be treated as securities. NFTs and digital collectibles are largely outside the bill's focus and are excluded from the digital commodity definition.

The bill also includes a separate provision preventing the Federal Reserve from issuing or testing a central bank digital currency (CBDC), although that is not central to the broader market structure framework.

FAQ (Frequently Asked Questions)

Does this mean Bitcoin and Ether are officially commodities?

Not yet. The bill creates a process for determining which assets qualify as digital commodities under the §103 criteria, but regulators would still need to finalize the rules. Bitcoin would very likely meet the maturity thresholds - no single group controls 20% of voting power or supply. Ether's status remains more debated.

When is the actual vote?

There is no confirmed Senate floor vote yet. The next major step is a Senate Banking Committee markup, which had been targeted for May 2026 but was not officially scheduled at publication time.

Does CLARITY replace the need to register with the SEC?

Only partly. Some crypto trading activity would move under CFTC oversight, while token fundraising could still fall under SEC rules.

What happens if the bill fails?

The current system would remain in place: overlapping oversight, state-level licensing, and regulation through enforcement actions.

Does this affect crypto held in personal wallets?

Not directly. The bill largely protects self-custody and peer-to-peer transfers.

What is the connection to the GENIUS Act?

GENIUS focuses on stablecoin issuance parameters, including reserves, licensing, redemption rights. CLARITY focuses on how digital assets, including stablecoins, trade across the broader crypto market. The two bills are designed to interlock, but the stablecoin yield question has been the main source of friction between them.

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The company announced that funds managed by Neuberger Specialty Finance provided the facility. Ripple will use the capital to increase lending capacity and support margin financing for institutional clients.

Dependable access to financing is critical to institutional participants in today’s dynamic markets, and Ripple Prime’s ability to meet this need just got that much stronger.We're proud to partner with Neuberger on a $200M debt facility to meet rising client demand for our…

— Ripple (@Ripple) May 11, 2026

Ripple Prime Reports Strong Revenue

Ripple Prime has recorded strong growth since Ripple acquired the platform in 2025. The firm said revenue has tripled year over year, driven by higher trading activity and rising demand for financing solutions. Institutional clients continue to seek stable access to capital as they operate across multiple asset classes.

The agreement allows Ripple Prime to draw up to $200 million over time, depending on client demand. The company plans to deploy the funds to extend credit to both new and existing institutional clients.

Related: Ripple Seeks Australian License as It Expands Regulatory Footprint

Neuberger Specialty Finance said the deal aligns with its strategy of supporting asset-based financing platforms. The firm highlighted Ripple Prime’s position across both traditional finance and digital assets.

Peter Sterling, Head of Neuberger Specialty Finance, said the platform combines technology with operational discipline. “This facility reflects our focus on partnering with market leading platforms and is a testament to Ripple Prime’s unique position at the nexus of traditional and expanding markets,” he said.

Focus on Traditional and Digital Markets

Ripple continues to expand its institutional offering, which includes services across payments, custody, liquidity, and treasury management. The new facility strengthens its ability to provide financing solutions as institutional participation in digital assets increases.

Ripple bought prime broker Hidden Road for about $1.25 billion in 2025 and rebranded it as Ripple Prime, marking a major push into multi‑asset institutional brokerage and clearing.

Ripple Prime is ramping up in a busy field where institutional investors already rely on large crypto prime brokers and exchange‑linked platforms offering trading, financing, and custody. Its new $200 million facility signals Ripple’s intent to match rivals’ balance‑sheet strenght and deepen services like margin financing, rather than just provide market access.

In practice, that means competing more directly for the same hedge funds and trading firms that today borrow, trade, and custody through established institutional platforms, turning credit capacity and multi‑asset infrastructure into the main battleground for winning institutional flows.

Roussos is not a trader, marketer, or crypto evangelist.

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Kraken Is Betting on RegTech Expertise

He comes instead from the world of regulatory technology. Before joining Kraken, he spent a decade at Point 9, a Limassol-based regtech firm serving banks, brokers, funds and asset managers.

Over the years, he specialised in the less glamorous but increasingly essential mechanics of modern finance: EMIR reporting, MiFID II compliance and cross-border regulatory infrastructure.

That background appears to be deliberate for Kraken. In 2025, the US-based crypto exchange acquired CFD broker Greenfield Wealth, securing a Cyprus Investment Firm (CIF) licence and, with it, access to the EU’s MiFID framework.

Since then, the company’s activity in Cyprus has accelerated noticeably. Earlier this year, Kraken advertised roughly 50 Cyprus-linked vacancies on LinkedIn within the span of two weeks, a signal that the exchange’s European strategy is moving from licensing to execution – an intent now crystallised in the hiring of Roussos.

The exchange also obtained a MiCA licence from the Central Bank of Ireland the same year, giving it regulatory footing across the European Union as ESMA tightens oversight of digital assets.

Roussos hiring comes at a time of increased regulatory scrutiny. The Cyprus Securities and Exchange Commission has informed CIFs that it intends to conduct on-site visits and desk-based reviews as part of ESMA’s Common Supervisory Action for 2026.

At the same time, the grandfathering period for MiCA is coming to an end in July.

Product Expansion Gathers Pace

This year, Kraken introduced 70 traditional finance futures markets for eligible European clients, adding equity indices, commodities and FX contracts alongside more than 290 crypto perpetuals already available on the platform.

The products are offered through Payward Europe Digital Solutions (CY) Limited, the CIF created following the rebranding of Greenfield Wealth after its acquisition by Kraken.

Macro traders, this one's for you ????TradFi futures are now live on Kraken Pro.Trade S&P 500, Nasdaq-100, gold, oil, FX and more directly on Kraken Pro alongside crypto.Global markets. One terminal.Get started ????https://t.co/iDprZ0UHrs pic.twitter.com/264XzyjYpu

— Kraken Pro (@krakenpro) March 16, 2026

The move followed Kraken’s earlier rollout of regulated digital-asset futures across Europe in 2025 and forms part of a broader strategy to position the company as a multi-asset trading venue rather than merely a crypto exchange.

That ambition extends further still. Through its xStocks offering, Kraken now provides round-the-clock access to tokenised equities and equity-linked perpetual futures.

Tokenised equities have emerged as one of the standout winners of 2026, drawing growing interest from trading platforms and brokerages searching for new revenue streams beyond traditional stock and CFD markets.

According to a report by Foresight Ventures, a crypto VC, tokenised equities now account for roughly US$800 million in market capitalisation, making them one of the fastest-growing segments within the broader real-world asset (RWA) universe.

Nonetheless, Kraken has also partnered with Deutsche Börse to explore integrated trading, custody and settlement infrastructure spanning crypto assets, equities and derivatives.

Against that backdrop, Roussos’ appointment is less a routine hire than a signal of the industry’s tilt towards regulatory and institutional expertise.

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Charles Schwab has begun rolling out plans for spot cryptocurrency trading for retail clients.SoFi Technologies resumed crypto trading after regulatory changes. Several firms, including Morgan Stanley and PNC Financial Services, have also been exploring or developing crypto offerings. The moves reflect wider expansion in retail access to digital assets.

Retail Crypto Fees Under Competitive Pressure

At Morgan Stanley, the service is currently available to a limited group of users. A broader rollout is expected later in 2026. It is planned to reach about 8.6 million E*Trade clients.

The pricing places Morgan Stanley below several competitors in retail crypto trading. Coinbase charges can exceed 0.5%, depending on user tier and payment method. Robinhood offers commission-free trading but generates revenue through spreads, typically between 35 and 95 basis points. Charles Schwab charges around 75 basis points for Bitcoin and Ether transactions.

LATEST: ???? Morgan Stanley has begun piloting crypto trading via E*Trade with lower fees than than Coinbase, Robinhood, and Schwab, according to Bloomberg. pic.twitter.com/rVXopGkBw2

— CoinMarketCap (@CoinMarketCap) May 6, 2026

E*Trade Gives Access to Retail Crypto

The pilot follows earlier plans disclosed in 2025 to bring crypto trading to E*Trade. It indicates the bank has moved from planning into execution.

The service also gives Morgan Stanley access to its existing retail client base through E*Trade. This provides a distribution channel that crypto-native exchanges do not have. Competition in retail crypto trading is increasing, with pricing emerging as a key factor as traditional brokers expand further into the market.

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The move extends a broader restructuring cycle across the crypto sector that began after the 2022 market downturn, with exchanges repeatedly adjusting staffing levels in response to weaker trading activity and volatile revenue conditions.

Coinbase Flattens Structure, Cuts Jobs Amid AI

In an internal message to employees, CEO Brian Armstrong said the decision reflects both market conditions and shifts in how work is being executed inside the company. He cited “continued weakness in parts of the crypto market” and “rapid advances in AI tools that are materially changing how work is executed”.

Armstrong said Coinbase is increasingly using AI tools to accelerate development and reduce coordination across teams, with plans to move toward smaller, more autonomous “AI-native” groups supported by automation.

This is an email I sent earlier today to all employees at Coinbase:Team,Today I’ve made the difficult decision to reduce the size of Coinbase by ~14%. I want to walk you through why we're doing this now, what it means for those affected, and how this positions us for the…

— Brian Armstrong (@brian_armstrong) May 5, 2026

The company also plans to flatten its management structure, limiting organisational depth to five layers below the CEO and COO in an effort to reduce complexity and speed up decision-making. Managers will take a more hands-on role in execution, a model Armstrong described as “player-coaches”.

Crypto Sector Faces Lower Growth Phase

Coinbase said the changes are intended to improve efficiency and reduce organisational friction, while also reflecting a broader trend across technology firms of reassessing multi-layer management structures in engineering-heavy organisations.

Alongside the structural changes, the company pointed to ongoing market pressure. Crypto trading volumes have remained uneven following recent volatility, weighing on exchange activity and revenue. It said the layoffs are not driven by immediate financial distress but reflect longer-term alignment between costs and expected market conditions.

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According to Alvin Kan, this split between liquidity and access may define the next phase of the sector. Platforms like Bitget are focusing on access and usability, rather than building their own markets. The assumption is that adoption will depend more on how markets are accessed than where they are hosted.

When Liquidity Meets Accessibility and User Experience

The difference between using a native platform like Polymarket and accessing markets through a wallet lies in how users access and interpret them, Kan explains.

“Platforms like Polymarket are effective at liquidity and price discovery, but they typically require users to navigate multiple steps and interpret raw probabilities independently. Bitget Wallet adds a layer focused on accessibility and usability,” he says.

From an access standpoint, users can move from funding to execution within a single mobile interface, aiming to reduce friction. From an interpretation standpoint, AI-assisted analysis helps aggregate data, news, and on-chain signals into more structured insights. Kan describes this as a shift in the category, from building markets to making them easier to access and understand at scale.

Integrations vs. Building Its Own Markets

Rather than launching its own prediction market, Bitget Wallet chose to integrate with existing infrastructure, as what appears to matter most to users is access to deep, liquid, and diverse markets, Kan explains.

“Building a prediction market from scratch requires significant time to bootstrap liquidity, and without that, pricing and participation tend to remain limited. Integrating with an established platform like Polymarket allows access to meaningful markets from the outset,” he says.

However, this approach relies on external infrastructure for liquidity and market structure, limiting control over areas such as listings and monetisation.

According to Kan, this trade-off is a deliberate choice, as the wallet focuses on improving access, usability, and distribution rather than rebuilding the market layer.

How to Simplify the Complexity

Prediction markets require users to understand probabilities, outcomes, and risk, which can be difficult without earlier experience. Within a wallet, this is combined with additional steps such as funding, transaction signing, and position management. According to Kan, making a complex product accessible is a main challenge.

“The goal is to simplify this into a single, coherent user journey, from discovering markets to understanding them, to executing trades,” he says. “At the same time, it is critical to maintain clarity around risk and outcomes, so simplification does not come at the expense of transparency.”

Compliance Tied to the Access Layer

Kan points out that access is managed based on local regulatory requirements. This means that certain jurisdictions may have restrictions on prediction market participation.

“As a self-custodial wallet, Bitget Wallet does not custody user assets or operate the underlying markets. Instead, it provides access to on-chain protocols while ensuring users are informed of applicable limitations and are expected to comply with local regulations.”

This is consistent with a broader Web3 model, where infrastructure and interface layers are distinct, but compliance considerations remain relevant at the point of access.

Where Users Will Access Prediction Markets Over Time

Kan expects a hybrid model to emerge. “Dedicated platforms like Polymarket will remain central to liquidity and price discovery, particularly for more active or experienced users,” he says.

However, broader adoption is likely to come through more familiar environments such as wallets and exchanges. Users are less likely to navigate separate platforms for each interaction and more likely to engage through environments where their assets are already held.

“Over time, we expect liquidity to concentrate, while access becomes more distributed. Wallets are well-positioned to serve as that entry point, making prediction markets more accessible without changing where the underlying markets operate.”

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The Clock Is Ticking on Australia's Crypto License Sweep

The regulator said today (Monday) that providers offering services tied to digital asset financial products must decide whether they need a new AFS license, or a variation to an existing one, and apply by June 30, 2026. After that date, ASIC's sector-wide no-action position falls away, exposing unlicensed firms to civil and criminal penalties that can reach up to 10% of annual turnover.

Companies seeking an Australian Market Licence or a Clearing and Settlement facility license face an additional step. They must notify ASIC in writing of their intention to apply and hold a pre-application meeting before the same June 30 deadline.

ASIC's Information Sheet 225, refreshed last year, now classifies stablecoins, wrapped tokens, tokenised securities and digital asset wallets as financial products under the Corporations Act.

That definition pulls a much wider slice of the local crypto industry into the AFS licensing perimeter than the previous interpretation, which centered on platforms trading conventional digital tokens.

What the No-Action Window Actually Buys

The no-action letter, published in October 2025, gave providers a runway to digest the updated guidance and either apply for fresh authorizations or vary existing ones.

ASIC has said the position is not a safe harbor against private litigation or non-ASIC enforcement, and it expires for everyone on the same date.

Some firms can comply by becoming an authorized representative of an existing AFS licensee rather than securing their own license, depending on the services they provide.

ASIC has also kept in place earlier relief instruments covering the distribution of certain stablecoins and wrapped tokens. Those carve-outs currently apply to a single issuer, Catena Digital, which issues the AUDM stablecoin.

The licensing pipeline has already started to swell. ASIC granted 290 new AFS licenses in the financial year to June 2025 while cancelling or suspending 215 others, with applications from digital asset operators rising notably, Commissioner Alan Kirkland said at the time.

How Australia's Approach Compares to Global Peers

Australia is moving toward a destination several other major jurisdictions have already reached, though by a different route.

The European Union's Markets in Crypto-Assets regulation took full effect in December 2024, requiring exchanges, wallet providers and stablecoin issuers to obtain a MiCA license to operate across the bloc. Penalties for non-compliance under MiCA can reach 12.5% of annual turnover, slightly above Australia's threshold.

In Asia, Hong Kong opened its stablecoin licensing regime in April and granted its first approvals to HSBC and Anchorpoint. Japan moved its crypto sector under the Financial Instruments and Exchange Act earlier this year and banned insider trading in digital assets.

Singapore continues to license payment service providers under its 2019 Payment Services Act.

Enforcement Track Record Adds Pressure

Recent enforcement gives the deadline real teeth. The Federal Court of Australia fined Binance Australia Derivatives AU$10 million in March after the company admitted misclassifying more than 85% of its local clients.

In December 2024, Bit Trade, the local operator of Kraken, paid AU$8 million over a leveraged margin extension product the court found breached design and distribution obligations.

ASIC has also flagged offshore venues offering high-leverage products to Australians, including a public warning against Bitget over its 125x crypto futures. The regulator has signalled that the same scrutiny will follow firms that miss the AFS license window.

A Second Deadline Comes in 2027

The June 30 cutoff is not the end of the road. The Corporations Amendment (Digital Assets Framework) Act 2026, which cleared parliament on April 1, received Royal Assent on April 8 and commences April 9, 2027. It introduces dedicated authorizations for digital asset platforms and tokenized custody platforms, both supervised by ASIC.

Many firms that secure an AFS license under the current INFO 225 guidance will need to add DAP or TCP authorizations once the new regime starts. ASIC has published a roadmap covering its consultation timetable and the operational standards it expects to set during the 18-month implementation period.

"Licensing firms improves investor protections and provides greater certainty to providers to operate under the law," ASIC said in its statement.

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While the technology remains powerful, the economic foundations of most DeFi lending protocols are still structurally weak. Much of the system operates on reflexivity, where value is borrowed from the future to support the present. Without a shift from internal speculation toward external utility, the ecosystem risks long-term irrelevance.

Recursive Lending Without Productive Output

At the core of the problem is the circular nature of DeFi lending. In traditional finance, loans fund productive activity that generates real economic output. In DeFi, lending is largely recursive. Users deposit volatile assets, borrow stablecoins, and often recycle them back into the same assets.

This creates leverage loops that function in bull markets but produce no real economic surplus. Yield is driven not by productivity, but by demand for leverage among speculators, making the system heavily dependent on rising asset prices.

Inflationary Tokens Attract Mercenary Liquidity

This fragility is reinforced by inflationary tokenomics. Many protocols rely on liquidity mining incentives paid in governance tokens to attract capital. This creates mercenary liquidity that constantly chases the highest yield.

These tokens often have limited real utility, meaning their value depends heavily on future buyers. When prices fall, yields collapse, liquidity exits, and protocols can spiral quickly. The collapse of Iron Finance in 2021 illustrated this dynamic clearly, as its partially collateralized stablecoin system broke down rapidly once confidence eroded.

Over-Collateralization Limits Real Access

Capital inefficiency is another structural flaw. Traditional banking extends credit based on trust and repayment history, while DeFi is overwhelmingly over-collateralized. Borrowers must lock up more value than they receive, often making the system unusable for those who actually need capital.

A small business in an emerging market cannot access DeFi credit if it requires holding 150% collateral in volatile crypto assets. As a result, the system favors capital-rich speculators rather than real economic participants.

Automated Liquidations Amplify Market Stress

Systemic risk is further amplified by liquidation cascades. Smart contracts automatically liquidate positions when collateral falls below thresholds. In volatile markets, these forced sales push prices lower, triggering further liquidations in a feedback loop.

The collapse of the Terra/Luna ecosystem in 2022 showed how quickly this can escalate. Anchor Protocol’s unsustainable yield attracted massive inflows, but once thestablecoin peg failed, cascading liquidations wiped out tens of billions and spread contagion across the broader market.

Real World Assets Stabilize Yield Base

To become sustainable, DeFi must integrate real-world assets. Closed-loop crypto economies cannot sustain themselves indefinitely. Lending protocols need exposure to external sources of yield such as government debt, trade finance, and private credit.

MakerDAO, now rebranded as Sky Protocol, has already moved heavily into U.S. Treasuries and private credit, creating more stable income streams during downturns. This shifts protocols closer to blockchain-based investment structures, though concerns remain that much of the value still depends on off-chain systems rather than fully on-chain economic logic.

Credit Systems Replace Collateral Dependence

Another key evolution is decentralized identity and on-chain credit scoring. Moving beyond over-collateralized lending is essential for real adoption. Zero-knowledge proofs allow borrowers to demonstrate creditworthiness without revealing sensitive data, enabling risk assessment based on financial history rather than collateral alone.

DeFi is inevitable, but only if it can support the existing financial system.Real-world assets are giving the industry the chance it needs to find its footing in traditional market structure. https://t.co/XP6NjHEu0Q

— Plume (@plumenetwork) April 29, 2026

This could eventually allow DeFi to extend credit to real businesses in emerging markets, bringing productive activity onto the blockchain instead of purely speculative flows.

Modular Design Reduces Systemic Contagion

Protocol design also needs to become more modular. Early DeFi systems relied on shared liquidity pools, which are highly vulnerable to contagion. Newer models are introducing isolated markets where failures are contained rather than spreading across the entire system. Aave has already taken steps in this direction with isolation modes and risk segmentation.

Combined with better insurance mechanisms and improved smart contract security, these changes could make DeFi more resilient and attractive to institutional capital.

Speculative Culture Undermines Stability

We must also recognize that sustainability is as much about human behavior as it is about code. The culture of "get rich quick" schemes and astronomical annual percentage yields must be replaced by a culture of risk-adjusted returns and long-term value creation.

Regulatory clarity will play a vital role here. While some in the crypto space fear oversight, a clear legal framework provides the certainty needed for legitimate businesses to build on-chain. When investors can distinguish between a high-risk speculative play and a regulated, asset-backed lending product, the market will naturally gravitate toward the more sustainable options.

Meanwhile, watch out for the falling yields. Do not be caught by surprise.

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The changes give asset managers a clearer route to keep fund registers on blockchain and to use an optional Direct‑to‑Fund (D2F) dealing model, while keeping current investor protection standards in place.

Onchain Fund Registers Under the Blueprint Model

In Policy Statement PS26/7, the FCA confirms that authorized funds can run their unitholder registers on distributed ledger technology using the industry “Blueprint” model.

Onchain transaction records may serve as the primary books and records for unit deals, and firms do not need a full off‑chain mirror if they maintain appropriate operational resilience plans.

The guidance applies to UCITS and other authorized funds and allows registers to sit on public DLT networks if firms meet the regulator’s expectations on governance, data privacy and financial crime controls. Units in a single share class can be recorded across multiple blockchains as long as investors’ rights and the structure of charges remain the same.

Direct-to-Fund Dealing Model to Support Tokenization

The main rule change is the introduction of the optional Direct‑to‑Fund dealing model, which alters how subscriptions and redemptions are processed. Under D2F, the fund or its depositary, rather than the asset manager, becomes the counterparty to investor trades, so units are issued or canceled directly against cash flows between investors and the fund in a single step.

The FCA says this should make operations more efficient and easier to align with onchain or shortened settlement cycles. Following industry feedback, the regulator will still allow managers to deal as principal in units of a fund using D2F and to combine different dealing models within an umbrella structure.

Looking ahead, the FCA outlines a roadmap from tokenized funds to tokenized assets and ultimately tokenized cash flows, including models where investors hold tokenized assets in digital wallets and managers use smart contracts to manage portfolios.

Keep reading: “Tokenisation Isn’t About Technology”: Singapore Builds Cross-Border Market Infrastructure

It also signals openness to waivers that would let funds use digital cash and stablecoins for settlement and certain expenses, ahead of a broader crypto asset and stablecoin regime due to take effect in October 2027.

The FCA's journey toward approving tokenized funds has been building since 2023, when it collaborated with industry groups to publish the UK Blueprint model outlining how firms could run tokenized unitholder registers within existing legal frameworks.

Running parallel to this tokenization roadmap, the FCA has been developing a comprehensive crypto asset regulatory regime that began with legislation passed in February 2026. It launched a sterling stablecoin sandbox in March 2026, and will open firm authorization applications in September ahead of the full regime taking effect next year.

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The proposal, known as HIP-4, would let users trade outcome contracts on real-world events alongside Hyperliquid’s existing leveraged perpetual futures. Early versions are already running on testnet, while a mainnet rollout has not yet been scheduled.

Yes for the HIP-4.

— Hyperliquid News (@HyperliquidNews) April 29, 2026

Why Integration Matters Here

What makes Hyperliquid a credible entrant is not volume alone — it is the architecture. The platform runs on its own L1 blockchain and HyperCore engine, enabling a unified trading environment. A single account can hold event bets, Bitcoin positions, and commodity exposure against the same collateral pool.

For sophisticated traders, that means cross-margining across market types — a feature absent from platforms built around prediction markets as a standalone product.

"Sophisticated traders will be able to take advantage of portfolio margin and figure out ways to generate alpha from these two different market types," said Sunny Shi, an investor at crypto fund Syncracy Capital.

Hyperliquid also does not need to build an audience for prediction markets. It is distributing the product to an existing and active base of traders.

Movement in Both Directions

Hyperliquid's entry coincides with prediction market platforms pushing the other way. Kalshi has announced a perpetual futures product called Timeless. Polymarket is launching 10x leveraged contracts on Bitcoin, Nvidia, and gold. Each platform is approaching the convergence from a different position.

Kalshi is operating as a CFTC-regulated exchange and is building toward regulatory legitimacy in the U.S. market. Polymarket is leaning on its crypto-native interface and global reach. Hyperliquid is treating prediction market contracts as one more instrument type on a high-throughput derivatives engine.

What This Means for the Industry

The competition is shifting from product creativity to infrastructure. Hyperliquid’s model depends on factors it cannot fully control, including oracle reliability, resolution disputes, and retail engagement with event contracts.

Some market participants are skeptical that Hyperliquid will compete directly with Kalshi or Polymarket for retail volume. Its interface and distribution model are geared more toward experienced traders, suggesting that demand may come primarily from users looking to hedge or trade event contracts alongside existing derivatives positions.

Im following @HyperliquidX hip4 prediction markets but imo they will not compete with @Polymarket or @Kalshi for retail volume The hl interface is just miles away from being retail friendly and even with builder codes implementing the markets i see the existing distribution… pic.twitter.com/x9wFPVyq2Z

— James Ross (@jamesrosst) April 28, 2026

Those are unresolved questions, and the $1 trillion annual volume figure cited by proponents for 2030 reflects projections, not a current trajectory.

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Roundhill Investments plans to launch six ETFs tied to which party controls the White House and Congress, marking the first time prediction market strategies appear in ETF form.

Structure and Market Exposure

According to SEC filing, Roundhill’s lineup includes funds linked to Democrats and Republicans across three branches of power. The products cover the presidency, Senate, and House, with ticker symbols BLUP, REDP, BLUS, REDS, BLUH, and REDH. The congressional funds track outcomes of the November 2026 midterm elections, while the presidential funds reference the 2028 race.

The ETFs gain exposure through swap agreements tied to binary event contracts traded on markets regulated by the Commodity Futures Trading Commission. These contracts settle at

The prospectus states that if the selected party fails to win, “the fund will lose substantially all of its value.” The structure creates a binary payoff profile with limited downside protection.

Read more: Polymarket Grabs Nearly 55% of Prediction Markets as Iran Bets Test CFTC Crackdown

Roundhill does not plan to liquidate the funds after an outcome is determined. Instead, once markets assign near certainty to a result for several consecutive days, the funds will roll exposure into the next election cycle. Midterm funds will shift to 2028 races, while presidential funds will move to 2032.

Competition and Regulatory Backdrop

Other asset managers have filed similar products. Bitwise and GraniteShares submitted proposals for six comparable funds earlier this year. Bitwise plans to terminate its funds shortly after outcomes are decided, while GraniteShares uses a rolling structure similar to Roundhill.

Prediction contracts already trade on platforms such as Polymarket and Kalshi, but ETFs could expand access by allowing investors to hold these exposures in standard brokerage accounts and some retirement plans.

Regulatory uncertainty remains. The Commodity Futures Trading Commission withdrew a proposal in February that would have banned political event contracts. However, state regulators in jurisdictions including Massachusetts, New York, and Nevada continue to challenge these contracts in court.

The CFTC’s latest move is to formally start writing prediction‑market rules instead of handling them case by case. Last month, it published an advance notice asking the public how event‑based contracts, like those tied to elections or economic data, should be regulated, including what types of events should be allowed or restricted.

At the same time, CFTC staff issued guidance to US exchanges that list these contracts, reminding them that prediction markets fall under derivatives law and must meet existing exchange standards.

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The Hong Kong Monetary Authority, HSBC, and Anchorpoint Financial issued separate warnings on Tuesday. They said tokens using the tickers “HKDAP” and “HSBC” have appeared in the market but are not connected to the licensed entities.

The incident follows Hong Kong’s approval of its first stablecoin issuer licenses under the HKMA framework earlier this month, which was introduced in August last year. The regulator said the approvals marked the first under the regime, with Anchorpoint Financial and HSBC among the first two entities licensed.

No Regulated Stablecoins Issued, HKMA Says

The HKMA said both issuers have confirmed that no regulated stablecoins have been issued to date.

HSBC said it “has not yet issued any stablecoins in Hong Kong,” adding that its planned Hong Kong dollar-pegged token will be distributed only through official channels, including PayMe and the HSBC HK Mobile App, when launched in the second half of 2026.

LATEST: ???? Hong Kong’s central bank has warned that tokens using the tickers “HSBC” and “HKDAP” have no association with HSBC or Anchorpoint Financial. pic.twitter.com/siRtYqdQC6

— CoinMarketCap (@CoinMarketCap) April 29, 2026

Regulator Can Suspend Stablecoin Issuers

Anchorpoint Financial said it has not issued any tokens since receiving its license from the HKMA on April 10 and has not launched any product under the HKDAP name. It urged users to “verify information through official sources” and use only regulated channels.

Under the rules, fiat-referenced stablecoin issuers must be licensed by the HKMA and meet requirements on reserves, redemption rights, governance, and anti-money laundering controls. The regulator can impose fines, suspend operations, or revoke licenses.

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The finding has practical implications for brokers and fintech platforms building in this space. The data shows a clear user progression, with distinct products driving acquisition and retention at different stages.

The Entry Point: Crypto

Crypto markets are where most new users start. Among the smallest traders on the platform — those with the lowest activity levels — crypto accounts for nearly 40% of all trading volume. These are markets that retail users already know, available around the clock, with median trade sizes for Bitcoin and Ethereum sitting at $2–$3.

The capital commitment is low enough that the platform itself is essentially a test environment. The broader user base is heavily retail in composition. In Q1, 82.3% of all wallets traded under $10,000 — the growth is coming from volume of participants, not concentration at the top.

This retail-driven entry point contrasts with the growing institutional interest in the sector, suggesting that user acquisition and capital deployment are still driven by different segments.

The Retention Driver: Sports

Crypto pulls users in, but sports keep them. As traders move up in activity levels, their share of crypto trading declines and sports picks up — from 22.7% among lower-volume users to 29.2% among mid-tier ones. In aggregate, sports were the single largest category by trading volume in Q1, generating $10.1 billion.

The NBA and English Premier League are cited specifically — leagues with dense, predictable event schedules that give users a recurring reason to return. The mechanic is not complicated: frequent games create frequent markets, which sustain frequent engagement.

Across the broader market, sports dominate prediction market volume, accounting for roughly 64% of the $75.9 billion tracked by Paradigm's data set, compared with about 13% each for crypto and politics.

Politics and Macro as the Third Layer

Political and geopolitical markets are growing into a distinct category. Political markets generated $5 billion in Q1 volume, with geopolitics accounting for close to half of that.

These markets operate differently from sports. They're news-driven and event-dependent rather than calendar-driven, but they add a layer of engagement for users who treat prediction markets as a way to price real-world uncertainty. Total monthly volume on the platform now exceeds $25 billion.

The pattern may reflect product design as much as user preference — particularly the availability of high-frequency sports markets versus more episodic political or macro events.

For brokers, the strategic question the data raises is whether this user journey is platform-specific to Polymarket or whether it generalizes. The onboarding-through-crypto, retention-through-sports pattern suggests product design as much as market demand — and that's worth examining before assuming the playbook transfers.

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According to Veda, Kraken DeFi Earn runs on three vaults provided by Veda. More than 40,000 users now use these vaults through the Kraken app to earn yield on cash and stablecoins. The product converts deposits into USDC and allocates them into onchain strategies, while users only see a simple earn interface inside Kraken.

Kraken Taps Veda’s Multichain Vault Infrastructure

Veda’s technology allows the vaults to connect to multiple DeFi protocols and blockchains. This structure aims to unlock higher yields than a single protocol can offer. It also helps Kraken adjust strategies over time without changing how the product looks or works for users.

In earlier DeFi cycles many products relied on rewards or airdrops to attract deposits. Kraken instead leans on its existing user base and an integrated experience. Users can opt into onchain yield from the same app they already use for trading and custody.

Veda (also known as Veda Labs or Veda Tech) is the DeFi vault infrastructure provider that powers Kraken's DeFi Earn product. They supply the underlying technology that manages deposits, strategy execution, and cross-chain operations for all three Kraken DeFi Earn vaults.

It provides multichain, multiprotocol vault infrastructure that enables Kraken to offer DeFi yields without requiring users to interact with blockchain wallets or manage complex DeFi protocols directly.

Read more: Kraken Confirms IPO Filing, but Valuation Dropped 33% in Latest $200M Funding

Kraken has been rolling out and refining DeFi Earn in the US, Canada and Europe, offering onchain yields through integrated vaults while keeping the user experience inside the familiar Kraken app, and pairing that with new security education around scams and safe usage.

Enabling Curated DeFi Strategies

The technology allows Kraken's vaults to operate on the Ink blockchain (Kraken's Ethereum L2) while simultaneously sourcing yield from protocols on both Ink and Ethereum. Veda's vaults are programmable and flexible, meaning they can support any blockchain, deposit asset, or DeFi protocol.

This allows vault curators (Chaos Labs and Sentora) to allocate deposits across multiple trusted protocols with precision to generate passive income for Kraken users. According to Sun Raghupathi, Veda Co-Founder, the partnership enables Kraken to deliver "a seamless experience" while tapping into onchain markets that offer higher variable APYs compared to traditional earning options.

Most recently, Kraken has been in the news for its IPO push, gaining direct Federal Reserve payments access as a crypto bank, and continuing to market and expand the DeFi Earn product that your Veda story plugs into.

The IPO filing and Fed master account have sparked fresh scrutiny of how deeply a crypto-native institution should be integrated into core U.S. financial plumbing, but they also strengthen Kraken’s pitch as a regulated, bank-like venue rather than a pure-play exchange.

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BILS is intended for use in liquidity provision, foreign exchange transactions against major stablecoins such as USDC, smart‑contract execution, and global shekel transfers. Additionally, Bits of Gold plans to deepen partnerships with financial institutions and payment providers to integrate BILS into existing systems.

According to the official communication, the stablecoin market now exceeds 320 billion dollars in market capitalization, with annual transaction volumes of approximately 46 trillion dollars.

Stablecoins have also moved from a crypto-native instrument to infrastructure used in payments and settlement. Binance Research’s 2025 report puts market capitalisation above $305 billion and daily transaction volumes at $3.54 trillion. It also highlights high circulation velocity and compares usage levels with established global payment networks.

Regulator Backs Shekel Digital Issuance

The authority said the move marks an early stage in a new regulatory phase for digital assets. The activity will remain limited in scope at the start.

It said the decision aligns with government policy on digital assets. It also comes ahead of a draft law on stable digital coins, which will be published for public comment. The approval follows a process lasting about two years. During this time, Bits of Gold ran a pilot to test stablecoin issuance under controlled conditions.

Amit Gal, who is in charge of the authority, said the move supports “technological innovation alongside maintaining financial stability, protecting the public of customers and reducing systemic risks.”

Israel Sandbox Tests Shekel Stablecoin

The pilot was carried out in a regulatory sandbox framework. It was designed to test financial innovation under supervision while limiting risks to the system and the public.

The regulator reviewed issuance, custody of client assets, risk management, business continuity, cybersecurity, and compliance with regulatory standards. The currency will be fully backed by the Israeli shekel. It will operate at a 1:1 ratio with reserve assets.

Reserve assets will be held in Israel in segregated accounts. Liquidity and redemption mechanisms will be available at all times. The issuer must maintain reporting obligations, including immediate disclosure of material changes or exceptional events.

The Capital Market Authority said it will continue supervising the company after approval, with ongoing monitoring of compliance with regulatory conditions. Bits of Gold founder and CEO Yuval Rouach described the token as “the bridge between the shekel and the new global financial system.”

“The approval represents a milestone not only for our company, but for the evolution of financial infrastructure. BILS creates a direct bridge between the Israeli shekel and the global digital assets economy, enabling real-time payments, on-chain trading and programmable financial applications based on a regulated local currency.”

Bits of Gold has been operating since 2013 and is licensed by the Capital Market Authority. It serves over 250,000 registered clients and previously launched a crypto rewards credit card with MAX.

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The report identifies cross-border business payments as the main driver of stablecoin adoption. Juniper estimates that 85% of total stablecoin transaction value in 2035 will come from B2B use cases.

B2B Transactions Drive Growth

Companies increasingly use stablecoins for treasury operations, supplier payments, and supply chain settlements. These transactions benefit from faster processing and continuous availability compared to traditional banking systems.

Stablecoins also support other use cases such as peer-to-peer and consumer payments, but their role in corporate finance is expanding more rapidly. The shift reflects a broader move away from speculative crypto activity toward practical financial applications.

Juniper highlights inefficiencies in correspondent banking as a key factor behind this growth. Traditional cross-border payments often involve multiple intermediaries, which increase costs and extend settlement times.

Read more: USD Stablecoins on Public Blockchains Are Major AML Concern, BIS Warns

These transactions typically include correspondent fees, foreign exchange margins, and messaging costs. Settlement can also take several days, depending on the corridor.

Pressure on Traditional Payment Rails

Indeed, stablecoins offer near real-time settlement on blockchain networks and operate around the clock. This reduces transaction costs and improves speed, particularly for high-value international transfers. Dollar-pegged stablecoins also provide a consistent settlement asset across markets.

"Stablecoins are not replacing payments infrastructure; they are being adopted where the advantages are most pronounced. Cross-border B2B is where those advantages are greatest, and where we expect the most sustained volume growth over the forecast period. Stablecoin issuers and payment service providers should prioritise enterprise integrations and treasury partnerships to capture the majority of this value," Research Analyst Jawad Jahan concluded.

The findings suggest that stablecoins will continue to gain traction in global finance, especially in areas where traditional systems face cost and efficiency challenges.

Regulators Step Up USD Stablecoin Scrutiny

The forecast comes as global regulators step up scrutiny of large dollar stablecoins and their role in the financial system.

In a recent speech covered by Finance Magnates, BIS General Manager Pablo Hernández de Cos warned that major USD stablecoins could have “material consequences” for financial stability if their use grows beyond today’s crypto‑trading niche, comparing their structure to exchange‑traded funds backed by short‑term government debt and bank deposits rather than simple cash balances.

He cautioned that, in a period of stress, rapid redemptions could force issuers to dump Treasuries and pull funding from banks, creating a new channel for contagion at the heart of key funding markets instead of insulating them.

At the same time, policymakers in Asia are opening tightly controlled doors to regulated stablecoin activity, underscored by Hong Kong’s first licenses for issuers under its new regime. The Hong Kong Monetary Authority recently approved HSBC and Anchorpoint Financial as the first licensees, marking the launch phase of a framework that requires fiat‑referenced stablecoin issuers to hold a license and comply with rules on reserve backing, redemption rights, governance, and anti‑money laundering controls.

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It does not introduce new CFD or leveraged trading measures, but continues emphasis on disclosure standards, fraud prevention and supervisory convergence across EU retail markets.

EU Supervisors Expand Cyber and DORA

The Joint Committee of the European Supervisory Authorities said it maintained a central coordinating role in 2025 with the European Commission and the European Systemic Risk Board. Chaired by EIOPA, it focused on EU-wide supervisory coordination.

The report covered consumer protection, financial stability and supervisory cooperation. It said 2025 was shaped by geopolitical uncertainty, faster digitalisation and financial innovation. The ESAs said they aimed to keep “regulatory frameworks robust, proportionate, and forward-looking”.

A key focus was the Digital Operational Resilience Act. The ESAs said they delivered all required legal instruments and issued guidance ahead of the 17 January 2025 application date. They also designated 19 critical third-party ICT providers between April and November 2025, with the European Banking Authority acting as lead overseer.

EU Supervisors Launch CITE and Review

New cyber coordination tools were introduced, including the Cyber Incident Information Sharing and Threat Intelligence Exchange. The ESAs said these measures “constitute a comprehensive and coordinated effort to bolster the EU’s resilience to ICT-related risks”.

The Digital Operational Resilience Act (DORA) requires verification for everything running in your infrastructure. Here's how supported open source and reliable security maintenance help you meet this requirement.Learn more: https://t.co/62Fbv7YEtf#DORA #Compliance pic.twitter.com/c6GXXZ00VG

— Canonical (@Canonical) January 28, 2026

On regulation, the committee supported EU efforts to simplify financial rules, including PRIIPs Key Information Document work and SFDR reporting adjustments, including deprioritising one annual report. It said simplification must not weaken financial stability or consumer protection.

ESAs Highlight Risks Across Financial System

In its risk assessment, the ESAs said geopolitical tensions, trade restrictions and global conflicts increased uncertainty and market volatility. They warned institutions should remain vigilant, saying “strengthening risk management practices, enhancing resilience to cyber threats, and ensuring preparedness for market shocks are essential”.

The report also flagged risks from cyber threats, ICT third-party concentration, digital assets and non-bank finance. Crypto risks were highlighted, with warnings on limited legal protection depending on asset type.

Consumer protection remained a priority. The ESAs updated PRIIPs guidance and reported 12 administrative sanctions across Belgium, Denmark, Hungary and Poland. They also issued warnings on crypto fraud and AI-driven scams.

Other initiatives included ESAP development, AMLA cooperation, BigTech monitoring, securitisation review and a supervisory data exchange system. The ESAs said geopolitical risks, cyber threats and structural market shifts remain key financial stability concerns.

Authorities issued on-site cease-and-desist letters at each location. The FCA confirmed that the evidence gathered is now supporting multiple ongoing criminal investigations.

A Market Outside the Regulatory Perimeter

The FCA stated that there are currently no registered peer-to-peer crypto traders or platforms operating in the UK, which means every P2P operation in the country is, by definition, illegal.

It was an operation against an entire business model that sits outside the regulatory perimeter rather than a crackdown on outliers within a regulated sector.

"Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk," said Steve Smart, the FCA's executive director of enforcement and market oversight. "We will use our powers and work with partners to disrupt them."

An Enforcement Model, Not a One-Off Raid

The presence of an organised crime unit and HMRC signals what the FCA considers the core risk: money laundering. The UK government's National Risk Assessment has flagged crypto assets as an increasingly common channel for moving illicit funds, and law enforcement framed the operation accordingly.

"By working with our colleagues at the FCA and HMRC we are able to effectively target and disrupt unregistered peer-to-peer crypto traders," said DI Ross Flay of the SWROCU. "As law enforcement, we want to stop these traders providing a route for criminals to move, disguise, and spend illegal money."

This is not the FCA's first direct action in the space. The agency has previously prosecuted the operator of an illegal crypto ATM network and supported arrests in an unauthorized exchange case. But the multi-agency raid format is new, and suggests the enforcement model is shifting from reactive prosecution toward active, coordinated disruption.

For any firm facilitating crypto activity in the UK, the message is straightforward: FCA registration is a necessary prerequisite to operate legally under the current regulatory framework.

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The timing is no accident. ESMA has set July 1, 2026, as the cutoff point for the grandfathering period, where firms like J2TX, which operated under previous national frameworks, had to complete the transition to MiCA.

The transition has proved exacting, particularly in Cyprus. In an earlier interview, George Theocharides, Chairman of CySEC, noted that early licensees such as Revolut and eToro underwent “extensive scrutiny”.

Approval, he stressed, would not be rushed: applicants were frequently required to make substantial changes before securing a licence.

Capacity may be part of the story. The small Mediterranean island has been punching above its weight as a CFD and FX hub, so CySEC has had to stretch its resources across a growing supervisory load, which now includes MiCA oversight.

Indeed, in January, Theocharides said the watchdog was looking to add around 30 staff in 2026.

The numbers are telling. ESMA lists ten MiCA licences for Cyprus, placing the island sixth in the EU.

Germany tops the table with 55, though the comparison is flattering: its regulator, BaFin, curtailed the transition period to December 2025, and many of those licences are held by banks focused on custody and administration rather than trading.

Converging Markets, Diverging Players?

The line between derivatives and crypto has been blurring for some time, opening up a potent new growth vector.

Brokers, once confined to CFDs, are building crypto exchanges or plugging them in. Crypto exchanges, for their part, are heading the other way, snapping up MiFID licences.

But convergence has not meant convergence in pace.

Even as many brokers are still finding their footing in crypto, others are already looking beyond it. Robinhood was among the first to spot the next seam, embedding prediction markets – event-driven contracts – into its core app in 2025.

Robinhood Prediction Markets just crossed 4 billion event contracts traded all-time, with over 2 billion in Q3 alone. And we’re just getting started. pic.twitter.com/13LxjqWaNt

— Vlad Tenev (@vladtenev) September 29, 2025

Robinhood CEO Vlad Tenev hailed it as the fastest-growing business line in the firm’s history, with the product line tracking toward more than a US$300 million run rate within its first year.

So, is moving into crypto, with all the tooling and strategic overhaul it entails, already yesterday’s problem?

The lawsuit, filed in Manhattan, seeks to bar the exchanges from offering prediction markets in New York until they hold state gaming licenses — and frames the products not as financial instruments but as unregulated wagering.

"Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution," James said. "Gemini and Coinbase's so-called prediction markets are just illegal gambling operations.

.@Gemini and @coinbase's so-called prediction markets are just illegal gambling operations that expose young people to addictive platforms.Gambling by another name is still gambling. I'm suing to stop these platforms from breaking the law.https://t.co/DosDKe2un1

— NY AG James (@NewYorkStateAG) April 21, 2026

A Direct Challenge to the CFTC

The suit is an explicit challenge to federal authority. The CFTC has asserted exclusive jurisdiction over prediction markets, treating event contracts as commodity derivatives. New York is ignoring that framing entirely and applying state gaming law directly.

This is the latest escalation in an ongoing jurisdictional conflict. Kalshi, which holds a CFTC Designated Contract Market license, is already fighting New York, Massachusetts, and Michigan in court over the same issue. Coinbase has preemptively sued Connecticut and Illinois to block state-level oversight of its prediction business.

The CFTC itself has sued Arizona to stop the state from policing these markets. The New York action adds two of the most visible publicly listed companies in crypto to that list of defendants — and raises the political and financial stakes considerably.

What New York is Actually After

The lawsuit is partly about money. Licensed sportsbooks in New York pay roughly 51% of gross revenues in tax.Prediction market platforms operating under CFTC classification do not pay into that tax pool.

The state argues this is intentional, saying the “financial instrument” framing is used to avoid the legal and financial consequences of New York gambling law. The lawsuits seek forfeiture of profits, restitution to users, and penalties of up to three times the companies’ alleged gains.

Consumer protection is the other stated concern. The platforms currently allow users from age 18; New York gambling law sets the minimum at 21. The fundamental question — whether an event contract is a derivative or a bet — is now heading to a New York courtroom.

For any brokerage, exchange, or fintech firm considering entering the U.S. prediction market space, the outcome matters: it will either confirm federal preemption or hand states a usable legal template to block these products regardless of CFTC oversight.

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Together, the two instruments absorbed 93% of top 10 activity between January and March, according to the company's Q1 TradFi report published today (Wednesday).

Gold Captures Over a Quarter of Global Crypto Futures Volume

MEXC said its gold futures reached a 27.4% share of the crypto futures market for the category in Q1, ranking second industry-wide by its own measurement. In February alone the figure climbed to 30.3%, narrowing the gap with the top-ranked platform to four percentage points.

Silver sat at 14.6% for the quarter, with a month-over-month gain of more than six percentage points in March, the fastest acceleration among comparable venues the company identified. Paxos-issued PAXG placed fifth in the top 10.

"Gold and oil volatility created a window of opportunity and lucrative entry points for those who are prepared," MEXC chief operating officer, Vugar Usi Zade, commented.

"We positioned ourselves ahead of the curve with the right instruments, deep liquidity ready to execute large orders, and a frictionless fee model.”

Total TradFi volume surged 138% in February from the previous month and gained another 45% in March, MEXC said. Monthly active traders grew a cumulative 58% over the quarter. The exchange's own rankings and methodology have not been independently audited.

Bullion's Rally Keeps Pulling Retail Flow In

Safe-haven demand set the backdrop for the quarter. Gold broke above $5,000 per ounce for the first time in January and reached $5,595 on January 29, before a sharp two-day correction wiped out close to $1,200.

A Reuters poll of 30 analysts in February pegged the median 2026 gold forecast at $4,746.50 per troy ounce, the highest consensus in the poll's history going back to 2012. Major banks including Goldman Sachs, JPMorgan and Wells Fargo hold year-end targets between $5,400 and $6,300.

Silver followed a similar pattern, hitting a lifetime high of $121.64 on January 29 before retreating toward $90. CME Group shifted gold, silver, platinum and palladium futures margins from fixed amounts to percentage-based requirements in early January to cope with the volatility, while liquidity providers adjusted spreads across the board.

Crude oil also caught a bid as tensions in the Middle East escalated through late February and March. MEXC said its largest single day of Q1 volume came on March 3.

Crypto Platforms Race to Capture Commodity Flow

The MEXC numbers fit a broader pattern that has defined the first quarter across the digital-asset industry. Binance launched round-the-clock perpetual contracts on gold and silver in early January, with gold listed on January 5 and silver on January 7, both settling in USDT.

BingX rolled out its own TradFi Futures product days later and reported that gold contracts alone were generating more than $500 million a day, roughly half of its $1 billion daily TradFi volume when bullion pushed through $4,722 in mid-January. Bitget ran a similar multi-asset suite out of private beta during the same window.

The trend extends to institutional venues. LMAX Group added gold to its perpetual futures platform in mid-February, citing institutional demand for weekend and round-the-clock exposure, and GCEX rolled out gold futures aimed at CFD desks around the same time. Not every major exchange is playing along.

OKX said in late January it was monitoring the rush but did not plan to follow rivals into real-world asset trading, preferring to focus on crypto infrastructure.

The product structure on these crypto venues resembles contracts-for-difference more closely than regulated exchange-traded futures, and the regulatory perimeter varies sharply by jurisdiction.

In a recent interview with FinanceMagnates.com, Zade said the traditional separation between CFD and crypto trading had started to feel like "an unnecessary distance," a view the Q1 numbers now appear to underscore.

Q1 2026 Market Share: MEXC TradFi Futures

Source: MEXC Q1 2026 TradFi Report. Figures reflect MEXC's own measurement and have not been independently verified.

Liquidity Claims Rest on MEXC's Own Depth Test

MEXC also reported ranking first among seven major crypto platforms for gold order book depth at the top five price levels, in a live snapshot taken on March 23. The platforms tested were BingX, Binance, Hyperliquid, Bitget, Bybit and OKX alongside MEXC itself, with three venues covered for crude oil. MEXC said its gold depth at the top of book was 7.2 times the median of competing platforms.

In a standardized 100,000 USDT market-order test conducted on the same date, MEXC said its gold slippage came in 43% below the industry median, silver 66% below, WTI 25% below and Brent more than 54% below.

The methodology and raw order book data have not been audited by a third party, though MEXC said the figures are verifiable on each venue in real time.

Theexchange said the number of available TradFi instruments grew 62% quarter-over-quarter, and that its wider user base now exceeds 40 million across more than 170 markets.

The company's operating perimeter remains a live issue in several jurisdictions, including Hong Kong, where the Securities and Futures Commission previously issued a public warning about the platform.

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UK users can now borrow USDC against Bitcoin and Ethereum holdings directly through Coinbase's interface — but the loan itself is processed on-chain, not on Coinbase's balance sheet.

The mechanics are straightforward. When a user opens a position, their collateral moves into a Morpho smart contract on the Base network. The USDC is then disbursed from the Morpho protocol to the user's Coinbase account. Coinbase is the front-end; Morpho is the book.

Rather than running a proprietary lending operation — which requires capital allocation, credit risk management, and a balance sheet willing to absorb losses — Coinbase plugs into an existing on-chain liquidity pool.

The result is a product that can scale without the overhead of a traditional lender, and that operates 24/7 with no fixed repayment schedule and algorithmically set rates based on real-time supply and demand.

$2.17 Billion in the U.S. Since January 2025

The UK launch is the first international rollout of a product that has been live in the United States since January 2025. U.S. loan originations through the Coinbase-Morpho integration have crossed $2.17 billion.

That figure establishes the product as more than a pilot — it is now a meaningful revenue line being carried into new markets. The expansion model is notable for its simplicity.

Coinbase does not need to rebuild a lending operation from scratch in each new jurisdiction. It connects its regulated, local-facing product to the same permissionless DeFi infrastructure. Market entry becomes a compliance and distribution problem, not an infrastructure one.

What This Means for Brokers Offering Credit

For firms that provide margin lending or leveraged products to retail clients, the comparison is uncomfortable. Coinbase is offering instant disbursement, no repayment schedule, and rates set by the market rather than a credit committee.

Traditional brokers carry balance sheet risk, operate within fixed settlement windows, and price credit based on internal models that rarely update in real time.

This is part of a broader push by Coinbase to build a full consumer finance stack in the UK — following its FCA registration and the recent launches of savings products and DEX trading access.

The lending product is the credit layer of that stack. The structural point is worth stating plainly: a regulated exchange is now using open-source financial infrastructure to offer credit products that most traditional lenders cannot replicate on comparable terms. That gap will not close quickly.

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BIS General Manager Pablo Hernández de Cos said US dollar‑denominated tokens could have “material consequences” for financial stability and economic policy if their use expands beyond today’s crypto‑trading niche.

US Dollar Stablecoins Resemble ETFs

De Cos drew a direct comparison between the largest dollar stablecoins and exchange‑traded funds (ETFs), pointing to fees and conditions on primary redemptions and repeated deviations from the one‑to‑one dollar peg in secondary markets.

He warned that this structure creates a specific contagion channel because issuers back their tokens with short‑term government debt and bank deposits, not simple cash balances.

In a period of stress, a rush by holders to cash out could force issuers to dump Treasury bills and pull funding from banks, amplifying volatility in key funding markets rather than insulating them.

At the same time, the BIS chief highlighted financial integrity gaps tied to the use of public, permissionless blockchains and unhosted wallets.

Read more: Hong Kong Opens Stablecoin Market with First Approvals for HSBC and Anchorpoint

A significant share of stablecoin activity takes place outside traditional anti‑money‑laundering and counter‑terrorism financing controls, making the tokens attractive for illicit use unless authorities harden checks at the on‑ and off‑ramps linking crypto platforms with the banking system.

De Cos also linked the rise of US dollar‑pegged tokens to the risk of renewed dollarisation pressures in emerging markets, where households already use stablecoins as offshore dollar savings and, in some cases, for domestic payments.

Wider adoption could dilute monetary policy transmission, undermine local currencies and open new channels to evade capital controls, he said.

Central Banks in Europe, the UK and Switzerland

In parallel, major jurisdictions are moving ahead with their own stablecoin regimes, though not yet on fully harmonised terms.

The European Union’s Markets in Crypto‑Assets Regulation (MiCA), upcoming UK rules on fiat‑backed tokens and Switzerland’s new framework for Swiss franc‑linked coins all require full reserve backing, clear redemption rights and direct supervision of issuers, while taking different approaches on scope and implementation.

De Cos argued that without closer global alignment, uneven standards will either fragment markets or push activity into lighter‑touch centres, undercutting more stringent regimes and leaving cross‑border risks unresolved.

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The numbers point in one direction. Sixty-five percent of respondents now view crypto as a diversification opportunity, up from 62% in 2024. Seventy-nine percent of those considering crypto plan to invest within the next three years. Institutions reporting a positive outlook on digital assets rose to 31%, while those with a negative view fell to 18%.

The shift is partly regulatory. Japan has spent several years building out a clearer legal framework for digital assets, and the survey suggests that work is translating into institutional confidence.

Demand Is Growing But Allocation Remains Limited

That confidence, however, comes with limits. Most Japanese institutions planning to invest are targeting allocations of 2–5% of their portfolios — below the ranges seen in comparable surveys of U.S. and European institutions, where targets of 5–15% are more common.

The gap reflects both cultural conservatism and the fact that Japan's largest institutional investors operate under strict fiduciary constraints that make aggressive first-mover positioning difficult to justify.

Demand for more complex products is a different story. More than 60% of respondents expressed interest in staking, lending, crypto derivatives, and tokenised assets. Sixty-three percent identified specific use cases for stablecoins, with a clear preference for those issued by large, regulated financial institutions.

The pattern of demand reflects the requirements of institutions looking to run digital assets through the same workflows they use for traditional fixed income and alternatives.

For brokers, custodians, and asset managers with a presence in Japan, the opportunity is real but narrow. The institutions entering this market know what they want: regulated counterparties, institutional-grade custody, yield-generating structures, and stablecoins that carry recognizable credit backing.

Firms that can deliver on those specifics are well-positioned. Those offering generic crypto access are not.

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What's in the Deal

The deal is valued at up to $550 million. Bitnomial's regulatory footprint is what makes the acquisition notable.

Kraken parent @Payward is acquiring @Bitnomial - the first fully CFTC-licensed derivatives company in the US built for digital assets. Built for crypto from the ground up.Spot margin, perpetuals, and options are coming to Kraken under CFTC regulation.https://t.co/IBLotDkqQF

— Kraken (@krakenfx) April 17, 2026

The company holds a Designated Contract Market (DCM) license for its exchange, a Derivatives Clearing Organization (DCO) license for its clearinghouse, and a Futures Commission Merchant (FCM) license for its brokerage arm.

Building that stack independently would have taken years and repeated regulatory engagement. Kraken bought it in one transaction. "The shape of a market is determined by its clearing infrastructure, not its front end," said Arjun Sethi, Co-CEO of Payward and Kraken

"Bitnomial spent a decade building it: crypto settlement, crypto collateral, continuous 24/7 markets. These are capabilities that cannot be retrofitted onto legacy systems."

That last point is central to the deal's logic. Bitnomial was built for digital assets from the start, not adapted from existing derivatives infrastructure.

That origin allowed it to introduce the first U.S. perpetual futures, CFTC-regulated crypto margin collateral, and a unified order book spanning spot and derivatives — products that conventional market operators have struggled to replicate.

"Joining Payward means we can now build that future at the scale it deserves," said Luke Hoersten, Bitnomial's founder and CEO.

What Kraken Gets

Kraken can now offer U.S. clients a regulated suite of derivatives products — spot margin, perpetual futures, and options — putting it in direct competition with Coinbase on one side and CME Group on the other.

The acquisition also extends the reach of Payward Services, Kraken's B2B infrastructure platform. Partner firms — fintechs, banks, brokerages — can now connect to a fully regulated U.S. derivatives offering through a single API rather than assembling the licensing and clearing infrastructure themselves.

The deal values Payward's equity at $20 billion. Combined with Kraken's existing licensed derivatives operations in the UK and EU, the Bitnomial acquisition fills the one gap that mattered most for institutional expansion.

The approach itself carries a broader message for regulated markets: when the regulatory clock is a competitive constraint, acquisition of an existing licensed infrastructure often moves faster than building one.

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The surge in sales comes even though Bitcoin’s price remains above the previous cycle peak, underscoring how rising difficulty and lower block rewards have squeezed profitability across the sector.

Record BTC Sales as Hashprice Slumps

Publicly traded miners including Marathon, CleanSpark, Riot, Cango, Core Scientific and Bitdeer sold more than 32,000 BTC in Q1 2026, based on preliminary disclosures and data compiled by TheEnergyMag.

This already exceeds total net sales for all of 2025 and surpasses the roughly 20,000 BTC miners sold in Q2 2022 during the Terra-Luna-driven market turmoil. Just over a year ago, the same group ended 2024 by adding nearly 17,600 BTC to their balance sheets, pushing combined reserves above 100,000 BTC.

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The driver of the reversal is mining economics, not spot price. Hashprice, expected mining revenue per unit of computing power, has hovered in the low 30 dollars per PH/s/day, near record lows. At those levels, margins are thin or negative for operators with older machines or higher power costs, making BTC sales the fastest way to fund operations and meet debt obligations in a tougher financing environment.

The industry, however, is not moving in one direction. Some firms now sell aggressively to maintain liquidity, while others continue to accumulate. American Bitcoin Corp.

Bitdeer #BTC Weekly Update???? BTC Holdings: 0 (pure holdings, excluding customer deposits)???? BTC Output: 189.8 BTC???? BTC Sold: 189.8 BTC???? Net BTC Added: -943.1 BTC???? Data as of February 20, 2026.#Bitcoin #BTC #BitcoinHoldings #BitcoinCommunity #BTCMining $BTDR pic.twitter.com/vtvBVEui0Q

— Bitdeer (@Bitdeer) February 21, 2026

ABTC, the proprietary mining arm of Hut 8, has built reserves of more than 7,000 BTC since early 2025 while ramping its proprietary hashrate to about 28 EH/s. The company reports an all-in cash cost near 55,000 dollars per bitcoin, giving it room to hold production rather than sell into weakness.

Miners Split Between Sellers and Accumulators

Elsewhere, private operators with ultra-low-cost power, such as those using flared natural gas, continue to mine profitably even at current hashprice levels. At the same time, miners are increasingly turning to software tools and fleet optimization to squeeze more efficiency from existing hardware, rather than relying solely on large-scale expansions.

In one classic case, Bitdeer shifted from holding Bitcoin on its balance sheet to using it primarily as a source of liquidity. In January, the Singapore-based miner produced 668 BTC, a 430% year‑on‑year increase, and pushed its self‑mining hash rate to 63.2 EH/s, with total proprietary hash rate at 65.1 EH/s.

Around the same time, other miners have followed the same path, with Riot Platforms selling about 200 million dollars’ worth of Bitcoin to finance its day-to-day operations and support its expansion into artificial intelligence.

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The four frameworks, covering Dubai, Kenya, South Africa, and Nigeria, differ widely in maturity and approach, from a fully operational licensing regime with 300 approved firms in South Africa to a six-entity pilot program in Nigeria.

But taken together, they represent the broadest regulatory acceleration in the MEA crypto space to date, according to the FM Intelligence research.

Dubai Writes the Region's First Crypto Derivatives Rulebook

Dubai's Virtual Assets Regulatory Authority published Exchange Services Rulebook Version 2.1 on March 31, introducing a 5:1 retail leverage cap for crypto derivatives. The framework covers listed futures, perpetuals, and options across the 45 firms currently holding VARA licenses, nearly double the 23 recorded in December 2024. Major licensees include Binance FZE, Crypto.com, OKX ME, Deribit, and Backpack.

The 5:1 cap sits between offshore exchanges that historically offered up to 100:1 leverage and the ESMA 2:1 cap applied to crypto CFDs in the European Union. Enforcement has been running in parallel: VARA issued penalty notices against 36 firms between August 2024 and August 2025, with fines ranging from approximately $13,600 to $163,000, the analysis noted.

Kenya's Capital Thresholds Draw Sharp Industry Pushback

Kenya's draft VASP Regulations 2026, published March 17, propose KES 500 million ($3.86 million) in capital requirements for stablecoin issuers and descending thresholds for exchanges, wallet providers, and investment advisors. The Virtual Asset Association of Kenya warned the thresholds could eliminate over 90% of the country's current operators.

The stakes are high. According to Chainalysis data cited in the analysis, Kenya received $19 billion in cryptocurrency inflows between July 2024 and June 2025, ranking 21st on the Global Adoption Index, with over 6 million crypto users. Final regulations are expected between Q2 and Q3 2026.

South Africa Leads with 300 Licensed Crypto Firms

South Africa's FSCA has built what the analysis describes as the largest regulated crypto ecosystem in the developing world. Out of 512 applications received, the regulator approved 300 by December 2025, a 59% approval rate, while opening 81 enforcement investigations into unlicensed operators. Penalties for operating without a license reach ZAR 10 million (approximately $550,000) or 10 years imprisonment.

Two compliance milestones arrived in early 2026: the OECD's Crypto-Asset Reporting Framework took effect on March 1, and the Financial Intelligence Centre confirmed a zero-threshold Travel Rule for crypto transfers. South Africa exited the FATF grey list in October 2025, with crypto regulation cited among the contributing reforms.

VALR, the country's largest crypto exchange, secured a derivatives license in October 2025, becoming one of the first entities licensed for crypto derivatives under the Financial Markets Act.

Nigeria Shifts from Prohibition to Structured Engagement

Nigeria's Central Bank launched an AML supervision pilot on March 31, enrolling six entities including KuCoin, stablecoin issuer cNGN, and payment platforms Flutterwave and Paystack. The pilot requires monthly AML performance indicators, governance reviews, and FATF Travel Rule implementation plans, and follows Nigeria's removal from the FATF grey list in October 2025.

The shift is notable given the country's history. Nigeria's central bank ordered banks to close crypto-related accounts in February 2021, a stance that persisted for years. The country processed $92.1 billion in crypto transactions between July 2024 and June 2025, according to PwC data cited in the analysis, nearly three times South Africa's volume.

What Remains Unresolved

The FM Intelligence analysis notes that cross-border recognition between the four jurisdictions is not formalized, and the frameworks vary in enforcement readiness. Kenya's capital thresholds, if enacted as drafted, may produce a market dominated by foreign-capitalized operators rather than local firms, the research warns, inverting the framework's stated objective of fostering domestic participation.

The full analysis, including detailed regulatory comparisons, leverage cap benchmarks, and compliance timelines, is available on FM Intelligence DataLab.

He described the potential development as a natural extension of how currencies compete in digital markets. “If there’s currency competition, you want your currency to have the best features possible,” Allaire said. “This is becoming a technological competition.”

However, the timeline reflects industry expectations rather than any confirmed policy direction from Chinese authorities.

China’s Strategy: CBDC First, Private Tokens Under Pressure

China maintains a domestic ban on cryptocurrency trading while pursuing the e-CNY central bank digital currency as its primary digital currency initiative.

Privately issued yuan-linked stablecoins operate mainly outside mainland China and face tightening regulatory scrutiny. Any expansion of such instruments would likely occur through offshore financial centers rather than through the domestic system.

In practice, the market for yuan-backed stablecoins remains minimal. Existing tokens such as CNHC, AxCNH and Tether’s CNHt operate primarily in offshore environments and have limited adoption.

CNHt is already being wound down, while the remaining projects function at a scale that is negligible compared with dollar-backed stablecoins.

More than 90% of fiat-backed stablecoins are denominated in U.S. dollars, with USDT and USDC accounting for the vast majority of a market estimated at roughly $300 billion.

What It Means for Circle, and the Market

A yuan-denominated stablecoin could, in theory, provide a new rail for cross-border settlement and a digital instrument for holding renminbi exposure, particularly in Asian markets.

For financial institutions and brokers, it would introduce a second major fiat base into crypto markets that are currently almost entirely dollar-based. However, that potential is constrained by structure. Any yuan stablecoin is likely to operate within China’s capital control framework, limiting its role as a freely tradable global settlement asset.

Circle’s position reflects its own strategic interests. As the issuer of USDC, the company stands to benefit from a multi-currency stablecoin market in which infrastructure providers, rather than individual currencies, capture value.

Allaire’s comments therefore point to how industry participants are thinking about the next stage of stablecoin development — even as the current market remains overwhelmingly dollar-dominated.

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This follows earlier developments in the US market. Last year, SoFi resumed crypto trading for retail clients, becoming the first national bank to restore access under a revised regulatory framework.

At the time, several major institutions, including Morgan Stanley and PNC Financial Services, were preparing similar launches, reflecting a move toward direct crypto offerings.

Bitcoin, Ethereum Trading Coming to Schwab

The company said its new offering, Schwab Crypto, will begin a phased launch in the coming weeks. It will initially provide direct access to trading in Bitcoin and Ethereum. These two assets account for a large share of the overall crypto market.

The service will be integrated into Schwab’s existing platforms. Clients will be able to view and trade cryptocurrencies alongside traditional investments. The firm also plans to provide educational materials and continuous customer support.

Jonathan Craig, Head of Retail Investing at Schwab, said clients are seeking broader access within a single platform. He stated, “We know our clients want to conduct more of their financial lives at Schwab.”

He added that the new service allows clients to “trade it alongside their other investments,” while using Schwab’s existing tools and research.

JUST IN: Charles Schwab launches direct trading of Bitcoin and Ethereum

— Kalshi (@Kalshi) April 16, 2026

Crypto Accounts Linked to Brokerage Accounts

The company said pricing will be set at 75 basis points per transaction. It also plans to expand the range of available digital assets over time and introduce transfer capabilities for deposits and withdrawals.

Schwab clients will open a separate crypto account linked to their brokerage account. Custody will be handled by Charles Schwab Premier Bank, SSB, while Paxos will provide sub-custody and execution services.

Schwab said the launch builds on existing client exposure to digital asset products, including exchange-traded products and derivatives tied to cryptocurrencies.

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Banks Can Serve Licensed Crypto Firms Only

The State Bank of Pakistan (SBP) notified all banks and financial institutions that they may now provide services to virtual asset service providers, or VASPs, that hold licenses from the Pakistan Virtual Asset Regulatory Authority (PVARA). The decision replaces the 2018 blanket ban on crypto-related banking.

Under the new framework, banks can open and maintain accounts for VASPs that PVARA has approved or that are seeking approval. They must meet strict anti-money laundering, know-your-customer and counter-terrorism financing rules. The SBP set detailed onboarding conditions, including verification of licenses, enhanced due diligence and ongoing monitoring of transactions

Pakistan has taken an important step toward formalising its virtual asset ecosystem.Following the enactment of the Virtual Assets Act, 2026, the State Bank of Pakistan has issued BPRD Circular Letter No. 10 of 2026, enabling regulated entities to open and maintain bank accounts… pic.twitter.com/cuUhwSiCfS

— Pakistan Virtual Assets Regulatory Authority (@PakistanVARA) April 14, 2026

Banks still face a strict prohibition on direct exposure to crypto. They cannot trade, invest in or hold digital assets with their own funds or with customer deposits. The central bank stressed that regulated entities may only provide banking services to licensed firms and cannot engage in crypto activity on their balance sheets.

Part of a Wider Virtual Asset Strategy

The policy change follows the 2026 Virtual Assets Act, which created PVARA to license, regulate and supervise the crypto sector. It comes as Pakistan develops broader plans for tokenized state assets, expanded Bitcoinmining and a national stablecoin.

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In December, the government and Binance signed a memorandum of understanding to explore tokenizing up to $2 billion in bonds, treasury bills and commodity reserves. That same month, PVARA Chairman Bilal Bin Saqib outlined plans to speed up crypto adoption, promote mining and launch a national stablecoin.

Countries such as China, Algeria, and Bangladesh still enforce blanket bans on cryptocurrency trading, use, and often mining, making almost all crypto activity illegal, whereas Pakistan is shifting from a broad banking prohibition to a more permissive, licensing-based regime that lets banks serve licensed virtual asset providers** while still blocking them from holding or trading crypto on their own books.

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The launch places OKX’s regulated derivatives offering in a segment that may, in certain structural aspects, resemble CFD-style leveraged trading. At the same time, it introduces longer-dated expiries and portfolio margining features that are not typical in standard CFD products.

OKX Expands EEA Access with X-Perps

The product will be available to eligible customers across the EEA. It includes advanced margin features through a unified account structure, enabling real-time, multi-asset and multicurrency functionality within a single risk framework.

X-Perps is designed to support capital-efficient trading of volatility and directional positions. It uses a funding rate mechanism that keeps derivatives pricing aligned with spot markets. It also enables what OKX described as funding rate arbitrage opportunities, alongside standard crypto derivatives trading mechanics.

The platform is built on OKX’s existing derivatives infrastructure, using deep liquidity, low-latency matching, and high-throughput order processing. The company said this is intended to support execution stability across different market conditions.

OKX Launches X-Perps, Bringing Regulated Derivatives Trading Across The European Economic Area@OKX's X-Perps has officially gone live in the EEA, providing regulated access to crypto derivatives for millions of European users. The platform offers up to 10x leverage with… pic.twitter.com/6FL58TxsUj

— BSCN (@BSCNews) April 15, 2026

European Traders Access Multi-Asset X-Perps Platform

On the product side, it includes leverage up to 10×, portfolio margining, and continuous margining without batch settlement. It also supports advanced order types, charting tools, mobile access, and API connectivity. Multi-asset collateral is accepted in EUR, USD, and selected crypto assets.

The platform launches with BTC, ETH, ADA, DOGE, PEPE, LTC, PUMP, SOL, XRP, and SUI trading pairs, with additional listings planned over time.

The system includes negative balance protection, continuous exposure monitoring, and is backed by Proof-of-Reserves and asset verification frameworks. European users must pass an appropriateness assessment before accessing X-Perps.

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The exchange also raised $200 million from Deutsche Börse Group, Bloomberg reported, at a valuation of $13.3 billion, which was below the $20 billion peak valuation it achieved in late 2025. In exchange for the investment, the German exchange group received a 1.5 per cent fully diluted stake in the crypto exchange.

Read more: Kraken’s Extortion Claim Points to a Growing Market for Insider Access

Aim at an IPO Persists

The parent company of Kraken has been mulling going public for some time now. It first submitted a confidential draft Form S-1 with the Securities and Exchange Commission (SEC) in November 2025.

The exchange raised $800 million from investors like Jane Street and Citadel Securities at its peak valuation after that confidential draft filing.

However, the company’s IPO plans did not materialise, as reports suggested it paused going public around March due to market conditions. The latest statement from Sethi indicates that the exchange never shelved the plan.

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Meanwhile, the revenue of the crypto exchange also jumped 33 per cent in 2025 to reach more than $2.2 billion, which, according to the company, was driven by “a broad-based performance across trading and asset-based businesses.” Of the total revenue, about 47 per cent came from trading activities.

Crypto trading activity also increased on the US-based platform, with total transaction volume reaching $2 trillion, a 34 per cent increase. Assets on the platform rose by 11 per cent to $48.2 billion.

Expansion Drive Continues

Although headquartered in the US, Kraken also appears to be expanding globally. It obtained a MiFID II licence by acquiring a Cyprus-based broker last year and launched crypto perpetual contracts through the entity for European users.

The expansion in products, as well as the offering of tokenised stocks, shows a strong focus on that area. Within months of launch, tokenised stocks on its platform reached more than $5 billion across both centralised and decentralised venues, and the number of users passed 37,000. Both figures are likely higher now.

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According to third-party estimates, a mature U.S. prediction market could surpass $1 trillion in annual trading volume. The partnership gives High Roller access to the segment through Crypto.com’s regulated derivatives infrastructure.

Partnership Expands Regulated Event Trading Access

Under the agreement, High Roller will offer event contracts provided by Crypto.com, Derivatives North America, which operates as a CFTC-registered exchange and clearinghouse. High Roller plans to register as aCFTC Introducing Broker and work with Crypto.com’s Futures Commission Merchant to distribute these contracts across its consumer platforms.

Kris Marszalek, Co-founder and CEO of Crypto.com, said the collaboration aims to “expand access to regulated event contracts in the United States through a differentiated and highly scalable offering.”

High Roller CEO Seth Young added that the partnership represents “a significant milestone” in preparing the company’s product and technical foundations for its move into the prediction space. “We believe this agreement gives us a strong position in a market with meaningful long-term potential,” he said.

The companies plan to offer event-based trading opportunities covering finance, entertainment, and sports. High Roller expects the partnership to create new income streams and intends to announce updates on product development, branding, and launch timing in the coming months.

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Crypto.com already operates prediction markets and recently launched OG, a standalone prediction market platform that offers regulated event contracts to U.S. clients through its existing derivatives infrastructure. The agreement with High Roller Technologies extends the reach of this business by adding a new distribution channel, rather than marking Crypto.com’s first move into prediction markets.

Exchanges Race Into Prediction Markets

Major crypto brands have also used partnerships to speed up their entry into prediction markets in 2026. Binance rolled out in‑app prediction markets through an integration with Predict.fun, embedding a BNB Smart Chain–based protocol directly into the Binance wallet while subsidizing trading and settlement fees to encourage early use.

Last month, Gate.io became the first centralized exchange to integrate Polymarket, launching a public beta that lets users access on‑chain prediction markets from within the Gate app, including standard exchange features such as order books and candlestick charts.

These deals show a pattern: major exchanges plug into specialized prediction protocols or platforms to offer event contracts quickly and at scale, while focusing their own efforts on distribution, compliance, and user acquisition.

It also adds to a growing set of Bitcoin-linked ETF products available to investors, including retail market participants through regulated fund structures.

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Goldman Sachs has previously been reported to be exploring a role as an authorized participant for proposed spot Bitcoin ETFs from issuers including BlackRock and Grayscales. The move would align the bank with other Wall Street firms such as JPMorgan and Jane Street in supporting ETF creation and redemption mechanisms.

It reflected a broader shift among major US banks toward indirect participation in cryptocurrency markets via regulated ETF structures.

Goldman Files Bitcoin Income ETF

The proposed product, named the Goldman Sachs Bitcoin Premium Income ETF, would not hold Bitcoin directly. Instead, it is designed to gain exposure to Bitcoin through existing spot Bitcoin ETFs and derivative instruments, while using options strategies to generate income from market volatility.

The structure is similar to so-called “premium income” ETFs already seen in traditional equity markets, where fund managers sell call options on an underlying asset to collect premiums. In exchange, upside participation in strong price rallies is typically limited.

SHOCK: Goldman jumping into the bitcoin ETF game.. with a filing for a Bitcoin Premium Income ETF pic.twitter.com/WszEIrQ2tV

— Eric Balchunas (@EricBalchunas) April 14, 2026

Institutions Shift Toward Bitcoin Yield Products

If approved, the ETF would place Goldman among a growing number of traditional financial institutions developing structured products tied to Bitcoin, rather than offering direct spot exposure. The approach reflects a broader shift in the market toward yield-generating crypto-linked instruments as institutional participation expands.

Goldman has previously taken indirect exposure to Bitcoin through ETF holdings and derivatives activity. The latest filing represents a more explicit product-level engagement with crypto markets.

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The staff view, published on Monday, clarified that websites or software providing access to self-hosted wallets do not need to register as broker-dealers if they act only as interfaces for transactions.

NEW ????: As part of Project Crypto, the Division of Trading and Markets issued a staff statement providing its views on broker-dealer registration requirements in connection with certain interfaces used to prepare transactions in crypto asset securities.https://t.co/8jCwFOJZcw pic.twitter.com/gmp7jbBhgV

— U.S. Securities and Exchange Commission (@SECGov) April 13, 2026

SEC Clarifies Treatment of Wallet Interfaces

According to the SEC, the guidance aims to help developers operate without breaching securities laws while the agency continues to define permanent rules for the crypto industry. Developers must, however, ensure their tools stay neutral and avoid direct involvement in trading or asset handling.

The staff outlined boundaries to remain outside regulation, stating that the software must not solicit investors, provide investment recommendations, handle assets, take orders, or execute trades. If these functions are included, the interface may fall under existing broker regulations.

Keep reading: SEC and CFTC Finally Align on Crypto: “Most Assets Aren’t Securities”

“The staff is providing its views as an interim step while the commission continues to consider various regulatory issues relating to crypto asset securities activities and the feedback it has received,” the statement said.

Temporary Guidance Amid Ongoing Policy Work

Under President Donald Trump’s administration, the SEC has been moving toward a more permissive stance on crypto activities. Chairman Paul Atkins has previously said the agency is working on a broader rule proposal to define how securities laws apply to digital assets.

The latest statement adds to a series of nonbinding staff interpretations meant to guide the industry until formal rules are introduced or until Congress passes legislation such as the proposed “Clarity Act.”

Recently, the SEC and CFTC issued a joint interpretation confirming that most crypto assets are not securities, aligning their approaches by defining when tokens are treated as securities versus commodities. This created a clearer taxonomy for assets like commodities, collectibles, utility tokens, stablecoins, and securities. It also reduced regulation-by-enforcement by giving firms a more predictable rulebook on when and how federal securities and commodities laws apply.

For brokers, that clarity shifted the hard work in-house: firms now have to classify tokens up front, monitor how they’re marketed and used over time, and be ready to defend those judgments if the SEC later questions why an asset wasn’t treated as a security.

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Insider Access Behind Data Exposure

Kraken discovered that two incidents involving insider access to limited support data led to about 2,000 accounts being exposed, representing just 0.02% of its client base. Investigations revealed that both cases were tied to individuals within its support team, whose credentials were immediately revoked once the activity came to light.

The first incident dates back to February 2025, when a video showing internal systems appeared on a criminal forum. Kraken traced the clip to an insider, tightened access controls, and informed affected users. A similar event surfaced recently, prompting the same swift response from the company.

“Our systems were never breached; funds were never at risk; we will not pay these criminals; we will not ever negotiate with bad actors,” said Nick Percoco, Chief Security and Information Officer at Kraken, on X.

Kraken Security UpdateWe are currently being extorted by a criminal group threatening to release videos of our internal systems with client data shown if we do not comply with their demands. It’s important to start with the most important points: our systems were never…

— Nick Percoco (@c7five) April 13, 2026

Law Enforcement Probes and Industry Risks

Kraken said it is now working closely with law enforcement and industry partners to investigate the extortion attempt, which it believes is linked to broader efforts by criminal networks to recruit insiders across crypto, gaming, and telecom firms.

The exchange stressed that its operations continue normally and that new security measures are already in place to prevent similar incidents. Insider threats have become a rising concern in the digital asset industry, as cybercriminals increasingly target employees with system access rather than directly attacking infrastructure.

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Blockchain analytics firm Chainalysis estimates that crypto scams and fraud may have siphoned off more than $17 billion last year alone, with impersonation schemes alone surging by around 1,400% year-over-year. Criminal groups are increasingly using AI tools to supercharge these operations, with AI‑enabled scams proving several times more profitable than traditional grifts.

REPORT: Crypto scams netted $17B in 2025 as impersonation tactics surge 1,400% and AI-generated schemes overtake cyberattacks as primary theft method, according to Chainalysis 2026 Crypto Crime Report.https://t.co/2PBuhNuMdj

— CoinDesk (@CoinDesk) January 14, 2026

Investigators have also traced many of these schemes back to organized crime networks in East and Southeast Asia, including forced-labor compounds in countries such as Cambodia and Myanmar where trafficking victims are coerced into running scams. While the overall threat has intensified, law enforcement has begun to score major wins, including record crypto seizures like a 61,000‑bitcoin recovery in the UK.

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From Incident to Market Structure

The Financial Services Commission has already imposed operational controls following the February Bithumb incident, which exposed weaknesses in exchange processes.

The Bank of Korea is now going further, proposing tools typically used in equity markets to manage trading itself. In a new report, the central bank recommended introducing circuit breakers — mechanisms that automatically halt trading during sharp price moves — to manage abnormal volatility.

Applying Stock Market Controls to Crypto

The proposals map closely onto the rulebook of a traditional exchange. They include market-wide circuit breakers, tighter reconciliation requirements already introduced by the FSC, and monthly asset verification by independent accounting firms.

The measures are expected to be incorporated into South Korea’s forthcoming Digital Asset Basic Act. The Bank of Korea’s review pointed to broader weaknesses across the industry, including gaps in transaction approval processes and delayed reconciliation cycles that can allow inconsistencies to build up on exchange books.

Implications for Exchanges — and Beyond

The importance of the move extends beyond the domestic market.South Korea remains one of the largest retail crypto trading hubs globally, with won-denominated trading volumes exceeding $600 billion in 2025 and local exchanges such as Upbit consistently ranking among the top venues by spot volume.

Changes to market structure in Korea therefore affect a significant share of global retail activity. For exchanges and the broader B2B brokerage industry, the shift raises the operational bar.

Real-time reconciliation, auditable systems and circuit breaker infrastructure increase compliance costs and create higher entry thresholds for new platforms. Firms already operating under similar requirements in traditional markets enter with an advantage.

Whether other jurisdictions follow South Korea’s lead at the same pace is an open question. The broader direction, however, is becoming clearer: regulators are increasingly moving away from separate rulebooks for crypto and traditional markets.

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Stablecoin Issuers Face Steep Capital Needs

According to the National Treasury’s draft, stablecoinissuers will face the highest requirement at Sh500 million ($3.8 million), while investment advisors will need at least Sh2.5 million ($19,300). The rules also exclude capital raised through loans or internal revaluations, requiring firms to use fully paid‑up funds only.

The regulations emphasize that companies must maintain sufficient capital “commensurate with the scale, risk and complexity” of their operations. Regulators may also direct firms to raise capital further if their risk exposure increases.

Firms will also pay license fees between Sh100,000 ($772) and Sh2 million ($15,400), depending on the service type. Crypto exchanges and payment processors issuing stablecoins will pay the most.

Keep reading: Kenya’s CMA Widens Regulatory Net With Robo-Advisory Permits

Applicants must submit detailed business plans showing their activities, technology, data protection, and anti‑money laundering measures, as well as three‑ to five‑year financial projections.

The draft follows the enactment of the VASP Act in November 2025 and involves collaboration among the National Treasury, Central Bank of Kenya, and Capital Markets Authority, signaling the country’s firm stance on cryptocurrency oversight.

Kenya’s Crypto Firms' Regulations

Kenya’s proposed capital and licensing rules sit on top of the Virtual Asset Service Providers (VASP) Act, 2025, the country’s first comprehensive crypto law that pulls exchanges, wallet providers and stablecoin issuers into a formal regime overseen jointly by the Central Bank of Kenya and the Capital Markets Authority.

Enacted in November 2025, the Act requires VASPs to be locally incorporated or registered, pass “fit and proper” tests and implement full AML/CFT controls aligned with FATF standards, including strict KYC, transaction monitoring and suspicious‑activity reporting to the Financial Reporting Centre, with criminal penalties and hefty fines for those operating without a license or breaching the rules.

Meanwhile, Kenya’s markets watchdog recently moved to license robo-advisors and intermediary trading apps, widening its net over online investing as global FX brokers like Capital.com and XM shift into its onshore regime.

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The regulator announced the initial batch of approvals on Friday (today). It said this marks the first licenses issued under its stablecoin regime. Two entities were approved. They are Anchorpoint Financial and HSBC.

HSBC, Anchorpoint Get First Licenses

Anchorpoint Financial is a joint venture. It was formed by Standard Chartered Bank in Hong Kong, Animoca Brands, and Hong Kong Telecommunications. It focuses on digital asset infrastructure linked to regulated financial services.

HSBC’s Hong Kong entity, the Hongkong and Shanghai Banking Corporation Limited, is one of the city’s three note-issuing banks. It is among the largest banking institutions in Hong Kong.

The approvals indicate a cautious start to the licensing process. Regulators appear to be prioritizing bank-linked and institution-backed issuers in the early phase of the regime.

The announcement follows weeks of market speculation over potential licensees. It also follows a delay to earlier expectations. HKMA Chief Executive Eddie Yue said in February that “a very small number of issuers would be licensed in March.” That timeline was not met before the first approvals were issued.

Hong Kong grants first stablecoin licences to StanChart joint venture and HSBC https://t.co/IoY0a2VPvH

— Reuters Asia (@ReutersAsia) April 10, 2026

Stablecoin Infrastructure Expands in Hong Kong

Separately, EX.IO signed a memorandum of understanding with Payment Asia. The two companies said they will explore stablecoin-related payments, custody, trading, and application use cases in Hong Kong. They said the aim is to support infrastructure for regulated stablecoin issuers and promote real-world adoption once the framework is implemented.

Hong Kong’s stablecoin regime took effect on August 1, 2025. It requires issuers of fiat-referenced stablecoins to obtain a license from the Hong Kong Monetary Authority. The framework includes requirements on reserve backing, redemption rights, governance standards, and anti-money laundering controls.

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The amendment classifies crypto assets as financial instruments. This moves them away from being treated mainly as payment tools. They will now be regulated in a way similar to securities. The step follows plans outlined in 2025 to bring crypto under the same law with disclosure and insider trading rules.

Japan Bans Insider Trading, Raises Penalties

Under the revised framework, insider trading in crypto assets is banned. The rule targets trading based on undisclosed information. Authorities have also increased penalties for unregistered crypto exchanges.

The amendment introduces new disclosure requirements. Crypto “issuers” must publish information at least once a year. The measure is intended to improve market transparency.

Japan is also preparing for broader market integration. Plans call for allowing crypto exchange-traded funds by 2028. Firms such as Nomura Holdings and SBI Holdings are expected to develop related products.

JUST IN: ???????? Japan officially approves bill to recognize cryptocurrency as a financial asset.

— Watcher.Guru (@WatcherGuru) April 10, 2026

Japan Signals Lower Tax, Institutional Growth

Japan’s Financial Services Agency had previously overseen crypto under the Payment and SettlementAct. That framework focused on their use as a means of payment. The latest revision reflects growing institutional activity in the sector.

By reclassifying crypto assets, Japan is aligning them more closely with traditional financial markets. The move places them alongside instruments such as equities, with similar oversight standards.

Finance Minister Satsuki Katayama outlined the policy direction after a Cabinet meeting. She said the government will “expand the supply of growth capital” and “ensure market fairness, transparency, and investor protection.”

The shift builds on earlier signals from policymakers. In January, Katayama said “the role of exchanges and market infrastructure will be essential” to ensure citizens benefit from digital assets.

Policy changes have also extended to taxation. In December, the government backed plans to reduce the maximum tax rate on crypto profits to a flat 20%.

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The simultaneous deadlines in Australia, Japan, Hong Kong, and South Korea affect hundreds of platforms, millions of retail accounts, and trillions of dollars in assets, the research arm said.

Australia's 400 Platforms Face a June 30 Licensing Cliff

The biggest single deadline falls in Australia, where parliament passed the Corporations Amendment (Digital Assets Framework) Bill on April 1, requiring crypto platform operators to obtain an Australian Financial Services License.

Of the roughly 400 crypto platforms registered in the country, only about 10% currently hold ASIC registration, according to the FM Intelligence article citing the Law Society Journal.

ASIC's class no-action letter expires on June 30, and platforms that have not filed an AFSL application by that date lose their protection, the analysis notes. A low-value exemption covers providers processing below A$10 million annually or holding less than A$5,000 per customer.

Research from the Digital Finance Cooperative Research Center estimates Australia could generate A$24 billion annually from tokenized markets and digital asset services under the new framework, compared to a projected A$1 billion under the previous path.

Japan Reclassifies 105 Tokens Covering 13 Million Accounts

Japan's Financial Services Agency is moving crypto from the Payment Services Act to the Financial Instruments and Exchange Act, reclassifying 105 cryptocurrencies, including Bitcoin and Ethereum, as financial products. The shift covers 13 million domestic accounts holding over ¥5 trillion(approximately $33 billion), with legislation expected in Q2 2026, according to the report.

Under the FIEA framework, exchanges would face mandatory disclosure requirements for all listed tokens, insider trading prohibitions, and market manipulation rules carrying penalties of up to ¥10 million.

The government separately plans to cut the crypto tax rate from as high as 55% to a flat 20%, a change the article notes could also open the door to spot Bitcoin ETFs in Japan.

Hong Kong and South Korea Take Opposite Approaches

Hong Kong now has 12 licensed virtual asset trading platforms and issued its first stablecoin issuer licenses in March 2026, with applicants including Standard Chartered, Ant Group, and JD.com, according to the FM Intelligence piece. The territory's SFC plans to introduce a Virtual Asset Licensing Bill covering OTC dealing and custody services later this year.

South Korea, by contrast, moved on an emergency basis. After Bithumb accidentally transferred roughly $56 billionin bitcoin to hundreds of users due to an internal system error on February 6, the Financial Services Commission ordered all crypto exchanges to implement five-minute automated balance reconciliation, automatic kill-switches, and monthly external audits by end of May 2026. The country simultaneously shifted to a zero-threshold Crypto Travel Rule, eliminating the previous 1 million won reporting minimum.

Compliance Windows Range From 60 Days to 18 Months

The FM Intelligence analysis highlights the wide variation in timelines. Australia's 18-month compliance window provides more breathing room than South Korea's 60-day mandate, while Japan's enforcement will not begin until 2027. Hong Kong's 12 licensed platforms represent a fraction of global operators.

The broader question, the article notes, is whether parallel reforms across four jurisdictions produce regulatory convergence or fragmentation, particularly as stablecoin regulation, DeFi oversight, and cross-border recognition frameworks remain in earlier stages across all four markets.

The regulatory acceleration comes as traditional financial institutions across the region increasingly move into digital assets, with Korean brokerages pursuing stakes in crypto exchanges and major banks applying for stablecoin licenses in Hong Kong.

The full FM Intelligence analysis, including jurisdiction-by-jurisdiction breakdowns and compliance deadline details, is available here.

Your money spends a lot of its life doing one job at a time.

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A balance sits in a wallet waiting for the next move. Collateral sits on an exchange waiting for a trade. Cash sits in a bank account waiting for a bill. Even when you chase yield, the money often gets boxed into a single lane, earning, or collateral, or investment capital.

Every time you move it, you pay in friction. Sometimes that friction looks like an on-chain fee. Sometimes it looks like opportunity cost. Either way, it acts like a tax on productivity. Capital that could be doing more gets stuck in transit, locked up, duplicated across platforms, or simply idle.

Crypto promised to unbundle finance into smarter building blocks. In practice, many users ended up with a longer checklist. Receive funds here. Bridge there. Park stablecoinssomewhere else. Keep separate margin on an exchange. Keep long-term holdings in a different wallet. Track it all in spreadsheets, or just stop tracking and hope the stack grows.

That journey drains attention as much as it drains value.

Capital That Multitasks

When people talk about progress in finance, they often mean capital utility. More assets, more products, more venues, more chains. Utility matters, and it expands what people can do.

Productivity matters more. Productivity means one unit of capital doing multiple jobs at once. Picture a single, programmable balance that can earn a base yield while also supporting trading activity and maintaining exposure to a longer-term position. The same dollar stays active across uses instead of being chopped into separate piles.

That changes the user’s experience from “choose a lane” to “keep moving without losing momentum.” It also changes platform competition. A platform that helps capital do more with fewer moves gives the user a compounding edge. Small advantages stack up: less collateral sitting dead, fewer transfers, fewer moments where funds sit waiting for the next step.

Today’s typical lifecycle still looks like a relay race.

Receive. Hold. Earn. Trade. Invest. Transfer. Spend.

Each leg often means a different app, a different protocol, a different account, a different set of rules. Users end up duplicating balances to stay flexible, leaving one pile for yield, another for margin, another for long-term holdings. The result feels safe, but it carries drag.

A more productive lifecycle feels like a loop instead of a line. Funds arrive and stay active. Money earns while it waits. Collateral earns while it backs risk. Transfersfeel like moving a live balance, not pausing everything to pick the money up and carry it somewhere else.

The phrase “money should work harder” gets used a lot. Here, it has a very specific meaning: money should keep its optionality while it earns.

Who Demands This, And Why It Matters

Two groups push this idea forward, and they do it for different reasons. First come the active traders. Professionals, quants, and sophisticated on-chain operators tend to follow efficiency, not branding. They care about execution quality, liquidity, borrow costs, and capital efficiency. They pressure-test the rails. They turn platform mechanics into real volume. Their behavior exposes weak points fast.

A margin system that wastes less capital becomes a meaningful draw, especially when markets turn volatile and the cost of idle collateral becomes painfully obvious.

Then come the crypto-native capital holders. This group already lives on-chain, but they have limited patience for complexity. They hold real positions and want simple wealth management: earning yield, maintaining exposure, spending when needed, staying inside one ecosystem without juggling six dashboards.

These users bring assets under management, steady balances, and the kind of network effects that make a financial product feel like infrastructure. They also bring everyday expectations: receiving money should feel easy, earning should feel automatic, spending should feel normal.

DeFi has incredible infrastructure, but the user experience still slows adoption.With Amadeus, agents live directly inside a platform’s UI, helping users interact with DeFi in real time, without leaving the product.A shift from tools you operate → to agents that operate for… pic.twitter.com/h9OcsjEbJE

— Amadeus Protocol (@amadeusprotocol) April 7, 2026

The sequence is important since more traders will engage when the system rewards efficiency. Their volume helps mature the system. Capital holders arrive when the system feels legible and reliable. Their balances deepen liquidity and reinforce the same efficiency traders came for in the first place. That loop creates a flywheel: volume supports better markets, better markets support better yield and borrowing terms, better terms attract more users, more users deepen the system again.

The Next Decade Belongs to Productive Capital

Finance keeps adding instruments. Crypto keeps adding rails. The more interesting question sits underneath: how much work can one unit of capital do before the user has to touch it?

The winners will be the platforms and protocols that treat idle money as a design failure. They will build systems where capital stays active across earning, trading, investing, transferring, and spending, with fewer forced pauses between each action.

A future where money keeps moving and keeps earning will feel quietly obvious once it arrives. The hard part sits in the architecture, getting the incentives, risk controls, and user experience aligned so productivity becomes the default behavior of capital.

When that happens, “Where do I put my money?” becomes “Which system helps my money stay useful every minute it exists?”

Finance is shifting from fragmented, idle capital to systems where money stays active, multitasks, and generates value without constant movement.

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The service is hosted at Equinix London, a major global financial data center, and is now available to both institutional and individual clients.

Why It Matters Conceptually for FX/CFDs

Kraken’s colocation move mirrors the same infrastructure arms race that has long shaped FX/CFD execution quality. Colocation and ultra-low latency access are already standard in FX and index CFD venues, where execution quality depends on speed, stability, and predictable fill behavior.

Kraken rolling out similar low‑latency access in crypto shows that digital asset venues are converging toward the same performance and transparency standards seen in FX and CFD markets.

The new setup provides direct links between Kraken’s systems and Liquidity Connect’s servers, helping reduce delays to less than one millisecond. This allows traders to place orders and receive data almost instantly.

The integration offers deterministic, ultra-low latency connectivity via direct fiber cross-connects to Liquidity Connect’s Virtual Private Servers (VPS) and dedicated bare metal servers. According to Liquidity Connect, the setup allows traders to connect to Kraken’s trading systems with sub-millisecond latency, an advantage for strategies requiring precision and minimal delay.

Continue reading: Kraken Halts IPO Plans as Weak Market Dents Crypto Valuations: Report

Dennis Miranda-Cruz, Head of Business at Liquidity Connect, said the partnership aims to deliver “the speed and security previously reserved for major financial institutions.” He added that the company’s goal is to maintain stable, low-latency connections that enhance execution quality for crypto traders.

Supporting Trading Strategies

The Liquidity Connect solution offers several operational benefits, including rapid deployment in less than 30 minutes, dedicated IP addresses, DDoS protection, and redundant power systems. Clients also receive24/7 infrastructure support from Liquidity Connect engineers.

Kraken said the new service supports its ongoing efforts to strengthen market infrastructure and ensure fair access for participants. As crypto markets mature, exchanges are increasingly adopting institutional-grade connectivity to match standards in traditional finance.

The FX and CFD space has offered similar colocation and low‑latency setups for years, so Kraken’s move is very much in line with what’s already standard there.

Specialist providers already host FX trading servers in the same data centers as major FX venues and liquidity providers, offering ultra‑low latency “proximity” or colocation access. These setups connect clients directly to platforms like Hotspot, EBS, Currenex, and bank LPs from Equinix NY4, LD4 and similar hubs.

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The structure splits the business in two. WhiteBIT Georgia, already licensed as a virtual asset service provider, will continue handling spot trading. The newly licensed WhiteBIT Broker will focus on derivatives, including perpetual futures.

Running the two activities under separate licenses allows the higher-risk derivatives business to sit within a distinct regulatory framework.

Georgia as a Crypto Licensing Destination

Georgia has been an active issuer of VASP licenses, with the NBG having also licensed Bybit. According to Chainalysis data, the country ranks among the leading markets for grassroots crypto adoption, which WhiteBIT cites as part of its rationale for adding a derivatives offering there.

The structure also highlights a divergence in how exchanges are approaching the Georgian market. While WhiteBIT has set up separate entities to operate spot and derivatives under distinct licenses, other platforms such as Bybit have focused on VASP-based operations without obtaining a local brokerage license.

In practice, this means derivatives activity may continue to be routed through offshore entities rather than a domestically regulated framework.

What the Dual-License Model Signals

For exchanges looking to offer both spot and derivatives under a single brand, the WhiteBIT approach illustrates one way to structure the split: separate legal entities, separate licenses, one parent.

The distinction is not just structural. It affects how clients are onboarded and where regulatory responsibility sits, particularly as jurisdictions begin to define rules for derivatives more clearly.

Whether Georgia’s framework matures enough to attract larger institutional flows — or remains primarily a retail and semi-professional market — will determine whether this model scales beyond niche use cases.

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The study examined more than a decade of crypto headlines alongside price data and found no consistent relationship. Building on this, researchers analyzed media traffic and on-chain metrics across 2025 to test whether attention aligns with actual usage.

Monthly Crypto Media Visits Drop Sharply

The dataset covered 349 media outlets across crypto, finance, technology, and general news. Traffic data was sourced from the Outset Media Index and grouped into two categories: crypto-native publications and mainstream outlets with crypto coverage. These figures were then compared with three on-chain indicators:stablecoin supply, USDT transfer volume, and decentralized exchange (DEX) trading activity.

The results show that traffic to crypto-focused media declined throughout 2025. Monthly visits peaked at 105.85 million in January and fell to 70.78 million by December, a drop of 33.14%. Short-term increases, including a spike in July, did not alter the overall downward trend.

At the same time, readership remained fragmented. The top ten crypto-native outlets accounted for about 25% of total traffic. The majority of visits, 64.6%, went to smaller publications, indicating a highly distributed media landscape.

Mainstream Media Audiences Grow Nearly 60%

In contrast, mainstream media attracted significantly larger audiences. Total traffic across these outlets reached 6.91 billion visits in 2025. Monthly traffic increased from 366.71 million in January to 585.73 million in December, a rise of 59.71%. A sharp increase occurred in March, when traffic jumped more than 70% month-on-month, and remained elevated for the rest of the year.

While media traffic showed mixed trends, on-chain activity expanded steadily. Stablecoin supply, a proxy for liquidity, rose from 216.95 billion in January to 307.76 billion in December, an increase of 41.84%. Growth accelerated during the third quarter, with the largest monthly rise recorded in August.

USDT transfer volume, which reflects payment and settlement activity, showed strongervolatility. After declining in the first quarter, it began to rise in May and peaked at 2.52 trillion in October, more than doubling January levels. Total annual transfer volume reached 18.92 trillion.

A similar pattern appeared in decentralized trading. DEX spot volume increased from 112.45 billion in January to a peak of 214.68 billion in October. Total trading volume for the year reached 1.76 trillion, indicating sustained growth in on-chain trading activity.

Media Traffic Does Not Track Activity

Despite these increases, the analysis found no consistent relationship between media traffic and blockchain activity. A time-lag comparison showed that changes in media attention did not systematically precede or follow shifts in on-chain metrics.

Instead, the two datasets often moved in different directions. Crypto-native media traffic declined over the year, while liquidity, transfers, and trading activity expanded. This divergence was most visible in the second half of 2025, when on-chain indicators rose sharply but media traffic remained subdued.

The findings suggest that attention-based signals may not capture underlying changes in the crypto economy. As more activity occurs directly on blockchain infrastructure, metrics such as liquidity flows and transaction volumes may provide a clearer view of market behavior.

The study also notes several limitations, including the use of total site traffic rather than crypto-specific readership and the exclusion of activity on social platforms. However, the overall pattern remains consistent: media coverage and on-chain activity did not move together over the period analyzed.

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The directive follows a February operational failure at Bithumb that briefly sent $56 billion worth of bitcoin to hundreds of retail users.

The Bithumb Incident

On February 6, 2026, Bithumb mistakenly credited approximately 620,000 BTC (worth around $56 billion at the time) to hundreds of users during a promotional event.

The intended payment was 620,000 Korean won, roughly $450. Some recipients sold the bitcoin immediately, causing a localized price drop of 10–17% on the exchange.

Bithumb froze affected accounts and recovered most of the funds, but the FSC concluded the episode exposed "structural vulnerabilities" in the industry's internal controls.

The New Requirements

The FSC has set an end-of-May deadline for all Korean exchanges to comply with a new operational framework.

The key requirements:

• Reconciliation every five minutes: exchanges must verify client ledgers against on-chain holdings at five-minute intervals, compared to the 24-hour cycle most currently use.
• Daily public disclosure of reconciliation results.
• Monthly independent audits by an external accounting firm.
• Upgraded trade-halting systems capable of acting immediately on a large asset mismatch.

What This Means for the Industry

The rules represent one of the first times a major regulator has applied high-frequency internal audit requirements — the kind typically associated with stock exchanges and clearing houses — directly to crypto platforms.

The focus is on operational risk: internal failures that occur without any external breach, a category the industry has historically treated as secondary to cybersecurity.

The requirements are expected to be codified under South Korea's forthcoming Digital Asset Basic Act. Whether other jurisdictions follow a similar model remains to be seen — but Bithumb's error has given regulators a concrete failure case to point to.

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The clearest signal so far is Bitfarms (NASDAQ: BITF), which announced it is re-domiciling, renaming itself Keel Infrastructure, and halting all new Bitcoin mining investment.

"We are no longer making any investments into Bitcoin mining," said executive Ben Gagnon, framing the company as an "infrastructure developer and owner."

We’re officially Keel Infrastructure! Built for the accelerating demand for HPC and AI—with the power, locations, and execution to deliver. Explore our new website → https://t.co/3VI028F01M pic.twitter.com/D6ubEMP1lc

— Keel Infrastructure (@keelinfra_) April 1, 2026

A Clear Trend

It's not a one-off case. Core Scientific (CORZ) and TeraWulf (WULF) have largely repositioned as HPC operators and signed multi-year contracts with hyperscalers.

Riot Platforms (RIOT), Iris Energy (IREN), and Hut 8 have each announced plans to redirect significant power capacity toward AI clients.

Analysts estimate that by end of 2027, up to 20% of the Bitcoin mining industry's total power capacity could be repurposed for AI and HPC workloads.

Why Miners Have an Edge

The pivot works because miners already hold what the AI industry can't quickly acquire: large-scale sites with high-voltage power contracts and the infrastructure permits to match.

Hyperscalers are facing two-to-four-year delays just to get new data centres grid-connected. Miners can bring AI capacity online in one to two years.

Goldman Sachs forecasts U.S. data center power demand growing at a 15% compound annual rate through 2030, driven predominantly by AI.

The Valuation Play

The financial logic is as important as the operational one. Bitcoin miners typically trade at 6–12x EBITDA. Data center operators trade at 20–25x.

A successful transition from volatile commodity production to infrastructure-as-a-service — with long-term leases and predictable cash flows — implies a substantial multiple re-rating. That's the bet these companies are making.

For brokers and investors, the practical consequence is sector reclassification. What traded as a pure-play crypto mining cohort is becoming a heterogeneous mix of infrastructure companies, AI-levered real estate plays, and residual Bitcoin producers.

Applying uniform crypto-cycle logic to the entire group is increasingly the wrong frame.

Blockchain investigator ZachXBT alleged Circle could have acted faster to freeze the stolen assets and limit losses.

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2/ Circle operates USDC, a centralized stablecoin pegged 1:1 to USD, marketed as a regulated company with a robust compliance program.Its token contract includes a freeze/blacklist function, and its terms of service explicitly state it reserves the right to restrict access for… pic.twitter.com/Plnq6IDV6A

— ZachXBT (@zachxbt) April 3, 2026

Legal Risks and Regulatory Constraints

According to security firm PeckShield, the attacker bridged roughly $232 million in USDC using Circle’s cross-chain transfer protocol (CCTP), complicating recovery efforts. Critics argue Circle had the authority to blacklist or freeze wallets tied to suspicious activity. However, legal experts say acting without a law enforcement order could expose Circle to liability.

The initial estimated loss of today's @DriftProtocol loss is $285m. Here is the detailed breakdown: https://t.co/z3DjfN0NP1 pic.twitter.com/P84p2UVJZi

— PeckShieldAlert (@PeckShieldAlert) April 1, 2026

Circle maintained that it freezes USDC only when legally required. The incident has reignited debate about the responsibilities of centralized stablecoin issuers during fast-moving exploits.

You may also like: CFTC Sues Arizona, Connecticut, and Illinois for Overreach on Prediction Markets

Analysts say the attack, suspected to involve North Korean-linked hackers, exposes a gray area between rapid intervention and due process.

Hackers Park Nearly $2B in Stolen Crypto

More than $4 billion was stolen in 255 crypto hacks last year, according to Global Ledger. Hackers now move funds within seconds of an exploit but slow the laundering process, spreading it over days or weeks and making detection harder for brokers and exchanges.

Nearly $2 billion in stolen funds from this period reportedly still sits in attacker-linked wallets, creating a sleeper threat that may hit regulated venues later and defeat point‑in‑time screening.

Criminals increasingly rely on cross-chain bridges and privacy tools, with over $2.01 billion in stolen funds routed through bridges in 2025. Tornado Cash usage rebounded after sanctions were lifted in March 2025 and was involved in nearly 75% of mixer-related hacks in the second half of the year.

These longer, more complex laundering paths are intensifying operational risks and forcing compliance teams to move beyond static blacklists toward continuous monitoring.

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The firm previously offered contracts for difference as part of Korea’s leveraged trading market but scaled back and suspended the product following tighter regulatory scrutiny after the 2023 South Korea CFD stock manipulation scandal. Since then, it has focused on listed products and global investment services rather than restarting a broad retail CFD business.

Korea Investment & Securities currently provides domestic and global equities trading, exchange-traded derivatives, structured products, and wealth management services.

Proposed 20% Cap Could Affect Coinone

Citing people familiar with the matter, The Korea Herald reported that the brokerage has engaged with regulators and politicians as part of a broader process tied to a potential investment in Coinone. The exchangealso said that no specific transaction had been decided.

[#highlighted-links#]

The development comes as South Korea considers a proposal to cap major shareholders’ stakes in domestic crypto exchanges at 20%. Cha Myung-hoon reportedly controls about 53.44% of Coinone, and a stake sale could become one way to comply if the proposal advances into law.

Korea Investment & Securities explores 20% stake in Coinone as South Korean brokerages race for crypto exchange access???? https://t.co/dIwKbm3St9????️ Benthic pic.twitter.com/9Xidq1meMb

— Leviathan News (@leviathan_news) April 3, 2026

Mirae Asset Targets Crypto with Korbit Deal

A potential Coinone deal would place Korea Investment & Securities alongside peers already active in the crypto sector. Earlier this year, Mirae Asset Group acquired crypto exchange Korbit for $92 million through a subsidiary to comply with ownership regulations, adding exchange infrastructure to its brokerage, digital bonds, and tokenized securities activities. Korbit continues operating with a 1% market share.

The transaction coincides with South Korea advancing security token rules and considering broader institutional participation in crypto. The move reflects a wider trend of traditional financial firms integrating with digital asset markets. Korea Investment & Securities’ net profit of over $1.3 billion in 2025 indicates it has the financial capacity to pursue a potential stake in Coinone.

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Last year, the Australian Securities and Investments Commission clarified how existing laws apply to digital assets. The guidance classifies stablecoins, wrapped tokens, and tokenised securities as financial products. Many providers must now hold a licence. ASIC introduced a no-action position until 30 June 2026 for firms making genuine efforts to comply.

New Law Targets Exchanges, Custody Providers

The Corporations Amendment Bill 2025, known as the Digital Assets Framework, cleared both houses, according to parliamentary records. It was introduced in November 2025 and amends the Corporations Act and ASIC Act. Its stated aim is to “improve consumer protection, market integrity and regulatory certainty.”

The legislation now awaits royal assent, the final step before it becomes law. It is scheduled to take effect 12 months after assent, with a transition period for businesses to comply.

Under the bill, operators of crypto exchanges and custody platforms will be required to obtain an Australian Financial Services Licence from ASIC.

????BREAKING:Australia passes its first crypto law, requiring exchanges and custodians to obtain AFS licenses.New rules aim to regulate platforms and protect customer funds. pic.twitter.com/xMTOYZ0QEv

— Crypto Rover (@cryptorover) April 1, 2026

ASIC Targets Crypto Products Under Regulation

The Federal Court of Australia recently fined Binance Australia Derivatives AU$10 million after the company acknowledged misclassifying a majority of its local clients. The misclassified accounts incurred AU$8.66 million in trading losses and paid AU$3.89 million in fees.

The case forms part of broader regulatory attention in Australia. ASIC has indicated that certain crypto products may fall under existing financial regulation. Other firms have also faced fines. Bit Trade, the local operator of Kraken, was fined AU$8 million in December 2024over a leveraged “margin extension” product.

Internationally, the European Securities and Markets Authority has suggested that crypto perpetual contracts could be treated as CFDs. In the United States, the Commodity Futures Trading Commission is considering allowing broader access to crypto derivatives for retail traders.

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Google Quantum AI released a whitepaper, warning that around 2.3 million dormant, vulnerable BTC could become a multi‑billion‑dollar prize the moment a powerful quantum machine comes online.

Simply, this new research says that once powerful quantum computers arrive, they will be able to “guess” some old Bitcoin keys fast enough to move coins that nobody can currently access, turning a huge pool of forgotten BTC into a prize for whoever gets the technology first.

Google Quantum AI released a whitepaper warning that cracking 256-bit ECC, widely used in crypto wallets, requires fewer resources than expected. With under 500k physical qubits, it could be cracked in minutes. Google urged the industry to accelerate its migration to Post-Quantum… pic.twitter.com/DpdSPmYhYc

— Wu Blockchain (@WuBlockchain) March 31, 2026

Dormant Bitcoin as a Quantum Time Bomb

Technically, the paper estimates that a future “fast‑clock” quantum computer with fewer than 500,000 physical qubits could use Shor’s algorithm to break Bitcoin’s 256‑bit elliptic curve in about nine minutes from a primed state.

That speed is comparable to Bitcoin’s average 10‑minute block time, meaning an attacker could potentially intercept some pending transactions and redirect funds before they confirm.

Read more: Quantum Computing and Payment Security

Google’s team showed, on paper, that you no longer need a sci‑fi‑level quantum supercomputer to break the math that protects Bitcoin and Ethereum. You “just” need a realistically sized, next‑generation machine, and once that exists an attacker could watch the network, grab your public key while your transaction sits waiting to be confirmed, and mathematically recover your private key fast enough to steal the coins before they hit a block.

Vitalik Buterin warned at the Devconnect conference that elliptic curve cryptography could be broken by quantum computing before the 2028 U.S. presidential election, urging Ethereum to upgrade to quantum-resistant cryptography within four years. He also stated that future…

— Wu Blockchain (@WuBlockchain) November 19, 2025

Industry Outlook: From FUD to Forced Migration

The whitepaper argues that full migration to post‑quantum cryptography is technically clear but politically and operationally difficult. Post‑quantum signatures are larger and heavier, so upgrades would raise bandwidth and storage needs and almost certainly reopen old governance fights, especially in Bitcoin.

“Pull your cryptographic inventory. Flag every ECC-256 implementation on high-value assets. Identify every system where the algorithm is hardcoded rather than configurable. Those are your agility gaps and your longest-lead-time risk,” commented Cory Missimore, AI Governance expert.

At the same time, leaving dormant assets untouched invites a race between criminals, states and possibly regulated “digital salvage” operators seeking legal rights to recover and liquidate compromised coins.

Interestingly, Ethereum co-founder, Vitalik Buterin, shares similar views. He recently told developers that the kind of cryptography Ethereum uses today might be breakable by quantum computers sooner than many expect, possibly even before the 2028 U.S. election, so the network should move to quantum‑resistant cryptography within about four years.

At the same time, he argued that most new experimentation should happen on Layer 2s, in wallets and in privacy tech, while keeping the base layer as simple and stable as possible.

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U.S. regulators have pursued a similar path with other major offshore exchanges in recent years, underscoring that KuCoin is not an isolated case.

CFTC Case Resolves with Court Order

The U.S. District Court for the Southern District of New York entered a consent order that permanently bars Peken Global from allowing U.S. users to trade on KuCoin unless it registers as a foreign board of trade.

The court also imposed a $500,000 civil penalty. Peken Global, based in the Turks and Caicos Islands, settled the matter without admitting or denying the allegations. The CFTC said the company cooperated with investigators and therefore did not face additional disgorgement.

Federal Court Enters Permanent Injunction Against Peken Global Limited: https://t.co/ceUdshuxK5

— CFTC (@CFTC) March 30, 2026

The CFTC noted that its penalty took into account KuCoin’s earlier $300 million payment following a Department of Justice case in January 2025. In that case, KuCoin pleaded guilty to operating an unlicensed money transmitting business.

Previous DOJ Fine Considered in Settlement

Regulators alleged the exchange allowed roughly 1.5 million U.S. customers to trade and earned about $184.5 million in fees from those users.

Additionally, this month, Dubai’s crypto regulator issued a public warning about KuCoin, saying the exchange may have offered services to Dubai residents without approval. The watchdog has a record of acting against unlicensed firms. In 2025, it fined 19 companies between AED 100,000 and AED 600,000 and ordered them to halt unauthorized crypto activities.

Taken together, BitMEX’s 2020 charges, Binance’s high‑profile 2023 guilty pleas, and KuCoin’s latestsettlement in 2025–2026 chart a clear arc in Washington’s years‑long campaign against unregistered crypto exchanges that quietly catered to U.S. customers.

Binance reached a landmark resolution in 2023, when it and its CEO pleaded guilty in the U.S. and agreed to sweeping penalties and compliance obligations over failing to implement effective AML controls while serving U.S. users without proper registration.

BitMEX was earlier hit by CFTC and DOJ actions announced in October 2020, after it allegedly operated an unregistered crypto derivatives platform and solicited American traders from offshore.

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In a related development, crypto exchange Coinbase also recently launched futures contracts for EEA users, offering exposure to both digital assets and traditional markets. This is the company’s first offering under its MiFID II licence, granted through its CySEC-regulated BUX Cyprus entity.

Interactive Brokers Adds Crypto Trading Capabilities

Interactive Brokers’ launch allows investors to trade 11 leading crypto-assets on the same platform they use for stocks, options, futures, currencies, bonds, and mutual funds. The firm said the launch addresses common challenges for European investors, including managing multiple crypto apps, unclear fees, and security concerns.

“Our clients want the flexibility to diversify into crypto-assets while maintaining the tools, pricing, and trust they rely on Interactive Brokers for,” said Milan Galik, Chief Executive Officer.

“By offering crypto alongside traditional assets on a single platform, clients can manage risk, liquidity, and capital more efficiently across their entire portfolio.”

Eleven Cryptocurrencies Available Across Platforms

Clients trading crypto-assets through the platform can trade 24 hours a day, seven days a week. Pricing starts at 0.12%-0.18% of trade value, with no hidden spreads, markups, or custody fees. Users can also place limit orders to control execution prices.

Through a secure integration with zerohash, the firm provides access to Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Chainlink, Solana, Cardano, Ripple, Dogecoin, Avalanche, and Sui. Trading is available across IBKR’s platform suite, including Trader Workstation, IBKR Desktop, Client Portal, IBKR Mobile, and IBKR GlobalTrader.

Zerohash is a regulated digital asset and stablecoin infrastructure provider for financial institutions.

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The 2023 Regulatory Reckoning

The trouble began in early 2023, when the Australian Securities and Investments Commission (ASIC) launched a targeted review of Binance’s local operations – the exchange offered to Australian users leveraged crypto derivative products.

These products have become particularly popular, allowing traders to speculate on the price movements of a digital asset without actually owning it.

According to CoinGecko, the ten largest crypto perpetual exchanges processed a staggering US$92.9 trillion in trading volume in 2025, up 64.6% on the previous year

Nonetheless, ASIC alleged that between July 2022 and April 2023, the exchange had misclassified more than 500 retail clients as wholesale investors, stripping away key consumer protections.

Sarah Court, then ASIC’s deputy chair, described Binance’s compliance systems as “woefully inadequate”, noting that clients had suffered avoidable losses as a result.

The regulator further accused the company of failing to provide services “efficiently, honestly and fairly.”

Faced with mounting scrutiny, Binance opted for retreat, requesting the cancellation of its Australian Financial Services licence later that year.

It was a swift exit, though not a clean one.

How Not to Classify Clients

According to ASIC, Binance admitted to exposing 524 retail investors to high-risk crypto derivatives without appropriate safeguards, owing to their erroneous categorisation as wholesale clients.

Prospective “sophisticated investors” were reportedly allowed unlimited attempts at a multiple-choice quiz until they passed.

Senior compliance staff had also been found to provide scant review of applications or supporting documents. In one instance, a client was deemed a professional investor simply by self-certifying as an “exempt public authority.”

ASIC vs Crypto

ASIC’s pursuit of Binance is part of a wider campaign. The regulator has increasingly argued that many crypto products are, in substance, conventional financial instruments dressed in tech jargon, and should be regulated accordingly.

Others have already felt the sting. Bit Trade, the Australian operator of Kraken, was fined AU$8 million in December 2024 over a leveraged “margin extension” product.

Europe, too, is stirring. The European Securities and Markets Authority (ESMA) has warned that crypto perpetuals could be treated as CFDs, bringing them under familiar – and stricter – rules.

Meanwhile, on the other side of the Atlantic, the Commodity Futures Trading Commission is preparing to open the door to crypto perps. For years, American traders have been largely confined to spot markets and more traditional instruments.

The direction of travel for crypto derivatives, then, appears increasingly clear.

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Last week, Kraken also paused its long-discussed initial public offering, adding to the list of major crypto firms that are stepping back from public market ambitions amid uncertainty.

Executives Urge Patience Before Listing

Speaking at the Digital Asset Summit in New York, as reported by Coinbase, OKX General Manager and Chief Marketing Officer Haider Rafique said the company would list only when confident of delivering sustainable returns. “We will go public when we have confidence that we can give back shareholder value,” he said.

Rafique said the company intentionally priced its latest valuation conservatively to support future performance. “I think we did underprice ourselves when you look at our revenue growth, our licenses, and our assets. That was very intentional,” he noted.

He added that past listings such as Coinbase’s have shown the risks of entering public markets too early, citing their share price decline since debut.

Read more: Kraken Halts IPO Plans as Weak Market Dents Crypto Valuations: Report

Kraken, which had previously explored a multibillion-dollar listing, reportedly decided to freeze its IPO plans as market conditions deteriorated and investor appetite for crypto-exposed equities weakened

Building Scale Before Market Entry

Founded in Asia, OKX has grown into one of the largest global crypto exchanges, particularly in derivatives trading. On CoinMarketCap, it ranks second in derivatives behind Binance, with daily trading volumes of more than $20 billion.

The company’s partnership with ICE is also expected to support development of blockchain-based infrastructure for tokenized assets. OKX aims to play a role in bringing traditional products like equities onto blockchain networks in the future.

Crypto IPO activity has been stop‑start over the past cycle: Coinbase’s 2021 direct listing remains the flagship exchange IPO, with other listed crypto plays coming mostly from miners and infrastructure names, such as Iris Energy in 2021, Bitdeer in 2023, and SPAC-style deals like Bakkt’s NYSE listing via VPC Impact Acquisition.

More recently, IPO talk has shifted to a pipeline rather than completed deals, with firms like Circle, eToro, Gemini, BitGo, Consensys, and Kraken variously filing, exploring, or preparing listings, many of which have been delayed or reshaped as markets turned.

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Tether recently announced that it generated more than 10 billion dollars in net profit in 2025 and ended the year with 6.3 billion dollars in excess reserves. The filing, which covers the period to 31 December 2025, shows total assets of about 192.9 billion dollars against 186.5 billion dollars of liabilities, all tied mainly to its USD₮ stablecoin.

Tether Signs Big Four Firm to Complete First Full Audit, Setting a New Quality Standard for the Digital Asset EconomyRead more: https://t.co/rtsB7l4nJL

— Tether (@tether) March 24, 2026

Audit to Check USDT Reserves

The new audit will cover Tether’s assets, liabilities, internal controls and reporting systems. Management said the firm was selected through a competitive process but did not disclose which of the four global networks, Deloitte, EY, KPMG or PwC, secured the mandate.

Tether described the engagement as operating at “Big Four audit standard”. It said it chose the Big Four firm through a competitive selection, arguing that its own operations already align with the standards such auditors expect.

Read more: Dollar-Pegged Stablecoins Surge to $313B in Risk-Off Pivot amid US–Iran Conflict

It added that the engagement will proceed to completion and that the review will assess how the company measures and reports the reserves backing USDT.

If Tether delivers a clean audit, it could decisively silence long-running “Tether is a scam” accusations and force every other stablecoin issuer to meet a new transparency bar. However, according to Simon Taylor, "If they don't, the GENIUS Act's foreign issuer loophole becomes the biggest regulatory debate of 2027."

Tether says its reserves consist mainly of U.S. Treasury bills, along with smaller allocations to gold, bitcoin and various loans. This mix has faced scrutiny from critics who question the liquidity and risk of some holdings, particularly during periods of market stress.

The full audit aims to address long-running questions over whether USDT is fully backed one-to-one by liquid reserves and to raise the level of disclosure in the stablecoin market.

USDT Supply Nears $186B

According to Tether, total USD₮ in circulation passed $186 billion after nearly $50 billion of new tokens were issued in 2025, with around 30 billion dollars created in the second half alone as demand for dollar liquidity increased in emerging markets, payments and trading.

???? JUST IN: Tether posted over $10B profit in 2025, with record $135B in U.S. Treasuries and USD₮ supply surpassing $183B. pic.twitter.com/4fB9a87Lwb

— Cointelegraph (@Cointelegraph) October 31, 2025

Total reserve assets rose to nearly 193 billion dollars, leaving reserves above liabilities and supporting the token’s outstanding supply.

Tether’s holdings show a strong concentration in U.S. government debt. Direct U.S. Treasury securities exceeded 122 billion dollars at year-end, while total direct and indirect exposure, including overnight reverse repos, went beyond 141 billion dollars.

This level of exposure places the company among the larger holders of U.S. government debt globally, while its separate proprietary investment portfolio in areas such as AI, energy, media and fintech, worth more than 20 billion dollars, sits outside the reserves that back USD₮.

Tether also launched a U.S.-regulated stablecoin, USA₮, last year and appointed former White House crypto adviser Bo Hines as CEO of the new entity. It marked the stablecoin issuers push into the regulated U.S. market, signaling its intent to align more closely with domestic compliance standards under the new GENIUS Act.

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The comments come amid discussions in Europe over stablecoins and digital assets. The ECB has stressed that foreign stablecoin issuers “must face EU standards,”signaling its intention to ensure that emerging digital finance infrastructure operates under regulated, central bank-backed frameworks.

Tokenized Finance Requires Central Bank Settlement

The remarks align with the ECB’s work on tokenized financial markets. Cipollone noted that without a settlement framework based on central bank money, private digital assets could play a larger role in financial transactions.

In response, the ECB is preparing to launch Pontes, an initiative designed to connect distributed ledger technology platforms used for tokenized assets with central bank money for settlement. The project is expected to move into its next phase later this year.

A separate initiative, Appia, is being developed as a longer-term effort to outline a European approach to tokenized finance.

The ECB just admitted that dollar stablecoins are a threat to European monetary sovereignty.Piero Cipollone, a member of the ECB's Executive Board, gave a keynote today in Brussels laying out Europe's tokenized financial market strategy. The message was clear: if Europe doesn't… pic.twitter.com/ddRYhHjVuB

— TFTC (@TFTC21) March 23, 2026

€4 Billion Tokenized Bonds Issued Europe

Cipollone highlighted recent market activity to underline the shift. Around €4 billion worth of tokenized fixed-income instruments have been issued in Europe since 2021, including sovereign debt from European Union member states.

He also reiterated the ECB’s position on settlement assets, noting that central bank money remains the only form of money that does not carry credit risk. These remarks reflect the ECB’s broader effort to ensure that the euro area’s financial infrastructure relies on central bank-backed settlement rather than private alternatives.

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The announcement follows the U.S. Securities and Exchange Commission’s approval of Nasdaq’s proposal to pilot trading in tokenized versions of equities and other securities.

The plan, submitted in September, would allow certain widely traded stocks to be bought and sold either in traditional form or as blockchain-based tokens on the same platform. The pilot will involve the Depository Trust Company, which provides post-trade infrastructure for U.S. markets.

Integration Connects On- and Off-Chain Markets

The collaboration seeks to address long-standing challenges in connecting digital assets with traditional collateral and risk managementsystems.

Under the agreement, institutions will be able to manage both on- and off-chain collateral in a single environment.

The integration combines Talos’ digital asset capabilities with Nasdaq’s Calypso platform, which is widely used for margin, risk, and collateral management across traditional asset classes.

The integration is expected to provide a more consistent view of exposure across asset types and extend connectivity to custodians and trading venues across both traditional and digital markets.

Roland Chai, executive vice president at Nasdaq, said: “This partnership builds on a series of strategic initiatives designed to converge on- and off-chain market ecosystems, while preserving the liquidity, transparency and integrity of regulated markets.”

Trade Surveillance Extended to Digital Assets

The collaboration also targets fragmentation in collateral and risk workflows, providing institutions with a unified framework as they scale tokenisation strategies.

Anton Katz, co-founder and chief executive of Talos, said: “The evolution toward tokenised collateral is a natural progression for institutional capital markets. Firms can connect workflows for execution, risk, collateral and compliance to reduce operational friction across both on- and off-chain asset classes.”

As part of the partnership, Talos clients will gain access to Nasdaq’s Trade Surveillance platform, extending institutional-grade monitoring to digital asset trading activity.

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Clear Definitions on Insider Trading and Manipulation

The revised rules define three main types of prohibited insider trading: trading on stolen confidential information, trading on illegal tips, and trading by anyone with influence over an event outcome. Both platforms also ban various forms of manipulation, including spoofing, wash trading, self-dealing, front-running, and fictitious transactions.

The latest update comes when Wall Street compliance desks are waking up to the fact that event markets can be used to trade on material non‑public information just as easily as equities or options.

Today we're publishing new market integrity rules across our CFTC-regulated US exchange & DeFi platform — making clear what's prohibited, how we enforce rules, & how to report suspicious activity.The World's Largest Prediction Market runs on transparencyhttps://t.co/dWr23zcki6

— Polymarket (@Polymarket) March 23, 2026

JPMorgan and other large banks recently started looking at how to extend their insider‑trading and information‑barrier policies to platforms like Kalshi and Polymarket. This moved prediction markets from a regulatory grey zone into the core of their conduct‑risk frameworks.

Read more: CFTC Flags Insider Risks in Prediction Markets as Kalshi Sanctions Two Traders

Polymarket said the latest updates, detailed in the DeFi platform’s Terms of Use and the Polymarket U.S. Rulebook, reinforce measures against insider trading and market manipulation while promoting user protection and transparency. It launched dedicated Market Integrity pages to explain how these rules apply in practice and to guide users on reporting suspicious activity.

Additionally, it noted that it maintains a multi-tiered surveillance structure on both platforms. On its DeFi platform, all transactions occur on the Polygon blockchain, providing on-chain transparency.

Multi-Layered Surveillance Framework

The company is now working with technology partners to identify potential irregularities, with enforcement actions ranging from wallet bans to referrals to law enforcement.

On its U.S. exchange, oversight includes external trade surveillance experts, an internal real-time control desk, and a Regulatory Services Agreement with the National Futures Association (NFA) to investigate and sanction rule violations.

US regulators warned about insider risks in prediction markets after two recent KalshiEX cases showed traders abusing privileged information.

One involved an editor betting on contracts tied to a YouTube channel where he worked. In response, the CFTC’s Enforcement Division issued an advisory reminding traders and exchanges that insider dealing and fraud in these markets fall squarely under federal oversight.

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The funding round comes amid a fresh setback in Nevada, where a state court imposed a 14‑day restraining order forcing the prediction market to stop offering sports, entertainment and election contracts while regulators press their case that it is operating as an unlicensed gambling operator.

Kalshi was temporarily barred by a judge from offering its prediction market contracts in Nevada, after state regulators said the company didn’t have a gaming license. https://t.co/in8URVlJWj

— Bloomberg (@business) March 20, 2026

The order, issued by Nevada’s First Judicial District Court after a federal appeals panel cleared the way for state enforcement to proceed, bars Kalshi from taking bets in the state at least until an April 3 hearing on the longer‑term status of prediction markets there.

Funding Led by Coatue

The Wall Street Journal reported that Coatue led the latest investment, which follows a previous $1 billion round backed by Paradigm, Sequoia Capital, Andreessen Horowitz, ARK Invest, and CapitalG. The round, led by Coatue Management, doubles the company’s valuation from December, when it was worth about $11 billion.

Kalshi’s annualized revenue has reached about $1.5 billion, with trading volume in February topping $10 billion—twelve times higher than six months ago. The funding highlights continued investor interest in prediction markets, despite political and regulatory challenges surrounding the sector’s legality and oversight.

Keep reading: Polymarket Grabs Nearly 55% of Prediction Markets as Iran Bets Test CFTC Crackdown

The latest setback in Nevada underscores how exposed Kalshi still is to state-level enforcement, even as investors mark it up to $22 billion.

In February, a panel of judges on the U.S. Court of Appeals for the Ninth Circuit refused Kalshi’s emergency bid to pause civil action by Nevada regulators, effectively clearing the way for the state to move ahead with allegations that the CFTC-regulated platform is running unlicensed sports betting under the guise of prediction markets.

Legal experts say the ruling strengthens the hand of state gaming boards in their clashes with federally supervised event-contract venues, and it adds to a growing list of forums where Kalshi has struggled to convince courts that commodity-derivatives rules preempt traditional gambling law.

Legal Scrutiny Mounts

Arizona’s attorney general this week filed criminal chargesaccusing Kalshi of operating an illegal gambling business. The company denied the claims, saying it remains compliant under federal rules. Kalshi operates as a federally regulated exchange under the Commodity Futures Trading Commission, which allows it to offer event-based contracts nationwide.

An Ohio federal judge recently refused Kalshi’s request to block state enforcement, saying Ohio’s power to regulate gambling outweighs the company’s arguments about how its platform operates.

The Arizona case is the first time a state has brought criminal charges against Kalshi. The move also pushes back against a growing effort in Washington to put prediction markets under federal control alone, widening the rift between U.S. regulators and state authorities.

CFTC Chair Michael Selig has taken a more aggressive stance, ordering the agency to step into court fights and arguing that federal derivatives law, not state gambling rules, should govern event contracts. He portrays the string of state actions against Kalshi, Coinbase, Crypto.com and Polymarket as part of a coordinated state-level campaign.

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The launch comes as perpetual futures have gained broader adoption, with monthly volumes on decentralized exchanges exceeding US$1.2 trillion in 2025, as investors used perps to manage risk amid flat spot markets.

“Everything Exchange” Adds Equity Perpetuals Abroad

The company said in a blog post on Friday that the product is not available to US persons at this time, but it is “working to expand this offering to additional regions in the future.”

The contracts are accessible on Coinbase Advanced for retail users and Coinbase International Exchange for institutions. They provide leveraged, cash-settled exposure to major US stocks and indices, including Apple and Nvidia, in a format familiar to crypto traders.

The launch follows Coinbase’s earlier moves to offer regulated crypto futures and 24/5 cash equities in the US, alongside Kalshi-powered prediction markets in all 50 states. The company has described its platform as an “everything exchange” where users can switch between tokens, stocks, and event contracts.

Equity Perpetuals Available Outside United States

Stock perpetuals form a central part of Coinbase’s 2026 strategy, which emphasizes stablecoins, its Base layer-2 network, and amulti-asset brokerage model.

????JUST IN: COINBASE LAUNCHES 24/7 STOCK PERPETUAL FUTURES FOR NON-U.S. TRADERS@Coinbase has launched perpetual futures on U.S. equities for non-U.S. traders, offering round-the-clock exposure to Apple, Microsoft, Nvidia, and S&P 500 ETFs with up to 20x leverage.The product… pic.twitter.com/DxSoqD5YXS

— BSCN (@BSCNews) March 20, 2026

Coinbase CEO Brian Armstrong said in January that the company’s top priority is to expand the everything exchange globally across crypto, equities, prediction markets, and commodities, covering spot, futures, and options.

Currently, the equity perpetuals are available only to non-US customers. In Europe, Coinbase launched perpetual futures for Coinbase Advanced users in 26 countries under its Markets in Financial Instruments Directive entity earlier in March.

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The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has cancelled 50 MSB registrations in total so far, including 23 in its latest enforcement action.

Ottawa Ramps Up AML Enforcement

Finance Minister François-Philippe Champagne said the cancellations mark “a significantly increased pace of action” and pledged that the government will maintain this momentum as it targets money laundering and fraud risks.

He added that authorities will keep monitoring and pursuing new measures for virtual currency businesses, including cryptocurrency MSBs and crypto ATMs, which officials say can be used to facilitate illicit finance.

In a separate report, Canadian securities regulators dismantled more than thousands of fraudulent investment and cryptocurrency websites as part of a coordinated national drive to tackle online financial crime.

The Canadian Securities Administrators (CSA) said the sweep, conducted between June 5, 2025, and February 12, 2026, led to the deactivation of 7,586 scam platforms linked to more than 13,000 URLs.

Announced during Fraud Prevention Month, the operation marked an intensified effort to disrupt online schemes targeting Canadian investors and to deter would‑be fraudsters. It signaled a broader regulatory shift toward proactive detection and rapid takedown of suspicious platforms rather than relying solely on traditional, slower enforcement channels.

When FINTRAC Pulls Registration

The push on registrations follows major penalties against crypto firms late last year. FINTRAC fined platform Cryptomus 126 million dollars for alleged violations, including failing to report suspicious transactions on more than 1,000 occasions in July 2024 and lacking writtencompliance policies.

You may also like: IG Group Weighs Move from London to Wall Street: Report

Crypto exchange KuCoin received a 14 million dollar penalty for allegedly failing to register as a foreign MSB and not reporting large crypto transactions with complete information.

FINTRAC said MSBs operating in Canada must keep records, verify customer identities, implement a compliance regime, report specified financial transactions and register with the agency. Registration confirms that a business meets legal requirements but does not mean FINTRAC endorses or licenses the firm.

The agency can deny or revoke registration if a business is ineligible, does not answer clarification requests within 30 days, fails to respond to information demands, does not update core details such as name or address, or fails to assist the agency. Firms have 30 days to request a review after a denial or revocation.

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The T-REX Ledger is a cross-chain compliance layer built using Polygon CDK and connected via Agglayer, Polygon's interoperability protocol, according to the announcement. T-REX Network, the firm behind the infrastructure, says it has tokenized more than $32 billion in assets to date using the ERC-3643 permissioned token standard.

The Compliance Problem at the Center

As more asset managers explore distributing tokenized securities across differentblockchain networks, each serving distinct investor pools or liquidity venues, maintaining a single, consistent investor registry has become an operational pressure point for transfer agents. Apex Group said the T-REX Ledger addresses this by acting as a shared reference layer that connected chains can query in real time, rather than requiring each network to independently enforce compliance rules.

The system ties eligibility and regulatory controls to investor identity rather than wallet addresses, the company said. Each investor is linked to a verified on-chain identity through OnchainID, an open-source framework that consolidates KYC and AML attestations from multiple verification agents into a portable digital credential. Under this model, transfers are automatically blocked if credentials expire, are revoked, or fail to meet the requirements of a specific fund or jurisdiction.

Apex Group has also been active as an equity investor beyond its core fund administration business. In June 2025, the firm's Jersey-based trust entity acquired a 3.07% stake in London-listed CMC Markets, crossing the disclosure threshold under a TR-1 filing with the London Stock Exchange. The market value of the shares at the time of the transaction was approximately £21.66 million, according to the filing, making Apex one of CMC's larger institutional shareholders alongside founder and CEO Lord Cruddas, who retained over 59% of the company.

Polygon as the Backbone

The T-REX Ledger runs on Polygon CDK, a toolkit for building application-specific blockchains, and connects to other networks via Agglayer, Polygon's interoperability layer.

Sandeep Nailwal, CEO of the Polygon Foundation, said the infrastructure demonstrates how an industry-led compliance standard can be paired with shared infrastructure to give institutions both regulatory certainty and cross-chain liquidity access.

"T-REX Ledger shows how an industry-led standard can be paired with shared infrastructure to give institutions both regulatory certainty and access to cross-chain liquidity," he added.

Polygon has been active in the tokenized real-world asset space, with RWA tokenization on the network surpassing $1.14 billion as of late 2025.

The arrangement does not require any individual blockchain to cede autonomy, the company said. Instead, each connected chain queries the T-REX Ledger to verify compliance status without having to replicate identity infrastructure independently, something Apex described as a key requirement for maintaining governance integrity in regulated markets.

Apex's Deepening Tokenization Bet

The announcement builds on Apex Group's earlier moves into blockchain-based fund administration. The company acquired a majority stake in Tokeny, the Luxembourg-based tokenization solutions provider and original developer of the ERC-3643 standard, in May 2025, with a path to full ownership over three years. That deal followed an initial investment in December 2023. Apex also administered what it described as the first tokenized share class on the Polygon blockchain from Malta in 2025.

Peter Hughes, founder and CEO of Apex Group, said the firm sees the T-REX Ledger as foundational industry infrastructure rather than a proprietary advantage. "What has been missing is a neutral orchestration layer that whitelists investor identity and brings clarity to KYC and AML across these networks, so transfer agents can maintain the governance and regulatory integrity that regulated markets require," Hughes said.

Joachim Lebrun, co-founder of T-REX Network, said the goal was not to pick winners among blockchain platforms but to connect them. "Because ERC-3643 tiescompliance to the investor identity rather than the wallet, KYC and AML controls remain portable and enforceable across every chain and platform without duplication or fragmentation," Lebrun said.

Institutional Momentum Behind RWAs

The move comes as tokenization of real-world assets is picking up pace among large financial institutions. Leaders at the World Economic Forum in Davos in January 2026 described tokenization as "the name of the game" for the year, though the consensus pointed to wholesale markets as the more immediate opportunity over retail. Globally, tokenized real-world assets had grown to more than $24 billion in total value by February 2026, according to data from RWA.xyz, though the market remains concentrated among a relatively small number of asset classes.

The T-REX ecosystem also includes an AppStore of vetted applications and what the company describes as an institutionally governed blockchain sequencer that filters suspicious transactions before processing. Whether this governance structure meets the requirements of major financial regulators across jurisdictions has not been independently verified.

For Apex Group, the $100 billion tokenization target by mid-2027 represents a substantial scaling ambition. The firm currently administers assets across more than 13,000 professionals globally, and Hughes framed the T-REX Ledger adoption as a long-term structural commitment rather than a product pilot.

As FinanceMagnates.com has previously reported, the practical challenge for institutions in 2026 is no longer proving that tokenization is feasible but building the governance and compliance structures capable of operating at scale across regulatory jurisdictions.

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The exchange submitted the plan in September. It proposed a pilot that would allow certain widely traded stocks to be bought and sold either in their conventional form or as blockchain-based tokens on the same platform. The initiative will involve the Depository Trust Company, which provides core post-trade infrastructure in U.S. markets.

Tokenized Shares Mirror Traditional Stock Rights

Under the structure outlined in the filing, tokenized shares will not be treated as separate instruments. They will be listed under the same ticker, match the same price, and trade within the same order book as standard shares. Investors will also retain identical rights regardless of the format.

Tokenization refers to the process of representing financial assets on distributed ledger systems. Large financial institutions have recently increased testing in this area, focusing on reducing settlement times and enabling trading beyond standard market hours.

The SEC said participation in the pilot will be restricted. Only “eligible participants” will be allowed to access tokenized trading. These participants can choose between traditional and tokenized formats when executing trades.

Nasdaq receives SEC nod for trading in tokenized securities https://t.co/IM3avyH0J0

— Reuters Legal (@ReutersLegal) March 19, 2026

SEC Addresses Tokenization Surveillance Concerns

The pilot will include large-cap U.S. equities and major index-linked funds. Eligible securities cover stocks in the Russell 1000 Index, as well as ETFs linked to the S&P 500 and Nasdaq-100.

During the SEC review, some comments raised concerns about how the model would handle market surveillance and whether tokenized and traditional shares could trade at different prices. The regulator said these issues were addressed through a revised submission that provided additional operational details.

The approval follows Nasdaq’s broader tokenization initiatives. Earlier in March, the exchange said it would work with Kraken to allow securities to be converted into tokenized formats for blockchain use. The program also includes a framework for companies to create and issue their own tokenized shares.

Other market operators are pursuing similar moves. Intercontinental Exchange recently invested in OKX to develop tokenized equity products.

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The classification of 16 major digital assets, including Bitcoin, Ethereum, Solana, and XRP, as digital commodities under primary CFTC jurisdiction finally provides the legal certainty that institutional capital has demanded.

Clarity, however welcome, does not equate to perfection. The framework's very structure reveals tensions that could undermine its stated goal of fostering innovation while protecting investors.

After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the SEC treats crypto assets under federal securities laws.This is what regulatory agencies are supposed to do: draw clear lines in clear terms. https://t.co/wij5cA7N2i

— Paul Atkins (@SECPaulSAtkins) March 17, 2026

Order Meets Oversight Gaps

The 5-category taxonomy, covering Digital Commodities, Digital Securities, Digital Collectibles, Digital Tools, and regulated Payment Stablecoins under the GENIUS Act, offers a pragmatic scaffold for a market that has operated in a regulatory gray zone for too long.

By acknowledging that assets can transition from securities to commodities as decentralization deepens, the agencies have embraced a dynamic view of technological evolution that the static Howey test never accommodated. This is progress.

Related: SEC Clarifies Crypto Rules, Shifting Responsibility to Brokers

The practical implications of shifting oversight from the SEC's disclosure-heavy regime to the CFTC's market-conduct focus raise legitimate questions about investor safeguards.

Commodities regulation simply does not mandate the same level of financial transparency, audit requirements, or fiduciary obligations that securities law imposes.

For retail participants who have grown accustomed to the SEC's investor-first posture, this represents a tangible reduction in recourse should manipulation or fraud occur. The data bears this out. While the CFTC has expanded its enforcement capabilities, its budget and staffing remain a fraction of the SEC's, limiting its capacity to police a market now valued in the trillions.

The GENIUS Act’s Safeguards Could Backfire

The GENIUS Act's treatment of stablecoins illustrates another layer of complexity. While the legislation rightly mandates one-to-one reserve backing, monthly attestations, and segregation of customer funds, it explicitly prohibits issuers from paying yield on stablecoin holdings.

TRUMP: ???????? "The Golden Age of America is upon us, with today's signing."President Trumps signs the Genius Act signaling the first of Stablecoin legislation. pic.twitter.com/JD2TtV0p9b

— CoinDesk (@CoinDesk) July 18, 2025

This well-intentioned guardrail against shadow banking risks inadvertently pushes yield-seeking users toward unregulated offshore platforms or riskier DeFi protocols, potentially increasing systemic fragility rather than reducing it.

Furthermore, the Act's bankruptcy provisions, while granting stablecoin holders super-priority status in theory, leave unresolved questions about the practical enforceability of those claims across fragmented custody arrangements.

Read more: Trump Signs GENIUS Act Into Law, Setting Stage for Wider Crypto Oversight

If a major issuer were to fail, the FDIC's $250,000 insurance limit applies to the corporate account holding reserves, not to individual token holders. This gap could leave millions of users exposed despite the framework's consumer-protection rhetoric.

Perhaps the most pressing concern is the framework's non-binding status. The SEC and CFTC do not legislate. Congress does. What we have today is an interpretive memorandum, not codified law, and as such, it remains vulnerable to shifts in agency leadership, judicial challenge, or superseding legislation like the pending Clarity Act.

JUST IN: ???? The CLARITY Act could see a markup before Easter, according to Senator Kevin Cramer.???????? Cramer advocates for "U.S. guardrails" between traditional and non-traditional banking, warning the U.S. could lose its "innovative edge" if digital assets move overseas. pic.twitter.com/2cWRw6SsXy

— Bitcoin.com News (@BitcoinNews) March 17, 2026

Policy Without Law Leaves Investors Exposed

This uncertainty is compounded by the grey period inherent in the transition mechanism. Projects must now navigate costly legal analyses to determine precisely when they have achieved sufficient decentralization to shed their securities classification. For early-stage teams operating on lean budgets, this ambiguity could stifle the very innovation the framework purports to enable.

Moreover, national security experts at institutions like CSIS have warned that the GENIUS Act's focus on centralized issuers may leave decentralized protocols and privacy-enhancing technologies outside the regulatory perimeter, creating vectors for sanctions evasion that adversaries could exploit.

Continue reading: SEC and CFTC Finally Align on Crypto: “Most Assets Aren’t Securities”

From my vantage point, having engaged with both regulators and builders, I see this framework not as an endpoint but as a foundation on which more durable, adaptive regulation must be built. The harmonization of SEC and CFTC authority through Project Crypto is a historic step toward ending the jurisdictional turf wars that have long paralyzed U.S. crypto policy.

The Real Test Will Be in How Regulators Apply

Still, true regulatory maturity requires more than asset classification. It demands ongoing dialogue with technologists, economists, and civil society to ensure that rules evolve alongside the systems they govern. The inclusion of on-chain activities like staking, mining, and wrapping within the framework's analytical scope is encouraging.

The devil will be in the implementation details that regulators now must develop through notice-and-comment rulemaking. The market has responded positively to the clarity, with institutional interest in the newly designated digital commodities rising measurably since the announcement. But we must resist the temptation to declare victory prematurely.

After months of hard work, we have bipartisan text ready for Thursday’s markup. I urge my Democrat colleagues: don’t retreat from our progress. The Digital Asset Market Clarity Act will provide the clarity needed to keep innovation in the U.S. & protect consumers. Let’s do this! pic.twitter.com/fuu5CIQa8X

— Senator Cynthia Lummis (@SenLummis) January 13, 2026

The framework's success will ultimately be judged not by the elegance of its taxonomy but by its real-world outcomes. Does it reduce fraud without stifling experimentation? Does it protect consumers without cementing incumbent advantages?

Does it position the United States as a leader in responsible digital asset innovation, or merely as a jurisdiction that has replaced one set of uncertainties with another?

Prioritize Transparency and User Protection

As we await Congressional action to codify these principles into law, the industry must remain engaged, constructive, and vigilant. Builders should leverage the newfound clarity to prioritize transparency and user protection, not as a regulatory checkbox but as a competitive advantage.

BREAKING: The SEC has formally classified SOL as a digital commodity in its new crypto asset taxonomy, alongside BTC, ETH, and 14 other assets.SOL is not a security. pic.twitter.com/PnqpT46NdT

— Solana (@solana) March 17, 2026

Investors must recognize that commodity classification does not eliminate risk and should conduct due diligence accordingly. Policymakers must continue to listen to the diverse voices shaping this ecosystem, from developers in decentralized autonomous organizations to consumer advocates demanding accountability.

Do not get me wrong. The March 2026 framework is a big plus for the industry, yes, but it is a plus that comes with asterisks. It is a map, not the territory. It is a starting gun, not a finish line. Those of us who have championed decentralization, privacy, and financial inclusion for over a decade understand that regulatory clarity is necessary but insufficient.

Classification to Cultivation

The work now shifts from classification to cultivation. We must build the institutions, standards, and cultural norms that will allow digital assets to fulfill their promise without repeating the excesses of traditional finance.

If we approach this moment with both appreciation for the progress made and humility about the challenges ahead, the United States can yet lead the world into a more open, equitable, and innovative financial future. The framework gives us the rules of the road. It is up to all of us to ensure the journey delivers on its destination.

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Earlier in 2025, the company began returning funds under the plan, starting with a $7 billion payout in February. A second distribution of about $5 billion followed in May. Recoveries were expected to range between 54% and 120%, with payments made through providers such as BitGo and Kraken.

FTX Starts Fourth Creditor Payout Round

Together with the FTX Recovery Trust, FTX said the fourth distribution will cover holders of allowed claims in convenience and non-convenience classes who have completed required steps.

Eligible creditors are expected to receive funds within one to three business days from March 31. Payments will be processed through selected providers, including BitGo, Kraken, and Payoneer.

The payouts follow priorities set out in the court-approved plan. Certain claim classes will receive incremental or full recoveries in this round.Dotcom customer entitlement claims will receive an additional 18%, bringing total recoveries to 96%. U.S. customer entitlement claims will receive 5%, reaching 100%.

General unsecured and digital asset loan claims will each receive 15%, also reaching full recovery. Convenience claims will total 120% in cumulative distributions.

????LATEST: "WE CAN'T HAVE ANOTHER FTX" SAYS CFTC CHAIRSpeaking on the All-In podcast, CFTC Chair Michael Selig spoke about the risks involved in blockchain and financial innovation.He spoke about fraud and market manipulation but, most importantly, he clarified a commitment to… pic.twitter.com/zPruQx74dK

— BSCN (@BSCNews) March 16, 2026

Preferred Shareholders Scheduled for May Payment

FTX said customers who onboarded with a distribution provider have “irrevocably elected to forego” direct cash payments. Distributions are instead sent to the selected provider.

The company said issues related to fund availability should be directed to the provider. FTX also set a timeline for preferred shareholders. An April 30, 2026 record date has been scheduled for a May 29, 2026 payment.

Creditors must complete several steps to qualify for future distributions, including logging into the claims portal, completing identity verification, submitting tax forms, and onboarding with an approved provider.

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Kraken’s parent company, Payward, submitted a draft S‑1 registration last November for an initial public offering of its common stock. The filing came a day after the company raised $800 million at a $20 billion valuation, including $200 million from Citadel Securities.

IPO Plans on Hold

A Kraken representative acknowledged the confidential SEC filing but did not provide further details. According to people with knowledge of the situation, the company intends to revisit its IPO plans once market conditions become more favorable.

The move follows a sharp downturn in crypto markets since Bitcoin hit a record high in October. Lower asset prices and weaker trading volumes have weighed on valuations, making firms more cautious about public listings.

At the time of publication, Bitcoin traded around $71,375 dollars with a market capitalization of about 1.43 trillion dollars, according to CoinMarketCap data. Over the previous 24 hours, BTC has dropped 3%, with a modest 1% gain in the weekly chart. This is low compared to more than $120K posted around October last year.

Last year, however, crypto firms saw a surge in IPO activity. Crypto firms including Circle, Bullish, and Gemini raised a combined $14.6 billion in 2025, according to Cointribune.

Related: Kraken’s 2025 Revenue Soared to $2.2 Billion as It Prepares for an IPO

Several crypto firms and exchanges are currently preparing for potential public listings, including Kraken, Consensys, Gemini, OKX, FalconX, Ledger, Chainalysis and tZero. Tokenization specialist Securitize is moving toward a Nasdaq debut via a SPAC deal valued at about 1.25 billion dollars.

Crypto IPO Pipeline Grows

BitGo became the first major crypto listing of 2026 when it raised about 213 million dollars in a U.S. IPO in January at 18 dollars per share, implying a valuation of roughly 2 billion dollars for the digital asset custodian.

The shares initially traded higher but later fell below the offer price, leaving the stock down by around 40–45% from its IPO level in the weeks after listing, according to market data reported by mainstream financial outlets.

Meanwhile, Kraken has been expanding through acquisitions,including the purchase of NinjaTrader, a Cyprus MiFID-licensed broker,tokenization platform Backed Finance, and most recently token management firm Magna. The exchange also rolled out tokenized equity perpetual futures for non U.S. clients via its xStocks offering.

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MAS Initiatives and Early Projects

Speaking at the Singapore FinTech Festival 2025 last November, Chia Der Jiun, managing director of the Monetary Authority of Singapore (MAS), noted that the regulator started its journey with asset-backed tokens with the launch of Project Guardian in 2022, since when money market funds have been tokenised and bonds have been issued natively and settled on chain.

A few weeks later, Lim Tuang Lee, MAS assistant managing director (capital markets), told the Futures Industry Association Asia Derivatives Conference that interest in tokenisation arrangements among market participants was growing steadily.

To facilitate this growth, MAS has launched the settlementequivalent of Project Guardian to support industry trials with tokenised bank liabilities and regulated stablecoins for settlement, and established an operational shared ledger infrastructure that enables financial institutions to test the settlement of tokenised financial assets using wholesale CBDC.

Ecosystem Strengths and Market Infrastructure

Singapore’s dense concentration of global asset managers, banks, and wealth platforms makes it possible to test tokenisation across the full value chain, including issuance, distribution, servicing, and settlement, observes Justin Christopher, head of Asia at Calastone.

“Crucially, Singapore understands tokenisation isn’t about experimenting with technology; it’s about building efficient, cross-border market infrastructure,” he says. “This pragmatic mindset has kept the focus on real outcomes.”

The ecosystem works because policymakers, banks, asset managers, and fintechs sit at the same table and move from whitepaper to pilot quickly.

There is also deep capital markets expertise, which means tokenisation is approached as market infrastructure reform rather than crypto speculation.

That is the view of Alvin Chia, head of digital assets innovation Asia Pacific for Northern Trust, who agrees that Singapore understands that interoperability and cross-border use cases rather than domestic scale alone will define success.

Regulatory Support and Collaboration

Singapore’s leadership in asset tokenisation reflects a deliberate push to modernise capital markets infrastructure, agrees Huan Kiat, fintech director at PhillipCapital.

“The MAS has created space for experimentation while maintaining strong regulatory guardrails, which has given market participants confidence to test real-world use cases,” he adds. “At the same time, Singapore’s ecosystem of banks, asset managers, and fintech firms has been willing to collaborate on pilots involving real assets and real capital.”

Efficiency and Adoption

Tokenisation exists to improve market infrastructure rather than chase temperamental price swings, as the ecosystem is compact and decision-makers are accessible.

“Because of this, pilot programmes can move into production relatively quickly and adoption across the board becomes easier,” suggests Chetan Karkhanis, SVP, digital asset partnership development at Franklin Templeton.

The high level of crypto asset activity across Asia has translated into a deeper institutional comfort with blockchain‑based products among investors, founders, and financial firms, adds Duncan Trenholme, managing director, TP ICAP Fusion Digital Assets.

“At the same time, Singapore’s position as a global financial hub gives it the kind of ecosystem where new market plumbing can be tested at scale rather than in isolation,” he says.

Varied Adoption Across Asset Classes

The broad scope of applications and fragmentation of models/systems means that the pace of adoption for tokenisation differs for each financial asset, notes Hubert Grignon Dumoulin, digital assets senior expert at CACEIS.

“The biggest and most obvious use case is stablecoins (tokenisation of fiat money), followed by intra-day repo operations with issuance of non-native securities tokens representing custody positions of government bonds and short-term papers,” he says.

Scaling Challenges and Interoperability

According to Danny Chong, co-chair of the Digital Assets Association Singapore, the path to scaling tokenisation rests on overcoming the adoption gap, specifically the challenge of achieving interoperability across networks and harmonising global regulatory standards.

“The focus must shift toward democratising access through frameworks that reduce operational complexity, ensuring that the next wave of financial innovation delivers efficiency and liquidity for both institutional and retail participants,” he says.

The biggest constraint is not technology—it is aligning legal finality, accounting treatment, and regulatory clarity across jurisdictions so institutions can commit balance sheets at scale, says Chia.

Liquidity is another hurdle, because tokenised assets must plug into existing distribution and collateral frameworks rather than operate in isolated pools. Operationally, firms need robust custody, lifecycle servicing, and risk controls that mirror traditional markets.

Ankur Kanwar, head of transaction banking & cash management, Singapore and ASEAN, and global head of cash structured solutions development, Standard Chartered, agrees that the challenges are less about the availability of the technology and more about institutional and structural factors.

“Variations in regulatory frameworks, the high friction across settlement infrastructures, and limited adoption of digital trade solutions and standards can all affect the scalability of tokenisation,” he says.

“As tokenisation scales, cybersecurity risks and operational resilience will also become increasingly important considerations, and the long-term risks need to be carefully managed.”

Market Awareness and Education

Client adoption, demand, and uptake by traditional incumbents are not fully there yet, and education and awareness are also not fully at scale, as cryptocurrencies, virtual native assets, and tokenised products are all lumped into one definition, in some cases preventing meaningful mass adoption and understanding, reckons Karkhanis.

Risk Management in Tokenised Markets

As more lifecycle logic, margining, and settlement migrate into smart contracts reliant on external data feeds, the system also inherits new points of failure, warns Trenholme.

“Traditional markets are slow, but latency often functions as a circuit breaker,” he explains. “In tokenised markets, an inaccurate oracle print or flawed contract can propagate instantly—so building resilience through standards, safeguards, and fail‑safe architecture is as important as improving efficiency.”

Interoperability is another constraint. Markets will ultimately require ‘write once, run anywhere’ infrastructure so assets can move seamlessly across public and permissioned networks.

Christopher notes that tokenised assets must plug seamlessly into custody, administration, compliance, and reporting frameworks, and that institutions will not compromise on governance, auditability, or investor protection.

“Without established connectivity between issuers and distributors, tokenised products remain niche,” he adds. “Real adoption requires infrastructure allowing assets to move safely and efficiently across established and digital-native venues.”

Kiat cautions that scaling tokenisation remains complex, and while the underlying technology can enhance settlement efficiency and programmability, adoption depends on more than just technical capability.

“Interoperability across platforms, liquidity depth, custody arrangements, and cross-border regulatory alignment all need to evolve in parallel,” he concludes. “Secondary market readiness will also be critical, as tokenised assets require reliable distribution channels and consistent two-way liquidity for investors to enter and exit with confidence.”

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SEC Chairman Paul Atkins presented the long-awaited token taxonomy, developed in coordination with the CFTC. The new rules confirm that tokens meeting the definition of investment contracts remain subject to securities regulation, while other categories, such as payment stablecoins, digital commodities, and collectibles, fall outside securities rules.

For much of the brokerage industry, this framework defines where brokers can participate without triggering full securities rules. But the guidance also shifts how risk is managed.

After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the SEC treats crypto assets under federal securities laws.This is what regulatory agencies are supposed to do: draw clear lines in clear terms. https://t.co/wij5cA7N2i

— Paul Atkins (@SECPaulSAtkins) March 17, 2026

From Legal Uncertainty to Operational Responsibility

For years, the main risk for brokers was unpredictability. A token could be listed and later reclassified, exposing firms to enforcement action.

That risk has now moved into day-to-day operations. The SEC made clear that a token’s status can change depending on how it is marketed and used.

An asset initially treated as a non-security may fall under securities rules if it is presented as part of an investment offering with an expectation of profit.

This means classification is no longer fixed. A token’s regulatory status can evolve as its ecosystem develops or as its positioning changes. In practice, this turns classification into a continuous process rather than a one-time listing decision.

Brokers will need to monitor how assets are used and be able to explain their classification if regulators question it.

Safe Harbor Raises the Stakes

The proposed four-year “safe harbor” for crypto startups adds another layer. The idea is to allow projects to launch and raise capital under lighter requirements for a defined period, provided they meet certain conditions. If implemented, this could increase the volume of new token issuance.

As Atkins framed it: “Such a safe harbor would provide crypto innovators bespoke pathways to raise capital in the US while providing appropriate investor protections.”

For brokers, that means more assets entering the market at an earlier stage, when classification is less settled. Participation in such offerings may also require closer tracking of how projects evolve over time.

If a token later meets the definition of a security, earlier assumptions may come under review.

A Shift in Where Risk Sits

The SEC’s approach gives the market more structure. It also changes where decisions are made. Previously, much of the uncertainty sat with regulators. Now, more of it sits with market participants.

Brokers will have to move from reacting to regulatory action toward making and defending classification decisions in real time. The rules are clearer. The margin for error may be narrower.

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The interpretation, issued by the two regulators in a joint statement on Tuesday, sets out how federal laws apply to digital assets. It defines when a token moves from being a security to a commodity and syncs the approaches of the two regulators to crypto regulation.

The SEC has long considered many crypto tokens, particularly those sold through initial coin offerings (ICOs) or linked to profit expectations, as securities under the Howey Test. It placed them under its oversight.

In contrast, the CFTC has treated major cryptocurrencies such as Bitcoin and Ether as commodities under the Commodity Exchange Act, also bringing them within its jurisdiction.

Coordinated Regulatory Approach

“After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets under federal securities laws,” commented SEC Chairman Paul Atkins. “It also acknowledges what the former administration refused to recognize – that most crypto assets are not themselves securities.”

Before this joint interpretation, the duo applied crypto laws inconsistently, often relying on case‑by‑case enforcement and court decisions to determine whether a token was a security or a commodity.

The joint interpretation now creates a clear classification system for different types of digital assets, including commodities, collectibles, utility tokens, stablecoins, and securities.

It explains how a crypto asset that isn’t a security on its own can still fall under securities laws if it becomes part of an investment contract, and how it can later move out of that category.

The CFTC confirmed it will apply the Commodity Exchange Act in line with the SEC’s approach. CFTC Chair Michael Selig said the decision provides long-awaited clarity for innovators and investors. Atkins called the interpretation a long-overdue step that “draws clear lines in clear terms.”

The joint release supports ongoing efforts in Congress to establish a unified market structure for digital assets. The interpretation will be published on both agencies’ websites and in the Federal Register.

Crypto Tokens Get Clearer US Rulebook

The new joint interpretation now gives crypto firms a clearer line on whether a token sits in SEC or CFTC territory, reduces the risk that the same asset is treated differently over time, and lowers the odds of “regulation-by-enforcement” that has dominated the US market so far.

For an industry that has long operated under the threat that a token might be deemed a security only after launch, the explicit acknowledgment that most crypto assets are not themselves securities, and that investment contracts can end, directly tackles the legal grey zone.

In the US, crypto has been shifting to a more structured rulebook with clearer roles for the SEC, CFTC and Congress. Lawmakers pushed market‑structure and stablecoin bills such as the GENIUS Act.

At the same time, the SEC has opened the door to spot bitcoin and ether ETFs and relaxed some earlier banking constraints, which has driven institutional adoption via listed products rather than offshore exchanges.

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Attorney General Kris Mayes said the company “may brand itself as a prediction market, but it is taking illegal bets on Arizona elections,” which violates state law.

The 20-count filing in Maricopa County Superior Court claimsKalshi allowed Arizona residents to wager on professional and college sports, individual player performances, and political outcomes.

Gambling or Trading Products

Prosecutors cited bets on the 2028 U.S. presidential race and upcoming 2026 state elections, including the governor and secretary of state contests.

Arizona said it filed criminal charges against Kalshi for operating an illegal gambling business in the state. https://t.co/EMoFtUsRZ5

— Bloomberg (@business) March 17, 2026

Kalshi said in a statement that Arizona’s accusations rest on “paper-thin arguments,” arguing that its platform operates as a financialexchange regulated by the U.S. Commodity Futures Trading Commission. The company added that different states should not oversee a “nationwide financial exchange.”

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Arizona’s action comes amid a broader regional and national fight over how to regulate Kalshi’s event contracts, with the company now entangled in dozens of cases that pit its claim of exclusive federal oversight by the U.S. Commodity Futures Trading Commission against the authority of states to enforce their gambling laws.

In recent weeks, Kalshi has preemptively sued regulators in states including Arizona, Iowa and Utah after pushback on its sports and political markets, while several states and tribal authorities have launched their own actions to block in-state access to the platform.

Attorney General Mayes said Kalshi has a pattern of suing states rather than complying with their wagering laws. The company recently filed cases against Iowa, Utah, and Arizona to block state enforcement.

Courts have issued mixed rulings so far: a judge in Tennessee allowed Kalshi to keep operating under a temporary stay, while decisions in states such as Maryland, Massachusetts and Ohio have backed state powers to treat the firm’s contracts as gambling products subject to local licensing rules.

States Push Back on CFTC

A federal judge in Ohio recently rejected Kalshi’s bid for an injunction, ruling that the state’s authority to regulate gambling outweighed the firm’s operational claims. The Arizona case marks the first criminal prosecution against Kalshi by a state.

The latest development comes as a defiance to a growing campaign by federal regulators to claim sole authority over prediction markets, deepening a clear split between Washington and the states. CFTC Chair Michael Selig has recently pushed a moreassertive line, directing the agency to intervene in court battles.

He insists that federal derivatives rules, not state gambling codes, should govern event contracts. He has cast the wave of state enforcement against platforms such as Kalshi, Coinbase, Crypto.com and Polymarket as part of a broader state-led offensive.

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New Corporate-Centric Crypto Products

Although the new products are subject to regulatory approvals, they will be built on the exchange’s existing regulated infrastructure.

“We’re seeing stronger demand from corporates and institutions for infrastructure that is regulated, scalable, and built for long-term participation,” said Lasanka Perera, CEO of Independent Reserve Singapore. “These new products are an extension of how we’ve been evolving our platform as we continue to build on the governance and compliance discipline we’re known for.”

IG closed its acquisition of Independent Reserve earlier this year. The London-listed giant, which recently entered the FTSE 100 index, previously revealed its plans to launch “a crypto proposition” for its customers in Singapore, Australia, and the UAE in the second half of 2026 following the deal.

Independent Reserve also highlighted that IG, as its parent, would bring global scale, institutional expertise, and platform capabilities to support its next phase of growth.

An APAC-Focused Crypto Exchange

Headquartered in Australia, the crypto exchange generated A$35.3 million in revenue in FY25, a sharp increase from A$18.8 million in the previous year. It also reported EBITDA of A$9.9 million, with a 28.2 per cent margin.

At the time of its sale to IG, it had 129,400 funded accounts, A$1.7 billion in assets under custody, and an average of 116,000 monthly active customers.

The initial enterprise value of the deal was set at A$178 million. It was valued at five times its annual revenue for the last financial year.

IG initially acquired the crypto exchange for A$109.6 million. A further contingent payment of A$15 million will be made based on the performance of the Australian company in FY26. The UK broker also has a call option to purchase the 30 per cent stake it will not own at closing, with the valuation based on performance in FY27 and FY28.

“Singapore is a core market for IG,” added Matt Macklin, Managing Director of APAC and ME at IG Group, “with Independent Reserve playing a central role in our digital assets strategy and serving as a springboard for regional growth.”

Kraken Pro Expands Futures Access for EU Traders

According to Monday's announcement, the expansion lets users trade short or long positions on assets such as the S&P 500, Nasdaq 100, gold, oil, and major currency pairs on the same interface used for digital assets.

The contracts follow the CME Group’s extended 23-hour trading schedule, available from Sunday evening to Friday afternoon ET.

The launch means Kraken, ranked #14 in daily volumes on CoinMarketCap, is turning into a more full‑service trading venue for European clients by letting them trade major equity indices, commodities and FX futures on the same platform they already use for crypto.

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The products are offered through Payward Europe Digital Solutions (CY) Limited, Kraken’s Cyprus-based investment firm regulated by CySEC. Traders must complete an eligibility assessment before activating derivatives trading on Kraken Pro. Funded accounts receive free real-time Level 1 data, with optional Level 2 for deeper market insight.

Macro traders, this one's for you ????TradFi futures are now live on Kraken Pro.Trade S&P 500, Nasdaq-100, gold, oil, FX and more directly on Kraken Pro alongside crypto.Global markets. One terminal.Get started ????https://t.co/iDprZ0UHrs pic.twitter.com/264XzyjYpu

— Kraken Pro (@krakenpro) March 16, 2026

CySEC-Regulated Offering

This launch builds on Kraken’s 2025 rollout of regulated crypto futures in Europe and marks another step toward a unified multi-asset platform. EU traders can now act on global market events across both traditional and digital assets without leaving the exchange’s environment.

In recent months, Kraken has laid the groundwork for this move with a series of EU‑focused initiatives. The exchange secured an EU MiFID license via the acquisition of a CySEC‑regulated Cyprus investment firm, paving the way for regulated crypto derivatives across the bloc.

Kraken has also deepened its push to blur the lines between digital and traditional assets, extending 24/7 access to tokenized equities and equity‑linked perpetual futures via its xStocks product and it also entered a collaboration with Deutsche Börse aimed at unified trading, custody and settlement across crypto, stocks and futures.

On the futures side, Coinbase is the clearest peer moving in a similar direction to Kraken. The exchange recently launched regulated crypto and equity‑index futures across 26 European countries via its CySEC‑licensed MiFID entity. It offers leveraged contracts and index products to eligible users on the same Coinbase Advanced interface they use for spot trading.

Kalshi ranks second with 52 billion dollars in three‑year notional volume, underscoring how the two venues now dominate on‑chain and regulated event trading.

According to Token Terminal’s market breakdown, prediction markets as a whole have cleared more than 114 billion dollars in notional flow over the same three‑year period, with Polymarket sitting at the top of the category by cumulative volume. Most of this activity on Polymarket has settled on Polygon, which remains the primary chain for its event contracts over the observed timeframe.

Iran-linked event contracts drive record trading volumes as US regulators and lawmakers move to tighten oversight of prediction markets.

CFTC Advances Rules on Event Contracts

US regulators have started to formalize how they treat these products. The Commodity Futures Trading Commission has issued guidance that categorizes event contracts as a financial asset class and launched a rulemaking process to determine how the Commodity Exchange Act applies to prediction markets.

CFTC chair Michael Selig has argued that the agency holds exclusive jurisdiction over these venues, though a recent Ohio court ruling questioned whether federal law fully preempts state gambling statutes in some cases.

At the same time, lawmakers are targeting war-related contracts. Senator Adam Schiff has introduced the DEATH BETS Act, which would amend the Commodity Exchange Act to bar CFTC-regulated venues from listing markets tied to war, terrorism, assassination and individual deaths.

Read more: Can Your Platform Launch Prediction Markets? A CFTC Compliance Checklist

Prediction markets tied to the escalating US–Iran conflict have pushed trading activity on Polymarket and Kalshi to record levels, even as Washington moves to restrict some of the most controversial contracts. Weekly notional volume on both platforms recently hit new highs, while aggregate prediction market activity has climbed to tens of billions of dollars in notional terms and millions of users.

Schiff Bill Targets War and Assassination Markets

The proposal followed reports that several Polymarket traders earned about 1 million dollars by correctly positioning for a US strike on Iran, and that Israeli authorities arrested two people accused of using confidential information about an Israeli strike to trade on the platform.

No injuries are reported in Iran's latest ballistic missile attack on Israel, the fourth today.One missile struck an open area just outside Beit Shemesh, first responders say and footage shows.Sirens had sounded across the Jerusalem area, the West Bank, and parts of southern… pic.twitter.com/j6sovAsDwz

— Emanuel (Mannie) Fabian (@manniefabian) March 10, 2026

Meanwhile, an Israeli war correspondent says he has received death threats from online gamblers who tried to pressure him into changing a Times of Israel report on an Iranian missile impact so they could win a high‑stakes bet on prediction platform Polymarket.

In an account published on Monday, Times of Israel military reporter described a coordinated campaign of emails, social media messages and WhatsApp calls demanding that he amend his description of a March 10 ballistic missile strike near Beit Shemesh from a direct hit to “interceptor debris.”

According to the correspondent, anonymous bettors posing as concerned readers, sources and even a lawyer escalated from polite requests and fabricated email screenshots to explicit threats to “finish” him and his family if he did not correct his reporting, claiming they stood to lose around 900,000 dollars if the market resolved against them.

The move adds to a growing trend of large exchanges integrating event-based contracts into their trading ecosystems, potentially increasing competition in a market that has expanded rapidly over the past year.

The launch comes as activity in prediction markets has increased significantly over the past year. Industry data suggests that leading platforms processed more than $18 billion in trading volume in February, highlighting rising interest in the format.

MEXC said the new product will run on its existing exchange infrastructure. According to the company, the platform uses the same low-latency trading systems that support its spot and derivatives markets.

“The next frontier of trading isn’t just assets, it’s outcomes,” said MEXC Chief Operating Officer Vugar Usi. “At MEXC, we’re transforming global events into real-time probability signals traders can act on instantly.”

Big step for us today!Prediction Markets Beta is now live on MEXC — the first crypto CEX to launch it.We build with a user-centric mindset, always exploring new products that traders actually want.Try it out, share your feedback in the comments, and join the giveaway ????… pic.twitter.com/5Ye8zMKbTW

— MEXC Product | Jamie (@Jamie_MEXC) March 16, 2026

Competing on Fees and Infrastructure

Prediction markets have so far been dominated by a small number of specialized platforms. However, large trading venues are beginning to integrate event contracts into broader trading ecosystems.

Coinbase launched regulated prediction markets in January 2026 through a partnership with Kalshi, allowing U.S. users to trade contracts tied to political and economic outcomes. Crypto.com has also introduced a CFTC-regulated prediction product through its North American derivatives unit.

Other platforms are preparing similar launches. Kraken has said it plans to add prediction markets to its trading lineup, while Robinhood is developing event-based derivatives through the MIAXdx exchange.

Against this backdrop, MEXC’s decision to introduce zero trading fees suggests an attempt to compete on pricing and infrastructure rather than market exclusivity.

Implications for the Market

The entry of large crypto exchanges could change how prediction markets develop. Platforms with existing trading infrastructure and large user bases may be able to launch event-based products quickly and experiment with different pricing models.

For trading platforms and brokers watching the sector, the development highlights how prediction markets are beginning to spread beyond specialized venues into broader multi-asset trading ecosystems.

Their earlier venture, Velotrade Management Limited, operates an active trade‑finance platform. However, the new company is a separate entity focused only on crypto trading.

A New Revenue Structure

Most prop firms rely on challenge fees when traders fail. Velotrade operates differently, its revenue comes from live market replication of profitable trader positions using institutional liquidity and algorithmic hedging, the Friday's announcement noted.

Crypto prop trading uses a prop firm’s capital to trade only digital assets like bitcoin and ether. It is often through funded accounts that sit on demo or simulated infrastructure but link to real crypto liquidity and defined profit splits for traders. In the past two years, several players such as HyroTrader, Crypto Fund Trader, and PipFarm have moved into this space.

Keep reading: From Pioneer to Leader: Crypto Fund Trader Announces $18 Million Paid to Traders

Both Pizzituti and De Angelis have extensive backgrounds with major global financial institutions before co-founding Velotrade. Pizzituti spent over five years at Dresdner Kleinwort in London, focusing on equity derivatives and OTC single-stock options market-making, before launching his own proprietary trading company, Colosseum Financials, in Singapore.

De Angelis began his career in derivatives trading at JP Morgan and Dresdner Bank, later becoming Managing Director and Co-Head of Derivatives Trading at Bank of America in London.

Velotrade limits its offering to crypto only, with leverage reportedly up to 6x on BTC and ETH. Funded traders can request payouts in USDC or USDT after 14 days.

Crypto-Native Props Add On-Chain Transparency

Unlike the multi‑asset, FX‑ and CFD‑centricprop firms that dominate the industry, where traders usually operate on MT4/MT5 or similar platforms across currencies, indices and commodities, these newer crypto‑native outfits build around 24/7 digital markets.

It also comprise exchange connectivity and proof‑of‑reserves style transparency.

Crypto prop trading is attracting firms that now report sizeable payouts and transparent capital backing, such as Crypto Fund Trader. The firm recently disclosed that it has distributed more than $18 million to traders using a model built natively around blockchain infrastructure.

Victims of the October 7 attacks had filed the complaint in February 2024. The plaintiffs alleged that the companies and Zhao enabled payments linked to Hamas through the exchange. They argued that the defendants “violated, and may be continuing to violate, the Anti-Terrorism Act” by allowing funds to move through the platform.

Alabama Court Partially Dismisses Binance Lawsuit

In an order, Chad Bryan granted a motion filed by Zhao to dismiss significant portions of the complaint. However, the judge did not close the case entirely. He ordered the plaintiffs to file a second amended complaint by April 10 or risk “the prospect of a total or partial dismissal.”

Bryan noted that the claims carried serious implications and required stronger legal arguments to proceed. “The underlying harm here is serious,” he said, adding that the allegations and potential liability were also “serious.” He wrote that the complaint must show a “commensurate level of seriousness before the action will be permitted to proceed.”

Following the decision, Binance said the ruling represented a “full and complete legal victory.”

????JUST IN: BINANCE SECURES SECOND U.S. FEDERAL COURT VICTORY WITH ANTI-TERRORISM CLAIMS DISMISSED@Binance Chief Legal Officer, @EleanorsHughes1, has announced a second consecutive U.S. federal court victory, with an Alabama court issuing a detailed 19-page ruling dismissing… pic.twitter.com/k2mV7kdiqI

— BSCN (@BSCNews) March 12, 2026

New York Court Dismisses Claims, Binance Faces Iran Scrutiny

Last week, the US District Court for the Southern District of New York dismissed claims against Binance for “lack of personal jurisdiction.” Judge Jeannette Vargas noted, however, that similar allegations had survived dismissal in another case in the district.

Binance general counsel Eleanor Hughes said that “sanctions compliance and terrorism financing are serious matters of law,” and courts had examined the claims twice and found them “without merit.” Judge Vargas added that the case remains active and the court retains authority to ensure parties comply with evidence preservation rules.

Separately, media reports allege Binance processed over $1 billion in transactions linked to Iran, prompting Senate inquiries. Binance denies the claims and has filed a defamation suit against The Wall Street Journal over its reporting on a Justice Department probe.

Complaint Filed With Economic Crime Division

Deputy Secretary-General Anek Yooyuen said the SEC filed a criminal complaint in March 2023 against Worawat and 1000X Limited, the company operating the website 1000x.live. The pair are accused of running a digital asset trading business without authorization.

The case resurfaced publicly early this week, when the alleged victims went to the Central Investigation Bureau to file new complaints over investments linked to the 1000X platform.

This prompted renewed media and social media scrutiny and leading the SEC to restate that it had already lodged a criminal complaint against Narknawdee and 1000X Limited back in 2023 and that the matter now sits with public prosecutors.

Read more: Thailand Joins Countries That Exempt Crypto Capital Gains Tax, but Only for 5 Years

Victims claim they were persuaded to invest through the platform, with estimated damages totaling 1.39 billion baht. Police believe Worawat may have left Thailand and travelled to the United Arab Emirates, where he reportedly has other business interests.

SEC Moves to Protect Investors

To prevent further losses, the SEC said it requested the Digital Economy and Society Ministry last June to block access to the platform. The regulator also urged the public to verify whether a digital asset business is properly licensed before investing.

Thailand’s SEC has brought several similar actions against unlicensed or improperly operating crypto businesses and promoters in the past year. For example, it moved to block access to five unlicensed exchanges including Bybit, CoinEx, OKX, XT.com and 1000X from June last year, after finding they served Thai users without licenses and referred those cases to the Economic Crime Suppression Division.

In January, the SEC also filed criminal complaints against individuals allegedly offering Worldcoin trading services and separate complaints over unauthorized over-the-counter crypto dealing, again citing violations of the Digital Asset Business law.

More recently, in February, the regulator lodged a complaint against a licensed local broker, its overseas platform and executives for allegedly operating an unlicensed exchange targeting Thai customers, underscoring a broader clampdown on cross-border and unlicensed activity.

They argue that the proposal to route compensation through a Chinese scheme could strip them of the £3.2bn haul’s gains and leave British authorities holding much of the upside, according to the Financial Times.

London police seized about 61,000 Bitcoin during an investigation into Chinese national Zhimin Qian, who ran an investment fraud between 2014 and 2017 that targeted more than 128,000 investors in China.

Qian converted proceeds into Bitcoin and moved the funds to the UK, where officers later recovered the assets from electronic devices at a Hampstead property.

Chinese Victims Contest UK Redress Plan

Qian evaded authorities for nearly five years while amassing one of the largest cryptocurrency fortunes ever seized in the UK. She was sentenced to more than 11 years in prison last November.

A Chinese woman has been sentenced in the UK to more than 11 years in prison for running a $6.6 billion Bitcoin Ponzi scheme that defrauded over 128,000 people worldwide. pic.twitter.com/HRxK4J8nqN

— Breaking911 (@Breaking911) November 13, 2025

She reportedly converted tens of millions of pounds into Bitcoin and entered Britain on a false passport to live in luxury rented properties with accomplices. Bitcoin’s price has since risen sharply since the fraud took place, lifting the value of the seized stash to around £3.2bn at current levels of roughly £52,300 per coin.

Victims are now using section 281 of the Proceeds of Crime Act to seek recovery of the assets through the English courts rather than through an out-of-court scheme proposed by UK authorities.

Under that plan, compensation funds would be sent to China and distributed via an existing redress mechanism there, while the UK would likely retain a significant share of the remaining Bitcoin.

Read more: UK Court Hands Nearly 12-Year Sentence in Massive £5B Bitcoin Case: Report

Law Firms and Prosecutors Clash over Access and Fees

Law firm Candey, which represents about 5,700 victims, told the High Court it has concerns over whether the proposed scheme would run in line with principles of fairness, warning that some clients “could stand to recover nothing without access to justice before the English courts.”

The firm said its fee arrangements, which cap total charges for UK and China legal teams at 18% of any sums recovered, allow victims without resources to pursue claims while keeping the “vast majority” of any recovery.

A preliminary High Court hearing in July will decide whether English or Chinese law governs the victims’ claims to the seized Bitcoin, with a 22 May deadline set for section 281 applications.

The lawsuit claims JPMorgan ignored suspicious transactions and allowed Goliath to use its banking infrastructure to collect investor funds, Cointelegraph reported.

[#highlighted-links#]

According to the complaint: “Chase, by virtue of its Know Your Customer procedures, actually knew that Goliath was acting as a ‘private equity’ cryptocurrency pool operator investing money for investors, without being licensed at all to sell these investments.”

Goliath Crypto Scheme Routed Through Banks

From January 2023 through May or June 2025, JPMorgan served as Goliath’s sole banking institution. Roughly $253 million of investor funds—about two-thirds of the total raised—was deposited into JPMorgan’s 0305 account, with around $123 million subsequently transferred to Goliath-controlled wallets at Coinbase.

Goliath also held business accounts at Bank of America, where CEO Christopher Delgado was a co-signatory, and investor funds were occasionally routed there as well.

????UPDATE: JPMORGAN SUED FOR ALLEGEDLY ENABLING $328M CRYPTO PONZI SCHEMEInvestors have filed a lawsuit accusing JPMorgan of facilitating a $328 million crypto Ponzi scheme tied to Goliath Venture. The suit alleges the bank processed fraudulent transactions and failed to flag… pic.twitter.com/cwvIj3TYAG

— BSCN (@BSCNews) March 12, 2026

Goliath CEO Arrested, Investors File Lawsuit

A separate criminal complaint from the US Attorney’s Office for the Middle District of Florida states that Delgado, who previously ran Goliath under the name Gen-Z Venture Firm, was arrested earlier. Prosecutors said the scheme operated from January 2023 through January 2026. Delgado faces up to 30 years in federal prison if convicted.

The class action was filed by Shaw Lewenz, Sonn Law Group, and Schwartzbaum. The first plaintiff, Robby Alan Steele, said he invested $650,000, including retirement funds. Jordan Shaw of Shaw Lewenz said additional complaints are expected as the team continues identifying victims.

Crypto Fraud Concerns Persist

The JPMorgan case highlights concern over cryptocurrency fraud in the United States. A recent survey by verification firm Sumsub found that roughly one in three Americans have experienced or know someone affected by crypto-related scams.

Common schemes include Ponzi structures, social engineering,phishing, impersonation, and wallet exploitation. Synthetic identity and deepfake-related fraud have also risen sharply.

Trust in crypto platforms remains lower than traditional financial services, and most respondents support stronger regulation to improve consumer protection.

FMA Rules NZDD Stablecoin Not Investment

The determination was issued by the Financial Markets Authority. The regulator reviewed the NZDD token, which is pegged to the New Zealand dollar, as part of its sandbox pilot designed to test new financial innovations. According to the FMA, the token does not fall within the definition of a debt security.

“The economic substance of the NZDD stablecoin is that it is not a debt security, as the NZDD stablecoin is not an investment, and no income, interest or other gain is paid to the NZDD stablecoin holder,” the regulator said.

The NZDD token is issued by ECDD Holdings. The company was advised by the law firm MinterEllisonRuddWatts during its participation in the sandbox. The firm said the decision applies only to the specific version of NZDD examined in the notice and does not represent a general ruling on all stablecoins.

Restricted Licence Supports Fintech Market Access

“The designation signals a pragmatic approach by the FMA to financial innovation that is consistent with developments in comparable jurisdictions and provides a foundation from which further pathways can be developed,” the firm said.

NZ's FMA expands its regulatory sandbox, supporting fintechs testing innovations like ECDD Holdings' NZD stablecoin & Homeshare's tokenized real estate. The move aims to lower barriers, boost competition & foster RWA adoption. #RealWorldAssets #Tokenization #Blockchain #Crypto…

— Tokenized Finance Alert (@AboutRWAs) March 11, 2026

The FMA said the decision is part of broader efforts to support fintech innovation. It plans to introduce a restricted or “on‑ramp” license for firms entering the market under controlled conditions, with limitations lifted as companies grow.

“Our financial system is changing faster than ever before. This new type of licence will support firms to get access to the market with some restrictions in place that can be removed as the firm grows,” said Samantha Barrass.

Crypto ATM Ban Balances Innovation Enforcement

Meanwhile, New Zealand authorities have banned cryptocurrency ATMs. Officials cited concerns that the machines allowed cash to be converted into digital assets and transferred overseas, creating potential money‑laundering risks. The ban reflects efforts to balance innovation with enforcement and consumer protection.

Profitability, however, told a different story: adjusted EBITDA came in at €13 million, down from €52 million in 2024, a decline the company described as the result of deliberate investment in growth rather than any softening in the underlying business.

Bitpanda’s EBITDA Drops as the Firm Invests for Scale

The profit pullback stands in sharp contrast to 2024, when Bitpanda posted what it called its strongest financial performance to date, generating €393 million in operating revenue and pushing its EBITDA margin above 30%.

For 2025, the company said it absorbed higher costs across product development, regulatory expansion, and international growth.

CEO Lukas Enzersdorfer-Konrad said the firm delivered "strong top-line growth while making deliberate, strategic investments to position Bitpanda as a multi-asset investment and trading platform and an expanding market infrastructure provider."

CFO Jonas Larsen added that the results demonstrated "the resilience and scalability of our business model."

User Base Grows, B2B Roster Nearly Doubles

Registered users rose 25% from 5.9 million in 2024 to 7.4 million by year-end 2025, the company said. On the institutional side, Bitpanda said its active B2B partner base grew from nine to 16 financial institutions across Europe, firms that integrate the company's infrastructure under white-label arrangements to offer digital asset services to their own customers.

The platform also broadened its marketing presence in European sport during the year. Bitpanda became FC Basel's shirt sponsor from the 2025-2026 football season, a club with a potential Champions League berth on the horizon. Around the same time, the company signed a French tennis player as a brand ambassador ahead of the French Open, a tournament that drew a television audience of approximately 318 million viewers in 2024.

Product Roster Stretches Past 650 Assets

During 2025, Bitpanda said it added margin trading for more than 100 crypto assets, brought its total digital asset catalog past 650 items, and enabled staking for more than 50 assets. The company also launched a web3 wallet, which it said is intended to strengthen its onchain capabilities.

The expanded product range feeds into the company's stated goal of repositioning itself as a multi-asset platform, a framing it pushed publicly ahead of a potential listing.

In January 2026, reports emerged that Bitpanda was targeting a Frankfurt stock exchange debut in the first half of 2026, with a valuation target of between €4 billion and €5 billion and Goldman Sachs, Citigroup, and Deutsche Bank lined up as underwriters.

Regulatory Footprint Reaches Three Continents

On the licensing front, Bitpanda said it obtained an EU-wide MiCA license during the year, which the company says allows it to operate under a single unified framework across the bloc's 27 member states, just as Europe's new crypto regime formally takes hold. The firm also holds a crypto license from the UK's Financial Conduct Authority and a full broker-dealer license from Dubai's Virtual Assets Regulatory Authority.

Bitpanda secured that UAE license in early 2025, its first fully licensed operation outside Europe, enabling the firm to offer more than 500 cryptocurrencies, crypto indices, and savings plans to UAE investors.

The company said it also pushed into Latin America and the Asia-Pacific region during the year, though it did not break out specific figures or timelines for those markets.

The probe focuses on more than $1 billion in crypto transfers that allegedly passed through the platform to entities linked to Iran-backed groups, including Yemen’s Houthi militants.

The investigation follows reports that Binance wound down an internal review that had identified around $1.7 billion in flows from mainly Chinese clients to digital wallets associated with Iranian proxies.

Exclusive: The Justice Department is investigating Iran’s use of Binance to evade U.S. sanctions https://t.co/Qqw2h2cQuP

— The Wall Street Journal (@WSJ) March 11, 2026

Inquiry Examines Iran-Linked Crypto Flows

It includes funds allegedly routed via Hong Kong-based payments firm Blessed Trust. The Wall Street Journal said officials have contacted individuals with knowledge of the transactions but added it is unclear whether authorities are scrutinizing Binance itself, its users, or both.

You may also find interesting: Richard Teng Explains Why Binance Chose Greece for Its EU MiCA License

Amid the claims, the exchange has filed a defamation lawsuit against Dow Jones, the publisher of The Wall Street Journal.

We have filed a complaint against the @WSJ for publishing a false and defamatory report, and to shine the light of truth. We view this suit as a necessary step to defend ourselves against misinformation, hold the WSJ accountable for prioritizing clicks over journalistic… pic.twitter.com/c4BPAi95Kh

— Binance (@binance) March 11, 2026

The lawsuit, filed in the Southern District of New York, claims the WSJ falsely stated that Binance fired staff who raised complianceconcerns and mishandled Iran-linked transactions. It argues that those employees left over alleged internal data protection violations instead of retaliation.

Binance, which pleaded guilty in 2023 to U.S.anti-money-laundering and sanctions violations and agreed to a $4.3 billion settlement and compliance monitoring, said it did not directly transact with sanctioned entities and worked with law enforcement to dismantle the network.

Binance Cites Cooperation with Law Enforcement

The exchange said its investigation showed only about $24 million ultimately entered wallets tied to Iran’s Islamic Revolutionary Guard Corps and that accounts linked to the intermediary network have been closed.

A separate Senate inquiry led by Senator Richard Blumenthal is also seeking records on Binance’s handling of the Iranian-related activity, citing the Journal’s reporting.

Keep reading: Iran Crypto Market “In the Dark”: Trading Volumes Plunge 80% After Strikes

Meanwhile, Binance.US has moved to refresh its executive ranks, appointing Stephen Gregory as CEO while Norman Reed shifts into an advisory role. Gregory, who took over on March 9, previously led Currency.com’s U.S. business through its 2025 acquisition and has held senior compliance roles at Gemini and CEX.io.

Meet our new CEO: Stephen Gregory (@Stevie_Satoshi)He's a compliance expert, builder, and seasoned trader. Now, he's leading @BinanceUS into our next chapter as we build the best crypto exchange for Americans. https://t.co/pmlWrU09YO

— Binance.US ???????? (@BinanceUS) March 11, 2026

The exchange is positioning the leadership change as the next step in its U.S. growth strategy after a period of regulatory pressure that has included enforcement actions and tighter scrutiny of its business model. Gregory’s appointment comes as Binance.US tries to move past those challenges

If approved, the license would allow Ripple to operate payment services in Australia under the country’s financial regulatory framework. The move adds to a broader set of licenses and registrations Ripple says it has secured in multiple jurisdictions as part of its international payments business.

A Broader Licensing Network

Ripple says the Australian approval would add to licenses it holds in several financial centers. These include an Electronic Money Institution (EMI) license in Luxembourg, which allows passporting across the European Union, an EMI license and cryptoasset registration in the UK, a Major Payment Institution (MPI) license in Singapore, and authorisation in Abu Dhabi Global Market.

The company also holds several state-level trust charters in the United States and has previously received preliminary approval for a national trust bank charter from the Office of the Comptroller of the Currency.

Ripple said payment volumes in the Asia-Pacific region increased significantly in 2025. “Licensing is fundamental to Ripple’s strategy, ensuring we can deliver secure, compliant solutions to customers worldwide,” said Fiona Murray, Managing Director for Asia Pacific at Ripple.

Industry Reaction

Some industry participants say the move reflects growing demand for regulated digital payment infrastructure in the Asia-Pacific region. Jessica Gonzales, a fintech commentator, wrote on X that the Australian license could help expand Ripple’s cross-border payment services across APAC through a regulated framework.

Ripple Seeks Australian Financial License to Expand APAC PaymentsRipple is pursuing an Australian Financial Services License (AFSL) via the acquisition of BC Payments Australia. The move would expand Ripple Payments infrastructure and accelerate regulated cross-border payment… pic.twitter.com/NFmMu1H3ik

— Jessica Gonzales (@lil_disruptor) March 11, 2026

Others point to rising transaction activity in the region. Danny Lee, a community lead at fintech platform Flyblox, said the increase in payments volume suggests growing institutional interest in regulated blockchain-based payment systems.

What the License Means

If approved, the AFSL would allow Ripple to expand its local payments offering in Australia within an established regulatory framework. For financial institutions and fintech clients, Ripple says its licensed structure allows them to connect traditional payment systems with digital-asset settlement through a single service model.

Ripple has spent several years building out licenses across multiple jurisdictions as part of its international payments expansion.

Yet behind the seeming reprieve, experts warn of a more insidious threat: the rise of scams that don’t exploit code, but people. Nominis’ February 2026 report shows a clear pivot in attacker behavior.

Rather than exploiting smart contract flaws or blockchain infrastructure, many incidents relied on phishing, malicious approvals, and address poisoning.

Decline Follows January’s Heavy Losses

Victims often signed fraudulent transactions or unknowingly granted permission for attackers to access their wallets,a form of “authorization abuse” that accounted for most losses during the month.

Private users were hit hardest, while large platforms escaped major compromises. The biggest exception was a breach at Step Finance, a Solana-based analytics platform, which lost roughly $30 million after attackers infiltrated its infrastructure. That single attack made up more than 60% of all crypto losses in February.

Continue reading: Crypto Fraud Tops UK Agenda as £14B Losses Spur New Strategy

The steep drop from January’s $385 million has sparked cautious optimism among analysts. Blockchain security firm PeckShield reported similar findings, estimating $26.5 million in February exploits, its lowest figure since March 2025. The firm attributed the decline to stricter operational controls and improved monitoring systems across centralized exchanges and DeFi projects.

But the industry’s relative calm may be fragile. “Social engineering attacks caused more cumulative damage than smart contractexploits,” Nominis noted, emphasizing a continued shift toward tactics that exploit human trust and interface confusion.

Better Defenses, but Not Immunity

Crypto platforms have been tightening fraud prevention measures. Bybit, for instance, revealed that its anti-fraud systems blocked more than $300 million in unauthorized withdrawals during late 2025, preventing thousands of potential scams.

Despite those advances, total losses across the sector remain staggering. Chainalysis estimated $3.4 billion in crypto stolen last year, underscoring persistent vulnerabilities even as defenses improve.

February’s data suggests that stronger code alone isn’t enough. The biggest risks now lie where technology meets behavior, permissions, signatures, and the everyday habits of wallet users.

Crypto Scams Emerge as a Core Focus

The policy paper warns that criminals are exploiting digital assets to trick victims into transferring money through social media and messaging apps. It labels crypto among the “emerging payments” where “vulnerabilities remain,” calling its risks both financial and reputational.

Authorities say they are enhancing the National Crime Agency’s capacity to trace fraud tied to cryptocurrencies and supporting the Serious Fraud Office in crypto asset investigations.

These steps follow the FCA’s earlier crackdown on misleading crypto promotions and HM Treasury’s development of a new regulatory framework for digital assets due in October 2027.

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Under that framework, all crypto firms serving UK consumers will need FCA authorization and must meet the same standards as traditional financial companies.

Recently, the UK government announced plans to bring crypto under full FCA supervision by 2027 after UK Finance data showed a 55% jump in crypto related scam losses, while the FCA has accelerated its registration process and now approves around 45% of applicant firms, up from below 15% over the past five years.

Regulation Meets Politics

The government’s paper avoided mention of ongoing political debates over crypto donations. Lawmakers are weighing whether to ban digital contributions to parties after high-profile figures such as Nigel Farage publicly supported them. In 2025, early crypto investor Christopher Harborne donated about $16 million to Farage’s Reform Party.

A separate report by the Financial Action Task Force show show deeply fraud has embedded itself in mature financial systems, with the crime now accounting for more than 40% of all recorded offences in the UK.

The paper warns that cyber‑enabled fraud has become one of the most widespread profit‑driven crimes globally, as rapid advances in technology, new payment rails and virtual assets allow criminals to move funds across borders at speed while stretching existing AML and CFT controls.

The report illustrates how this trend plays out across key hubs. Singapore, for example, recorded a 61% jump in cyber‑enabled scam cases over just two years, while some countries estimate that up to 15% of adults have already fallen victim to successful online fraud attempts.

FATF links this surge to post‑pandemic digital adoption and increasingly sophisticated social‑engineering tactics that exploit digital platforms, instant payments and tools such as AI and deepfakes to reach victims at scale.

It is dangerously reductive. I can tell you that the delays stem from five substantive, interconnected challenges that reflect deeper tensions about financialarchitecture, technological feasibility, and political will. Reducing this to a simple fight over yield misunderstands both the stakes and the sophistication required for meaningful regulation.

The Stablecoin Yield Loophole

The first and perhaps most technical issue concerns the so-called "yield loophole" in the GENIUS Act. It is true that the GENIUS Act, signed into law in 2025, explicitly prohibits permitted payment stablecoin issuers from paying interest or yield solely for holding a stablecoin.

However, as bankingstakeholders have correctly identified, this prohibition does not automatically extend to third-party intermediaries. Exchanges, wallet providers, or payment applications may offer "rewards," "staking yields," or other return-like incentives on idle stablecoin balances.

This is not regulatory pedantry. It is a legitimate concern about regulatory arbitrage. If non-bank entities can replicate the economic function of an insured deposit account without equivalent capital, liquidity, or consumer protection safeguards, we risk creating a two-tiered financial system where innovation becomes a vector for systemic vulnerability.

The banking sector's push for unambiguous statutory language in the CLARITY Act is less about stifling competition and more about ensuring functional equivalence in risk management.

With the total stablecoin market capitalization exceeding $307 billion as of February 2026, the scale of potential disintermediation demands careful calibration, not ideological reflex.

Operational Risks of Always-On Stablecoin Rails

Operational and systemic stability concerns extend far beyond yield semantics. The 24/7 nature of crypto markets introduces liquidity and settlement pressures that traditional banking infrastructure simply was not designed to absorb.

Community banks, which form the backbone of American credit allocation, lack the technological capacity to liquidate reserve assets such as U.S. Treasuries in real time to meet instant redemption demands that could cascade during periods of market stress.

Without parity in operational resilience, always-on stablecoin rails could propagate shocks into the traditional payment system. This would undermine the very stability the Act seeks to protect.

This is not hypothetical.

The DeFi Compliance Dilemma

Nowhere is the tension between regulatory intent and technical reality more acute than in the treatment of decentralized finance. The CLARITY Act's requirement that DeFi protocols register as financial institutions and report transaction data fundamentally conflicts with the architecture of permissionless code.

Industry experts, including many open-source developers I have consulted, argue that enforcing bank-like KYC/AML obligations on non-custodial, autonomous protocols is not only technically infeasible but risks criminalizing the very act of publishing code.

This is not a defense of illicit activity. It is a recognition that privacy-preserving design and decentralized governance are foundational to the value proposition of Web3. If we mandate compliancemechanisms that require central points of control, we do not regulate DeFi. We extinguish it.

The Act's provision granting the SEC discretion to exempt certain DeFi activities is a step in the right direction, but it remains insufficient without clearer safe harbors for truly decentralized systems.

???? BREAKING:President Trump says that if the SAVE AMERICA ACT becomes law, Democrats could be locked out of winning a national election for the next 50 years.He also confirmed that the CLARITY ACT would follow — a move aimed at turning the United States into the global hub… pic.twitter.com/IHwkeVasWf

— Mr. Crypto Whale ???? (@Mrcryptoxwhale) March 9, 2026

Ethics Provisions and Political Gridlock

Compounding these technical challenges are ethics provisions that have become political flashpoints. Senate Democrats' introduction of stringent conflict-of-interest clauses, widely interpreted as targeting high-profile crypto initiatives linked to former President Trump, such as World Liberty Financial, has intensified partisan gridlock.

While preventing public officials from profiting off the policies they shape is unquestionably important, weaponizing ethics rules to score political points complicates bipartisan compromise on the bill's core regulatory framework.

In an environment where digital asset policy should be guided by evidence and expertise, the infusion of partisan theater risks producing legislation that satisfies short-term political objectives while failing to address long-term structural needs.

The SEC–CFTC Jurisdiction Battle

At the core of these disputes is the SEC–CFTC jurisdictional tension. Banks favor the SEC’s investor-protection mandate, while critics question the CFTC’s capacity to oversee retail platforms. The CLARITY Act splits authority: the CFTC handles anti-fraud and anti-manipulation in digital commodities, and the SEC covers investment contract assets during fundraising.

While clear in theory, this risks fragmented oversight. SEC Chair Paul Atkins calls it a way to "future-proof" rules, highlighting that ambiguity mainly benefits bad actors.

A Framework for Digital Asset Markets

The Act’s three-category framework—digital commodities, investment contract assets, and permitted payment stablecoins—aims to bring order to a chaotic market. Investment contract assets are treated as securities only during fundraising, converting to digital commodities in secondary markets.

The "maturity" certification, requiring functionalblockchain operations, open-source code, transparency, and decentralized control, provides a clear pathway out of securities regulation, forming the foundation for a sustainable innovation ecosystem.

Moving Beyond Simplistic Narratives

The CLARITY Act aims to balance innovation with protection, but its success depends on rules that are technologically literate, economically sound, and ethically grounded. With the stablecoin market now larger than the GDP of many nations, today’s decisions will shape tomorrow’s financial infrastructure and must be guided by evidence, not echo chambers.

The total stablecoin market capitalization hit a record $313 billion on Sunday, underscoring resilient demand even as the broader digital asset space remains under pressure and tensions escalate in the Middle East.

Latest data from DefiLlama shows the combined value of stablecoins climbed 1.14% over the past week to $313.008 billion.

Record Stablecoin Supply in a Risk-Off Environment

The increase came as the US–Iran conflict intensified and oil prices spiked, amplifying risk aversion across traditional and digital markets. In that backdrop, traders and investors parked more capital in dollar-linked tokens rather than in volatile cryptocurrencies.

Market participants often treat stablecoins as both a parking lot for liquidity and a bridge between fiat and crypto. Tether’s USDT remains the largest stablecoin by far. It accounts for about 62.5% of the market, with a supply of roughly $183.5 billion in circulation.

Despite its size, short-term retail sentiment on social platform Stocktwits leaned bearish over the past day, indicating persistent skepticism among some traders.

You may also find interesting: Same Stablecoin, Different Bill: Why Africa's Cash-Out Costs Climb to Nearly 20%

Circle’s USDC holds the second-largest share of the market at 25.5%. A recent report from analytics firm Allium showed that USDC overtook USDT in transfer volume in February, highlighting its growing role in paymentsand on-chain settlement.

Retail sentiment around USDC on Stocktwits sat in a neutral zone over the same period, suggesting a more balanced view from the trading community.

PayPal’s PYUSD Emerges as a Quiet Gainer

Beyond the two largest players, newer entrants continue to carve out space. PayPal USD (PYUSD), launched last year, expanded its supply by 2.8% week-on-week as of March 4. That increase put PYUSD among the top weekly gainers in the stablecoin universe.

PYUSD now holds around 1.4% market share. Retail commentary on Stocktwits remained neutral, reflecting interest but not yet the kind of conviction seen around more established tokens.

The stablecoin rebound comes against the backdrop of unresolved regulatory debates in the United States. Lawmakers still have not advanced key proposals such as the CLARITY Act, which aims to define regulatory boundaries for digital assets and the platforms that issue them.

This structural demand may position stablecoins as a core layer of digital finance, even when risk assets underperform

The total stablecoin market capitalization hit a record $313 billion on Sunday, underscoring resilient demand even as the broader digital asset space remains under pressure and tensions escalate in the Middle East.

Latest data from DefiLlama shows the combined value of stablecoins climbed 1.14% over the past week to $313.008 billion.

Record Stablecoin Supply in a Risk-Off Environment

The increase came as the US–Iran conflict intensified and oil prices spiked, amplifying risk aversion across traditional and digital markets. In that backdrop, traders and investors parked more capital in dollar-linked tokens rather than in volatile cryptocurrencies.

Market participants often treat stablecoins as both a parking lot for liquidity and a bridge between fiat and crypto. Tether’s USDT remains the largest stablecoin by far. It accounts for about 62.5% of the market, with a supply of roughly $183.5 billion in circulation.

Despite its size, short-term retail sentiment on social platform Stocktwits leaned bearish over the past day, indicating persistent skepticism among some traders.

You may also find interesting: Same Stablecoin, Different Bill: Why Africa's Cash-Out Costs Climb to Nearly 20%

Circle’s USDC holds the second-largest share of the market at 25.5%. A recent report from analytics firm Allium showed that USDC overtook USDT in transfer volume in February, highlighting its growing role in paymentsand on-chain settlement.

Retail sentiment around USDC on Stocktwits sat in a neutral zone over the same period, suggesting a more balanced view from the trading community.

PayPal’s PYUSD Emerges as a Quiet Gainer

Beyond the two largest players, newer entrants continue to carve out space. PayPal USD (PYUSD), launched last year, expanded its supply by 2.8% week-on-week as of March 4. That increase put PYUSD among the top weekly gainers in the stablecoin universe.

PYUSD now holds around 1.4% market share. Retail commentary on Stocktwits remained neutral, reflecting interest but not yet the kind of conviction seen around more established tokens.

The stablecoin rebound comes against the backdrop of unresolved regulatory debates in the United States. Lawmakers still have not advanced key proposals such as the CLARITY Act, which aims to define regulatory boundaries for digital assets and the platforms that issue them.

This structural demand may position stablecoins as a core layer of digital finance, even when risk assets underperform.

According to Monday announcement, xStocks framework will power the permissionless infrastructure layer and enable tokenized stocks to interact with open blockchain networks while remaining aligned with the securities trading on Nasdaq’s markets.

Poised for Nasdaq Equity Tokens

Another regulated venue already live with xStocks is 360X, the EU-regulated trading venue backed by Deutsche Börse, where several xStocks tokenized equities (including CRCLx, GOOGLx, NVDAx, SPYx and TSLAx) started trading in early 2026.

TradFi isn’t so traditional anymore.@xStocksFi × @Nasdaq https://t.co/F9nM2JY0dQ

— Kraken (@krakenfx) March 9, 2026

In addition, xStocks has a partnership with CycleX, which uses the xStocks framework and infrastructure to support trading in tokenized equities on its own platforms. CycleX is a Real World Asset tokenization and trading platform that focuses on turning traditional financial assets into on-chain investment products for global investors.

Nasdaq’s equity token design is expected to become operational in the first half of 2027, subject to regulatory approvals. The tokens will reportedly be backed by issuer-sponsored shares and structured to preserve issuer control, existing regulatory frameworks, and shareholder rights such as voting and dividends.

Related: Kraken Just Plugged Into the Fed’s Payment System. Here’s Why It Matters

Payward Services will provide KYC and AML onboarding for clients accessing tokenized equities via Kraken, ensuring that users interacting with the gateway meet applicable compliance requirements in relevant jurisdictions.

Compliance, Access and Regulatory Track

Nasdaq’s tokenization work with Payward builds on a proposal the exchange submitted to the U.S. Securities and Exchange Commission in September 2025 to allow tokenized versions of listed stocks and exchange-traded products to trade alongside traditional shares.

Under that proposal, both tokenized and conventional instruments would settle through the Depository Trust infrastructure so that they remain interchangeable.

Kraken’s parent company Payward effectively controls the xStocks framework after acquiring Backed Finance, the original issuer of the tokenized equities that now power its tokenized securities strategy.

As previously reported by Finance Magnates, the deal was pitched as a way to unify issuance and trading under one roof, with Alpaca providing brokerage and custody for the underlying stocks and ETFs that back xStocks’ on-chain instruments.

Since launch less than a year ago, xStocks has processed more than 25 billion dollars in total transaction volume, including over 4 billion dollars settled on-chain, and now counts more than 85,000 unique holders across supported networks.

The offering is Coinbase’s first under its MiFID II licence, reported in January this year, obtained through the acquisition of BUX Cyprus. Its CySEC-regulated entity allows the exchange to offer over-the-counter derivatives across the European Economic Area. The contracts are available to Coinbase Advanced users in 26 countries, including Germany, France, and the Netherlands.

Crypto, Magnificent Seven Stocks Combined Futures

The new lineup includes crypto futures tied to Bitcoin and other digital assets. Coinbase also introduced an equity-index product called the Mag7 + Crypto Equity Index Futures.

The contract combines exposure to the so-called Magnificent Seven stocks—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla—with crypto-linked equities and BlackRock iShares exchange-traded funds tied to BTC and Ether.

???? JUST IN: #Coinbase launches crypto futures trading across 26 European countries, offering leveraged contracts on $BTC and $ETH. pic.twitter.com/av4PTlkUQp

— CCN (@CCNCitizens) March 9, 2026

Traders Access Up To 10x Leverage

Coinbase has launched two types of cash-settled futures contracts. One type is perpetual-style futures with five-year expiries. The other type includes dated contracts with monthly or quarterly expiries. Traders can access up to 10x leverage on select crypto-denominated contracts and equity indices, and up to 5x leverage on other products. Fees start at 0.02% per contract.

Exchanges Expand European Crypto Derivatives Offerings

Coinbase’s launch comes as several other crypto exchanges expand into Europe with derivatives offerings. Kraken acquired a Cyprus-based entity and began offering crypto derivatives under a MiFID II licence last year. Other firms with European crypto licences include Crypto.com and OKX, while Gemini is seeking a licence from Malta. The licences also permit these exchanges to offer CFDs.

The investment values OKX at roughly $25 billion, according to people familiar with the deal, and gives ICE a seat on the exchange’s board. ICE invested about $200 million, though the companies did not disclose the size of the stake. But the strategic importance of the deal lies less in the investment itself than in how the two firms plan to use each other’s infrastructure.

The Infrastructure Trade

Under the agreement, ICE will license OKX’s spot crypto price feeds to support the launch of U.S.-regulated crypto futures contracts. In return, OKX expects to distribute those futures products — along with tokenised equities tied to NYSE-listed stocks — to its roughly 120 million global users, most of whom are outside the United States.

The rollout remains subject to regulatory approvals. The structure effectively connects two different types of liquidity pools: regulated U.S. derivatives markets and the deep global trading activity on large offshore crypto exchanges.

For brokers and market operators, that model matters. Instead of competing directly with crypto venues, traditional exchanges are increasingly exploring ways to plug into their data, liquidity, and distribution networks.

OKX’s U.S. Reset

The partnership also comes as OKX attempts to rebuild its relationship with U.S. regulators. In February 2025, the exchange pleaded guilty to operating an unlicensed money-transmitting business and agreed to pay roughly $504 million in penalties.

Since then, executives have framed the company’s U.S. strategy as a reset. OKX described the American market as a “blank sheet of paper”, saying it intends to rebuild its presence through partnerships with regulated financial institutions.

For OKX, the ICE investment provides a powerful signal of institutional backing. For ICE, it provides access to one of the largest pools of crypto trading activity without running a retail crypto exchange itself.

The Tokenization Angle

The collaboration also highlights a growing push by major exchanges toward tokenized securities. NYSE said earlier this year it is exploring a venue for trading tokenised stocks and exchange-traded funds around the clock.

Nasdaq has also sought regulatory approval to list tokenised versions of equities. ICE executives say blockchain infrastructure will increasingly play a role in trading, clearing and settlement.

Why Brokers Should Care

For brokers, the partnership offers a preview of how traditional exchanges and crypto platforms may interact in the next phase of market development.

Instead of replacing existing market structures, large crypto venues could become distribution layers for traditional financial products, while established exchanges provide regulated derivatives, clearing and institutional credibility.

If the model works, it could reshape how brokers access liquidity and distribute products across both traditional and digital markets.

The proposal was outlined by Central Bank Governor Elvira Nabiullina at an annual meeting with credit organisations. According to the regulator, existing financial institutions already have compliance infrastructure that could be used to supervise crypto transactions.

“We hope that the vast experience of banks in AML/CFT and fraud prevention will help protect your clients in the crypto market,” Nabiullina said.

Under the proposed framework, banks and brokers would be able to obtain crypto exchange licenses through a notification-based procedure rather than a separate licensing process. In practice, this would allow them to offer crypto services using their existing financial licenses.

A Financial Sector–Led Model

The proposal forms part of a broader regulatory framework the authorities are developing for digital assets in Russia. Under the plan, cryptocurrencies and stablecoins would be classified as “currency valuables,” allowing them to be owned and traded while restricting their use as a domestic means of payment, with limited exceptions for foreign trade.

At the same time, crypto transactions by Russian residents would have to be conducted through licensed intermediaries such as banks and brokers.

The framework would also introduce investor protections, including a mandatory knowledge test for unqualified investors and an annual purchase limit of 300,000 rubles for liquid cryptocurrencies through a single intermediary.

In addition, the regulator intends to prohibit trading in anonymity-focused coins such as Monero and Zcash.

Industry Reaction

Some figures in Russia’s crypto community criticised the proposal. Russian crypto entrepreneur Sergey Mendeleev said the plan appeared aimed at transferring crypto exchange activity from existing market operators to major banks, adding that “crypto markets don’t work that way.”

Dmitriy Machikhin, founder of crypto compliance provider BitOK, also expressed skepticism about the model. He said crypto users are likely to retain the option of trading through international platforms rather than relying exclusively on domestic intermediaries.

“The regulator wants to bring the market under its control,” Machikhin wrote, adding that the decentralized nature of crypto means users will continue to choose between regulated domestic services and independent exchanges.

The Central Bank has also indicated that penalties may be introduced for crypto transactions conducted outside the future regulatory framework, with a potential implementation timeline extending to 2027.

For Russia’s brokerage sector, the proposal could open a new line of business if adopted. Instead of competing with crypto platforms operating outside the financial system, licensed brokers and banks would act as intermediaries for regulated digital asset trading. The proposal remains under discussion, and final rules for the market have not yet been adopted.

The decision could reshape how digital-asset firms move dollars and interact with the traditional financial system, reducing dependence on partner banks.

What a Fed Master Account Actually is

A master account is essentially the gateway to the Federal Reserve’s payment infrastructure. Banks and certain regulated financial institutions use these accounts to hold reserves at the central bank and to settle payments through systems such as Fedwire.

Instead of routing transactions through intermediary banks, institutions with a master account can send and receive funds directly within the Fed’s network.

Until now, crypto companies typically relied on partner banks to move U.S. dollars between exchanges, clients, and other financial institutions. That arrangement created operational risk: if a banking partner pulled back from crypto exposure, trading platforms could lose access to key payment channels almost overnight.

With a master account, Kraken Financial can connect its fiat flows directly to the Fed’s payment rails, potentially making dollar transfers faster and more predictable for institutional clients and professional traders.

Not a Full Banking Privilege

Despite the significance of the approval, Kraken is not receiving the same privileges as a traditional commercial bank. The access granted to Kraken Financial resembles what policymakers have described as a “skinny” or limited master account model, where firms can use the Federal Reserve’s payment rails but do not receive the full range of central-bank services available to banks.

What Kraken Gets — and What It Doesn’t

In practice, this means the Fed is granting infrastructure access without extending the broader safety net that comes with full banking status.

Why the Structure Matters

The limited access model reflects the Federal Reserve’s cautious approach toward institutions operating under newer or specialised charters.

Kraken Financial operates under Wyoming’s Special Purpose Depository Institution (SPDI) framework, a type of banking charter designed specifically for digital-asset companies. SPDIs are primarily focused on custody and payment services rather than traditional lending.

Because such institutions operate differently from conventional banks, regulators have been developing a risk-tier framework to determine what level of access to Fed infrastructure is appropriate.

Granting a restricted master account allows the Fed to test how fintech or crypto firms interact with its payment systems while maintaining tighter controls over liquidity and systemic risk.

A Long-Running Battle for Access

Crypto firms have been seeking direct access to Federal Reserve infrastructure for years. The industry argues that denying such access forces digital-asset companies to rely on a small number of “crypto-friendly” banks, concentrating risk and making the sector vulnerable to sudden disruptions.

Those concerns intensified after the collapse of Signature Bank and Silvergate Bank in 2023, both of which had served as major banking partners for crypto firms. Their failures disrupted key payment networks used by exchanges and institutional traders.

From the industry’s perspective, the ability to connect directly to Fed payment rails could reduce reliance on intermediary banks and stabilise the flow of fiat currency in and out of digital-asset markets.

Why Banks are Concerned

Traditional banking groups have strongly opposed efforts by crypto firms to obtain master accounts. Industry associations argue that crypto companies do not operate under the same regulatory framework as commercial banks and may pose higher risks related to anti-money-laundering controls, operational resilience, and financial stability.

The Independent Community Bankers of America (ICBA) voiced similar concerns after Kraken’s approval. The group warned that allowing crypto firms and other nonbank institutions direct access to Federal Reserve accounts could introduce risks into the banking system.

“Granting nonbank entities and crypto institutions access to master accounts traditionally limited to highly regulated insured depository institutions poses risks to the banking system,” said ICBA President and CEO Rebeca Romero Rainey.

We’re deeply concerned with the master account approval for Kraken Financial. Granting nonbank entities access to master accounts traditionally limited to highly regulated insured depository institutions poses risks to consumers and the banking system. https://t.co/Wng93QV5iA

— Independent Community Bankers of America (@ICBA) March 4, 2026

Banking lobby groups have also questioned the transparency of the approval process and the safeguards applied in Kraken’s case. Beyond compliance concerns, there is also a competitive dimension.

If crypto firms gain direct access to central-bank payment infrastructure, banks could lose part of their traditional role as intermediaries between digital-asset platforms and the dollar-based financial system.

A broader regulatory shift

Kraken’s approval arrives amid broader policy changes in the United States aimed at integrating parts of the crypto industry into the regulated financial system.

Recent developments include proposals to allow fintech firms limited access to Federal Reserve payment systems and approvals for crypto companies to establish national trust banks focused on custody and digital-asset services.

The initiatives suggest regulators are exploring ways to allow crypto infrastructure to connect to traditional finance without granting the sector full banking status.

What it could mean for the market

For Kraken itself, the master account strengthens its infrastructure position. Direct access to Fed payment rails could allow the exchange to offer faster fiat settlement, reduce dependence on partner banks, and improve services for institutional clients such as trading firms and hedge funds.

Faster dollar settlement may also be particularly relevant for OTC desks, prime-style brokerage services, and liquidity providers operating in digital-asset markets. For the broader industry, the more important development is the precedent.

If Kraken’s arrangement proves workable from a compliance and operational perspective, other crypto institutions with banking-style charters may pursue similar access. That could gradually reshape how digital-asset firms connect to the dollar payment system.

At the same time, the restricted nature of the account underscores regulators’ caution. Crypto firms may gain access to parts of the financial system’s core infrastructure, but not necessarily the full privileges that traditional banks enjoy.

For now, Kraken’s master account represents something closer to a controlled experiment than a wholesale shift in policy. But if the model holds, it could become a blueprint for how digital-asset companies plug into the core infrastructure of the U.S. financial system.

$500M Facility with Expansion Option

According to Thursday announcement, the loan carries an interest rate of the Secured Overnight Financing Rate (SOFR) plus 2.5%. The company said the additional funds will boost liquidity and support the development of new data centers, including costs tied to equipment, land acquisition, and energy procurement.

This deal comes when Core Scientific is expanding from Bitcoin mining toward AI-focused data centers and high-density colocation. It also gives the company short-term firepower to execute that plan after only recently stabilizing its balance sheet.

Core Scientific is converting existing facilities to handle artificial intelligence workloads. CEO Adam Sullivan said the financing “enhances our financial flexibility” and helps the firm move faster on project deployments.

Core Scientific Lands $500M Loan at ~7.8% as AI Data Center Financing Boom Continues $CORZ https://t.co/Gjg8RUxyRd

— TheEnergyMag (@TheEnergyMag) March 5, 2026

Additionally, the deal sits within a broader shift across the Bitcoin mining sector, where peers increasingly convert Bitcoin into cash to fund diversification into AI infrastructure and reduce balance sheet risk.

Miners Offload Bitcoin Treasuries to Back AI

One prominent example is Bitdeer which recently emptied its entire treasury to build liquidity for AI and high-performance computing projects.

In its update, the Nasdaq-listed miner reported zero Bitcoin holdings as of February 20, saying it had sold all 189.8 BTC mined that week alongside reserve coins. The move freed up roughly $12 million at current prices and pushed net BTC added for the period to minus 943.1 BTC.

Elsewhere, largest Nasdaq-listed public Bitcoin miner by BTC held MARA Holdings, updated its 2026 treasury policy to allow sales of accumulated reserves after a period of heightened volatility.

The report explained that MARA aims to use selective Bitcoin sales to manage risk and potentially fund expansion into areas such as AI and high-performance computing, aligning it with peers that increasingly prioritize cash flow and infrastructure growth over holding large BTC treasuries.

Core Scientific operates data center facilities across multiple U.S. states, including Texas, Georgia, and North Carolina.

The regulator has previously taken enforcement action against firms operating without authorization. In 2025, VARA fined 19 companies and issued cease-and-desist orders after finding they had offered crypto services outside the emirate’s regulatory framework. Financial penalties ranged from AED 100,000 to AED 600,000, and the companies were instructed to stop their unlicensed activities.

VARA Flags KuCoin Over Unlicensed Activities

The latest alert was published by the Virtual Assets Regulatory Authority. The authority said it had identified potential unlicensed activities linked to the exchange’s global platform.

According to the regulator, the company “may be providing Virtual Asset activities to Dubai residents without the necessary regulatory approvals.” VARA also alleged that the firm misrepresented its licensing status in the jurisdiction.

The warning names several entities connected to theexchange. These include Phoenixfin Pte Ltd, MEK Global Limited, Peken Global Limited, and KuCoin Exchange EU GmbH. VARA said the companies are associated with the platform operating through the domain kucoin.com and advertising services under the KuCoin brand.

"KuCoin operates through different entities serving users in different jurisdictions, and regulators may reference different entities in public notices, but each entity operates within its respective scope," KuCoin noted in its official statement. "KuCoin Exchange EU GmbH, for example, operates as a MiCAR-regulated entity focused on the EU market. It serves EU users and does not accept users residing outside the EU or conduct active marketing outside the EU."

"Regulatory frameworks for digital assets are developing rapidly across many jurisdictions, and regulators are increasingly clarifying their expectations for the industry. KuCoin respects applicable laws and regulatory processes globally and maintains a cooperative approach with regulators while supporting the development of a responsible digital asset ecosystem."

Dubai Warns Investors on Unlicensed Firms

The authority said the exchange does not hold a licence to provide virtual asset services in or from Dubai. Any such activities would therefore breach VARA regulations.

As part of its action, the regulator instructed the company to “cease and desist all unlicensed VA activities.”

VARA also warned investors about the risks of dealing with firms that are not regulated in the emirate. According to the authority, engaging with companies that are not compliant with its rules “exposes users to significant financial risks.” It added that such interactions could also lead to legal consequences if local regulatory requirements or criminal laws are violated.

Dubai Regulator Blocks KuCoin Promotions

The regulator stated that KuCoin “does not meet these legal requirements and is not authorised to provide any Virtual Asset services in/from Dubai.” It also said that any promotion or advertising related to the exchange has not been approved. As a result, the platform is not permitted to offer, promote, or market virtual asset products or services in Dubai or to its residents.

VARA urged investors and consumers in Dubai to avoid engaging with KuCoin for virtual asset services. It also advised the public to exercise caution when interacting with unregulated entities.

Tradeweb Expands into Crypto Markets

The partnership will allow Tradeweb to integrate Crossover’s institutional spot crypto liquidity into its trading platform using its order-routing technology.

Tradeweb has been expanding its electronic trading capabilities for years, mainly in bonds, derivatives, and ETFs, and more recently has tested some blockchain-based workflows in traditional markets.

Today @crossover_mkts announced the successful completion of its $31 million Series B financing round, led by Tradeweb. In addition to the investment, Tradeweb has entered into a strategic partnership with @crossover_mkts to provide institutional spot crypto liquidity to global… pic.twitter.com/PzFwRVETJv

— Tradeweb (@Tradeweb) March 4, 2026

Another institutional trading giant that has recently pushed deeper into crypto is TP ICAP, which is shifting its Fusion Digital Assets venue to a matched principal model that puts the broker between both sides of each trade, allowing institutions to trade first and settle later while applying the same balance sheet, credit and market-structure playbook it already uses across its FX, rates and credit businesses.

Continue reading: The Broker That Processes $200 Trillion Wants to Do the Same for Bitcoin

Additionally, JPMorgan is moving quickly into institutional crypto. Last year, it ramped up its dedicated crypto trading and blockchain-based payment offerings for large clients. It positioned these services as regulated, bank-grade ways to trade digital assets and move value on-chain while helping to cement cryptocurrencies as a mainstream asset class for institutions.

Tradeweb CEO Billy Hult welcomed the move as a way to extend the firm’s electronic execution standards into crypto markets, noting that institutional investors are eying crypto to manage risk in a 24/7 global market.

“This collaboration marks Tradeweb’s entry into institutional crypto, a natural next step in our multi-asset strategy,” commented Billy Hult, CEO of Tradeweb. “Institutional investors are increasingly turning to crypto to express macro views and manage risk in a 24/7 global market. As adoption grows, the market needs trusted, institutional-grade infrastructure.”

Institutional Backing Highlights Market Shift

Besides Tradeweb, other investors in the round include DRW Venture Capital, Ripple, Virtu Financial, Wintermute Ventures, XTX Markets, and Illuminate Financial. Their participation highlights growing traditional finance involvement in advancing institutional-grade crypto infrastructure.

Related: Crossover Markets Expands to Singapore After U.S. Launch, Hires Cboe FX Executive

Crossover’s model, focused on execution without custody or brokerage services, aims to provide neutrality and efficiency for institutions as digital and traditional markets continue to converge.

Crossover’s platform, CROSSx, serves as an execution-only electronic communication network for digital assets, focused solely on trade execution. It reportedly supports almost 100 institutional participants, facilitating over $50 billion in matched trading volume across 12 million trades.

Crypto perpetual futures, or “perps,” allow traders to hold leveraged positions indefinitely, without the inconvenience of an expiry date. They were popularised by crypto derivatives exchange BitMEX during the 2017-18 boom and have gained significant momentum recently.

According to crypto data aggregator CoinGecko, the top ten crypto perp exchanges processed a whopping US$92.9 trillion in trading volume in 2025, a 64.6% increase on the previous year.

More importantly, this surge came amid a bruising fourth-quarter market decline for crypto, as bitcoin and its counterparts bled value.

For years, however, American traders have largely watched from the sidelines. While global platforms such as Binance and Bybit facilitated trillions in offshore perp trading, US participants were mostly confined to spot markets or traditional futures.

Selig cast the CFTC’s forthcoming framework as an effort to repatriate that liquidity.

“We need to have that liquidity here in the US and we need the right investor protections to ensure that these firms don’t blow up and affect our shores,” he said.

He added that “the prior administration drove a lot of these firms and the liquidity offshore,” a jab at Washington’s recent regulatory past, the sort of partisan point-scoring that has become routine in the US' politics.

The move forms part of a broader, coordinated push to position the US as the de facto global hub for crypto finance.

Selig has been working closely with Paul Atkins, Chairman of the US Securities and Exchange Commission, on “Project Crypto”, a joint initiative aimed at aligning federal oversight of digital assets.

Among its objectives is the thorny matter of crypto-asset taxonomy.

However, as the US is poised to liberalise, the EU is tightening the screws.

ESMA Says Crypto Perps May Be CFDs

In recent months, exchanges including Kraken, One Trading and Backpack have begun offering crypto perps to European traders. Coinbase has a dedicated webpage live, though without a formal launch announcement.

Others, such as Bitstamp, Gemini and Bybit, are said to be preparing similar moves.

Yet Europe’s markets watchdog may yet frustrate those ambitions. In a public statement released in February, the European Securities and Markets Authority (ESMA) warned that derivatives marketed as perpetual futures or contracts providing leveraged exposure to cryptoassets such as bitcoin or ether could fall within the definition of CFDs.

Should that interpretation prevail, such products would face the full panoply of retail protections.

Crucially, retail leverage would be limited to 2x under current CFD rules, a far cry from the 10x routinely advertised by European prep providers.

If so, much of the product’s speculative allure would evaporate.

Combined with the CFTC’s imminent framework, Europe’s crypto perpetuals market may find its wings clipped before it has properly left the runway.

The approval comes as Kraken has filed a confidential draft registration with the U.S. Securities and Exchange Commission for a proposed initial public offering. The filing follows an $800 million funding round that valued the company at $20 billion, including a $200 million investment from Citadel Securities and contributions from Jane Street and DRW Venture Capital.

Kraken Rolls Out Fed-Connected Banking Platform

Kraken Financial’s Fed account follows more than five years of regulatory engagement with U.S. and Wyoming authorities. It enables the bank to connect directly to Fedwire without relying on intermediary banks. This is expected to streamline fiat transfers for institutional clients and reduce operational complexity.

Arjun Sethi, co-CEO of Payward and Kraken, said the account allows the bank to “settle directly on Fedwire, reduce dependency on correspondent banks, and integrate regulated fiat liquidity directly into digital asset markets.”

He added that it positions Kraken Financial as a directly connected participant in the U.S. banking system, rather than a peripheral one, supporting more efficient operations for institutional clients.

Kraken Financial plans a phased rollout, initially focusing on institutional client activity at Kraken. The capabilities will be gradually integrated into Payward’s broader platform in coordination with regulators.

Bank Maintains Compliance While Scaling Operations

As a Wyoming Special Purpose Depository Institution, Kraken Financial operates on a full-reserve basis. The bank maintains liquid assets equal to or exceeding 100% of client fiat deposits.

JUST IN: Bitcoin exchange Kraken becomes first crypto bank to receive a Federal Reserve master account ????This makes Kraken the first digital asset bank in U.S. history to gain direct access to the Federal Reserve’s payment infrastructure ???? pic.twitter.com/ip579ywQzA

— Bitcoin Magazine (@BitcoinMagazine) March 4, 2026

It will continue to work with the Federal Reserve and Wyoming regulators as it expands its payment capabilities.

Payward, Inc., which powers Kraken, operates a unified infrastructure platform supporting multiple products across asset classes. Its system combines a global liquidity pool, a unified risk and margin engine, a central collateral and settlement system, and a compliance and licensing framework.

The structure is designed to allow the company to scale while maintaining regulatory and operational standards.

TRM Lab's analysis shows that Iran’s largest exchange, Nobitex, recorded around $3 million more in combined inflows and outflows around the strikes. However, these movements remain within its historic operating range and likely reflect internal treasury shifts rather than capital flight.

Despite the escalating conflict in the region, crypto traders are increasingly treating Bitcoin as a financial lifeline in Iran. They are reportedly using it to hedge against domestic uncertainty and potential restrictions on the banking system.

Amid the escalating conflict in Iran, many citizens are turning to Bitcoin as a financial lifeline. Reports and on-chain data shows increased buying activity followed by large withdrawals from local exchanges into self-custody wallets.BITCOIN IS FREEDOM FOR ???????? https://t.co/9JKx1aMv6o pic.twitter.com/BysoXM1Bgt

— Satoxis (@satoxis) March 3, 2026

Blackouts Choke Liquidity

Iran’s crypto slowdown begins with the internet switch.Connectivity reportedly fell by about 99% as the regime imposed severe restrictions, a playbook it used during the 2025 Iran-Israel conflict and earlier mass protests.

Local exchanges also share key infrastructure, which magnified the shock. Wallex attributed a temporary outage to a power problem at the Asiatech data center, a facility Nobitex also uses in its hosting stack. That single point of failure underscores how physical dependencies can ripple across supposedly decentralized markets.

You may also like: Gold Price Tests $5,400, Oil Jumps 13% as Strait of Hormuz Shuts: Iran War Rocks Markets

Trading volumes between February 27 and March 1 fell by roughly 80%, matching both a retreat in risk appetite and simple inability to reach platforms in real time.

Nobitex Flows: Noise, Not a Bank Run

Against this backdrop, Nobitex’s wallets drew attention. TRM identified an extra $3 million in activity on February 28 versus the prior day, driven in part by an internal transfer on Polygon from a hot wallet to cold storage.

Analysts also flagged a separate cold storage movement of more than USD 35 million from a Nobitex hot wallet, but classified it as routine infrastructure liquidity management, not a sign of large-scale withdrawals.

Nobitex has reportedly processed around USD 5 billion in volume since the start of 2025, making it the central hub of Iran’s crypto market. In that light, the observed transfers sit within normal operational ranges, even if they occurred during a period of heightened geopolitical tension.

The exchange kept deposits and withdrawals open “to the extent possible” but warned clients to expect delays and shallower markets. Ramzinex paused crypto deposits and withdrawals while stressing that client assets sat in cold wallets, and Tabdeal switched to twice-daily batch withdrawals with warnings of delays of up to 24 hours. Last year, Nobitex was hit by a major hack that drained about $82 million from its wallets.

Meanwhile, Wallex suspended crypto withdrawals indefinitely as it cited infrastructure instability, while Aban Tether halted both crypto and rial withdrawals to contain outflows.

Central Bank Pulls the USDT Brake

The most consequential intervention came from Iran’s Central Bank. Under its direction, several exchanges, including Nobitex, Wallex, Bitpin and Tabdeal, temporarily suspended trading in the USDT–toman pair, the primary bridge between dollar-linked stablecoins and the rial.

USDT’s dollar peg and central role in local pricing likely motivated the move. By halting this pair, authorities slowed rapid repricing of the rial and limited the speed at which savers could rotate into dollar exposure via stablecoins.

TRM estimates that Iran-linked wallets have processed around USD 11 billion in crypto since the beginning of 2025, placing the country among the larger national markets by on-chain volume.

Nasdaq’s filing follows Cboe’s similar plans to offer prediction‑style derivatives. Both exchanges are responding to investor demand for simplified ways to speculate on short‑term market movements. The move would allow traders to make yes‑or‑no bets on the index’s direction, expanding event‑style trading into U.S. equity markets.

Demand Grows for Event-Based Trading

Under the proposal, each contract would be priced between one cent and one dollar and pay a fixed amount if the condition is met, expiring worthless otherwise.

The structure resembles prediction‑market contracts used on crypto platforms such as Polymarket and Kalshi, where prices reflect the perceived odds of an event. While prediction‑market platforms are regulated by the Commodity Futures Trading Commission, Nasdaq’s binary options would be subject to SEC oversight.

Read more: CFTC Flags Insider Risks in Prediction Markets as Kalshi Sanctions Two Traders

Crypto companies are also advancing into the space. Coinbase has launched prediction markets for political and economic events, and Gemini received CFTC approval in December to operate as a designated contract market for event‑based trading.

Joining Cboe, Coinbase, and Gemini

Cboe Global Markets is also moving into this space with its own version of all‑or‑nothing, yes‑or‑no style contracts that closely resemble prediction‑market bets on events. The exchange is exploring a regulated options product that offers fixed, all‑or‑none payouts, positioning it to compete with fast‑growing prediction platforms.

LATEST: ⚡ Cboe is developing binary options with all-or-none payouts on yes-or-no event contracts to compete with prediction platforms like Polymarket and Kalshi, according to the Wall Street Journal. pic.twitter.com/NKJPqpAVM6

— CoinMarketCap (@CoinMarketCap) February 2, 2026

Bloomberg has similarly reported that Cboe plans to roll out options that enable binary wagers on event outcomes as part of a broader push into prediction markets, using SEC‑regulated listed contracts rather than the lightly supervised or offshore structures common in crypto‑based platforms.

The volumes in the prediction markets seems to be attracting the big players. Finance Magnates reported at the start of the year that, prediction markets hit a new record with $701.7 million traded in a single day.

Kalshi led the surge, generating $465.9 million in activity, about two-thirds of the total, while Polymarket and Opinion together contributed around $100 million. The milestone surpassed the previous day’s record of $666.6 million, with Kalshi keeping a dominant market share.

The strong start to 2026 builds on Kalshi’s explosive growth last year, when the exchange processed $23.8 billion in total transactions, an increase of more than 1,100% from 2024.

How Polymarket Handled the Iran Shock

Polymarket alone saw $500 million traded on US military action contracts. When strikes were confirmed, blockchain analysts immediately reviewed betting patterns for unusual activity.

Bubblemaps identified six new accounts that made about $1 million by betting on a US strike on Iran by Feb. 28. Some shares were bought hours before explosions in Tehran. These accounts had no trading history outside strike-related markets.

Such patterns can arouse suspicion in crypto markets, though they do not prove insider trading. Military action was discussed for weeks, and alternative dates like Feb. 27 saw high volume.

One highlighted account had lost smaller bets on earlier strike scenarios. Still, the episode reopened debate over whether decentralized prediction markets can distinguish between conviction and privileged knowledge.

“In cases involving war or conflict, information can circulate within a wider circle before becoming public,” said Nicolas Vaiman, CEO of Bubblemaps. “When trading requires only a wallet, anonymity lowers the barrier for informed participants to act early.”

As geopolitical contracts surged in volume, some traders shifted their focus from directional bets to liquidity incentives. On social media, users discussed providing liquidity on Iran-related markets to earn platform rewards rather than speculate on outcomes.

It's a good time to start providing some liquidity on @Polymarket. The various Iran markets all have high rewards allocated to them, making it easy to earn some money.LPing could be an overlooked criteria for the POLY airdrop. Definitely way easier to compete here with lower… pic.twitter.com/n1baPxMUyK

— pika2zero (@ruggedpikachu) March 2, 2026

How Kalshi Applied Its Rulebook

The same geopolitical shock produced a very different response at Kalshi, the CFTC-regulated US platform. Kalshi had listed contracts tied to whether Iran’s Supreme Leader Ali Khamenei would be “out” by a certain date.

When news of his death was confirmed, some traders expected immediate payouts. Instead, the exchange halted trading and later resolved contracts based on the last traded price before the event. Kalshi said the settlement followed its published rules.

In a public statement, CEO Tarek Mansour said the “death carveout”, which prevents markets from settling to “yes” in the event of death, had been part of the contract terms from the outset and disclosed both in CFTC filings and on the market page.

He acknowledged frustration from some traders but said altering settlement after the fact would undermine confidence in the platform. “Traders expect us to settle the market based on the rules,” Mansour wrote, adding that changing outcomes retroactively would break trust.

As an exchange, we resolve the market according to the rules, even when there is disagreement with the resolution. I understand many of you are frustrated about the Khamenei market, and I want to clear up a few things along with steps we have taken to improve:The market rules… pic.twitter.com/4zs23E8QnM

— Tarek Mansour (@mansourtarek_) March 2, 2026

Kalshi said it reimbursed all trading fees and covered net losses so that no trader ended the market net-negative. The company added that it does not profit from settlement outcomes and that the reimbursements resulted in a loss for the firm.

US commodity law prohibits contracts that enable direct profit from death or assassination. Kalshi said its rules were designed to comply with those limits and that it would improve how such carveouts are displayed in future markets.

Reactions online were divided. Some traders criticized the outcome, while others argued that the rules had been publicly available and consistently applied.

seeing people with an agenda pushing a fabricated narrative against Kalshi on the Khamenei market past 24h, to make it clear:- Kalshi lost over 7 figures on this market to make everyone whole- Kalshi has never offered death markets, as they are completely illegal, and this… pic.twitter.com/4yK2f6C72u

— ultra (@0x_ultra) March 2, 2026

How Regulation Shapes the Industry

The contrast between Polymarket and Kalshi illustrates how regulatory and operational models determine market response under stress.

Polymarket is a crypto-native information market that handles contract design and resolution through decentralized mechanisms and token governance. Its markets include contracts on regime change and sensitive events.

Kalshi, by contrast, operates under US futures law and must comply with CFTC oversight, limiting the contracts it can list and shaping how it resolves disputes.

Both models carry trade-offs. Offshore platforms can list a wider range of contracts, providing increased flexibility, but they face scrutiny for possible misuse of sensitive information.

Regulated platforms, in contrast, operate within clear legal limits but must usually prioritize compliance, sometimes at the expense of trader expectations. Iran-related markets drew Washington’s attention.

Several US senators have urged regulators to review contracts that create financial incentives for violence or instability. For brokers and institutions watching the sector, the weekend highlighted a central tension.

Trading Continues

As of Monday morning, Polymarket continued to list dozens of Iran-related contracts, including markets tied to regional military escalation and potential political outcomes. Most showed limited volume, though several had attracted tens of millions of dollars in aggregate trading.

Prediction markets aggregate information quickly during fast events, but contracts on war, regime change, or death intensify legal limits and scrutiny. As more financial firms explore event-based contracts, the tension between broad market design and regulatory limits grows more pronounced.

Institutional crypto spot over-the-counter (OTC) trading rose 109% year-over-year in 2025, according to a report by Finery Markets. Over the same period, the report estimates that spot volumes on the top 20 centralized exchanges (CEXs) grew by around 9%.

Independent data broadly supports slower growth in CEX spot markets, though figures vary. CoinGecko’s 2025 annual data shows that top-10 CEX spot volume increased 7.6% year-over-year to $18.7 trillion. However, derivatives activity on CEXs expanded more significantly, with perpetual futures volume rising 47.4% to $86.2 trillion.

Binance has also reported double-digit growth in institutional and VIP trading activity, suggesting that institutional flow on large exchanges remains substantial, particularly in derivatives.

The contrast indicates that while spot order book growth has been limited, institutional activity has not necessarily exited centralized venues altogether. Instead, market structure appears to be evolving across multiple channels, including OTC, derivatives, and hybrid execution models.

Spot vs. Derivatives and Liquidity Concentration

The Finery report focuses specifically on spot OTC activity. Other market participants, including Wintermute, have noted that OTC liquidity in 2025 was concentrated in large-cap assets such as Bitcoin and Ethereum, alongside increased use of options for risk management.

Broader data from The Block and other analytics providers indicates that institutional participation has remained focused on blue-chip assets, with shorter altcoin cycles and limited depth outside the top tokens.

This suggests that OTC growth may reflect concentration in large-cap block trading rather than a broad-based expansion across the full asset universe.

Hybrid Market Structure

Growth in OTC activity is occurring alongside expansion in other segments. CoinGecko reports that decentralized exchange (DEX) perpetual volume rose 346% year-over-year to $6.7 trillion, increasing the DEX-to-CEX perpetual ratio to 7.8%.

This indicates that some institutional participants are incorporating on-chain venues into execution strategies rather than shifting exclusively to OTC networks. Overall, available data suggests that crypto market structure in 2025 is becoming more diversified.

Spot OTC activity has expanded rapidly within certain institutional channels, while CEX derivatives, DEX venues, and hybrid models continue to attract significant volume. The trend points to fragmentation and specialization in execution rather than a single-direction migration away from centralized exchanges.

The FCA consultation, which marks the final stage of its sector proposals, sets requirements covering governance, operational resilience, financial crime controls, and Consumer Duty obligations. These rules will apply to any firm offering regulated crypto services, including those in the gambling sector.

Firms seeking to carry out regulated cryptoasset activities will need full authorisation under the Financial Services and Markets Act. Existing FSMA-authorised firms must vary their permissions, while those only registered under anti-money laundering or payment regulations must apply for full authorisation.

Applications are expected to open in September, ahead of the regime’s planned October 2026 launch.

Gambling Commission Considers Crypto Payments UK

Tim Miller, executive director for research and policy at the Gambling Commission, said the regulator is examining “the potential path forward” for using “cryptoasset as a consumer payment option for licensed and regulated gambling in Great Britain.”

He made the remarks at the Betting and Gaming Council’s annual general meeting in London.

Under the planned regime, companies providing regulated crypto services will require FCA authorisation under the FSMA 2000.

Crypto “Could Reduce Illegal Gambling” Searches

Miller said the commission has asked the Industry Forum, a group representing gambling sector professionals, to identify possible approaches for accepting crypto payments. He did not specify a deadline for the work.

One of the few areas where crypto infrastructure has actually matured.Prediction and betting markets - including opinion trading platforms like Polymarket - surfaced early because they needed fast settlement, global access, and verifiable outcomes.The UK Gambling Commission… pic.twitter.com/96Ls3qHd5q

— Brian Rose, Founder & Host of London Real (@LondonRealTV) February 27, 2026

The regulator also cited potential consumer protection benefits. Miller said: “Our illegal markets research also gives us evidence that crypto is one of the two biggest searches that lead British gamblers to illegal sites.”

He added that enabling crypto payments would not automatically bring all operators under UK regulation, as some may not meet customer suitability requirements.

Speaking at the GFTN Forum in Tokyo, Teng said that although the Markets in Crypto-Assets (MiCA) framework offers a standardized license across the EU, Binance considered broader factors when selecting a base.

“The license is pretty standard throughout Europe, so we have to think through many other factors, whether it’s social, whether it’s talent pool, safety and security issues,” Teng said. “Greece is where we think will be a good base for us to expand in Europe.”

Binance applied in Greece last month. All crypto firms operating in the EU must secure a MiCA license by July 2026 to continue serving the market.

A Strategic Base Within the EU

Greece has yet to issue its first MiCA license, compared with 45 in Germany and 22 in the Netherlands, according to regulator data. That makes the choice notable, as other exchanges have opted for jurisdictions with established approval processes.

Some observers in the Baltic fintech community had expected Latvia or Lithuania to be shortlisted. While Baltic states are often viewed as agile licensing hubs, Greece’s economic resilience, larger, diversified talent pool, and increasing profile for international businesses may offer unique advantages for firms building substantial EU operations.

Under MiCA’s passporting regime, however, the location of the license may matter less over time. If supervision of major players becomes more centralized at the European level — a possibility already under discussion — oversight could extend beyond the country that grants the license.

Regulatory Context

Teng said the timing of approval will depend on EU authorities. Since taking over in November 2023, he has emphasized regulatory alignment following a period of legal challenges. These included a $4.3 billion U.S. settlement related to anti-money laundering violations under former CEO Changpeng Zhao.

Teng has said Binance does not serve residents of sanctioned countries. He added that the company has strengthened compliance controls, while acknowledging that suspicious blockchain transactions cannot be eliminated entirely.

Recent media reports also questioned historical crypto transfers involving Iranian and Russian actors. Teng called those reports misleading. He said the employees cited were dismissed for breaching internal data policies.

Positioning Ahead of MiCA

With the July 2026 deadline approaching, securing an EU license has become critical for exchanges seeking uninterrupted access to the bloc. The license grants passporting rights across all 27 member states.

Although approval is granted at the national level, larger exchanges may face closer coordination with European authorities, including ESMA, as supervisory frameworks evolve. For Binance, applying in Greece reflects a broader effort to secure a stable regulatory base within the EU as MiCA moves toward full implementation.

The sandbox follows the FCA’s broader work on crypto regulation. Last month, it opened a consultation on final rules for cryptoasset firms, with responses accepted until 12 March 2026.

FCA Begins Testing Stablecoin Issuance Program

The FCA received 20 applications and selected Monee Financial Technologies, ReStabilise, Revolut, and VVTX. Testing will focus on stablecoin issuance. The proposals cover different use cases, includingpayments, wholesale settlement, and crypto trading.

Matthew Long, director of payments and digital assets at the FCA, said the regulator is “supporting UK stablecoin issuers to ensure they can be trusted for payments, settlement and trading,” adding that the work will “benefit consumers and financial transactions” and contribute to the FCA’s strategy and the Government’s National Payments Vision.

Stablecoin Testing Part of Regulatory Review

Firms in the sandbox will receive feedback from FCA specialists. The findings will inform the UK’s stablecoin rules, expected to be finalised later in 2026. Testing is scheduled to begin in the first quarter of 2026.

The FCA described the sandbox as part of a broader effort to enable innovation in UK financial services. It complements initiatives such as the Digital Securities Sandbox.

Sandbox Firms Must Obtain Full Authorisation

All firms in the sandbox will need to be authorised under the new crypto regime once it launches in October 2027. The application gateway opens in September 2026.

The FCA has previously consulted on multiple aspects of crypto regulation, including stablecoin issuance, cryptoasset custody, prudential rules, conduct of business, and market abuse. The consultations are now largely complete, and policy statements are expected this summer.

This comes as the European Union considers banning crypto activity with Russia. The EU plans focus on cross-border limits, while Russia aims to regulate domestic crypto activity. The Central Bank and the Ministry of Finance drafted the proposal. Officials expect the new structure to be operational by July 2027.

At its core, the plan requires retail investors to access digital assets through licensed intermediaries. Brokers would oversee onboarding, investor checks, and compliance, while licensed crypto exchanges and digital custodians would operate within a structure modeled on the traditional securities market. All trading would take place inside this regulated environment and remain subject to existing anti-money laundering and reporting requirements.

A Broader Role for Brokers

If adopted, the framework expands brokers’ roles in digital assets. They would run trades, oversee investor tests, give risk disclosures, and classify clients. The proposal builds a domestic investment channel and cuts reliance on offshore platforms.

Some Russian-origin brands still work internationally. For example, the Alpari brand, now part of Exinity Group, has a platform offering “up or down” binary-style contracts. These contracts would not be covered by the domestic regime.

Russia would not allow direct retail access to global crypto platforms. Instead, trading must go through licensed intermediaries. Brokers become the main compliance and distribution layer for retail crypto.

Crypto cannot copy the neobank model and expect durable margins. Interchange caps and razor-thin foreign exchange economics already squeezed neobanks into constant product expansion — and stablecoins compress spreads even further. Market pricing will reward wallets that treat payments as distribution and concentrate monetization in onchain finance, including trading, tokenized assets and structured yield.

Neobanks Hit a Ceiling Where Interchange Gets Capped

Neobanks built their growth stories by pairing sleek apps with card spend, and they relied on interchange and FX as recurring revenue. Europe’s regulatory caps made that ceiling explicit, limiting consumer debit fees to 0.2% and credit to 0.3%.

As scale increased, revenue still leaned heavily on card payments while profitability depended on building higher-margin lines, such as wealth products, subscriptions and lending. Revolut’s trajectory proves the point: card payments remained a major revenue driver even as wealth and interest income surged.

That pattern holds the lesson for crypto. Payments create daily relevance, and card rails offer reach, yet capped interchange rarely sustains an entire consumer finance stack on its own.

Stablecoins Tighten Margins Further by Compressing FX

Crypto “neobanks” face the same cap table with a sharper edge. Stablecoins turn cross-border value transfer into a commodity service, and the spread that once sat inside retail FX often disappears once a user holds a dollar-pegged asset. Institutions like the IMF increasingly frame stablecoins as a route to faster and cheaper payments, especially across borders.

Fintechs also move in that direction. Major buy-now-pay-later players have launched stablecoins to cut cross-border payment costs, a move that shows how quickly the economic centre of gravity shifts once stablecoin settlement becomes standard inside payment operations.

For wallet operators, this changes the unit economics. Stablecoin-led settlement pulls FX revenue toward zero and pushes competition into user experience, routing efficiency and risk controls. This dynamic compresses fees across the board.

Card Networks Keep Costs High While Margins Shrink

Card issuance delivers broad merchant acceptance, and consumers want familiar tap-to-pay experiences. Card coverage and local payment integration expand access for users who lack reliable banking, and stablecoin spending can plug into systems such as Brazil’s Pix while also using global card networks.

Those rails also carry fixed costs and compliance burdens. Network rules, chargebacks, fraud monitoring, program management and jurisdiction-by-jurisdiction licensing push operating costs upward even as interchange and FX compress downward. Artemis data shows the industry is already adapting: Visa now captures over 90% of on-chain card volume by partnering with full-stack issuers like Rain or Reap. By bypassing traditional sponsor banks, these players prove that surviving thin margins requires owning the entire stack, effectively replacing the "rented" neobank model with direct network integration.

The result resembles the neobank squeeze, with a harsher spread profile once stablecoins become the default “currency” inside the wallet.

The industry should stop treating card spend as a profit engine and start treating it as a distribution channel. It also asks wallet operators to accept thinner payment fees and build their business around higher-margin on-chain finance, leveraging DeFi protocols and investment products that banks rarely distribute directly at consumer scale.

Payments Work Best as a Gateway to Higher-Value Onchain Finance

The sustainable model positions transactions as the front door and earns revenue when users choose higher-value activities. Recent data validates this hierarchy, showing that payments and earning use cases are rising alongside trading. Bitget Wallet’s card spending volume grew more than 28-fold year on year, and stablecoin-focused earnings accelerated even as market activity cooled late in the year.

JUST IN: ???????? Senator Bill Hagerty says crypto stablecoin legislation "is going to propel America's payment system into the 21st century." pic.twitter.com/t3p2HhiRIv

— Watcher.Guru (@WatcherGuru) June 4, 2025

High-inflation environments provide the blueprint for this utility-first adoption. Users hold stablecoins to preserve purchasing power and then seek predictable returns through on-chain earning products. Due to the nature of how most of these products are marketed (headline yields, instant access to capital), transparency regarding the risks involved and the redemption terms of each product is critical.

Inevitably, the profits generated by scaling wallet payments will shift toward higher-margin on-chain financial products, including derivatives, RWAs and increasingly complex earning vaults, where platforms that package these services cleanly will take share.

Tokenised assets add a second layer of defensibility. Once users treat the wallet as a place to manage cash-like stablecoins and investable products in one interface, switching costs rise for reasons that resemble brokerage behaviour rather than card behaviour. Yield products also create stickier balances and reduce reliance on constant new user acquisition to maintain growth.

The Market Will Reward the Builders Who Accept Thin Payment Margins

Crypto wallets that copy the neobank revenue stack will face the same margin ceiling, with less room to manoeuvre once stablecoins erase spreads. The era of subsiding growth with interchange and FX spreads is over. The winners of the next cycle will use global payment networks to build daily usage and trust, while monetisation concentrates on higher-value on-chain activity.

Wallets get stuck when they try to recreate a full neobank. They do better when banking features feed into on-chain products that actually carry margin. This is why the breakout belongs to wallets that become an everyday on-chain finance platform, where payments bring users in, and markets keep them engaged. If the industry treats payments as the habit layer, the ceiling on crypto fintech rises sharply.

Sources cited by Coindesk said Meta issued requests for product proposals to external firms to help manage stablecoin-based payments. One named Stripe, which acquired the stablecoin infrastructure firm Bridge last year, as a possible partner. Stripe CEO Patrick Collison joined Meta’s board last year, signaling tighter cooperation between the two companies.

SCOOP: Mark Zuckerberg’s Meta is planning a stablecoin comeback in H2, eyeing a third-party vendor as a key partner to power payments across Facebook, Instagram and WhatsApp.@IanAllison123 reportshttps://t.co/NGgZHy9MC0

— CoinDesk (@CoinDesk) February 24, 2026

Meta Sends Out RFPs for Stablecoin Integration

Commenting on the move, fintech analyst Simon Taylor said Meta’s latest move is about distribution, not reinvention. He added that stablecoins could become the “settlement layer” for Meta’s AI-driven commerce as digital agents begin to transact globally.

“I can imagine stablecoins will improve cross border flows in long-tail markets where Meta already operates, as it does for Deel and Payoneer today, but think about AI. Meta is earmarking $115-135B in 2026 capex, mostly for AI. They're building agents that shop and transact autonomously, "agentic commerce.”

Meta aims to begin integration in the second half of 2026, supported by a new wallet feature. Unlike the failed Libra project, Meta’s new plan relies on third-party payment infrastructure rather than building its own currency. “They want to do this, but at arm’s length,” one source said.

Regulation and Timing

The renewed push follows the passage of the U.S. GENIUS Act in 2025, which established rules for stablecoin issuers. The company is reportedly racing to launch before provisions limiting big tech stablecoin activity take effect later this year.

Related: Meta Soars 12%, Microsoft Tops $4 Trillion as AI Spending Powers Profits

Meta returning to stablecoins in a second act shaped by its Libra defeat, a new U.S. law that forces big technology companies into partnership models, and a broader race among global platforms (Meta, X, Telegram) to control the stablecoin payments rails rather than the coins themselves.

Policymakers in the United States and Europe were alarmed at the idea of a social media company effectively launching a private global currency, raising concerns over monetary sovereignty, financial stability, and Meta’s track record on data and privacy.

Meta’s new strategy fits squarely into this more cautious, infrastructure‑first environment. Rather than issuing its own coin, it is reportedly sending requests for product proposals to external firms, with Stripe emerging as a likely partner for underlying stablecoin payments.

Tokenized Access to Equities

The perpetual futures track tokenized versions of major benchmarks and companies, including the S&P 500 (SPYx), Nasdaq 100 (QQQx), gold (GLDx), Apple (AAPLx), Alphabet (GOOGLx), Nvidia (NVDAx), Tesla (TSLAx), Robinhood (HOODx), and others.

Crypto derivatives venues such as Binance and BitMEX already list equity‑style perpetual futures tied to names like Tesla and major U.S. indices, also giving traders 24/7, leveraged exposure to stock prices using crypto margin.

xStocks Perps just expanded.$TSLAx, $AAPLx, $NVDAx and more now trade 24/7 on Kraken.Long or short, anytime.Click to trade @xStocksFi ⤵️

— Kraken (@krakenfx) February 24, 2026

Notably, Kraken’s latest offering is the combination of 1:1‑backed tokenized equities (xStocks), regulated benchmarks, and a more tightly regulated structure around the underlying tokenized shares, rather than simply mirroring stock prices via cash‑settled crypto derivatives.

Read more: Kraken-Backed xStocks Debut on Deutsche Börse’s 360X

​“This is what it looks like when traditional markets are rebuilt for a crypto-native, always-on world, not a moment too soon given thevolatility that all markets are exhibiting,” commented Kraken Global Head of Consumer Mark Greenberg.

According to the exchange, each xStock is fully collateralized and backed 1:1 by the underlying asset, allowing them to trade on-chain 24/7, even when traditional exchanges are closed.

The tokenized equity perpetuals allow traders to open or close positions at any time, with leverage of up to 20x. The instruments operate with regulated benchmarks and support a range of trading strategies, including directional, event-driven, and hedging positions.

Expansion Plans

Kraken aims to broaden its xStocks offering in the coming months to include more tokenized equities and ETFs, as well as expand access in additional markets.

xStocks recently reported that it had surpassed $25 billionin cumulative transaction volume, highlighting the accelerating adoption of tokenized equities across both centralized and decentralized platforms.

$25,000,000,000 in total transaction volume.In under 7 months since launch.@xStocksFi is making history.As part of @payward’s group, xStocks is cementing its position as the largest provider and leading framework for tokenized equities globally. pic.twitter.com/XTPyXOMpBU

— Kraken (@krakenfx) February 19, 2026

The exchange said the total captures trading on centralized exchanges, activity on DeFi protocols, and mint and redemption flows for its tokenized products, all achieved in under eight months.

Onchain activity alone contributes more than $3.5 billion of the volume, supported by over 80,000 unique onchain holders participating in the xStocks ecosystem. As of February 17, xStocks accounts for eight of the eleven largest tokenized equities by unique holders and 68% of the top 25 tokenized stocks by holder count.

“This marks a significant step forward, reinforcing our commitment to regulatory compliance while supporting the expansion of the Gate Group brand across global financial markets,” the rebranded entity’s Executive Director and CEO, Wasim Zayed, said on LinkedIn.

Derivatives Have Been a Growth Engine for Gate

The timing is hardly accidental. By mid-2025, Gate’s global user base had surpassed 30 million and closed the year with nearly 50 million, with derivatives trading emerging as a key growth driver.

The platform’s futures market share had climbed into double-digit territory, reaching 10.6%, making it one of the fastest-growing venues in global crypto derivatives.

The broader group has also been busy reshaping its corporate structure. Gate Technology Ltd rebranded to Gate.io in 2024 as part of a push to strengthen its European presence, where the firm has been active since 2022.

Multi-Asset Expansion Is the Name of the Game

Multi-asset expansion has become the playbook in the CFD world; it is little surprise that crypto exchanges are now following a similar path.

The pairing of a MiCA licence with MiFID permissions is fast becoming standard practice among large platforms seeking to deepen their European footprint.

MiCA provides the regulatory scaffolding for spot trading and custody, while MiFID opens the door to derivatives and brokerage-style services.

[#highlighted-links#]

Crypto.com, Backpack Exchange and Coinbase have all secured MiFID footholds in Cyprus, while others, like Gemini, have sought MiFID pipelines elsewhere.

Kraken, for its part, has recently embarked on a Cyprus hiring blitz, advertising roughly 50 island-linked roles in the past fortnight following its 2025 acquisition of CFD broker Greenfields Wealth.

Vacancies such as the Regulatory MiFID Officer appear consistent with building out its MiFID-licensed business, even as many of the engineering roles likely support Kraken’s broader platform.

The convergence is also running in reverse. As crypto-native firms push deeper into derivatives, traditional CFD brokers are moving further into spot crypto.

eToro was an early – if then unusual – mover back in 2013. More recently, IG Group and Pepperstone have entered the spot crypto market, while Capital.com and XTB are preparing to follow.

CMC Markets has likewise signalled ambitions that extend into decentralised finance.

According to Pepperstone’s Group CEO Tamas Szabo, part of the rationale is straightforward: “Internal and external research has shown that CFD traders are heavy crypto investors."

Breaking the State Barrier to Streamline Services

Upon receiving full approval, the crypto exchange will be able to offer services, including custody, staking of assets across various blockchains and digital asset protocols, and trade settlement, directly under federal supervision.

Notably, the OCC does not charter “exchanges” as such; it charters banks (including trust banks) that may sit within a broader crypto group that also runs an exchange or trading venue.

“This milestone brings us a major step closer to meeting leading institutions’ needs for a one-stop-shop qualified custodian under a gold standard of federal oversight,” said Kris Marszalek, Co-Founder and CEO of Crypto.com.

The company now needs to satisfy capital, governance, compliance and risk management conditions before receiving final OCC authorisation.

The crypto exchange further stressed that, despite receiving conditional OCC approval, it will continue to offer custody services under its New Hampshire-regulated entity.

[#highlighted-links#]

Is the Federal Banking Charter the Next Step for Crypto Giants?

Meanwhile, several other crypto companies have followed the same path to come under federal supervision in the US. Circle, Ripple, Paxos and a few others have also received conditional approval for a national bank charter. Crypto.com, however, is the only major retail-focused platform on the list, although it also has a significant presence in the institutional market.

All these crypto platforms, including Crypto.com, appear to be simplifying crypto custody across different state regulations by obtaining a national bank charter.

Meanwhile, Crypto.com is also entering other growing markets. It recently launched a standalone prediction markets platform. The app went live after six months of rapid expansion in Crypto.com’s prediction markets business, which grew 40 times week on week during that period.

The move marks a clear break from the traditional miner strategy of stockpiling coins on the balance sheet and signals a focus on growth in data centers and hash rate instead.

Bitdeer #BTC Weekly Update???? BTC Holdings: 0 (pure holdings, excluding customer deposits)???? BTC Output: 189.8 BTC???? BTC Sold: 189.8 BTC???? Net BTC Added: -943.1 BTC???? Data as of February 20, 2026.#Bitcoin #BTC #BitcoinHoldings #BitcoinCommunity #BTCMining $BTDR pic.twitter.com/vtvBVEui0Q

— Bitdeer (@BitdeerOfficial) February 21, 2026

Bitdeer Sells All BTC, Builds Liquidity

In its latest weekly update, the NASDAQ-listed miner and AI infrastructure company reported Bitcoin holdings of zero as of Feb. 20, excluding customer deposits.

The company produced 189.8 BTC during the week and sold the entire amount. With the current value of around $64k per Bitcoin, the amount is approximately $12 million. The sale resulted in net BTC added of minus 943.1 BTC once reserve sales are included.

Bitdeer is reportedly now using its Bitcoin production as a direct source of liquidity instead of treating it as a long‑term treasury asset.

However, the firm said this decision should not worry the broader market. It explained that it is evaluating several powered land acquisition opportunities and considers it prudent to prepare liquidity in advance while it continues to grow hash rate and mine more Bitcoin for shareholders.

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Operationally, Bitdeer continues to scale. The company mined 668 BTC in January, up 430% year on year. Its self‑mining hash rate reached 63.2 exahash per second, with total proprietary hash rate at 65.1 EH/s.

Our decision to sell Bitcoin should not be a concern for the broader market. We are currently evaluating multiple non-binding powered land acquisition opportunities, and we believe it is prudent to prepare liquidity now. Our hash rate will continue to grow, and we will continue…

— Bitdeer (@BitdeerOfficial) February 23, 2026

Capital‑Intensive AI Push and Sector Trend

Bitdeer is accelerating its push into AI infrastructure. It is rolling out NVIDIA GB200 NVL72 systems in Malaysia and converting multiple sites in the United States and Europe from crypto mining facilities into AI data centers.

To support this strategy, Bitdeer recently priced a $325 million convertible notes offering and completed a 43.5 million dollar equity raise. The proceeds will fund data center expansion, HPC and AI cloud growth, and ASIC development.

Other miners are adopting similar strategies. Riot Platformshas sold 200 million dollars’ worth of bitcoin to fund operations and AI expansion.

Currently facing a bearish momentum, Bitcoin is trading around $64,400, with a modest 24‑hour gain of about 0.14%, while its weekly performance shows a stronger advance of roughly 5.81%, indicating a steady short‑term uptrend despite only marginal day‑to‑day movement.

The developments were more than symbolic: investment, integration, lawsuits, enforcement actions, academic scrutiny, and even the first serious attempts to wrap event contracts inside ETFs. Once tolerated as an experiment at the edge of crypto and betting culture, prediction markets are now being tested politically, legally, and institutionally. In other words, the system is striking back.

Wall Street Cracks the Door Open

The most significant signal came from the institutional universe. Tradeweb Markets announced a partnership with Kalshi, alongside a minority investment. Initially, Kalshi’s real-time event probabilities feed into Tradeweb’s institutional workflows and then eventually extend to trading access via an institutional-facing portal.

That is not a fringe endorsement. Tradeweb is a core electronic marketplace operator in rates and credit. When a firm of that scale starts experimenting with event probabilities as inputs for macro risk assessment and capital allocation, prediction markets stop being a curiosity.

The logic is straightforward. If bond desks already trade around policy expectations and macro releases, why not integrate crowd-implied probabilities directly into pricing and analytics?

The infrastructure is there; the data just needed a distributor. Liquidity is following the same path. Jump Trading is set to take minority stakes in both Kalshi and Polymarket in exchange for providing liquidity.

These arrangements resemble venture-style deals, but the strategic message is clearer: event contracts are liquid enough, and scalable enough, to justify serious market-making capital. The establishment is not dismissing prediction markets. It is wiring them in.The growth narrative is compelling. Capital is flowing. Platforms are scaling. Volume is accelerating.

Sports: From Episodic Bets to Continuous Flow

If Wall Street is testing the macro use case, sports may be where scale truly lies. Startup Pred, a peer-to-peer sports prediction exchange, raised $2.5 million in funding led by Accel, with participation from Coinbase Ventures. It promises 200-millisecond execution, spreads under 2%, and an exchange model where traders face each other rather than a house.

The pitch is telling. Elections and macro events are episodic. Sports are continuous, global, and high-frequency. A $500 billion global sports betting economy already exists – mostly controlled by sportsbooks that manage risk internally and limit winners. Pred’s model reframes sports prediction as a trader-driven marketplace.

Whether it succeeds is secondary to what it represents. Capital is now funding purpose-built exchange infrastructure for sports predictions, not merely retrofitting general-purpose crypto tools. At the same time, the Super Bowl narrative continues to reverberate.

Analysts estimate prediction markets captured roughly 80% of year-on-year wagering growth around the event, leveraging federal CFTC oversight rather than state gambling licenses. That “regulatory flank” has not gone unnoticed. And it has consequences.

The Courts Push Back

While institutional platforms integrate and startups raise funding, regulators are drawing harder lines. In the Netherlands, the Dutch Gaming Authority ordered Polymarket to cease operations for offering unlicensed games of chance, threatening weekly fines of €420,000.

The regulator rejected the platform’s argument that prediction markets are not gambling and warned of social risks, including election-related concerns. In the United States, state-level enforcement continues. Nevada regulators scored a procedural win when a federal appeals court rejected Kalshi’s emergency request to pause enforcement.

Meanwhile, nearly 50 active legal cases are unfolding across jurisdictions. The most forceful response, however, came from the federal side. Commodity Futures Trading Commission Chairman Michael Selig filed an amicus brief asserting the agency’s exclusive jurisdiction over event contracts and warning that it “will no longer sit idly by” while states attempt to block them.

“We will see you in court,” Selig said. This is no longer a question of product positioning. It is a jurisdictional fight over who governs a fast-growing derivatives category. Prediction markets are entering the establishment – and the establishment is answering in courtrooms.

Do the Markets Actually Work?

As capital flows and legal battles intensify, academics are quietly dissecting the economics. A recent study analysing over 300,000 contracts on Kalshi found that prices broadly reflect probabilities and improve as expiry approaches.

In that sense, prediction markets are informative. Contracts priced at 50 cents win roughly half the time, and accuracy improves as expiration approaches.

But they also display a classic favourite-longshot bias. Low-priced contracts win less often than required to break even, while higher-priced contracts win slightly more often, resulting in strongly negative returns for those buying cheap “lottery-like” outcomes. The average pre-fee return across contracts was estimated at-20%. The implication is uncomfortable but important.

Prediction markets may be good at aggregating information. They are not necessarily good at distributing profits evenly. If event contracts are to become embedded in institutional workflows and ETF wrappers – and several issuers are now seeking election-linked funds — their economic mechanics will face more scrutiny. Legitimacy invites analysis.

Bottom Line

This week was not about hype. It was about resistance. Tradeweb integrates. Jump provides liquidity. Startups build exchange-grade sports infrastructure. ETF issuers prepare political funds. Regulators fine, litigate, and assert jurisdiction. Academics test the model. Prediction markets are no longer asking whether they belong.

They are behaving as if they do. The establishment, for its part, is no longer ignoring them. It is investing, regulating, and, when necessary, pushing back. If the past two years were about expansion, this phase is about consolidation.

The next chapter will not be written solely by traders or founders, but by exchanges, courts, regulators, and institutional allocators. The least predictable outcome may not be the result of the next election or sporting event. It may be who ultimately controls the markets that sets their prices.

According to the crypto exchange, the figure covers trading on exchanges, activity on DeFi platforms, and mint and redemption flows, all reached in less than eight months.

xStocks Hits $25 Billion as Tokenized Equities Scale

Onchain activity accounts for more than $3.5 billion of the total, with over 80,000 unique onchain holders participating in the ecosystem. xStocks currently holds eight of the top eleven tokenizedequities by unique holders and represents 68% of the top 25 tokenized stocks by holder count as of 17 February 2026.

$25,000,000,000 in total transaction volume.In under 7 months since launch.@xStocksFi is making history.As part of @payward’s group, xStocks is cementing its position as the largest provider and leading framework for tokenized equities globally. pic.twitter.com/XTPyXOMpBU

— Kraken (@krakenfx) February 19, 2026

The instruments trade across centralized exchanges, DeFi protocols, self‑custody wallets and consumer applications, allowing users to move exposure between venues.

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“xStocks have fused crypto and traditional markets, turning tokenized equities from an idea into global infrastructure. Eclipsing the $25 billion milestone so quickly demonstrates that investors around the world are ready for markets that are open, permissionless, and built for the internet age”, commented Val Gui, the General Manager for xStocks.

Custody Model, Market Access and Alliance Growth

Notably, crypto trading platforms including Bybit and Gate.io have integrated xStocks, extending access to tokenized U.S. equities for retail traders, professional users and institutional clients.

Late last year, Kraken acquired Backed Finance, the firm behind the issuance of xStocks. The exchange aimed to bring these tokenized products closer to its main trading business as it works toward a planned public listing in 2026. Kraken already offered several tokenized stocks and ETFs that are created by Backed.

Additionally, xStocks went live on 360X this month, giving Deutsche Börse Group clients access to tokenized versions of major equities on a regulated secondary trading venue. It also marked the first major product milestone under the partnership the two firms announced in December.

The hiring blitz follows Kraken’s 2025 purchase of CFD broker Greenfield Wealth, a deal that delivered a Cyprus Investment Firm (CIF) licence and, with it, a passport into Europe’s MiFID regime, as well as securing a MiCA license in the same year.

Senior Roles Dominate, with a Focus on Engineering

A closer look under the bonnet shows that roughly 70% of the vacancies target senior or managerial talent. The Regulatory MiFID Officer role stands out, alongside heavyweight hires such as the Global Head of Middle Office and a Senior AI/ML Engineer.

While pay is not stated in the listings, the top-heavy mix will require significant investment.

According to web3.career, a crypto and blockchain job board, the average yearly salary of a legal expert in the space is US$170,000, while senior positions in AI/ML engineering can fetch salaries between US$146,000 and US$277,000.

The largest share of vacancies – nearly half – sits in software engineering and technical functions, so product and platform development appear to be priorities.

Product and design roles form the next tier, followed by compliance, legal and risk. Operations, finance and marketing roles are present but less prominent.

Elements of the hiring mix appear consistent with building out the MiFID license, while others, particularly engineering roles, likely support the exchange's broader platform.

The Lines Between Exchanges and CFD Brokers Are Evolving

A growing chorus of crypto exchanges has moved to acquire MiFID licences. In 2025 alone, Coinbase bought the Cyprus unit of BUX, which had offered CFDs under the Stryk brand, while Crypto.com purchased AllNew Investment, the operator of LegacyFX, another CFD provider.

The calculation is straightforward: MiFID opens the door to derivatives – futures, options and potentially CFDs – whereas the EU’s MiCA framework is focused primarily on spot trading and custody.

As Kris Marszalek, co-founder and chief executive of Crypto.com, said at the time, securing MiFID alongside MiCA “further solidifies” the exchange's ability to offer a comprehensive regulated product suite across the European Economic Area.

Kraken, though, appears to be among the first of this cohort to embark on a hiring push of this breadth.

At the same time, established brokers are rolling out spot crypto, often via white-label solutions. Pepperstone, which built its own crypto exchange internally, recently joined the trend by offering physical crypto to its Australian clients.

For Pepperstone’s Group CEO Tamas Szabo, while the lines between brokers and exchanges are evolving, "client priorities remain constant: cost, execution quality, trust and, increasingly, user experience.”

Hackers now rapidly move funds at the moment of attack, but intentionally delay laundering—spreading it over days or even weeks. This creates delayed exposure, complicating detection and risk management for brokers and exchanges. The findings come after another year of elevated crypto crime.

Chainalysis data showed that funds stolen through hacks surged in 2024 compared to prior years, marking the fourth consecutive year in which annual losses exceeded $1 billion.

New Laundering Pattern

The 2025 report from Global Ledger analyses the full lifecycle of stolen funds and highlights what it describes as a two-speed playbook.

Hackers often move funds within 2 seconds of an exploit, with 76% of transfers occurring before public disclosure, reducing the window for intervention.

However, the subsequent laundering slows, with attackers employing multi-stage techniques such as cross-chain bridges and privacy tools. It now takes an average of over 9 days to reach the cash-out point.

The $2 Billion “Sleeper” Exposure

Nearly $2 billion in stolen 2025 funds remains parked in attacker-linked wallets. This creates a sleeper threat as illicit assets may reenter regulated venues later, heightening compliance challenges.

For brokers and exchanges, point-in-time address screening may miss emerging threats. Illicit funds might resurface long after the original attack, evading detection by static systems.

The Changing Toolkit

The report also notes shifts in laundering infrastructure as over $2.01 billion in stolen funds were routed through bridges, fragmenting transaction trails.

Meanwhile, Tornado Cash saw renewed usage following the lifting of sanctions in March 2025. In the second half of the year, the mixer was used in nearly 75% of hacks involving mixers.

For compliance teams, operational risks are intensifying. Longer laundering timelines and complex pathways demand more robust, continuous monitoring—outdated blacklists are no longer sufficient.

In a video posted Tuesday on X, Selig said the agency has filed an amicus brief to defend what he called its “exclusive jurisdiction” over prediction markets, which he equated with derivatives markets.

I have some big news to announce… pic.twitter.com/3OBNTaOnIL

— Mike Selig (@ChairmanSelig) February 17, 2026

Selig Defends Federal Authority, Signals Policy Shift

Selig warned that state entities challenging the CFTC’s authority over event contracts “will see” the agency “in court,” framing state enforcement as an “onslaught of state-led litigation” targeting platforms including Coinbase, Crypto.com, Kalshi and Polymarket.

Related: Coinbase Asks Courts to Bar States From Regulating Prediction Markets

He said the CFTC has regulated such markets for more than two decades and argued that prediction markets allow Americans to hedge commercial risks, such as temperature or energy-price moves, and act as a check on news and information flows.

Selig’s stance represents a reversal from the agency’s prior efforts to shut down some political and event contracts at firms such as Polymarket and Kalshi before Donald Trump returned to the White House. Courts resisted parts of that earlier crackdown, and the CFTC dropped its litigation after Trump’s team overhauled the agency’s leadership.

Earlier, CFTC dropped a contentious plan to ban political and sports‑related prediction markets and kicked off a joint crypto rulemaking effort with the SEC to keep digital asset trading within the U.S. Selig then announced that he ordered staff to withdraw the 2024 event contracts proposal targeting those markets.

States and Senators Push Back on Gambling Concerns

Utah Governor Spencer Cox publicly challenged Selig’s claims, writing on X that he did not recall the CFTC having authority over a “derivative market” for “LeBron James rebounds.”

Cox called the products “gambling pure and simple,” said they harm families and young men, and pledged to use every power to “beat” the CFTC in court. Utah lawmakers are advancing a bill targeting certain sports contracts, although the state has not led the main enforcement cases.

Mike, I appreciate you attempting this with a straight face, but I don’t remember the CFTC having authority over the “derivative market” of LeBron James rebounds. These prediction markets you are breathlessly defending are gambling—pure and simple. They are destroying the lives… https://t.co/Ohup2x3D8u

— Governor Cox (@GovCox) February 17, 2026

Meanwhile, Polymarket has sued Massachusetts, arguing only the CFTC can police its markets, while Coinbase is suing Connecticut, Illinois and Michigan over efforts to classify related products as gaming.

The move places the crypto exchange’s OTC services directly inside an existing communications tool for trading desks across major financial centers, aiming to streamline access to crypto within established workflows.

ICE Chat Integration and Institutional Workflows

According to the firm, the integration allows more than 120,000 ICE Chat clients to connect with the OTC desk. Traders can contact Kraken’s team from within ICE Chat to discuss and execute OTC trades in crypto spot and options markets.

“ICE Chat was designed specifically to match the custom needs of traders, and with sophisticated functionality like AI-powered Smart Text Recognition, which turns texts into actionable data, firms using Kraken can communicate using always-on, instantaneous connectivity, in an easy-to-access, fully compliant environment,” commented ICE Head of Global Data Delivery Platforms Maurisa Baumann.

ICE Chat Features and Future Expansion Plans

ICE operates ICE Chat as part of its wider technology and data offering. The platform supports real-time, always-on connectivity between trading firms and includes tools that seek to align communications with market and regulatory expectations.

Kraken also indicated that it expects to expand the ICE Chat integration over time through additional initiatives, reflecting what it sees as the increasing integration of digital assets into established financial market workflows.

Kraken has lately been targeting established institutional marketplaces. Kraken-backed xStocks recently went live on 360X, giving Deutsche Börse Group clients access to tokenized versions of majorequities on a regulated secondary trading venue, and marking the first significant product milestone under the partnership announced in December.

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It allows 360X users to trade five xStocks instruments against stablecoins. It broadened institutional access to the xStocks standard and aiming to support further growth in trading volumes and unique holders.

Meanwhile, institutional marketplaces are eying prediction markets. Intercontinental Exchange recently launched the Polymarket Signals and Sentiment tool to deliver prediction-market data and analytics to professional and institutional investors.

Under the new offering, ICE will act as the exclusive distributor of Polymarket data for institutional capital markets. Polymarket runs one of the largest prediction markets, including contracts tied to financial and commodity themes, giving institutions structured access to this emerging data source.

The Stablecoin Utility Report 2026 by BVNK and YouGov finds that stablecoins play a growing role in cross-border payments and savings, highlighting new opportunities for regulated financial institutions.

The report draws on an online survey of more than 4,600 respondents across 15 countries. All participants either currently hold or have held cryptocurrency within the past 12 months, or plan to acquire crypto in the coming year.

The findings, therefore, reflect behavior within crypto-active populations rather than the general public. The survey also excludes several major markets, including China, Russia, and Canada.

Within this user base, practical use cases now appear to drive stablecoin adoption. However, the segment is dominated by crypto-native platforms, while most banks, brokers, and payment providers have so far stayed on the sidelines.

Freelancers and gig workers now receive 35% of their income in stablecoins. 73% say this improves work with international clients. In Africa, 79% of surveyed crypto users hold stablecoins. Of these, 92% cite their country’s economy as a driving factor.

Merchant acceptance also influences consumer decisions, as more than half (52%) of stablecoin holders surveyed say they have made a purchase from a business specifically because it accepted stablecoin payments.

The Opportunity for Banks and Fintechs

The survey suggests that traditional financial institutions have yet to capture much of this activity. Crypto users primarily manage stablecoins on centralised exchanges.

Despite that, trust in established financial brands remains strong. Around 77% of respondents say they would likely open a stablecoin wallet if their personal bank or fintech app offered one.

In low- and middle-income economies, that figure rises to 83%. These results indicate that exchanges currently dominate stablecoin services not because of superior brand trust, but because many regulated institutions have not yet introduced comparable products.

Users Want Mainstream Behaviour, Not Crypto Complexity

Even among regular users, friction remains. Respondents identify irreversible payments (30%) and process complexity (22%) as their main concerns. Users say they want stablecoins to function more like familiar payment systems. Their top requests include broader merchant acceptance, clearer consumer protections such as refund mechanisms, and a simpler user experience.

For the B2B financial industry, the report signals growing engagement with stablecoins among crypto-active users and suggests that demand for regulated, integrated services could expand. Whether traditional institutions enter this segment — and how they structure their offerings — will influence how stablecoin usage develops from here.

In 2023, the SEC warned that Binance operates without local authorization. It noted that entities promoting the exchange could face up to 21 years in prison. The regulator said Binance "has been actively employing promotional campaigns on various social media platforms," but does not hold a license to operate in the country.

Philippine Users Report Binance Access Issues

Multiple users said searches for “Binance” no longer return the main application. Results instead redirect to local platforms such as Coins.ph or to region-specific Binance apps for Thailand and Turkey.

On Reddit, a user questioned whether the disappearance was “a technical glitch or a deliberate move tied to the Binance Philippines ban.” Screenshots and error messages circulated in local crypto communities, illustrating access issues.

Reports indicate difficulties extend beyond the app store. Several users said they could not load Binance’s main website, encountering browser warnings such as “Privacy Error” and “Site can’t be reached.” The combined app and website issues suggest regulators may be actively enforcing restrictions.

SEC Blocks Binance App and Website

The SEC has repeatedly warned foreign crypto platforms against operating without local authorization. In late 2024, it asked Google and Apple to remove the Binance app. The SEC alleged that Binance offered unregistered securities and acted as an unlicensed broker. The National Telecommunications Commission also ordered internet service providers to block Binance’s website nationwide.

Existing users with the app installed may retain limited access, but updates and security patches could become unavailable. A Binance spokesperson previously said the company is “committed to working with regulators globally.” Whether that approach applies to the Philippines is not clear.

The Binance Philippines ban highlights risks of relying on offshore platforms without local approval. The move may also strengthen domestic exchanges. With app removals and access restrictions now visible, enforcement has moved from warnings to action, leaving users uncertain about the next steps.

In a Monday announcement, the firm presented the move as a fresh start in a market it once left. This time it emphasized compliance, risk management, and long-term growth instead of aggressive product rollout.

Nexo returns to the United States.The official relaunch is being executed with regulated partners, providing a U.S.-compliant framework for our investment and credit product offerings. ???? pic.twitter.com/pt0A4ETRdt

— Nexo (@Nexo) February 16, 2026

Product Lineup Targets Yield and Liquidity

Nexo originally withdrew from the U.S. in 2022 after clashes with state and federal regulators over its Earn Interest Product. It described the negotiations at the time as a “dead end” and the operating environment as “impossible,” following multiple enforcement actions, including those from California and New York.

The relaunched U.S. platform now runs through partnerships with regulated entities and uses Bakkt to provide its digital asset trading infrastructure, aligning the offering with institutional risk andcompliance standards.

Continue reading: Crypto Firm Nexo Launches Forex and Commodities CFDs Through MT5

Nexo’s U.S. lineup includes fixed and flexible yield programs, an integrated crypto exchange, and crypto-backed credit lines aimed at users who want to access liquidity without selling their digital assets. The company also supports fiat on- and off-ramps via ACH and wire transfers and adds a loyalty program to keep users within its ecosystem.

Inside a Broader Global Expansion

Finance Magnates recently reported that Nexo had expanded its platform by introducing Contracts for Difference (CFDs) on assets such as gold, silver, oil, leading equity indices, and a range of key currency pairs, with leverage available on selected instruments.

This expansion was enabled through a partnership with MetaTrader 5, giving the crypto firm users access to advanced trading tools used by institutions.

Additionally, Nexo’s Dubai-based entity obtained the approval in the region to provide lending, borrowing, investment, and broker-dealer services for virtual assets. It marked the firm’s first step into Dubai’s growing crypto market

Besides geographical and product expansion, the crypto lender recently made strides in sports sponsorship deals. Audi Revolut F1 Team recently entered into a multi-year partnership with the platform, marking Nexo as the team’s first official digital asset partner.

The deal, conducted through a subsidiary to comply with regulatory constraints on direct ownership, reflects the company’s effort to connect traditional brokerage, digital bonds, tokenized securities (STOs), and exchange infrastructure.

Mirae Asset aims to “secure digital asset-powered future growth engines.” This aligns with its “Mirae Asset 3.0” strategy and follows its recent issuance of private digital bonds on a blockchain. The Korbit acquisition adds exchange infrastructure to that wider strategy.

Infrastructure Over Market Share

While Korbit’s market share has declined to around 1% from earlier levels, the exchange remains operationally viable and strategically relevant.

The acquisition's timing coincides with regulatory developments in South Korea. The government has passed legislation enabling the issuance of security tokens (STOs), while regulators are discussing plans to allow public companies and professional investors to invest directly in crypto assets starting in 2026.

This move could expand institutional participation in the sector. Against this backdrop, Mirae Asset’s move appears aimed at positioning the firm ahead of potential digital asset market shifts.

An Industry-Wide Convergence

Mirae Asset is not alone in exploring integration between traditional finance and crypto in South Korea. Tech conglomerate Naver has reportedly pursued discussions involving market-leading exchange Upbit.

Mirae Asset’s strategy targets operations in both traditional and digital asset markets. Acquiring a crypto exchange offers operational exposure that may gain importance if regulatory easing increases institutional participation or retail activity rebounds.

The company’s share price rose by over 15% in the five days following the announcement. The deal highlights a broader trend in South Korea’s financial sector: growing integration between securities firms and digital asset infrastructure as regulatory clarity on tokenization emerges.

The PI license follows OKX’s MiCA license, granted by the Malta Financial Services Authority in January last year.

The MiCA license allows the company to offer localized services to customers across the European Union through passporting. EU users can access regulated crypto exchange products, including OTC trading, spot trading, bot and copy trading, and more than 240 cryptocurrency tokens across 300 trading pairs.

OKX Faces AML Fine Post-MiCA

Also last year, OKX was fined €1.1 million by Malta’s Financial Intelligence Analysis Unit for anti‑money‑laundering failures in 2023. The FIAU said that while OKX had improved its AML policies, its business risk assessment did not fully address risks from cryptocurrency mixers, privacy coins, stablecoins, and decentralized exchanges.

The fine indicates that the MiCA license does not exempt the company from past compliance issues. The company also announced its acquisition of a MiFIDII‑licensed entity in the same year.

JUST IN: @okx secures a Payment Institution (PI) license in Malta ahead of the EU’s March regulatory deadline.The approval allows OKX to offer stablecoin-related payment services across the EU in compliance with MiCA and PSD2. pic.twitter.com/HWBxX9xzJr

— Satoshi Club (@esatoshiclub) February 16, 2026

Malta PI License Covers OKX Pay

On the new license, OKX Europe CEO Erald Ghoos said that “securing a Payment Institution license ensures that these products operate on a fully compliant footing.” He added that “Europe has chosen clarity over ambiguity when it comes to digital asset regulation” and that stablecoins can improve cross‑border efficiency and reduce friction in payments, “but only if built within strong regulatory guardrails.”

The PI license will cover products including OKX Pay and the OKX Card, which allow users to spend crypto assets and stablecoins. The OKX Card, launched in late January, supports stablecoins such as Circle’s USDC and the Paxos-issued Global Dollar.

As of today, IG Group has entered the spot crypto business, while Capital.com and XTB are preparing to follow, and CMC Markets has signalled broader ambition that extends into decentralised finance. Pepperstone, meanwhile, has just launched its physical crypto business for Australian clients. “So, we have built a large standalone crypto team,” Szabo goes on to explain how the broker moved to overcome those constraints.

The Internet's Money is Now Attracting Professional Traders

According to CryptoQuant, a blockchain analytics and on-chain data platform, trading volume on the spot cryptocurrency market reached US$18.6 trillion last year, a 9% increase year-on-year. Crypto may still be volatile, but it is no longer marginal. For much of the past decade, one firm sat squarely at the centre of this activity. At its peak in 2023, Binance, the world’s largest digital-asset exchange, handled close to 60% of all spot crypto trades, where actual ownership of assets changes hands immediately rather than via derivatives – or on the “spot”.

Recently, however, its grip has loosened.

CoinDesk data show that by December 2025, Binance’s share of global spot trading volume had fallen to around 25%, its lowest level since early 2021. The missing volume did not migrate in one neat direction. Some flowed to rival exchanges, some to decentralised platforms, and brokers are now positioning themselves to capture a share of it.

2025 crypto exchange activity in review.Spot volume reached $18.6T (+9% YoY) while perpetuals surged to $61.7T (+29%), with Binance dominating spot, BTC perps, liquidity, and reserves.Growth is derivative-led, and market power continues to concentrate at the top. pic.twitter.com/Om8udJJ9Qv

— CryptoQuant.com (@cryptoquant_com) January 12, 2026

"A Long-Term Conviction" for Brokers

One of the earliest mainstream brokers to take crypto seriously was eToro, now one of the world’s largest multi-asset platforms. “From the outset, eToro approached spot crypto with a long-term conviction that crypto is here to stay, adding bitcoin to the platform as early as 2013 when demand was limited, and market sentiment was highly skeptical,” says Adi Lasker Gattegno, the fintech’s Director of Liquidity Management and Crypto Operations.

Perspective matters. In 2013, Coinbase, today the world’s second-largest crypto exchange, was a fledgling startup and reported selling just US$1 million worth of bitcoin in a single month, at prices hovering above $22 per coin. That same year, the American novelist Charles Stross used bitcoin in his science-fiction Hugo Award-shortlisted novel Neptune’s Brood as a fictional interstellar currency, precisely because it was obscure enough to sound plausible in a far-future setting. Crypto was, quite literally, science fiction.

Crypto’s rise owes much to regulation. In 2018, the European Securities and Markets Authority (ESMA) clamped down on CFDs, capping leverage and restricting retail marketing. Some national watchdogs went further, steadily narrowing CFD business. In January 2026, Israel-based broker Plus500 became the latest in the trend, halting onboarding for Spanish CFD clients after the local regulator adopted one of the EU’s toughest interpretations of the rules.

Meanwhile, clearer crypto frameworks such as the EU’s MiCA and America’s GENIUS Act lent digital assets a legitimacy CFDs increasingly lack.

According to the 2025 Global State of Crypto report by the crypto exchange Gemini Trust, based on a survey of more than 7,200 consumers across the US, UK, France, Italy, Singapore and Australia, nearly one in four respondents said they owned crypto.

Supply, inevitably, has followed demand. “Our offering has grown into a holistic offering that caters to both crypto-native users and traditional retail investors within a regulated, multi-asset environment. We now support 150 crypto assets, alongside services such as staking, crypto-focused Smart Portfolios, and CopyTrader,” Gattegno says.

Toward the end of 2025, Pepperstone’s Szabo, speaking at the digital asset conference AusCryptoCon in Sydney, announced that the CFD broker would be making the leap to spot crypto in 2026, and today it launched the dedicated crypto exchange. “Internal and external research has shown that CFD traders are heavy crypto investors,” he explains part of the reasoning to FinanceMagnates.com.

Having just launched its product, the broker plans a measured entry. The initial focus will be on adoption and client experience, built around a flat 0.1% fee, tight spreads and deep liquidity. “Over time, as we expand the product offering and the market grows, spot crypto is expected to complement our traditional products and become a meaningful part of our overall business,” Szabo adds.

Plug-and-Play Vs In-House Tech

When considering crypto expansion, brokers must first address one question: whether to build the infrastructure in-house or go with white-label solutions. Both have their advantages and disadvantages.

White-label tech infrastructure has always been part of the brokerage industry, and the same is true for crypto exchanges as well. Nowadays, a growing ecosystem of technology providers offers plug-and-play infrastructure designed to sit comfortably alongside existing CFD offerings.

Shift Markets is one such provider. Since 2019, it has developed a white-label crypto solution aimed primarily at FX and CFD brokers looking to enter digital assets without reinventing the wheel. “Our focus is less on introducing a new product in isolation, and more on enabling crypto to function as a natural extension of a broker’s existing multi-asset offering,” says Ian McAfee, the firm’s co-founder and CEO.

Out of the box, Shift’s platform provides aggregated liquidity, real-time order matching, wallet infrastructure, crypto and stablecoin funding and a full back office.

Another is B2BROKER, a global fintech whose core clientele includes banks, crypto firms and, above all, CFD brokers. “We developed a full stack of products to support crypto businesses,” says Arthur Azizov, the company’s founder and CEO. This includes its own brokerage platform, B2TRADER; spot and perpetual futures liquidity, which are coming shortly; the B2CORE back-office and CRM system; and B2BINPAY, its crypto payments and wallet-management platform.

Not everyone, however, opts for a third-party route.“Our spot crypto infrastructure is entirely in-house,” says Tamas Szabo, “leveraging 15 years of experience in CFD trading. It provides full oversight of execution quality, deep liquidity and pricing and system security.”

It’s worth mentioning that initially, IG also sought third-party infrastructure, partnering with digital trading platform Uphold. Later, though, the broker acquired Australian crypto exchange Independent Reserve, aiming to roll out crypto products for the Middle East and APAC region.

Deployment Without Reinvention

Deployment can be much smoother than what the complexity might suggest. According to both third-party tech providers, most brokers favour software-as-a-service (SaaS) models, which offer the quickest route to market. A minority opt for hybrid cloud deployments using their own teams, while fully on-premise environments are rare.

“Some brokers prefer having more control, and some in certain jurisdictions encounter regulatory requirements for controlling more of the environment,” McAfee notes.

The onboarding timelines can be brisk, owing much to automation. Azizov says that initial setup can take as little as three hours, followed by around nine days of configuration, branding and security work. From contract signing to go-live, the entire process can be completed in under ten days.

In practice, integration with existing brokerage systems is not disruptive, with API-led approaches designed to fit around established technology stacks rather than replace them outright.

The limiting factor is rarely the technology itself, but a broker’s own technical readiness and appetite for change.

For Pepperstone, spot crypto is integrated into the broker’s wider platform ecosystem, while remaining operationally and regulatorily distinct through separate web and mobile platforms. Deposits, withdrawals, and reconciliations are processed through the same secure systems.

Deep Liquidity is Necessary, But Can Be a Challenge

“The key focus areas have been ensuring deep liquidity, maintaining platform stability under peak trading, and supporting secure deposit and withdrawal processes,” says Szabo, reflecting on the challenges Pepperstone has faced in moving from CFDs to spot crypto. Indeed, crypto liquidity is not an easy equation to solve, as it is scattered across chains, exchanges and OTC desks, complicating the task of price formation. For Peppestone, it was addressed by leaning on the scale of its derivatives business. “We process over US$6 billion in crypto CFD volume each month, so we are able to support robust liquidity and reliable execution for our clients,” he explains.

For those relying on plug-and-play solutions, technology providers address liquidity by aggregating prices from major venues and delivering them to brokers’ platforms, either as external price feeds or embedded directly within a broker’s own crypto exchange.

Beyond these aggregation layers, there are also matching engines built specifically for crypto markets. One such provider is Finery Markets, a crypto-focused electronic communication network (ECN) which has also partnered with B2BROKER. According to its founder and CEO, Konstantin Shulga, the firm offers two main integration paths: access to aggregated institutional liquidity via its own ECN, or a Crypto-as-a-Service turnkey solution.

Access to the Finery’s institutional liquidity network is provided through a single integration point, combining execution with core back-office functions such as real-time reporting, position management and risk controls within one technical framework.

“The choice depends on the broker’s objectives,” he says. The ECN model suits firms seeking best execution and internalisation, while the turnkey option is designed for those wanting a rapid, zero-development launch.

“Execution and custodial risks remain strictly decoupled,” Shulga stresses. Brokers are free to work with any qualified custodian, with native integrations available for providers such as BitGo and Fireblocks. To solve latency issues – in crypto markets, milliseconds matter, particularly during bouts of volatility – Amazon Web Services seems to be the preferred option, as both B2BROKER and Finery Markets leverage the US giant’s network. “For optimal performance,” Azizov notes, “we usually recommend financial hubs like London to minimize latency between the platform and our liquidity providers.”

Compliance, though, is handled at arm’s length. Finery does not hold client assets, and trading is non-custodial. Because trades are bilateral, the legal contract sits directly between counterparties, allowing brokers to plug in their own KYC, transaction-monitoring tools and controls in line with local regulation.

“Brokers Should Never Outsource Their Brand, Client Relationship or Commercial Decision-Making”

Spot crypto involves real assets, real wallets and real settlement. When systems are built in-house, responsibility is clear; when functions are outsourced, clarity over who owns what becomes critical.

On Shift’s platform, brokers retain operational control over treasury management, liquidity optimisation and day-to-day monitoring. In-house teams are required for reconciliation and performance checks. The platform itself manages orders and tracks assets on a digital ledger, while connecting brokers to specialist providers for custody, liquidity, payments, KYC and AML.

B2BROKER offers a more closed-loop ecosystem in which both technical and operational components are tightly integrated. Core trading logic, pre-integrated KYC, payments and back-office systems are bundled together, supported by dedicated account managers

Azizov, though, is categorical that certain things should never be outsourced. “Brokers should never outsource their brand, client relationship or commercial decision-making,” Azizov notes. “That ownership must always stay with the broker.”

“You Are No Longer Managing Contracts, You Are Managing Real Assets.”

For all the progress in tooling, moving from CFDs to spot crypto remains a conceptual leap. “Transitioning to spot trading means a fundamental change in business logic and the brokerage’s operating model,” says Azizov. Treasury management is the clearest example: CFD trading abstracts everything into a base currency and spot crypto does not. Clients can hold, transfer and withdraw real assets – bitcoin, ether, stablecoins – forcing brokers to manage multi-asset balances, on-chain flows and real-time liquidity. “You are no longer managing contracts,” B2BROKER CEO stresses. “You are managing real assets.”

McAfee agrees. Offering spot trading requires integration with custodians and the maintenance of balances across all supported cryptos. “This adds additional complexity,” he goes on, “as the broker needs to rebalance their treasury to align with user holdings, as well as maintain balances at liquidity providers – or ensure they can process end-of-day settlements in multiple currencies.”

There is also a tendency to conflate spot trading with perpetual futures, which feel more familiar to CFD brokers because they rely on similar leverage, margins and funding rates. With spot trading, though, Azivov notes, clients can only trade what they actually hold, which changes behaviour, exposure and risk management.

Regulation adds another layer of complexity, as crypto licensing regimes often differ sharply from those governing CFDs. “Finding the correct regulatory perimeter – and understanding what products can be offered in each market – is one of the most challenging aspects of such a transition,” McAfee stresses.

Sophisticated brokers, he adds, tend to ask hard questions early: which assets are supported, how balances are managed, how reconciliations work, and how risk controls operate. Only then do they turn to the regulatory maze.

“A common mistake we see is a broker not always fully assessing the quality or viability of a vendor that they chose to integrate to the platform,” McAfee notes. Another is relying on single points of failure, such as one liquidity provider, one payment rail, even one key individual. Contingency planning, Azizov says, is often an afterthought.

Many brokers also prioritise speed to market over the unglamorous work of building audit trails, permission structures and monitoring systems. Those details, however, are precisely what regulators scrutinise once a business scales.

A Convergence Afoot?

As more brokers add spot crypto, it points to a deeper shift that goes beyond technology stacks or liquidity plumbing: Does being a pure-play retail CFD broker still hold?

At the same time, crypto exchanges have been edging into traditional broker territory, often by acquisition rather than invention. Crypto.com, Coinbase and Kraken are among those that, in recent years, have bought established EU firms holding MiFID licences – ready-made passports into regulated markets.

The real question, then, is not merely whether being a pure-play CFD broker remains a sustainable model, but whether crypto and traditional derivatives are now approaching a point of convergence – technologically, commercially and, increasingly, in the eyes of clients themselves.

“While the boundaries between brokers and exchanges are evolving,” says Szabo, client priorities remain focused on cost, execution quality, trust and importantly great UX and ease of use. Our Australian-made, low-cost, high-liquidity model provides clarity and reliability, which we believe will continue to differentiate Pepperstone in the market.”

A January review of 66 African stablecoin routes by payments firm Borderless.xyz shows that users on the continent face the widest conversion spreads in the world, even as other regions see much tighter pricing.

Across nearly 94,000 rate observations, Africa posted a median spread of 299 basis points, or about 3%, on stablecoin-to-fiat conversions, compared with roughly 1.3% in Latin America and just 0.07% in Asia.

In practice, that means costs ranged from about 1.5% in South Africa to nearly 19.5% in Botswana, a 13-fold gap on one continent.

Source: Borderless.xyz

Most Expensive Stablecoin Region

These spreads reflect the difference between a provider’s buy and sell rate for a stablecoin-fiat pair, similar to a bid-ask spread in traditional markets, and represent the execution cost that users pay when they convert into local currency.

In South Africa, a relatively liquid FX market with several providers, the median spread was only 152 basis points, roughly in line with some Latin American corridors. Botswana’s corridor sat at 1,944 basis points, or 19.4%, while Congo’s exceeded 13%, both shaped by single-provider dominance and limited market depth.

You may also like: Kenya's Legislators Pass Crypto Bill to Boost Investments and Oversight

Mid-range corridors that carry much of Africa’s stablecoin activity also remain expensive. Nigeria’s naira, Kenya’s shilling and Ghana’s cedi all clustered near the 300 basis point mark, even though multiple providers operate in each market.

The core picture that emerges is that competition, not technology, sets what users pay. Where several providers compete in a corridor, spreads generally sit between about 150 and 410 basis points; where one provider operates alone, costs often jump above 1,300 basis points, or more than 13%.

Competition, Not Blockchain, Drives the Real Cost

In Zambia, the difference between the best and worst provider reached 650 basis points, enough to swing the cost of a single transfer by 6.5%, while in Tanzania the range was about 310 basis points.

Borderless.xyz also compared stablecoin mid-rates with traditional interbank FX to measure a “TradFi premium”. Globally, stablecoin rates were only about 5 basis points more expensive than bank FX on average, and slightly cheaper for major currencies, but in Africa the median premium reached 119 basis points, or about 1.2% above interbank, with wide differences by country.

Botswana’s corridor showed stablecoins pricing cheaper than banks, while Congo’s extreme premium reflected a single provider quoting one static rate and parallel-market dynamics.

The data suggests that while stablecoins can beat those headline fees and speed up settlement, elevated spreads in many African corridors continue to erode their advantage, especially where one provider still sets the terms of trade.

A Blanket Ban to Prevent Leaks

According to a document seen by the publication, the proposal came from the European Commission, which suggested a blanket ban rather than picking off and banning copycat entities spun off from sanctioned firms.

“In order to ensure that sanctions achieve their intended effect, [the EU] prohibits engagement with any crypto asset service provider, or the use of any platform allowing the transfer and exchange of crypto assets, that is established in Russia,” the document cited by the publication noted.

Earlier, the United States sanctioned and cracked down on the Russian crypto exchange Garantex, which was the country’s largest at the time. Another Russian platform to face Western sanctions is the A7 payment platform and its associated rouble-backed stablecoin, A7A5.

Despite the sanctions, the stablecoin’s aggregate transaction volume crossed $100 billion, according to Elliptic. Meanwhile, the publication highlighted that A7 is offering cash access to Russian tourists abroad through its hubs in Dubai and Istanbul. It is also offering payment instruments to businesses, including transactions in China.

[#highlighted-links#]

Sanctions Are in Place, and So Is the War

The EU and the US began imposing sanctions on Russia-linked entities soon after Moscow sent troops across Ukraine’s borders in early 2022.

However, imposing new measures by the 27-member European bloc requires unanimous support, and the document shows that three members have raised doubts about the blanket crypto ban.

Europe is also considering the possibility of imposing a ban on certain dual-use goods to Kyrgyzstan, as companies there have sold prohibited goods, including machine tools and electronics used in weapons and drones, to sanctioned Russian entities.

“Imports of common high-priority items from the EU to Kyrgyzstan have grown almost 800 per cent since the war began, while exports from the country to Russia are 1,200 per cent higher,” the document added.

Sentence and Prosecutors’ Statements

The U.S. District Court for the Eastern District of New York imposed the sentence after a three-week trial that ended in May 2025, where a federal jury convicted Karony of conspiracy to commit securities fraud, wire fraud, and money laundering.

Prosecutors said Karony and his associates misled investors about how SafeMoon’s token tax and liquidity pools operated and then diverted funds for personal use.

U.S. Attorney Joseph Nocella Jr. said Karony lied to investors “from all walks of life” and defrauded thousands of victims to buy mansions, sports cars, and custom trucks. FBI Assistant Director in Charge James Barnacle Jr. said Karony stole more than 9 million dollars in digital assets from his company.

SafeMoon CEO gets 100 months in prison for multi-million-dollar crypto fraud. Ordered to forfeit $7.5M after defrauding investors.https://t.co/TPuizDabFnThis case was investigated by #IRSCI NY Field Office, @NewYorkFBI, @HSINewYork, & @SECGov.#FollowTheMoney #WhatWeDoCounts pic.twitter.com/wi1Yb58NA3

— IRS Criminal Investigation (@IRS_CI) February 10, 2026

“Earlier today, at the federal courthouse in Brooklyn, a federal jury convicted Braden John Karony on all counts of a three-count indictment charging him with conspiracy to commit securities fraud, wire fraud, and money laundering,” the DOJ said on Tuesday.

“The charges arose from the defendant’s and his co-conspirators’ roles in defrauding investors in a decentralized finance digital asset called ‘SafeMoon,’ issued by their company SafeMoon LLC.”

SafeMoon Mechanics and Alleged Misconduct

Earlier, SafeMoon filed for bankruptcy in the Utah Bankruptcy Court, reporting assets between $10 million and $50 million and debts ranging from $100,000 to $500,000. The filing highlighted the company’s strained financial condition and came shortly after the arrests of its top executives.

Read more: SafeMoon’s Former CEO Faces Fraud Charges as DOJ Maintains Case

Prosecutors said insiders, including Karony, retained access to those pools, diverted millions of dollars’ worth of tokens, and traded SafeMoon for their own benefit, sometimes near price peaks.

FCA Registration Granted

The FCA added Blockchain.com to its register of licensed crypto companies under the trading name “BC Operations.” The registration allows the company to carry out certain crypto-related activities in the UK, as long as it complies with money laundering and counter-terrorist financing regulations.

By operating as a registered crypto asset business under the FCA, we are doubling down on our commitment to security and transparency. This solidifies our UK operations in preparation for the next generation of financial innovation, including:✅Offering digital asset custody…

— Blockchain.com (@blockchain) February 10, 2026

“Securing this registration today puts us under active oversight immediately. Instead of waiting for legislation, Blockchain.com is now operating under the same rigorous standards as traditional finance and banks in the UK,” the crypto firm mentioned.

Related: Crypto Firms Must Apply for FCA Authorisation Starting September This Year

Blockchain.com operates as a cryptocurrency exchange and wallet provider. The firm is headquartered in London, making the UK approval a key step for its local operations.

Blockchain.com previously sought FCA licensing but chose to withdraw its application in March 2022. At that time, the company had not received approval before an impending regulatory deadline. After the withdrawal, Blockchain.com pivoted to its registered business in Lithuania to continue its activities under a different regulatory base.

Compliance and Scope of Approval

Under its current registration, Blockchain.com must follow UK rules related to anti-money laundering and counter-terrorist financing. In a post on X, the company said it now operates under the same rigorous standards as traditional finance and banks in the UK.

The FCA plans to introduce a broader crypto licensing framework from October next year. That future regime is expected to go beyond financial crime checks and move towards fuller regulation of crypto services.

Blockchain.com’s current registration places it within the existing UK system ahead of those changes, providing a clearer regulatory footing as new rules come into force.

Earlier, the FCA set out new requirements for companies looking to engage in regulated crypto asset activities, with applications expected to open in September.

Firms will need to obtain authorization under the Financial Services and Markets Act before the new regulatory framework takes effect in October 2027. To prepare for the transition, the FCA launched a public consultation to evaluate how existing handbook rules should apply to crypto firms.

Nowhere is this shift more visible than in the UAE, where regulatory regimes (rules and frameworks for overseeing financial activities), market infrastructure (the systems that enable trading and settlement of financial assets), and institutional capital (large-scale investment from organisations such as funds or banks) have converged to make asset digitisation executable rather than experimental.

As a result, RWA tokenisation is being evaluated not as a technology initiative, but as a capital-markets and asset-structuring exercise.

The Mandate: From Feasibility to an Execution-Ready Tokenisation Blueprint

At the institutional level, tokenisation does not begin with token design. It begins with feasibility, specifically, whether a tokenised structure can be built that is legally enforceable, licensed by a reputable regulator, and, most importantly, commercially viable over time.

In practice, feasibility rapidly expands into the design of a full tokenisation blueprint. This includes defining the program's scope, the token's lifecycle, the relationship between the underlying asset and the token's economics, and the operational dependencies required to support issuance, holding, and potential secondary activity.

For boards and senior management, tokenisation is credible only when presented as a complete system. Isolated token issuance, without clarity on custody, governance, audit, and regulatory positioning, would not survive institutional scrutiny. The shift from feasibility to blueprint is therefore the first important step.

????????????????HUGE: After UAE, Qatar Financial Centre to kick off real estate tokenization, starting with over $500M worth of towers.Also in the pipeline: tokenized investment funds and a fresh digital asset regulatory framework. Dubai picked XRP Ledger for real estate tokenization as… pic.twitter.com/ajlGvWyW1s

— Stellar Rippler???? (@StellarNews007) May 25, 2025

Asset Classification in the UAE: How Regulators Actually Assess RWA Tokens

One of the most critical and most frequently misunderstood elements of RWA tokenisation in the UAE is regulatory classification.

The UAE applies an activity-based regulatory approach, meaning that regulation depends on the specific financial activities involved rather than the product label. Regulators focus on what a token represents economically, the rights and obligations it creates, and the activities surrounding its issuance and distribution. Labels such as "utility token" or "security token" are secondary, and are not even present in the regulations.

In practice, this means that asset-backed tokens may or may not trigger regulated financial activity, depending on the jurisdiction of the issuance. This assessment has material consequences for licensing requirements, disclosure obligations, custody rules, and investor access.

Engagement commonly spans multiple authorities, including the Dubai Virtual Assets Regulatory Authority, the Abu Dhabi Global Market, and relevant federal regulators such as the Capital Markets Authority (CMA) and even the UAE Central Bank. Selecting the appropriate regulatory perimeter is therefore one of the most important structuring decisions.

Token Design Must Follow Asset Economics

A recurring lesson in execution is that token design cannot get abstracted from the underlying asset.

Physical commodities, income-producing assets, and infrastructure projects each exhibit different economic characteristics, yield profiles, liquidity constraints, operational risks, and custody requirements. These characteristics dictate how value can be represented digitally and what claims tokenholders can reasonably expect.

In practice, this requires mapping asset economics into enforceable tokenholder rights, issuer obligations, and risk allocation mechanisms. Yield-bearing structures, for example, must clearly articulate the source of yield, payment mechanics, and conditions under which returns may be suspended or adjusted.

Tokens designed independently of asset realities may function technically, but they tend to collapse under regulatory, auditor, or investor review. Institutional-grade RWA tokenisation succeeds when the token is a faithful economic representation of the asset, not a financial abstraction layered on top of it.

Custody and Bankruptcy Remoteness: The Institutional Gatekeepers

Custody architecture is often the single most decisive factor in whether an RWA tokenisation project progresses.

Regulators, auditors, and institutional investors focus first on asset control: who holds legal title, how assets are safeguarded, and whether they are insulated from issuer insolvency. These questions are not theoretical; they determine whether a tokenised structure is considered credible.

In practice, this usually involvesthird-party custodianship, clear asset segregation, and bankruptcy-remote arrangements that correspond to off-chain legal title with on-chain representation.

Without this alignment, tokenised assets struggle to meet institutional acceptance thresholds, regardless of the quality of the technology stack.

Audit, Verification, and Proof-of-Reserves

Institutional RWA tokenisation requires continuous credibility rather than one-time assurances. Independent audit and verification frameworks, therefore, become foundational. These may include proof-of-reserves mechanisms, reconciliation between on-chain records and off-chain custody, and periodic reporting aligned with regulatory and investor expectations.

In practice, auditors often become de facto stakeholders in the design of tokenisation. Their ability to verify asset existence, control, and flows directly influences the regulator's confidence and investors' trust. Projects that defer audit considerations until late in the process frequently face costly redesigns.

Governance On-Chain and Off-Chain

Tokenisation materially raises governance standards. Institutional RWA structures require clearly defined issuer obligations, tokenholder rights, operational controls, and escalation mechanisms. These governance models must operate coherently across smart contracts and traditional legal documentation.

Boards and regulators pay particular attention to accountability: who can make changes, under what conditions, and how those changes are communicated. Governance design is therefore not an accessory to tokenisation—it is central to approval and sustained viability.

Read more: SEC Clarifies the Rules Around Tokenised Stocks - Will It Encourage US Issuers Now?

Legal Architecture and Cross-Border Structuring

Institutional RWA tokenisation in the UAE is rarely confined to a single jurisdiction.

Legal architecture must address enforceability, liability allocation, disclosure obligations, and cross-border regulatory interactions.

Given the issuer’s international footprint, a comparative analysis was also conducted across the UAE, Switzerland, and the EU under the Markets in Crypto-Assets Regulation (MiCA), a European Union legal framework for crypto-asset markets. While MiCA provides standardisation and clarity, it also introduces heavier disclosure and liability regimes. Switzerland offers alternative structuring options, each with its own trade-offs.

In many institutional cases, hybrid structures emerge as the most pragmatic solution. The UAE frequently serves as the anchor jurisdiction due to its flexibility and regulator engagement model, while other jurisdictions are integrated where appropriate.

Commercial Execution and Board-Level Decision Frameworks

Regulatory compliance, though essential, is only one component of a viable RWA tokenisation program. In practice, many technically compliant projects still fail to progress because commercial execution has not been adequately designed or stress-tested.

At the institutional level, tokenisation delivers a new operational and economic model that must function coherently across issuance, holding, servicing, and—where applicable—secondary activity. This requires clearly defined token issuance flows, lifecycle mechanics, and risk apportionment across all participating parties, including the issuer, asset custodian, auditor, technology providers, and any distribution or trading venues.

From an execution standpoint, one of the most critical deliverables is translating these design choices into board-level briefing materials and decision frameworks. Senior stakeholders are not evaluating tokenisation on novelty; they are assessing downside risk, capital efficiency, reputational exposure, regulatory durability, as well as strategic optionality. They expect to understand how the structure behaves under stress scenarios, how liabilities are allocated, and what operational dependencies exist over the life of the program.

Projects that reach execution successfully tend to share a common characteristic: tokenisation is treated as a coordinated commercial program from the outset, with defined ownership, governance, and accountability. By contrast, initiatives that approach tokenisation primarily as a compliance exercise commonly struggle to secure final approvals, as commercial and operational questions surface too late in the process.

The Core Lesson for Asset Owners and Issuers

Once tokenisation moves from concept into execution, a consistent lesson emerges: RWA tokenisation is not a single discipline, nor can it be delivered by any one function in isolation. Successful institutional tokenisation requires integrating multiple domains - asset economics, regulatory classification, legal structuring, custody design, audit and verification, governance, and ongoing operational execution. Weakness or ambiguity in any one of these areas tends to undermine confidence in the entire structure.

For asset owners, this frequently represents a cultural shift. Tokenisation exposes assumptions that may have been implicit in traditional asset structures, forcing explicit decisions around control, transparency, and accountability. It also demands closer coordination between legal, finance, operations, and technology teams than many organisations are accustomed to.

Where these elements are aligned into a single, logical framework, tokenisation becomes a durable institutional solution, capable of sustaining long-term capital strategies and regulatory engagement. Where they are not, tokenisation remains an experimental initiative, vulnerable to regulatory pushback, investor scepticism, or operational friction.

Complexity Is a Challenge

The UAE has positioned itself as one of the most credible and commercially viable environments globally for institutional RWA tokenisation. Its regulatory posture, market infrastructure, and engagement model provide asset owners with a framework for assessing and implementing tokenisation with a high degree of confidence.

That said, the UAE’s advantages do not eliminate complexity. They reward asset owners and issuers who approach tokenisation as a structural, regulatory, and governance challenge rather than a technology launch or branding exercise.

In institutional RWA tokenisation, the difference between concept and execution is not incremental. It is decisive. Real value is created not at the point of issuance, but in the quality of the framework that supports the asset over its lifecycle.

According to the company, participants on 360X can trade five xStocks instruments, CRCLx, GOOGLx, NVDAx, SPYx and TSLAx, against stablecoins. The listing broadens institutional access to the xStocks standard and aims to support further growth in trading volumes and unique holders.

Track Established Equity and ETF Markets

xStocks launched last year and have reportedly generated nearly 20 billion dollars in total trading volume since then. Each token is backed one-to-one by the underlying equity or ETF, which a licensed custodian holds in a bankruptcy-remote structure.

Continue reading: From Chat to Stock: xStocks Puts Tokenized U.S. Equities Inside TON Wallet on Telegram

Mark Greenberg, Global Head of Consumer and Vice President of Product for xStocks, highlighted that the demand has come from investors who want digital instruments that track established markets.

“The rapid adoption of xStocks reflects strong global demand for digitally native instruments that provide exposure to established financial markets,” said Greenberg. “Integrating with a leading distribution channel like 360X means Deutsche Börse Group clients can now access one of the most liquid ecosystems for tokenized financial instruments.”

He added that integration with 360X gives Deutsche Börse Group clients access to a liquid ecosystem for tokenized financial instruments and enables round-the-clock trading with instant settlement.

Aiming for Round-the-Clock Trading

360T is Deutsche Börse Group’s global FX trading platform, focused on institutional foreign exchange and short-term money market products, and now also offers an integrated institutional crypto spot venue. 360X, by contrast, is a separate regulated secondary trading venue for tokenized financial instruments, including credits, rates, equities and funds.

The latest partnership between the crypto exchange and Deutsche Börse Group spans foreign exchange, custody, settlement and tokenized assets. The firms aim to combine regulated market infrastructure with crypto-native capabilities for institutional clients. However, xStocks on 360X not available to U.S. clients.

Earlier, xStocks debut its tokenized equities on the TON blockchain, allowing Telegram’s nearly 100 million users to buy and trade fully backed versions of U.S. stocks and ETFs directly through the app’s built-in TON Wallet. The integration brought traditional financial assets onchain, expanding investment access within Telegram’s fast-growing ecosystem.

While the updated rules formally acknowledge real-world asset (RWA) tokenization for the first time, they do so within a narrowly defined, state-approved structure, while restrictions on all other crypto-related activities are expanded rather than relaxed.

The new circular, jointly issued by eight government ministries, repeals the 2021 notice but replaces it with a broader set of prohibitions. The ban now explicitly extends to RWA activities conducted outside state-approved channels, as well as to the provision of advertising or internet traffic to any unauthorised crypto service.

This may appear to be a relaxation of policy, but in practice it represents a strategic tightening of control. The new framework establishes a highly asymmetrical system.

Under the revised rules, a stricter ban applies to virtual currencies and unauthorised RWA activities. The absolute prohibition on cryptocurrency trading, exchange services and initial coin offerings (ICOs) is reaffirmed and expanded. Any RWA activity that does not receive explicit state approval is now also classified as illegal financial activity.

At the same time, a narrow and tightly controlled channel is created for state-approved RWA. For the first time, the regulations allow RWA to exist legally, but only under two highly restrictive conditions. Domestic RWA must operate exclusively on “designated financial infrastructure”, such as state-owned data exchanges, effectively creating a walled garden under direct government supervision.

Cross-border RWA — including tokenised securities issued abroad using domestic Chinese assets — are now subject to a stringent China Securities Regulatory Commission (CSRC) filing regime, with extensive disclosure requirements and a “negative list” of prohibited asset types.

The filing regime referenced in the new framework is set out in CSRC Document No. 1 (2026), published on the regulator’s official website. The document outlines supervisory requirements for cross-border issuance of asset-backed security tokens backed by domestic assets.

???? China Opens Green Channel for RWA! ????China's CSRC dropped "Document No. 1," establishing a landmark filing system for domestic assets to issue RWAs overseas. This isn't just a regulatory nod; it's a clear roadmap, strictly differentiating RWA from speculative virtual… pic.twitter.com/DqgvVZs2fv

— EnrgiX (@EnrgixWeb3) February 9, 2026

Market Reaction Misreads the Signal

Initial market reaction included a rise in the shares of some Hong Kong–listed firms holding virtual asset licences, as investors interpreted the announcement as a broad opening for the RWA sector.

A closer reading of the regulations, however, suggests a different reality. The opportunity created by the new framework is not for a new class of broadly “compliant” crypto companies, but for a very limited number of entities willing and able to operate within China’s state-controlled financial infrastructure.

The rules also specify that financial institutions may provide services — such as custody and settlement — only to these pre-approved RWA projects, reinforcing the state’s role as the central gatekeeper.

Ultimately, this is a story of China selectively adopting the technology of tokenisation while maintaining firm opposition to the principles of open, permissionless crypto markets.

By constructing a narrow and tightly controlled pathway for RWA, Beijing is shaping its own version of a tokenised future — one in which the state, rather than the market, defines the boundaries of participation

Alongside its payments initiatives, Bybit has continued expanding its financial product offerings. Last year, the exchange introduced 24/5 stock CFD trading on its TradFi platform, allowing users to trade selected stock contracts for difference, including tech names such as NVIDIA, Tesla, and Apple, on weekdays without being limited by U.S. market hours.

Zero-Fee USDC, USDT Transactions on Bybit

Up to February 18, 2026, eligible users in selected markets can buy USDC or USDT with any of seven supported fiat currencies through Bybit One-Click Buy without paying standard transaction fees.

Users must select Mercuryo as their payment method and USDT or USDC as the payment currency to access the promotion.

New @Bybit_Official users are eligible for a special offer on their first $USDC on-ramp transaction via Mercuryo.> 0% Mercuryo fee> €100-500 or equivalent> Only for Japan, the Philippines, the Republic of Korea, Taiwan, Turkey and Vietnam usershttps://t.co/psQiP1B614 pic.twitter.com/0hiWC2hIC9

— Mercuryo (@Mercuryo_io) February 5, 2026

UAE Users Can Deposit, Withdraw AED

Bybit has launched direct bank deposit and withdrawal services in United Arab Emirates dirhams for clients in the UAE. The move follows the exchange’s recent licensing by the UAE’s Capital Market Authority.

Bybit Launches AED Bank Deposits in the UAE with 750,000 AED Reward Poolhttps://t.co/pGbPg8bSkh

— Chainwire (@ChainwirePR) January 28, 2026

Under the new AED service, eligible users can deposit and withdraw funds directly from any UAE bank account registered under the same name as their verified Bybit account. Transactions are typically processed in real time, though some may take up to five business days. The service is available on both the Bybit website and mobile application.

Derek Dai, Regional Head of MENA at Bybit, said that offering direct AED bank deposits "is a step forward to making crypto more accessible to UAE users."

The transaction, executed on Jan. 28 and valued at $1 million at the time, reportedly settled nearly instantly and with minimal fees.

According to the official announcement, it was facilitated using enterprise Lightning infrastructure from Voltage, a Bitcoin payments and infrastructure provider focused on institutional clients.

Lightning is often viewed as experimental. It’s time to see it in production.We successfully sent $1,000,000 over the network.Here’s what that execution looked like.Big thanks to @krakenfx & @voltage_cloud pic.twitter.com/MoeBMDeRHV

— Secure Digital Markets (@SD_Markets) February 5, 2026

Pointing to Faster Settlement for Institutions

“We have moved past the era of questioning Bitcoin's institutional capacity. Now, the only remaining variable is how quickly lagging institutions will abandon legacy systems,” said Mostafa Al-Mashita, Co-Founder and Director of Sales & Trading at SDM.

While the network has been widely used for small consumerpayments, its suitability for large institutional settlements has remained an open question.

Traditional Bitcoin transactions can take minutes or longer to confirm and are subject to fluctuating fees, factors that complicate treasury operations and inter-institution settlements.

SDM said the pilot demonstrated that Lightning could support use cases such as internal treasury movements, large-value settlements, and transfers between trading venues without the delays associated with on-chain settlement.

Read more: Bitcoin Hit $74K and This BTC Price Prediction Suggests It Will Now Rebound to ATH

Kraken, one of the longest-operating crypto exchanges, has supported Lightning for retail payments for several years. The firm said the transaction reflects growing demand from institutional clients for faster settlement options.

Cutting Reliance on Legacy Payment Rails

The transaction relied on Voltage’s managed Lightning infrastructure, which provides liquidity management, node uptime, and operational guarantees designed to meet institutional requirements.

Revolut Launches Bitcoin Lightning Payments in European MarketsDigital bank Revolut announced that it will cooperate with Lightspark to launch a payment function based on the Bitcoin Lightning Network in the UK and some European Economic Area countries. This move aims to use …

— Bpay News (@bpaynews) May 7, 2025

Lightning is a second-layer network built on Bitcoin that enables faster and cheaper payments by moving transactions off the base blockchain.

The network is getting a boost giant fintech firms. Last year, Revolut announced a collaboration with Lightspark to enable payments over the Bitcoin-based Lightning Network, aiming to streamline crypto transfers for users in the UK and selected European markets.

Lightspark, founded by former PayPal executive David Marcus, positions itself as a gateway to the “Money Grid,” a decentralized network for instant global payments. Through this infrastructure, Revolut aims to upgrade its crypto services by enabling smoother Bitcoin transfers.

Crypto.com officially launched OG this week, a consumer-facing prediction markets platform that allows users to bet on real-world outcomes ranging from Super Bowl winners to economic data releases. The app went live following six months of rapid expansion in Crypto.com's prediction markets business, which grew 40 times week-over-week during that period.

The company is now splitting off the product into a separate brand aimed at competing in what it describes as a multibillion-dollar sector. The move comes after crypto platforms increasingly challenged traditional CFD brokers throughout 2025 by expanding into forex, commodities, and stock indices.

Kris Marszalek, co-founder and CEO of Crypto.com, said the company aims to replicate its cryptocurrency branding success in prediction markets. "Our goal is to establish OG as the premier sports prediction market technology with the best customer experience," he said.

Crypto Exchanges Bundle Products Beyond Digital Assets

Major crypto platforms have aggressively expanded their product ranges over the past year. Gate.io added CFD trading on gold, forex, and equities in January 2026. MetaMask reached 1 billion dollars in spot trading volume after adding over 200 tokenized stocks in early February.

Robinhood introduced support for more than 200 tokenized U.S. equities in European markets last summer, while Coinbase sought SEC approval to offer blockchain-based stocks as part of its push toward becoming an "everything-exchange".

Analysts have argued that self-custody models and blockchain infrastructure could eventually disrupt traditional retail trading platforms that have dominated forex and CFD markets for decades.

Crypto.com’s OG Adds Social Features and Plans Margin Contracts

OG operates through Crypto.com Derivatives North America (CDNA), a CFTC-registered exchange and clearinghouse that Crypto.com acquired in 2022. The platform offers event contracts regulated by the Commodity Futures Trading Commission across sports, politics, finance, and entertainment categories.

Users can trade on probabilities aggregated from market activity, which the platform displays as continuously updated forecasts. The app includes social functions that let participants connect with other traders, share predictions, and track performance on a leaderboard.

OG plans to introduce margin trading through Crypto.com's federally licensed futures commission merchant, which would make it the first prediction markets platform to offer leveraged contracts. The feature is subject to CFTC certification.

Competition Intensifies for Prediction Market Users

Coinbase entered prediction markets in December 2025 as platforms increasingly bundled multiple financial products in single interfaces. Backpack launched a unified account system in January 2026 to consolidate prediction contracts from multiple sources.

Bitget Wallet researchers recently argued that wallets are becoming the primary battleground for prediction market access as competition shifts from liquidityprovision to user interface control.

Crypto.com first entered regulated derivatives in late 2024 when CDNA became the first platform to offer CFTC-approved sports event contracts. The company expanded its licenses in October 2025 by securing approval to offer cleared margined derivatives on cryptocurrencies and other assets.

Leadership and Market Positioning

Nick Lundgren, who serves as Crypto.com's chief legal officer, was named CEO of OG. Lundgren led the acquisition of CDNA in 2022 and oversaw the platform's entry into sports contracts as president of the exchange.

"Crypto.com was the first company to offer federally licensed sports prediction contracts in the United States, so launching OG is very fitting," Lundgren said. "We see a massive opportunity to provide fans with an all-encompassing platform where it pays to be right."

The platform is initially focused on the U.S. market but plans international expansion in the near future. OG is available through iOS and Android apps as well as a web interface at OG.com.

Of the total revenue, about 47 per cent came from trading activities, while the remaining 53 per cent came from asset-based activities and other sources.

Kraken’s co-CEO, Arjun Sethi, described the revenue as “well balanced.”

Key Performance Metrics Improved Significantly

The crypto firm’s adjusted EBITDA jumped by 26 per cent to $530.6 million.

Crypto trading activity also increased on the US-based platform, with total transaction volume reaching $2 trillion, a 34 per cent increase. Assets on the platform rose by 11 per cent to $48.2 billion.

Furthermore, the number of funded accounts reached 5.7 million, which was 50 per cent higher than the previous year.

[#highlighted-links#]

Kick-off for the IPO?

The results came as Kraken was preparing to list its shares publicly. Last November, it filed confidentially for an IPO with the US Securities and Exchange Commission (SEC). Although it did not confirm its listing valuation, it recently raised $800 million at a $20 billion valuation.

The exchange is also expanding in Europe and obtained a MiFID II licence by acquiring a Cyprus-based broker earlier this year. It then launched crypto perpetual contracts through the entity for European users.

Today, we’re announcing Payward’s FY 2025 financial results—and alongside them, a clearer articulation of Payward’s role as the unified infrastructure layer powering Kraken and a growing family of products, including @NinjaTrader, @breakoutprop , @xStocksFi, and future products… pic.twitter.com/qbLgG2AI3d

— Kraken (@krakenfx) February 3, 2026

Meanwhile, Kraken is expanding beyond traditional crypto offerings. It offers tokenised stocks and is placing strong focus on that area. Within months of launch, tokenised stocks on its platform reached more than $5 billion across both centralised and decentralised venues, and the number of users passed 37,000. Both figures are likely higher now.

Sethi also noted that he is taking inspiration from the success of Silicon Valley firms such as Amazon, Alphabet, and Meta to expand and grow Kraken’s revenue. The company also sees value in acquisitions and made several last year: the futures trading platform NinjaTrader, the prop trading firm Breakout, the derivatives trading platform Small Exchange, and the trading automation software Capitalise.ai.

“The company’s strategy is not driven by adding standalone products or chasing short-term cycles. It is driven by compounding efficiency across a single system,” Sethi added.

The deal connects 360T’s 3DX trading platform with Bitpanda’s digital asset infrastructure, aiming to give banks and other financial institutions a ready-made route into client-facing crypto products.

Announced in Frankfurt and Vienna on Tuesday, the collaboration combines Bitpanda’s digital asset services with 3DX, 360T’s crypto-asset trading venue.

Deal Structure and Scope

According tothe company, institutional clients will be able to offer comprehensive digital asset services to their end-users while they keepliquidity management inside the existing 360T environment.

Under the model, 3DX continues to operate as the regulated trading venue built on 360T’s established technology stack, which many institutional clients already use for FX and other products.

“Together with Deutsche Börse Group, we are building the infrastructure that will enable the next generation of institutional digital asset adoption. Partnering with 3DX is an important step as we continue to scale our partner solutions,” Lukas Enzersdorfer-Konrad, the CEO of Bitpanda, said.

“We are proud to bring together one of the leading global exchange groups, with one of Europe’s leading digital asset platforms, a testament to the role Europe can and must play globally in digital assets,” he added.

Bitpanda provides the infrastructure and capabilities needed for retail-oriented crypto services, including access to a broad universe of digital assets and operational support.

Read more: Bitpanda Secures Full Dubai License in Major Regulatory Win Outside Europe

360T and Bitpanda position the integration as a way to reduce operational overhead and accelerate time-to-market for firms expanding their digital asset capabilities.

A Bid to Shape Europe’s Digital Asset Rails

Bitpanda presents the agreement as a step forward in its institutional strategy, adding a Deutsche Börse-backed channel to its existing retail and B2B partnerships.

The Vienna-headquartered firm offers more than 650 crypto-assets and works with several institutional partners, underpinned by regulatory permissions that allow it to provide services across the EEA.

360T serves as Deutsche Börse Group’s FX and digital assets arm and runs a multi-bank trading platform that covers FX, crypto-assets, cash and money market instruments for more than 3,000 buy-side clients and over 200 liquidity providers in around 80 countries.

Meanwhile Bitpanda is moving closer to the public markets as it lines up a potential blockbuster listing in Germany’s financial capital.

The exchange is preparing for a potential stock market listing in Frankfurt in the first half of the year, targeting a valuation in the range of 4 billion to 5 billion euros, according to a Bloomberg report. The Austrian firm has reportedly mandated Goldman Sachs, Citigroup and Deutsche Bank to arrange the offering.

According to ChannelNewsAsia, HKMA Chief Executive Eddie Yue told Hong Kong’s Legislative Council on Monday that the review of license applications is nearing completion and that the first batch will be granted next month.

Considerations for Approving Issuers

Yue said the Hong Kong Monetary Authority will focus on several core areas when approving issuers, including risk managementframeworks, anti-money laundering measures and controls, and the quality and composition of assets backing the stablecoins.

???????? JUST IN: Hong Kong Monetary Authority plans to issue first stablecoin licenses in March, with only a limited number expected initially. pic.twitter.com/B1KLbg0eK2

— Cointelegraph (@Cointelegraph) February 2, 2026

Licensed issuers must also comply with local rules when engaging in cross‑border activities, with the possibility of mutual recognition arrangements with other jurisdictions explored at a later stage.

CFD brokers are increasingly turning to stablecoinsbecause traditional card-based payments are slow, expensive, and operationally cumbersome for cross-border flows.

Card transactions often involve 2–4% processing fees, delayed settlements, chargeback risk, and limited card access in some regions, all of which create friction for brokers trying to serve a global, high-volume client base.

“Institutional payment providers are already using stablecoins as a back-end settlement layer, keeping existing client interfaces while cutting 60–80% of correspondent banking costs and compressing settlement times from days to under an hour,” Fractional CPO and product strategy consultant Melissa Stringer recently commented.

What It Means for Brokers

Additionally, for brokers, the launch of a regulatedstablecoin framework in Hong Kong introduces the prospect of using licensed tokens for client funding, margin, and internal settlements, subject to how individual firms update their policies.

Read more: Gold Backed Stablecoins Wait as Hong Kong Holds to Fiat-Only Rules

Liquidity providers could see regulated Hong Kong‑issued stablecoins emerge as a new collateral and settlement layer, particularly for cross‑venue flows in Asia.

Trading platform providers may also need to prepare for potential integration with HKMA‑licensed stablecoins, both at the wallet and payment‑rail level, as regulated digital money gains traction in trading workflows.

Market participants will watch which issuers make the first cut in March and how quickly the HKMA expands the pool. For now, the limited number of licenses points to a regime that prioritizes control and supervisory comfort over rapid scale.

The move signals an effort to extend beyond the company’s roots as a crypto derivatives exchange and into areas traditionally served by banks and multi-asset brokers.

The strategy, outlined by co-founder and CEO Ben Zhou, places Bybit alongside other major crypto platforms seeking to position themselves as unified financial hubs where digital assets and traditional finance coexist. Similar initiatives are already underway at competitors such as Coinbase, highlighting a wider industry trend toward so-called “everything platforms.”

“We are moving beyond niche crypto services to build a broader financial platform where crypto becomes part of everyday financial activity,” Zhou said.

Building Out Retail and Institutional Capabilities

At the centre of Bybit’s strategy are two initiatives aimed at different client segments. The first is MyBank, a planned retail banking layer scheduled for launch in February 2026. As Bloomberg reports, the planned MyBank accounts will include IBAN functionality, allowing users to hold and transfer balances in multiple fiat currencies, subject to regulatory approval.

The second pillar is ByCustody, Bybit’s institutional custody framework. The company says the platform currently secures more than $5 billion in assets for over 30 professional asset managers and serves more than 2,000 institutional clients, representing year-on-year growth in demand from firms seeking segregated accounts and more traditional custody safeguards.

Expanding TradFi Offerings Alongside Crypto

Beyond banking and custody, Bybit is also expanding its traditional finance offering. Having introduced its first TradFi products in 2022, the exchange plans to list around 500 trading pairs by the first quarter of 2026, covering stock CFDs, foreign exchange, commodities and indices.

These products are designed to sit alongside Bybit’s existing crypto markets within a single trading environment. The platform is supported by a global payments network, which Bybit says connects to nearly 2,000 local banks, more than 58 fiat gateways and underpins the issuance of 2.7 million Bybit Cards worldwide.

Regulatory Context Still Taking Shape

So far, there has been no direct public response from regulators or the wider financial community to Bybit’s announcement. The company has repeatedly stressed, however, that all elements of its expanded platform remain subject to regulatory approval and will only be launched once the necessary authorisations are in place.

Bybit has indicated that certain components, including banking-related services that, according to Bloomberg, would involve Georgia-licensed lender Pave Bank, will depend on approval from local regulators, with other jurisdictions potentially involved as the strategy develops.

The emphasis on pending regulatory clearances suggests that the company’s ambitions are conditional on securing a “green light” from supervisory authorities rather than a unilateral rollout.

Implications for Brokers and Banks

For traditional brokers and banks, Bybit’s announcement underscores the direction of travel within the crypto industry rather than an immediate competitive threat.

Large crypto exchanges are increasingly leveraging their global user bases, payments infrastructure and around-the-clock operating models to explore services beyond spot and derivatives trading.

Whether these platforms can establish themselves as full-service financial providers will ultimately depend on execution and regulatory acceptance.

What is clear is that the boundary between crypto platforms and mainstream financial services continues to narrow, raising new strategic questions for incumbents about how they compete, partner or coexist with these expanding ecosystems.

Binance Plans Bitcoin Conversion For SAFU

Binance communicated the SAFU decision in an open letter to the crypto community. The exchange said it considers Bitcoin a core asset within the crypto ecosystem and is prepared to manage market uncertainty while supporting its long-term role.

The SAFU Fund was established in 2018 to protect users during extreme events. It has mainly been held in stablecoins to limit exposure to price volatility. The planned conversion represents a shift away from dollar-linked assets toward direct exposure to Bitcoin.

SAFU Fund Replenished If Value Drops

Binance said it will monitor both the SAFU Fund and Bitcoin’s price. If market volatility reduces the fund’s value below $800 million, the exchange said it will add Bitcoin to restore the fund to $1 billion.

???? LATEST: Binance announces it will convert its SAFU fund's ~$1B stablecoin reserves into BTC over the next 30 days, with plans to replenish to $1B if Bitcoin drops below $80K. pic.twitter.com/2NEIi6d2vD

— Cointelegraph (@Cointelegraph) January 30, 2026

In the letter, Binance said, “This initiative is part of Binance’s long-term commitment to the industry, and we will continue to advance related work and gradually share more progress with the community.”

The exchange also referred to wider pressure on crypto platforms to improve risk management, governance, and operational standards.

Binance said that by late 2025 it had verified about $162.8 billion in user assets through its Proof of Reserves system, covering 45 asset categories.

Crypto Risk Scrutiny Follows Trust Wallet

The SAFU decision comes amid broader scrutiny of risk management across the crypto sector. About a month earlier, Trust Wallet, a crypto wallet platform linked to Binance founder Changpeng Zhao, reported a security incident that led to losses of at least $7 million in digital assets.

The move comes as crypto deposits gain traction across the retail brokerage sector. In November 2025, eToro, a social trading and multi-asset brokerage platform, introduced crypto deposits in the UAE, citing demand from clients accustomed to a crypto-native payment experience.

How Binance Pay Fits into Match2Pay

Binance Pay operates within the broader Binance ecosystem, which serves more than 300 million users globally. Around 45 million users actively transact through Binance Pay, which has processed more than $250 billion in payments since launching in 2021 and is used across Europe, the Middle East, Africa, Asia, and Latin America.

Merchants can enable Binance Pay through Match2Pay and access Binance users via existing dashboards, webhooks and payment workflows, without changes to their operational setup.

Unlike on-chain transfers, Binance Pay functions as an internal payment network, allowing deposits to be credited instantly without waiting for blockchain confirmations. Match2Pay says this reduces common failure points such as incorrect network selection, address errors, variable fees, or transactions remaining pending.

Because Binance Pay users are already verified through Binance’s KYC process, the company expects fewer rejected deposits and lower support requirements for merchants. Each transaction is handled through a hosted checkout page, with payment status updates delivered via Match2Pay’s existing API workflow.

“Merchants want crypto deposits that are reliable and easy for users to complete,” said Andrey Kalashnikov, Head of Match2Pay.

Why Crypto Deposits Matter to Brokers

Crypto deposits have become a strategic issue for retail FX and CFD brokers, reshaping acquisition, retention and operational models. Earlier Shift Markets highlighted that without native crypto deposit capabilities, brokers often force clients to route funds through exchanges, weakening control over onboarding and limiting access to transaction-level data that informs risk management and client profiling.

Industry data show that stablecoins – cryptocurrencies designed to maintain a fixed value, typically pegged to the US dollar – now account for more than 60% of deposit volumes in some markets. In 2025, Australia-based multi-asset broker Eightcap reported stablecoins making up between 10% and 20% of global deposits, rising to around 40% in Latin America and Southeast Asia.

Stablecoins have moved closer to the financial mainstream following regulatory developments in the United States. The passage of the GENIUS Act in July 2025 established a formal framework for stablecoin issuance and oversight, adding regulatory clarity and reinforcing their role as a mainstream funding instrument rather than a niche alternative.

In his first public speech as the Chair, Michael Selig said he has directed CFTC staff to withdraw the 2024 event contracts rule proposal that would have prohibited political and sports‑related event contracts.

“I have directed CFTC staff to withdraw the 2024 event contracts rule proposal that would prohibit political and sports-related event contracts and the 2025 staff advisory, which cautioned registrants about offering access to sports-related event contracts due to ongoing litigation.”

.@ChairmanSelig and @SECPaulSAtkins: Team Trump readies crypto plan so Americans can count on their future: https://t.co/ObfRCCv3h5

— CFTC (@CFTC) January 29, 2026

Selig said the advisory, issued with the aim of flagging legal risk, had instead “contributed to uncertainty” in the market and needed to be rolled back.​

2024 Event Contract Ban Pulled Back

Selig framed the reversal as the first step in a broader reset of the agency’s approach to prediction markets, which he called “event contracts” and said have operated within the CFTC’s jurisdiction for more than two decades.

He has now ordered staff to begin drafting a new event‑contracts rulemaking designed to provide “clear standards” and legal certainty for exchanges and intermediaries.

The chairman also instructed staff to reassess the CFTC’s role in pending federal court cases involving jurisdictional issues and to coordinate with the SEC on a joint interpretation of Title VII definitions to better distinguish between commodity options, security options, swaps and security‑based swaps.​

Keep reading: New CFTC Chief Previously Led SEC's Crypto Task Force – A Clear Signal to Markets

At the same time, Selig used the speech to set out “Project Crypto,” a formal partnership with SEC Chairman Paul Atkins that will create a shared federal framework for digital asset markets.

Joint “Project Crypto” and Perps Onshoring

The initiative will focus on a common crypto asset taxonomy, clearer jurisdictional lines between the agencies and the removal of duplicative compliance requirements that have pushed activity offshore.

Selig backed Atkins’s view that “most crypto assets trading today are not securities” and has asked staff at both agencies to consider joint codification of Atkins’s taxonomy as an interim measure while Congress finalizes broader market‑structure legislation.​

Beyond prediction markets, Selig directed CFTC staff to develop rules expanding eligible tokenized collateral, onshoring “true” perpetual futures and clarifying when leveraged retail crypto contracts can rely on the “actual delivery” exception off‑exchange.

He also floated the creation of a new designated contract market category for retail leveraged crypto trading and signaled that the CFTC will explore safe harbors and potential innovation exemptions for software developers, non‑custodial wallets, DeFi protocols and other on‑chain infrastructure.

According to the official announcement, the platform operates as a licensed Crypto-Asset Service Provider under the EU’s Markets in Crypto-Assets Regulation and falls under the supervision of Austria’s Financial Market Authority.

The structure gives KuCoin EU a single regulatory base from which it can serve clients across most of the EEA. The launch marks one of the first major rollouts of a MiCA-aligned venue by a global exchange group.

Vienna Launch Marks Shift to Regulated Access

KuCoin EU announced the platform at a VIP gala at Vienna’s Spanish Riding School. Managing Directors Christian Niedermueller, Sabina Liu and Audrey Lim activated the platform live on stage.

Vienna ???????? was epic.Great to be on the ground for the KuCoin EU event and to see KuCoin officially secure their MiCA license a a big milestone for the exchange and for the European crypto space in general.Beautiful venue, lots of interviews, and a clear signal of what’s coming… pic.twitter.com/LXrXz9t3MC

— Sjuul | AltCryptoGems (@AltCryptoGems) January 28, 2026

The exchange framed the launch as the result of detailed work to match technology and operations with European regulatory requirements. Liu highlighted Europe’s importance as a financial hub and positioned KuCoin EU as a deliberate long-term bet on the region.

Compliance-First Growth from an Austrian Hub

The Austrian hub model allows KuCoin to plug into the EEA via MiCAR while answering directly to a national supervisor. The structure mirrors the direction of travel for many large exchanges as the EU tightens rules on unlicensed offshore platforms and demands higher standards on conduct, transparency and asset protection.

Continue reading: Capital.com’s Crypto Ambitions Become Imminent as It Secures a MiCA License in Cyprus

At launch, KuCoin EU offers spot trading, euro deposits and withdrawals, and local customer support for European users. The launch comes as crypto exchanges shift focus to traditional markets. For instance, rival Bybit has announced plans to roll out retail banking services in February.

Unveiled by CEO Ben Zhou during a live keynote, the service will reportedly provide users with personal IBAN accounts for sending and receiving funds in multiple currencies, with U.S. dollar transfers available at launch.

Additionally, Bitpanda is reportedly gearing up for a Frankfurt stock market listing in the first half of 2026, aiming for a valuation between €4 billion and €5 billion. While a first-quarter debut remains possible, the company has yet to finalize its plans, and the timeline could still change.

This is the central argument of a new 2026 outlook report from Bitget, which examines how fragmentation across multiple platforms is reshaping where competitive advantage is likely to form.

The analysis comes as prediction markets are shattering records. On-chain data from Dune Analytics shows daily trading volume hit an all-time high of $814 million on January 21, putting the market on pace to easily surpass December's record $11.5 billion in monthly volume.

LATEST: ???? Prediction markets hit an all-time daily record of $814 million in volume on Sunday, putting January on pace to surpass December's $11.5 billion in volume, according to Dune Analytics data. pic.twitter.com/COhcI8LW6e

— CoinMarketCap (@CoinMarketCap) January 21, 2026

Why Wallets Are Emerging as the Distribution Layer

However, this activity is spread across a fragmented landscape of successful but siloed platforms like Kalshi, Polymarket, and the newly launched Opinion.

According to the Bitget report, this very fragmentation is what’s causing the competitive focus to evolve. "As supply improves, competition is no longer centered on whether platforms can list enough markets," the report states. "Instead, differentiation increasingly occurs at the interface layer – where users discover events, interpret probabilities, and execute trades."

The report argues that digital wallets are well positioned to become the primary access point for prediction markets. By bringing event discovery, data visualisation and trade execution from multiple platforms into a single workflow, wallets could address the fragmentation that currently defines the sector.

In this model, the wallet evolves beyond a passive container for holdings. Instead, it becomes an event-driven interface where users can interpret probabilities, form views on real-world outcomes and act on them financially without switching between multiple platforms.

A similar direction has been highlighted by venture capital firm Andreessen Horowitz (A16z). In recent analysis, the firm suggested that the next phase of prediction markets will rely on tighter integration with AI and crypto-native technologies, including user verification and enhanced data layers.

For the B2B audience of brokers and fintech developers, the takeaway from Bitget's report is clear. As prediction markets become a core feature of the modern financial landscape, the primary strategic opportunity may no longer lie in building another siloed exchange, but in creating the best integrated "front door" that gives users a single, intelligent point of access to all of them.

This is the central argument of a new 2026 outlook report from Bitget Wallet, which examines how fragmentation across multiple platforms is reshaping where competitive advantage is likely to form.

The analysis comes as prediction markets are shattering records. On-chain data from Dune Analytics shows daily trading volume hit an all-time high of $814 million on January 21, putting the market on pace to easily surpass December's record $11.5 billion in monthly volume.

LATEST: ???? Prediction markets hit an all-time daily record of $814 million in volume on Sunday, putting January on pace to surpass December's $11.5 billion in volume, according to Dune Analytics data. pic.twitter.com/COhcI8LW6e

— CoinMarketCap (@CoinMarketCap) January 21, 2026

Why Wallets Are Emerging as the Distribution Layer

However, this activity is spread across a fragmented landscape of successful but siloed platforms like Kalshi, Polymarket, and the newly launched Opinion.

According to the Bitget Wallet report, this very fragmentation is what’s causing the competitive focus to evolve. "As supply improves, competition is no longer centered on whether platforms can list enough markets," the report states. "Instead, differentiation increasingly occurs at the interface layer – where users discover events, interpret probabilities, and execute trades."

The report argues that digital wallets are well positioned to become the primary access point for prediction markets. By bringing event discovery, data visualisation and trade execution from multiple platforms into a single workflow, wallets could address the fragmentation that currently defines the sector.

In this model, the wallet evolves beyond a passive container for holdings. Instead, it becomes an event-driven interface where users can interpret probabilities, form views on real-world outcomes and act on them financially without switching between multiple platforms.

A similar direction has been highlighted by venture capital firm Andreessen Horowitz (A16z). In recent analysis, the firm suggested that the next phase of prediction markets will rely on tighter integration with AI and crypto-native technologies, including user verification and enhanced data layers.

For the B2B audience of brokers and fintech developers, the takeaway from Bitget Wallet's report is clear. As prediction markets become a core feature of the modern financial landscape, the primary strategic opportunity may no longer lie in building another siloed exchange, but in creating the best integrated "front door" that gives users a single, intelligent point of access to all of them.

The launch is expected in the coming weeks, according to a statement by the firm.

Across retail brokerage, stablecoins have been gaining ground as firms add them to their payment stacks for deposits and withdrawals.

Fidelity's Coin - Bridging the Gap Between TradFi and Crypto

The token, to be known as the Fidelity Digital Dollar (FIDD), will be issued by Fidelity Digital Assets, National Association, a national trust bank. It will be available to both retail and institutional investors.

“We have a long-standing belief in the transformative power of the digital-assets ecosystem,” said Mike O’Reilly, President of Fidelity Digital Assets, adding that the firm has spent years researching and advocating the benefits of stablecoins.

Stablecoins run on blockchain infrastructure and are typically backed by cash or short-dated government securities. Unlike volatile cryptocurrencies such as Bitcoin, their value is designed to remain stable, most commonly pegged to the US dollar.

The largest of them, Tether, has long dominated the market but has also attracted sustained scrutiny over the quality and liquidity of its reserves.

Those concerns have eased somewhat recently as the issuer strengthened disclosures and benefited from a surge in returns on reserve assets, emerging as one of the biggest winners of 2026’s sharp rally in gold.

The reserves backing FIDD will be managed by Fidelity Management & Research Company, its flagship asset-management arm. The stablecoin will be transferable to any Ethereum mainnet address and available on cryptocurrency exchanges.

Stablecoins Coming of Age

The timing reflects a marked shift in regulatory and commercial sentiment. According to a16zcrypto, the crypto arm of Andreessen Horowitz, roughly $9trn in stablecoin transactions (excluding inorganic activity) were processed on blockchain rails between 2024 and September 2025. What was once an experimental payment rail is fast becoming a mainstream one.

Regulatory clarity has helped. The EU’s Markets in Crypto-Assets (MiCA) regulation and the US's GENIUS Act have provided long-awaited rules for stablecoin issuers, reducing uncertainty for financial institutions and brokers.

Adoption of stablecoin for deposits and withdrawals by retail CFD brokers has accelerated accordingly. Eightcap, a Melbourne-based firm that integrated stablecoin payments as early as 2020, reported that by 2025, such tokens accounted for 10-20% of global deposits, rising to 40% in parts of Latin America and South-East Asia, where banking infrastructure is often unreliable. In January 2026, US-based Interactive Brokers, a much larger broker with CFDs only a portion of its service in certain markets, announced it's allowing eligible clients of its US subsidiary to fund their brokerage accounts using stablecoins. Instant settlement and round-the-clock access are increasingly the selling points.

The proposed ownership limits come amid broader regulatory moves in South Korea’s crypto market. The government is preparing to expand anti‑money laundering rules by extending the crypto Travel Rule to transfers below $680.

The change follows the Virtual Asset Users Protection Act, which took effect in July 2025 and bans insider trading, market manipulation, and illegal trading of virtual assets. Exchanges will now be required to collect and share sender and receiver information for smaller transfers.

Digital Asset Law May Limit Shareholding

The remarks suggest the regulator plans to push ahead with the proposal despite resistance from industry participants and concerns from the ruling Democratic Party of Korea.

The FSC is reportedly reviewing a cap of about 15 to 20 percent on controlling shareholders’ stakes. The provision is expected to be included in the tentative Digital Asset Basic Act, considered the second phase of the country’s virtual asset legislation.

Financial Services Commission Chairman Lee Eog-weon formally stressed Wednesday the need to limit the ownership stakes of major shareholders in virtual asset exchanges.https://t.co/zpV4sxM29I

— The Korea Times (@koreatimescokr) January 28, 2026

South Korea Targets Ownership Concentration Risks

Lee said existing rules, including the Act on Reporting and Using Specified Financial Transaction Information and the Act on the Protection of Virtual Asset Users, focus mainly on anti-money laundering and investor protection. “The proposed shift to an authorization system would effectively grant exchanges permanent operating status,” he said, adding that exchanges would need governance rules that reflect their larger role.

He noted that once licensed, exchanges would no longer be treated simply as private enterprises but would assume characteristics similar to public infrastructure. “Excessive concentration of ownership could increase the risk of conflicts of interest and undermine market integrity,” Lee said. He also pointed out that securities exchanges and alternative trading systems already face ownership limits.

The proposal is part of an effort to integrate crypto exchanges into the mainstream financial system, improving accountability, transparency, and public oversight.

Upbit, Coinone Stakes May Be Capped

The joint council of domestic exchanges, including Upbit, Bithumb, and Coinone, has opposed the cap, warning it could hinder the sector’s development. At Upbit, Chair Song Chi-hyung and related parties hold over 28 percent of shares, while Coinone founder Cha Myung-hoon controls about 53 percent.

Lee said discussions with the ruling party are ongoing. “Consultations with the National Assembly and relevant ministries will continue to ensure the bill moves forward without unnecessary delays,” he said.

FinanceMagnates.com has also learned that the company is monitoring the situation but does not plan to join the rush into traditional assets seen among competitors, fueled by record-high prices for gold and silver.

OKX Debuts “Self-Custody” Crypto Card in Europe

The OKX Card works with 150 million Mastercard merchants and integrates with Apple Pay and Google Pay. According to the press release, users can spend stablecoins stored in their own wallets, with funds automatically converted to local currency at the point of sale. The exchange says there are no transaction fees and no foreign exchange costs.

“OKX Card is uniquely integrated with our Smart Wallet architecture,” Erald Ghoos, CEO of OKX Europe, told FinanceMagnates.com. “It provides a direct bridge between self-custodied assets and the real economy with no transaction fees and a seamless user experience within the OKX app.”

The card runs on EU payment licenses and operates under MiCA regulations. OKX publishes monthly Proof of Reserves reports and says its approach differs from competitors, who require users to deposit funds into custodial wallets before spending.

While it is true that the OKX Card is integrated with OKX’s Smart Wallet, which is a self-custody solution (the user is responsible for their own private keys), at the moment, when a payment is made, the cryptocurrency must pass through OKX’s infrastructure to be converted into fiat and processed through Mastercard’s network. In practice, this creates a brief custodial moment during the transaction.

Crowded Crypto Card Space

The launch comes as payment cards have become a standard feature among large crypto exchanges. Binance introduced its debit card back in 2020, while Kraken recently linked its Krak Card rollout to MiCA compliance.

Earlier this month, Crypto.com partnered with Stripe to let merchants accept crypto at checkout while receiving fiat.

During the launch period, VIP users get up to 20% cashback in crypto on eligible purchases, while other customers receive 15%. The exchange hasn't specified how long the promotion will last but said it plans to maintain “competitive crypto cashback” over the long term.

When asked how the company profits from zero fees and high cashback, Ghoos said the card serves as an ecosystem play.

“By removing transaction and FX costs, we're making it easier for users to stay active within the wider OKX ecosystem, where revenue is generated through regulated trading, earning, and financial services,” he explained.

OKX obtained its MiCA license a year ago. In the meantime, Malta, where the company’s European operations are based, imposed a $1.2 million fine on the exchange for past anti–money laundering failures. Regulators also examined a potential link between OKX and the laundering of about $100 million originating from the Bybit exchange.

Exchange Avoids TradFi Asset Rush

While OKX is pushing into payments, it's taking a different stance on another trend sweeping crypto platforms.

Rival exchanges like Bitget and BingX have jumped into gold and traditional asset trading as precious metals prices surge. Binance added silver perpetual contracts earlier this month after silver rallied nearly 120% year-over-year.

Ghoos said OKX isn't rushing into that space. “We're watching the gold and traditional asset rally closely, but we're not rushing into real-world assets,” he told FinanceMagnates.com.

“Our priority is to continue building institutional-grade crypto infrastructure with strong liquidity, risk controls, and regulatory compliance.”

He also claimed that the payment card itself brings digital assets closer to traditional finance without compromising on security standards.

“At the same time, the OKX Card brings digital assets closer to everyday TradFi payments, allowing us to follow rigorous standards for trust and utility,” he said.

Regulation Seen as Competitive Advantage

Asked about customer concerns over MiCA and the new DAC8 tax reporting framework, Ghoos dismissed the idea that users would flee to unregulated platforms.

“Security is our foundation: we operate fully within the MiCA framework,” he said. “While unregulated platforms exist, we believe the long-term winners will be those who provide security, trust, and full compliance, which are essential for mass adoption.”

The exchange claims more than 100 million users globally. In October 2025, the exchange partnered with Standard Chartered, which became OKX custodian in the EEA region.

Decentralised finance has approached FX-style trading for years, initially at the margins in low-volatility and stablecoin-to-stablecoin pools.

On-chain markets must now deliver FX-grade behaviour: tight spreads at scale, continuous two-way liquidity during stress, and the ability to absorb large notional trades while maintaining market structure.

Why FX Has Been Hard to Replicate On-Chain

Traditional FX markets are built around depth, resilience, and constant two-way pricing. On-chain AMMs have struggled to match this for several reasons. Many designs work only for stablecoins. They become inefficient as trade size increases or rely on external oracles and off-chain pricing, reintroducing the intermediaries DeFi aimed to avoid.

As a result, meaningful FX and low-volatility trading has largely remained the domain of centralised exchanges and OTC desks. For brokers and trading firms, AMMs have rarely been a serious alternative for large or time-sensitive FX-style flows.

How AMM Designs Have Approached FX Behaviour

Some on-chain designs already display FX-like characteristics under specific conditions. Concentrated-liquidity AMMs such as Uniswap V3 can deliver deep liquidity and low slippage for stable or tightly correlated pairs.

By allowing liquidity providers to deploy capital within narrow price ranges, these models work well for low-volatility environments typical of FX-style trading in calm markets.

However, they rely on active liquidity management. During sharp price moves, liquidity can quickly fall out of range, increasing price impact for larger trades unless positions are continuously rebalanced.

More flexible AMM frameworks, such as Balancer, take a different approach. By supporting pools with multiple assets and configurable weightings, these designs can be tuned for low-volatility or basket-style trading, with fee structures adjusted to reflect expected risk.

This flexibility can improve resilience in certain scenarios, but execution quality remains sensitive to pool configuration and does not fully automate liquidity rebalancing during stress.

What Design-Level Data Shows

Independent research comparing different AMM liquidity designs highlights why FX-grade behaviour remains difficult to achieve on-chain. In volatile market conditions, AMMs that automate liquidity concentration and actively recentre it around the prevailing price behave materially differently from passive or manually managed models.

For large trades - including $10 million BTC/USD swaps during periods of heightened volatility - such designs delivered better execution in roughly 80% of observed blocks, with average pricing improvements of around 2% compared to conventional concentrated-liquidity models with similar total value locked.

https://t.co/Dylc7iLXjl

— Pangea (@in_pangea) January 9, 2026

More important than headline slippage figures was how liquidity behaved under stress. During abrupt sell-offs, pools with automated re-concentration mechanisms continued to execute large trades, with price impact normalising relatively quickly rather than remaining dislocated for extended periods.

Why FX Behaviour Matters for DEX Adoption

These dynamics underline a broader shift in how decentralised liquidity is being approached. As DEXs seek relevance beyond crypto-native flows, the question is no longer whether on-chain venues can beat centralised markets on price in calm conditions, but whether they can remain functional when volatility rises.

For on-chain markets to be relevant for brokers, trading desks, or treasury-style use cases, they must behave less like speculative pools and more like FX venues — resilient, two-sided, and functional under pressure. Whether FX-style AMMs can sustain that behaviour at scale remains an open question.

But the direction is clear. DeFi’s FX experiments are moving beyond proofs of concept and toward answering fundamental questions with market structure rather than marketing.

According to the registration statement, the proposed Grayscale BNB ETF would hold BNB directly and issue shares designed to reflect the token’s market value, minus fees and expenses. The fund is intended to trade on Nasdaq under the ticker symbol GBNB, subject to regulatory approval, Cointelegraph reported.

Grayscale Files SEC Approval Spot BNB

If approved, the ETF would allow US investors to gain regulated exposure to BNB without needing to custody the token themselves or hold it on crypto exchanges.

BNB is the native token of the Binance ecosystem and is used to pay transaction fees on the BNB Smart Chain, participate in onchain governance, and receive trading fee discounts on Binance’s platform. At the time of filing, BNB was the fourth-largest cryptocurrency by market capitalization, valued at $120.5 billion.

Grayscale Joins VanEck BNB ETF Race

Grayscale’s filing follows previous efforts to bring a BNB-linked ETF to the US market. Investment manager VanEck has also submitted a registration statement for a BNB ETF, including an amended Form S-1 seeking a Nasdaq listing under the ticker VBNB, and is further along in the regulatory review process.

???? @Grayscale has filed an S-1 with the SEC to convert its BNB Trust into a spot BNB ETF, following the trust’s Delaware registration on January 8.The ETF is planned to trade on NYSE Arca and would be backed 1:1 by BNB held in cold storage. If approved, it would give investors… pic.twitter.com/mv4UC2Qr7D

— Watcher.News (@watchernewsx) January 23, 2026

The move reflects Grayscale’s strategy to expand its crypto investment offerings after the approval of spot Bitcoin ETFs in the United States. Spot Bitcoin and Ether ETFs now hold more than $100 billion in assets under management, showing strong investor demand for regulated crypto exposure.

A BNB-linked product would provide access to a token closely tied to a major crypto exchange ecosystem, extending investor options beyond base-layer networks.

Crypto ETFs Gain Ground in Costa Rica, Australia, and UK

Costa Rica’s Banco Nacional plans a spot Bitcoin ETF, its first crypto product offered through a bank, priced in USD with a $100 minimum. Internationally, Australia’s ASX launched the VanEck Bitcoin ETF, and the UK’s FCA approved two WisdomTree crypto ETPs, with 21Shares preparing another. These developments reflect growing demand for regulated crypto investment products.

The FCA recently outlined requirements for firms planning to carry out regulated cryptoasset activities. Applications for authorisation under the Financial Services and Markets Act are expected to open in September this year, ahead of the regime’s launch in October next year.

Firms must comply with governance, operational resilience, financial crime, and Consumer Duty requirements. Existing FSMA-authorised firms must vary their permissions, while firms currently registered under anti-money laundering or payment regulations will need full authorisation, as “there will be no automatic conversion.”

Scope of the Consultation

The consultation seeks input on how the Consumer Duty, conduct standards, dispute resolution, safeguarding, and other regulatory requirements should apply to cryptoasset businesses. It also covers the treatment of retail collateral in crypto borrowing, the use of credit to purchase cryptoassets, and guidance on where firms should be based.

FCA Objectives

The FCA said the proposals aim to “deliver good outcomes for customers while supporting them to navigate their financial lives” and to maintain a market “where innovation can thrive, but where people understand the risks.”

The regulator noted that while it continues to develop the regime following government legislation, crypto remains largely unregulated outside rules on financial promotions and financial crime.

Key Areas in the Consultation

Specific areas addressed in the consultation include the Consumer Duty, which provides guidance to ensure firms deliver fair outcomes for retail customers; dispute resolution rules covering complaints handling and redress; and Conduct of Business Standards, which apply key conduct rules to crypto activities.

Other measures cover credit for crypto purchases, training and competence standards for staff, the categorisation of crypto firms under the Senior Managers and Certification Regime, regulatory reporting requirements, safeguarding rules for custody of specified investment cryptoassets, retail collateral protections, and location policy guidance.

Previous Proposals and Guidance

The FCA said the consultation follows earlier proposals issued in December 2025, which outlined the application of crypto rules in line with traditional finance principles. These included providing clear information to consumers, proportionate requirements for firms, and flexibility to support innovation.

The regulator also highlighted previous consultations onstablecoin issuance, cryptoasset custody, prudential rules, conduct of business, and market abuse.

Speaking on a panel in Davos, Zhao, who is officially "retired" from Binance, signaled a significant pivot from corporate leadership to global crypto advocacy.

From Exchange Builder to Sovereign Advisor

His new focus is on helping governments raise capital by turning national assets—like state-owned oil or telecom firms—into tradable, blockchain-based tokens.

“I’m talking with probably a dozen governments about tokenizing some of their assets,” Zhao said. “This way the government can actually realize the financial gains first and use that to develop those industries.”

This is not just theoretical. Zhao's claims are backed by a history of high-level government engagement. He has previously served as an advisor to the Pakistan Crypto Council and has held discussions with officials in Malaysia and Kyrgyzstan regarding their digital asset strategies.

His new position as a "dealmaker-at-large" untethered from a single exchange allows him to act as a more neutral advocate for the technology itself.

It marks a new phase in the industry's maturation, where influential figures can drive adoption at the national level, independent of their former corporate roles.

CZ: "I'M TALKING WITH PROBABLY A DOZEN GOVERNMENTS ABOUT TOKENIZING SOME OF THEIR ASSETS." pic.twitter.com/MiVeCeAaxo

— The Wolf Of All Streets (@scottmelker) January 22, 2026

Payments Remain the Hardest Part

Adding a dose of realism to the discussion, Zhao also candidly admitted that crypto has so far failed to conquer the world of everyday payments. “Payments is something that we have tried and not really conquered,” he noted. “We’ve tried, but nobody really pays in crypto.”

However, he pointed to the future, suggesting that the native currency for artificial intelligence (AI) agents will inevitably be cryptocurrencies, creating a massive new use case for digital payments.

Zhao’s appearance at Davos is his most high-profile since being pardoned by U.S. President Donald Trump in October 2025 for anti-money laundering violations.

While he has publicly stated he has no plans to return to Binance, his active engagement with world governments confirms that he remains one of the most influential figures in the digital asset space, now operating on a new, sovereign stage.

This momentum, coupled with a discernible shift in administrative posture from enforcement-heavy to innovation-friendly, signals a new era for digital assets.

Why the Howey Test No Longer Fits Crypto

The cornerstone of U.S. securities law, the 1946 Howey test, remains an anachronistic and ill-suited tool for the nuances of a rapidly evolving, often decentralized technological paradigm.

It is my firm opinion that relying solely on this decades-old precedent for a modern, multi-trillion-dollar global market is a fool’s errand that stifles innovation while failing to provide genuine investor protection. A new, crypto-centric framework is not just a regulatory desire; it is an economic necessity.

An Orange Grove Test Meets Decentralized Finance

The original Howey test, born from a dispute over orange groves in Florida, determines a security if there is an investment of money in a common enterprise with a reasonable expectation of profits derived solely from the efforts of others.

This framework, while flexible in its time, struggles to capture the essence of decentralized finance (DeFi), where the efforts of others are often distributed among countless, sometimes anonymous, participants, governed by immutable code rather than a central corporation.

The Securities and Exchange Commission (SEC) has attempted to modernize its application, most notably with 2025 guidance emphasizing the expectation of profit and issuer influence criteria. This still leaves a gaping chasm of uncertainty, particularly for projects aiming for true decentralization.

Legal Uncertainty and the Cost to Institutional Adoption

The current approach fosters an environment where an asset may be considered a security at launch but a commodity later. This legal gray area is what most institutional investors fear to tread, thus hindering mainstream adoption and keeping the U.S. from cementing its crypto capital status.

We need a bespoke instrument, a DeFi Howey, that provides the clear token taxonomy that regulators and builders alike desperately need. This new test must be built on the reality of distributed ledger technology (DLT), not shoehorned into an outdated agricultural precedent.

Toward a Crypto-Centric Regulatory Framework

Drawing on proposals such as Commissioner Hester Peirce’s safe harbor and the functional token taxonomy advanced by industry leaders, I propose a crypto-centric regulatory framework built around four core rules. The goal is to promote U.S. innovation while preserving investor protection.

Rule One: The Decentralization Threshold

A modern framework must establish a clear, verifiable standard for decentralization. Once a network or protocol meets this threshold, it should exit securities law oversight and fall under a commodity framework, likely overseen by the Commodity Futures Trading Commission (CFTC).

Rather than relying on vague claims of “no central party,” regulators should assess measurable factors such as token ownership dispersion, the number of independent validators, and the immutability of smart contracts.

For example, if no single entity, including the founding team, controls more than a defined share—such as 20%—of governance tokens or validation power, the project would qualify. This provides a predictable path from launch to decentralization, addressing one of the industry’s most persistent legal uncertainties.

Does the Howey test still apply to crypto in 2025?Hear @jito_labs Chief Legal Officer @RebeccaRettig1's take on Mined with CoinFundhttps://t.co/BC86JI5xMphttps://t.co/mPWjRdnr2c pic.twitter.com/mkCFwoxr1Z

— CoinFund (@coinfund_io) January 29, 2025

Rule Two: Functional Utility Versus Speculative Intent

The framework should prioritize a token’s actual use within a live network over speculative expectations. Tokens that serve clear, consumptive purposes—such as paying network fees, accessing services, or participating in on-chain governance—should be treated differently from passive investment instruments.

This functional approach better reflects how crypto networks operate and reduces the risk of utility tokens being swept into securities litigation solely due to secondary-market trading behavior.

Rule Three: Transparency and On-Chain Disclosure

Investor protection should be achieved through standardized, on-chain disclosures rather than traditional prospectuses. Projects should provide machine-readable information on audits, token supply and distribution, governance structures, and material risks.

This “code is law, disclosure is compliance” model aligns with the transparency of public blockchains and builds on disclosure principles embedded in the CLARITY Act.

JUST IN: Senator Cynthia Lummis says "most digital assets are not legally securities under the Howey test. The US is behind other countries in creating laws for digital assets. Stablecoins will bring our payment system into the 21st century." ???????? #Cardano $ADA pic.twitter.com/YrfKY9G1Os

— Angry Crypto Show (@angrycryptoshow) February 28, 2025

Rule Four: Intermediary Liability and Consumer Safeguards

Regulation should focus on centralized intermediaries where most retail users interact. The GENIUS Act sets a useful precedent through reserve requirements and AML obligations. Strong oversight of exchanges and service providers can protect consumers without constraining decentralized innovation.

A Narrow Window to Get Crypto Regulation Right

The U.S. is at a pivotal moment. The current legislative momentum offers a rare chance to get this right. By moving beyond the archaic limitations of the Howey test and embracing a bespoke, forward-thinking framework, we can provide the regulatory clarity the market craves, protect investors, and ensure America remains a global leader in the digital financial revolution.

Sticking to the old ways in a new world is a path to irrelevance, and that is a price the U.S. economy cannot afford to pay.

France’s Autorité des Marchés Financiers said Binance was among 90 crypto firms registered in the country that remain unlicensed under MiCA. The regulator said firms must comply with the rules or stop operating in France.

Last year, Binance began restricting services for European users ahead of MiCA’s compliance deadline. The exchange blocked copy trading and asked users to close positions. It also limited products linked to unregulated stablecoins while maintaining spot trading, deposits, and withdrawals. These were among the first large-scale MiCA compliance steps by a major exchange.

Binance Engages HCMC on EU Regulation

A Binance spokesperson confirmed to Cointelegraph that the company had applied for a MiCA license in Greece. The spokesperson said Binance is working with the Hellenic Capital Market Commission.

“We welcome the opportunity to work closely with the HCMC as this new regulation takes shape in the EU and look forward to contributing to the long-term growth of the EU’s digital financial ecosystem,” the spokesperson said.

Germany, Netherlands Lead EU MiCA Authorizations

Public data from the European Securities and Markets Authority show that Greece has not yet issued any MiCA licenses to crypto-asset service providers.

Binance has formally applied for a pan-European license known as MiCA that digital asset firms operating in the continent must obtain before July 1. https://t.co/n7gyOsnOpk

— FORTUNE (@FortuneMagazine) January 22, 2026

Germany and the Netherlands have issued the highest number of MiCA licenses in the EU, with 43 and 22 authorizations. France has granted 11 licenses through the AMF.

MiCA Licensing Expands Beyond Crypto Firms

MiCA licensing is also extending beyond crypto-native firms. Recently, KBC, a Belgian bank, announced plans to launch Bitcoin services and said it expects to obtain a MiCA license in Belgium, which has not yet issued any authorizations.

KuCoin’s European unit has received a MiCA license in Austria. The approval allows KuCoin EU Exchange GmbH to offer regulated crypto services across 29 countries in the European Economic Area, excluding Malta.

That’s why many fintechs, brokers, and startups choose a white label crypto exchange provider, a ready-to-deploy exchange stack you can brand as your own rather than building everything from scratch.

This guide compares five widely discussed options for 2026: Shift Markets, AlphaPoint, PayBito, and SimplifyLabs.io, focusing on what matters most for real-world launches: speed to market, exchange core features, liquidity options, compliance tooling, integrations, and operational fit. Provider capabilities and availability can vary by jurisdiction and implementation, so treat this as a shortlist and validate details through demos, documentation, and contractual terms.

What is a white label crypto exchange provider?

A white label crypto exchange provider supplies the core software and infrastructure needed to run a crypto exchange typically as a branded solution you can customize so you don’t need to build a matching engine, wallets, user management, and back office from zero. White label offerings vary, but often include:

• Exchange core: matching engine, order book, order types, routing, trade history

• Front end & apps: branded web UI (and sometimes mobile apps)

• Back office: admin panel, user permissions, risk controls, reporting, audit logs

• Compliance tooling: KYC/AML integrations, monitoring, flags, and workflows

• Wallets/custody: hosted wallets or integrations with custody providers

• Liquidity options: connectivity to liquidity sources or market making tooling

• Payments/on-ramps: fiat rails and PSP integrations (where available)

Because crypto is a regulated and high-risk market, the “best” provider is usually the one that matches your operating model and jurisdictional requirements, not the one with the longest feature list.

How we evaluated white label crypto exchange providers

White label exchange offerings can look similar on the surface, but the differences show up in operational readiness: execution quality, liquidity access, compliance tooling, security controls, and how “complete” the stack is (exchange core + wallets + admin + integrations).

For this guide, we evaluate each provider across seven areas:

1. Exchange core & scalability: Does the solution provide a production-grade exchange stack (matching engine, order book, order types, uptime/SLA expectations, and back-office controls) appropriate for the target audience (retail, institutional, or both)? Many providers market “rapid deployment” and modularity AlphaPoint and Shift Markets, for example, position their offerings as white-label exchange software stacks geared for launch and scaling.
2. Liquidity options & market depth: Launching an exchange without credible liquidity usually leads to poor spreads, slippage, and low user trust. We look at whether providers offer liquidity connectivity or “liquidity hub / market making” style options as part of the ecosystem. Shift Markets and SimplifyLabs, for instance, explicitly position liquidity-related components in their product messaging.
3. Wallets/custody & asset operations: We consider how the provider approaches wallets (custodial setup, hot/cold segregation messaging, operational security, withdrawals rules, admin permissions). PayBitoPro highlights multi-wallet structure and security features in its white-label exchange materials.
4. Compliance readiness (KYC/AML + Travel Rule awareness): Crypto exchanges often fall under VASP obligations depending on jurisdiction. We evaluate whether the provider supports KYC/AML workflows and whether “Travel Rule” requirements are acknowledged in product messaging (when applicable). FATF updates around Recommendation 16 (“Travel Rule”) highlight the expectation of collecting/transmitting information to improve payment transparency.
5. Fiat rails & payments (where relevant): If your model requires fiat deposits/withdrawals, we factor in whether the provider supports payment integrations or positions fiat connectivity as part of the solution (not always available in every region). AlphaPoint references payment integration as a modular capability, and SimplifyLabs positions crypto-fiat exchange tooling in its offering.
6. Integrations & APIs: We assess how easy it is to connect analytics, CRM, affiliates/IB, risk tools, liquidity venues, and compliance vendors. “All-in-one platform” models may reduce integration needs by packaging modules, while other providers lean into modular builds.
7. Business fit (time-to-launch, customization, and total cost of ownership): We look at how the provider positions deployment time, customization depth, and ongoing operational support.

Important: This is not legal advice. Compliance requirements and product availability vary by jurisdiction, entity, and client type. Always validate with your legal/compliance advisors and through provider documentation/contracts.

Best White Label Crypto Exchange Providers

Shift Markets

Shift Markets positions its Shift Platform as a modular white label crypto exchange stack built for both retail and institutional use. The platform emphasizes front-end customization, API-first flexibility, and an operator-grade back office designed for teams that need control, scalability, and fast deployment.

From a “build vs buy” standpoint, Shift Markets targets operators that want to scale beyond a basic spot venue. In addition to spot trading, the wider suite includes crypto derivatives trading (a core part of the offering), market making and liquidity tools, a digital asset ledger, CryptoPay (crypto payments), and regulatory services to support launches across different jurisdictions.

What stands out (and why it matters)

A practical differentiator is the operator tooling. Shift Markets highlights a back office built for venue control, covering user management, liquidity oversight, real-time monitoring, and configurable permissions for different operational roles.

It also positions the platform as especially broker-friendly, including recent integrations with FX infrastructure, which helps reduce setup friction and makes it easier for brokers to connect existing systems and workflows into a crypto venue.

On the integration side, Shift Markets stresses that its front-end components are API-based, which typically matters for teams that want to connect third-party tools, build custom workflows, or plug into existing fintech systems. The company also maintains a public client SDK that references access to functions such as market data, trading, KYC, and deposits/withdrawals for exchanges running on its technology.

Shift Markets features

• White label crypto exchange with customizable interface and modular deployment options

• Back office suite emphasizing real-time monitoring, liquidity controls, and role-based permissions

• Spot + crypto derivatives trading as part of the platform offering

• Market making and liquidity support to improve market depth and pricing quality

• Digital asset ledger for core exchange operations

• CryptoPay for crypto payment functionality

• 24/7 support for live venue operations

• Compliance and regulatory support to help with licensing and ongoing compliance requirements across many jurisdictions (legal/compliance guidance as part of the go-to-market process)

AlphaPoint

AlphaPoint is positioned as an enterprise-grade white label cryptocurrency exchange software provider, aimed at teams that need a full-stack venue with strong emphasis on security, compliance readiness, and operational controls. On its site, AlphaPoint highlights scalable infrastructure “trusted by 150+ platforms worldwide,” alongside built-in KYC/AML tooling and wallet safeguards.

A useful way to think about AlphaPoint is that it’s designed for operators who want an exchange that can feel “institutional” from day one especially around risk controls, permissions, and the components that support regulated or compliance-heavy environments.

What stands out (and why it matters)

AlphaPoint’s product pages put a lot of weight on multi-layer security architecture, real-time risk management, and integrated compliance tools (including KYC/AML and 2FA), plus custody/settlement components as part of the exchange stack.

Another differentiator is liquidity tooling. AlphaPoint markets a built-in liquidity component (“Remarketer Liquidity Software”) that aims to support trading activity through liquidity sourced from major exchanges, with configurable pricing logic and FX conversion support.

For teams considering expansion beyond spot, AlphaPoint has also publicly announced turnkey technology for perpetual futures infrastructure, positioned around liquidity, risk monitoring, and advanced order types important if your roadmap includes derivatives (where permitted).

AlphaPoint features

• White label exchange software positioned for scalable, high-volume venues.

• Compliance & security focus, including built-in KYC/AML tooling, 2FA, wallet safeguards, and risk management positioning.

• Liquidity tooling (marketed as built-in liquidity from major exchanges with customizable pricing logic).

• Modular architecture (marketed as configurable components rather than a single fixed product).

• Compliance integrations in practice: third-party compliance vendors have published examples of integrating KYC/KYB, AML monitoring, and fraud prevention into AlphaPoint deployments.

PayBito (PayBitoPro)

PayBitoPro is marketed as a white label cryptocurrency exchange and broader “crypto business ownership” platform, positioned for teams that want a packaged launch path with multiple exchange-type modules under one roof (spot, convert, OTC, and more, depending on plan).

A key theme in PayBitoPro’s messaging is speed and breadth: the platform presents itself as something you can deploy quickly and then expand with add-ons (e.g., futures/options, P2P, copy trading, NFT marketplace, merchant payments) as your product matures.

What stands out (and why it matters)

PayBitoPro’s standout is the menu of business models it claims to support. Its pricing page lists modules such as Spot Trading, Convert, OTC, plus additional products like Futures, Options, Copy Trade Marketplace, P2P Market, a Web3 DEX wallet for private key ownership, and other “crypto business” components (e.g., merchant payments, tokenization/NFT marketplace) depending on tier.

It’s also distributed via channels like AWS Marketplace, where the listing describes a trading platform including features such as copy/social trading and “500+ crypto markets,” alongside other business modules (brokerage, custody, merchant payments, tokenization).

PayBitoPro features

• White label exchange positioning for launching a branded crypto exchange.

• Plan-based feature tiers (Basic/Standard/Pro/Mega style framing) with a broad module list.

• Multiple exchange formats presented across the ecosystem (e.g., spot/convert/OTC , plus P2P offered as a separate white-label product).

• Optional “open-source crypto kit” messaging (positioned as a way to host markets/coins on your own domain). Treat this as something to validate carefully in scope and licensing.

SimplifyLabs.io

SimplifyLabs.io positions itself as a provider of white-label crypto exchange solutions built around a “ready-to-use crypto-fiat exchange” model, where you can brand the platform and operate with strong administrative oversight. Its exchange offering is marketed to cover core user flows (buy/sell/swap/convert/store), plus operational controls for monitoring transactions.

A notable part of SimplifyLabs’ positioning is that the exchange stack is presented alongside adjacent products that often matter to operators such as a Liquidity Hub, OTC platform, crypto payment gateway, and crypto cards which can be relevant if your roadmap goes beyond a simple spot exchange.

What stands out (and why it matters)

SimplifyLabs explicitly emphasizes KYC/AML procedures as part of its white-label exchange messaging, which is a critical requirement for many exchange models depending on jurisdiction and license type.

It also markets a Liquidity Hub offering important because early-stage exchanges often struggle with spreads and market depth. In practice, “liquidity hub” can mean very different implementations, but SimplifyLabs clearly puts liquidity tooling at the center of its go-to-market story.

Finally, SimplifyLabs heavily references fiat convenience in its messaging (e.g., Visa/MasterCard integration) and “crypto-fiat exchange” framing, which can be useful if your audience needs card-based onramps but this is always jurisdiction/PSP dependent and should be validated early.

SimplifyLabs.io features

• White label crypto exchange positioned as a branded crypto-fiat exchange with user trading flows (buy/sell/swap/convert) and admin oversight.

• Compliance messaging: highlights AML + KYC procedures as part of the offering.

• Liquidity Hub product positioned to support liquidity provisioning.

• Adjacent modules marketed for exchange operators (OTC platform, crypto payment gateway, and crypto cards).

• Regulatory angle (EU): publishes MiCA-focused content and positions support around MiCA compliance integration for license holders (claims should be validated against your exact regulatory obligations).

HollaEx®

HollaEx® is positioned as a white-label crypto exchange solution built around an open-source exchange kit. The core idea is that you can launch a branded exchange using HollaEx’s tooling and then customize the stack as your needs evolve.

What stands out (and why it matters)

The main differentiator is the open-source foundation. HollaEx maintains an Exchange Kit on GitHub and documentation that covers setup and operation, which can be attractive if you want more transparency and developer control than a fully closed platform.

HollaEx also markets fast deployment for its white-label services (you should treat timelines as estimates and confirm delivery scope in a statement of work).

HollaEx® features

• White-label exchange: positioning with a configurable market/asset setup.

• Open-source Exchange Kit: (GitHub) with components covering exchange/trading, user management, onboarding, and wallet system (as described in the repository).

• Documentation: for platform features and implementation workflows.

• Self-hosted vs cloud-style paths: are referenced across product and ecosystem listings (validate what’s included in your chosen model).

Side-by-side comparison table

Note: This table reflects how each provider markets its white-label offering. Always validate what’s included (and what’s optional) through a demo, documentation, and contract/SLA.

Conclusion

Choosing a white label crypto exchange provider in 2026 is mainly about aligning the platform with your operating model, compliance requirements, and go-to-market priorities, not just comparing feature lists. Providers can differ meaningfully in how they approach exchange infrastructure, liquidity connectivity, wallet/custody setup, integrations, and the level of customization you can realistically achieve during implementation.

Before you commit, focus on the elements that most directly impact user trust and day-to-day operations:

• Execution and reliability: ensure the exchange core supports your expected volumes and offers the controls you need to manage markets, fees, and risk.

• Liquidity reality (not just claims): validate depth, spreads, uptime, and responsibilities through a demo or pilot, and make liquidity expectations explicit in contractual terms.

• Compliance readiness: confirm how KYC/AML workflows are handled, what is configurable, and what remains your responsibility as the operator. In many jurisdictions, exchanges may fall under VASP obligations and related requirements.

• Wallet/custody and security controls: review permissioning, withdrawal governance, audit logs, and available security assurance (e.g., testing and incident processes).

• Integrations and future expansion: assess API coverage and how easily you can add vendors (payments, compliance, analytics, CRM) or extend to new products without major re-platforming.

Ultimately, the right provider is the one that you can operate confidently with clear responsibilities, verifiable security and compliance processes, and a delivery plan that matches your timeline and resources.

FAQs

What is a white label crypto exchange provider?

A white label crypto exchange provider supplies an exchange platform you can brand as your own, usually covering the trading interface, back office tools, and core exchange infrastructure so you don’t have to build everything from scratch. The exact scope varies by vendor (some are exchange-first stacks, others are broader “platform” offerings).

How long does it take to launch a white label crypto exchange?

Timelines depend on customization, compliance setup, banking/payment rails, and the number of integrations. Some providers market launch timelines in weeks (enterprise deployments) while others frame it as a few months for typical implementations. Treat timelines as estimates and confirm delivery milestones in a statement of work (SOW).

Do I need a license to operate a crypto exchange?

In many jurisdictions, running a crypto exchange can fall under virtual asset service provider (VASP) requirements, but rules vary widely by country, product type (spot vs derivatives), and target clients. FATF guidance encourages jurisdictions to regulate and supervise VASPs under a risk-based approach so you should validate requirements with qualified legal/compliance advisors in your intended markets.

What is the “Travel Rule” and does it apply to crypto exchanges?

The “Travel Rule” is FATF’s Recommendation 16 in the context of virtual assets. FATF has updated standards and published materials to improve payment transparency and implementation/supervision related to Travel Rule obligations, which can impact how VASPs collect and transmit originator/beneficiary information for certain transfers. Applicability depends on local implementation and thresholds.

Do white label providers handle KYC/AML for me?

Some providers market built-in AML/KYC features or KYC/AML modules, while others rely more on integrations with third-party vendors. Either way, the exchange operator typically retains responsibility for compliance outcomes (policies, monitoring, reporting, and oversight), so you should clarify exactly what’s provided vs what you must implement.

How do exchanges get liquidity at launch?

Liquidity can be sourced through LP connections, aggregation, market-making arrangements, or “liquidity hub” style tooling depending on the provider and your commercial setup. Several vendors explicitly market “immediate liquidity,” “built-in liquidity tools,” or a “liquidity hub,” but you should verify liquidity depth, spreads, uptime, and responsibilities in writing.

Can I fully customize the platform and integrate my own tools?

It depends on the delivery model. Some solutions emphasize customizable UI/UX and API integration (better for bespoke builds), while others position a more turnkey, “no complex integrations” approach (faster setup, less control). Decide upfront whether you need deep extensibility (APIs, custom workflows) or speed-to-market with standard modules.

What are the biggest costs to plan for (beyond the platform fee)?

Most projects underestimate the “operating” costs: hosting/infra, compliance vendors, monitoring tools, customer support, security reviews, liquidity/market making, and ongoing feature work. Also factor in legal/compliance setup per jurisdiction, plus banking/PSP onboarding (often the longest lead time).

What security due diligence should I do before signing?

Ask for security documentation and operational proof points: role-based access controls, admin audit logs, wallet governance (withdrawal approvals), incident response process, and any available testing summaries (e.g., penetration testing). Also confirm how the provider handles upgrades, vulnerability management, and access to production environments.

Can I add more products later (OTC, cards, payments, derivatives)?

Many vendors market add-on modules (e.g., OTC, payments, cards, or derivatives), but availability is often jurisdiction-dependent and may require additional vendors, approvals, and operational readiness. Treat “module lists” as a roadmap not a guarantee and validate what’s production-ready for your target countries/entities.

The strategy aims to turn long-term Bitcoin holdings into an income-generating position by combining core exposure with actively managed, market-neutral trades.

Dubbed Bitcoin Diversified Yield Fund SP (BDYF), the new offering is an upgrade to the firm's Bitcoin Adoption Fund introduced in 2023, before the arrival of spot Bitcoin ETFs.

Laser Digital Asset Management has launched the upgraded Laser Digital Bitcoin Diversified Yield Fund SP (BDYF) - a tokenised Bitcoin-based fund for institutional and eligible accredited investorsNatively tokenised, with @KAIO_xyz as exclusive tokenisation provider and…

— Laser Digital (@LaserDigital_) January 22, 2026

The earlier vehicle offered straightforward directional exposure, while the new fund seeks to add an income layer to the same underlying asset.

Laser Digital Upgrades Bitcoin Offering

The firm positions BDYF as a long-term, long-onlyBitcoin fund that also deploys diversified market-neutral strategies to generate yield as a stream of income.

Laser Digital describes the launch as a response to rising demand from institutions for tokenized, yield-driven structures rather than simple “vanilla” BTC products.

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“Recent market volatility has shown that yield-bearing, market neutral funds built on calculated DeFi strategies are the natural evolution of crypto asset management,” commented Jez Mohideen, Co-founder and CEO of Laser Digital.

“As an early entrant to this space, the launch of Laser Digital’s upgraded Bitcoin fund allows us to maintain our position and capitalize on the next phase of DeFi, while servicing the needs of Bitcoin holders as well as existing and new institutional investors entering the market.” 

The Bitcoin Diversified Yield Fund targets “excess returns” over and above Bitcoin’s price by monetizing carry-like opportunities in digital asset markets.

Tokenization platform Kaio will serve as the exclusive provider for the structure, while crypto custody firm Komainu will act as the main custodian, reflecting Laser Digital’s focus on using regulated, institutional-grade service providers.

Management: ‘Natural Evolution’ of Crypto Funds

Laser Digital’s executives link the product directly to recent volatility and the development of decentralized finance strategies.

BDYF is open only to certain accredited investors in eligible non-US jurisdictions, with a minimum subscription of 250,000 US dollars, payable in USD or the Bitcoin equivalent.

Laat year, Nomura announced plans to launch the first exchange-traded funds to be cross-listed between Japan and Taiwan. The products aim to give Japanese investors access to Taiwanese assets and Taiwanese investors can access Japanese assets.

​Additionally, the cross-listings also sought to expand diversification options for investors and strengthening financial links between the two regional hubs.

The report provides a detailed, real-world case study of how a sanctioned state is using digital assets to create a “shadow financial layer” outside the traditional banking system.

For brokers and financial institutions, the findings underscore the compliance risks — as well as the enforcement mechanisms — associated with stablecoins.

A Dual-Purpose Financial Tool

According to Elliptic, which mapped the CBI’s wallet infrastructure using leaked documents, Iran’s central bank appears to have used USDT for two primary purposes: domestic FX intervention and sanctions-resistant trade settlement.

On-chain data shows that until June 2025, the CBI systematically sent large amounts of USDT to Nobitex, Iran’s largest cryptocurrency exchange. Elliptic suggests this was intended to inject US dollar liquidity into the local market to support the Iranian rial during a period of severe economic volatility.

At the same time, the report says the authorities accumulated USDT to create what it describes as “digital off-book eurodollar accounts.” This shadow infrastructure enabled a closed-loop trade settlement system in which import payments and export revenues could be settled in a synthetic US dollar equivalent, reducing exposure to asset seizure through conventional banking channels.

The CBI’s operational approach shifted abruptly in June 2025. Following a hack of the Nobitex exchange by a pro-Israel group that labelled the platform a “sanctions violation tool,” the central bank stopped routing funds through the exchange.

Instead, it began using cross-chain bridges and decentralised exchanges to move and obscure its assets, reflecting a rapid adjustment to emerging security risks.

The Double-Edged Sword of Transparency

Although the activity was intended to evade restrictions, Elliptic notes that it was not invisible. Stablecoins operate on public blockchains, allowing analytics firms to trace transaction flows even when intermediaries are avoided. The investigation also highlights the enforcement leverage held by stablecoin issuers.

On June 15, 2025, Tether blacklisted several wallets linked to the CBI, freezing approximately $37 million in USDT. The episode illustrates the double-edged nature of stablecoins for sanctioned actors. While they can be used to bypass parts of the traditional banking system, they also introduce a centralised point of control.

Unlike decentralised assets such as Bitcoin, stablecoin issuers can disable wallets and halt transactions. For financial institutions, the case serves as a clear warning. As digital assets become more embedded in global finance, compliance obligations expand with them.

The combination of blockchain transparency, issuer controls, and third-party analytics means that even state-level attempts to evade sanctions can be monitored and, in some cases, disrupted.

Branded “Unusual Predictions,” the product targets retail users who want to monitor outsized and potentially informed bets in a market where information timing can rapidly move prices.

“Unusual Predictions has been created to help our community spot potential insiders, track smart money, and follow unusual whale trades across prediction markets,” the analytics platform posted on Discord.

BREAKING: Unusual Whales for Prediction MarketsUnusual Whales has spent years spotting potential insiders in equities, options, and politician disclosures.Now, we bring that experience to prediction markets.Try Unusual Predictions today: https://t.co/p1ltCTMLr0 pic.twitter.com/wBQHOkHck5

— unusual_whales (@unusual_whales) January 20, 2026

Insider-Style Signals for Prediction Markets

The core feature of Unusual Predictions is a tool that flags activity which may resemble insider trading on prediction markets.

Unusual Whales mentioned that it is extending its years of experience in flagging potential insiders in options flow and politician trading disclosures to prediction markets, rolling out similaranalytics through collaborations with platforms such as Polymarket and Hashdive.

Alongside the anomaly detector, the release includes a whale‑tracking module that focuses on the behaviour of large traders on Polymarket.

Continue reading: Prediction Markets Hit Record $702 Million Daily Volume Amid Regulatory Pressure

The tracker also surfaces the historical record of these big accounts so that smaller traders can assess whether following them would have been profitable in the past.

‘Smart Money’ Lens Across Niches

A separate “Smart Money” feature highlights top performers across different segments of the prediction market landscape. The tool lets users filter accounts by niche, including sports, finance and politics, before drilling into current market positioning and historical performance for each profile.

According to the firm, Traders can then treat these accounts as potential signals or benchmarks in their chosen area.

Unusual Predictions sits on top of Unusual Whales’ existing analytics platform for retail traders, which already covers derivatives and equities flows. The firm offers tools such as stock screeners and options trading calculators that target users who follow order flow and positioning data.

Interestingly,insider trading allegations recently reignited debate over the integrity andregulation of prediction markets.

Kalshi CEO Tarek Mansour seized on the recent Polymarket insider trading controversy to underscore a growing rift between regulated and offshore prediction markets.

In a public statement, he used the incident to draw a firm distinction between Kalshi’s federally supervised operations and the practices of unregulated competitors.

The announcement, made at the World Economic Forum Annual Meeting in Davos, is viewed as a significant development in integrating digital assets into a sovereign nation's infrastructure.

Bermuda's plan addresses high fees and limits from traditional payment systems. Circle's USDC will become a primary payment method for faster, cheaper, dollar-based transactions.

From Regulation to Live Testing

The partnership will involve Circle and Coinbase providing their infrastructure and tools to local banks, insurers, and businesses, with the goal of creating an on-chain financial ecosystem.

The plan builds on Bermuda's role in digital asset regulation. The country introduced its Digital Asset Business Act in 2018, and both Circle and Coinbase were among the first global firms to be licensed under the regime.

“Bermuda has always believed that responsible innovation is best achieved through partnership between government, regulators, and industry,” said Premier E. David Burt. “With the support of Circle and Coinbase, two of the world’s most trusted digital finance companies, we are accelerating our vision to enable digital finance at the national level.”

For the global financial industry, Bermuda is viewed as a case study. The project will examine whether an on-chain economy can deliver on its stated goals of lower transaction costs, greater financial inclusion, and enhanced economic resilience at a national scale.

"Bermuda has participated in digital asset development and continues to explore blockchain innovation at a national scale,” said Jeremy Allaire, CEO of Circle. Coinbase CEO Brian Armstrong added, “Bermuda’s leadership shows what’s possible when clear rules are paired with strong public-private collaboration.”

Huge. An entire country is coming onchain, using USDC and @base.Excited to support Bermuda’s transition toward an onchain economy that empowers the people, local businesses, and institutions ????Open financial systems will drive economic freedom. https://t.co/lDqFUIb9qe

— Brian Armstrong (@brian_armstrong) January 19, 2026

The initiative will see government agencies pilot stablecoin-based payments, while local financial institutions begin integrating tokenization tools. Together, these steps will provide a real-world reference for how other countries might introduce blockchain-based infrastructure gradually.

BingX TradFi Volume Hits $1 Billion as Gold Trading Surges

Gold trading on the platform exceeded $500 million within the 24-hour period, driven by heightened demand as geopolitical tensions pushed the metal up 2.6% on Tuesday. The rally came after President Trump threatened additional tariffs on European nations over control of Greenland, reigniting safe-haven buying across markets.

BingX launched its TradFi product earlier this month, offering perpetual futures contracts tied to more than 50 traditional financial assets. The platform uses perpetual futures, or "perps," which have no expiration date and settle in USDT, operating 24/7 like crypto markets.

"As the demand for TradFi continues growing, we remain at the forefront of delivering robust products and services that adapt to our users' evolving needs." Vivien Lin, Chief Product Officer at BingX, commented. "Our expanded suite of offerings provides traders with greater choice and broader market access, unlocking new opportunities in a dynamic environment.”

Unlike contracts-for-difference offered by regulated brokers, these instruments fall under crypto exchange infrastructure and offer leverage up to 500x.

Volume Concentration Mirrors Precious Metals Rally

Gold's dominant share of BingX's TradFi volume reflects the metal's explosive performance over the past year. Prices climbed roughly 65% in 2025 and added another 9% in the first three weeks of 2026.

The January surge accelerated after a criminal investigation into Federal Reserve Chair Jerome Powell sparked concerns about central bank independence, with some analysts projecting targets as high as $6,000 for 2026.

Volatility in precious metals has also affected traditional market infrastructure. CME Group shifted gold, silver, platinum, and palladium futures margins from fixed amounts to percentage-based requirements earlier this month, while liquidity providers like Scope Prime adjusted spreads in response to price swings.

BingX’s copy trading feature for traditional assets reached a single-day peak of $51.84 million within 15 days of launch, according to company data.

Crypto Exchanges Push Into Broker Territory

BingX joins rival platforms Binance and Bitget in expanding beyond digital assets. Binance introduced perpetual contracts on commodities like gold and silver, settling them against USDT under Abu Dhabi Global Market oversight, though stablecoin settlement may limit EU availability.

Bitget rolled out derivatives on gold, forex, metals, indices, and stock-based contracts under Mauritius Financial Services Commission oversight. The moves blur lines between crypto platforms and retail brokers, with exchanges leveraging round-the-clock trading and stablecoin settlement to bypass traditional brokerage friction.

Crypto.com purchased Cyprus-based broker Allnew Investments in mid-2025 to obtain a MiFID license, though planned CFD offerings have not yet materialized.

Other platforms like XBO.com launched tokenized stocks, linking major equities with crypto markets.

The convergence, however, flows both ways. CFD broker Axi expanded to over 150 crypto contracts last year as perpetual futures captured 76% of crypto derivatives volume.

BingX serves over 40 million users globally and ranks among the top five crypto derivatives exchanges. The exchange sponsors Chelsea FC and became the first official crypto exchange partner of Scuderia Ferrari HP in 2026.

According to the platform, the initiative extends the exchange’s market model into blockchain-based infrastructure while keeping traditional shareholder rights and regulatory safeguards in place.

Part of Intercontinental Exchange, the NYSE has started developing a platform for trading and on-chain settlement of tokenized securities and will seek regulatory approvals before launch.

Today, NYSE is proud to announce the development of a platform for trading and on-chain settlement of tokenized securities. NYSE’s new digital platform will enable tokenized trading experiences, including 24/7 operations, instant settlement, orders sized in dollar amounts, and…

— NYSE ???? (@NYSE) January 19, 2026

NYSE Plans Tokenized Trading Venue

The planned venue will support tokenized shares that are fungible with traditionally issued securities, as well as securities issued directly in token form. Token holders will retain access to dividends and governance rights under the existing corporate framework.

It combines the NYSE’s Pillar matching engine with blockchain-based post-trade systems to support continuous, around-the-clock operations. The platform will allow fractional share trading via dollar-denominated order sizes and will use stablecoin-based funding, with the ability to support multiple blockchains for settlement and custody.

The new venue will follow established market structure principles and will distribute access through qualified broker-dealers on a non-discriminatory basis.

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The model aims to maintain alignment between the tokenized venue and existing NYSE markets, limiting liquidity fragmentation between traditional and on-chain trading.

By keeping tokenized securities fungible with their conventional counterparts, the exchange seeks to extend trading hours and settlement options without departing from current standards on investor protection and oversight.

Part of ICE’s Wider Digital Push

The initiative forms part of a broader digital strategy at Intercontinental Exchange, which operates six clearing houses worldwide. ICE is preparing its clearing infrastructure to support 24/7 trading and to accommodate tokenized collateral in margin and settlement workflows.

ICE is working with banks including BNY and Citi to support tokenized deposits across its clearinghouses. The effort aims to let clearing members move funds outside traditional banking hours, meet margin obligations in different time zones and manage funding across jurisdictions using tokenized capital.

Officials say the network hid behind everyday-looking bills for cosmetic surgery and overseas studies while it moved large volumes of digital assets into Korean won.

Three Chinese Nationals Face Prosecution

South Korea’s customs service said on Monday that it has referred three Chinese nationals to prosecutors on suspicion of laundering about 148.9 billion won, or roughly $107 million, in cryptocurrency, according to local media outlet Yonhap News Agency.

The agency alleges that the group used an unauthorized foreign exchange channel in violation of the Foreign Exchange Transactions Act.

Investigators say the activity ran from September 2021 to June of last year and relied on a network of domestic and overseas cryptocurrency accounts and South Korean bank accounts.

Keep reading: He Promised 1,200% Returns on $10M – Then Used Photoshop to Hide the Truth

According to customs officials, the suspects booked transfers as if they covered cosmetic surgery for foreign nationals in South Korea or study-abroad costs for students.

According to Yonhap News, South Korea’s Korea Customs Service said it uncovered an international ring accused of laundering about 150 billion won ($101.7 million) in cryptocurrency through unauthorized FX schemes, with three Chinese nationals referred to prosecutors for using…

— Wu Blockchain (@WuBlockchain) January 19, 2026

By doing so, they allegedly made repeated high-value transactions resemble routine cross-border payments that banks see in sectors such as healthcare and education.

Alleged Laundering Method and Use of Front Expenses

The authorities say the ring bought cryptocurrency in several countries, sent it to digital wallets in South Korea, converted it into Korean won and then dispersed the proceeds across numerous domestic bank accounts.

The case occurs as South Korea continues to debate a comprehensive framework for its crypto market, even as digital assets have become a common investment for local households.

Towards the end of last year, South Korea tightened oversight of cryptocurrency transactions, unveiling plans to expand its anti-money laundering framework.

The government announced that the Travel Rule, a key compliance measure requiring information sharing on crypto transfers, will soon apply to transactions below 1 million won (approximately $680).

The initiative introduced bans on insider trading, market manipulation, and other illicit practices while strengthening regulators’ oversight powers.

In 2023 the team was informed in the middle of the night that its banking access would be terminated.

Binance Reopens PayID, Fiat Deposits

As of last Friday, users can again make direct fiat bank and PayID deposits and withdrawals. The rollout began with a small group of users last year, according to a statement shared with Cointelegraph.

Matt Poblocki, general manager of Binance Australia and New Zealand, said limited access to fiat banking had created challenges for local users. Its reinstatement has removed a significant barrier.

“Seamless access and integration with traditional financial services directly affects participation, confidence, and trust in the market. Without it, both investors and exchanges face unnecessary barriers that can slow adoption and limit the growth of Australia’s digital asset ecosystem,” he said.

Users Regain Bank Options on Binance

Industry executives said last September that Australian users still faced banking hurdles when engaging with crypto exchanges. A survey released at the time found 58% of respondents wanted unrestricted access to deposit funds into an exchange, while 22% had switched banks to make buying crypto easier.

The third-party payments provider for Binance Australia, Cuscal, did not provide a specific reason for ending support. It later said it was working to limit scams and fraud and would continue to terminate clients that did not meet onboarding and compliance requirements.

During the period without bank access, users could only deposit or withdraw funds via debit or credit cards, or by using cryptocurrency.

Binance Faces Court Case in Australia

Binance Australia has faced regulatory challenges in recent years. In late 2024, the Australian Securities and Investments Commission launched legal proceedings against Binance Australia Derivatives, alleging misclassification of retail clients as wholesale investors and exposing them to high-risk crypto derivatives.

The regulator said over 500 clients suffered financial losses, and Binance paid approximately $13 million in compensation.

The shift is visible in this year’s official agenda, which reflects a growing focus on implementation rather than ideology. In 2025, the only official crypto-related session at Davos was titled “Crypto at a Crossroads,” a broad discussion centered on regulatory uncertainty and the sector’s future direction.

In 2026, that focus has sharpened. The agenda now includes two dedicated, high-level sessions: “Is Tokenization the Future?” and “Where Are We on Stablecoins?”

The speaker line-up underscores this change in tone. Crypto executives such as Coinbase CEO Brian Armstrong and Circle CEO Jeremy Allaire are appearing alongside senior public-sector and market-infrastructure figures, including the Governor of the Central Bank of France and the CEO of global settlement provider Euroclear.

Two Areas Drawing Institutional Attention

The Davos discussions point to two areas where financial institutions are now actively testing how digital assets could fit into existing systems.

First, tokenization is discussed less as a concept and more as an operational challenge. Panels are focused on how on-chain representations of real-world assets might be deployed at scale, with attention to governance, custody, and market infrastructure. The shift follows a year in which tokenized government bonds and money-market products gained traction among institutional users.

Second, stablecoins are increasingly framed as a payments and settlement tool rather than a trading instrument. Davos sessions are examining how stablecoins could be used in cross-border payments, treasury operations, and wholesale settlement, and how they intersect with existing banking and reserve-currency frameworks.

This more practical framing has been supported by regulatory developments in 2025. Frameworks such as the EU’s MiCA regime and the U.S. GENIUS Act have provided clearer parameters for stablecoin issuance and oversight, reducing uncertainty for institutions exploring limited use cases.

That clarity has coincided with initiatives from large financial and payments firms, including BlackRock and PayPal, which have begun experimenting with tokenized and stablecoin-based products.

From Debate to Experimentation

The Davos 2026 agenda does not suggest that digital asset integration is settled or uniform. Many operational, legal, and cross-border questions remain unresolved, particularly around interoperability, risk management, and supervisory coordination. What it does indicate is a change in emphasis.

For policymakers, market infrastructure providers, and large financial institutions, the discussion has shifted away from whether digital assets belong in the financial system and toward where – and under what constraints – they might be deployed.

For professional audience, the takeaway is less about declarations of victory and more about signal value. Davos 2026 reflects a phase in which tokenization and stablecoins are being treated as technologies to be tested within existing financial architecture, rather than as parallel systems. How far that experimentation goes will depend less on rhetoric and more on execution.

The bank plans to use the platform to develop tokenized money-market funds, ETFs, other tokenized assets, and cash instruments including tokenized deposits and stablecoins.

The group positions the platform as a bridge between traditional finance and digital asset venues, and as a connection point for clients who want to access tokenized instruments through a single provider.

It comes as large custody and asset management firms explore tokenization to change how investors hold and transfer fund shares and cash-like instruments.

Wallets, Custody and Cash Capabilities

The digital asset platform bundles wallet management, custodial services and cash functionality in a single environment that supports tokenized product development across multiple jurisdictions.

“By pairing blockchain connectivity with robust controls and global servicing expertise, we’re enabling institutions to confidently embrace tokenization as part of their core strategy with an organization like us that they can trust,” said Jörg Ambrosius, the President, Investment Services, State Street Corporation.

State Street says the infrastructure can operate across both private and public permissioned blockchain networks, reflecting institutional focus on controlled access and regulatory oversight.

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Institutional clients gain a single interface intended to link digital asset activity with traditional servicing, which aims to reduce the need to build or manage separate technology stacks for each blockchain project.​

Focus on “Practical, Not Experimental” Infrastructure

It is worth noting that the demand for tokenized has been on the rise beyond the well-known Bitcoin and Stablecoins. Recent data indicates that the combined market capitalization of tokenized stocks has climbed to a record of about $1.2 billion, with the fastest growth occurring in September and December last year.

At the same time, regulators have highlighted risks associated with this emerging market. The European Securities and Markets Authority warned that tokenized stocks can mislead investors because, while they may mirror the price of underlying shares, they typically do not provide shareholder rights.

As of 30 September 2025, State Street reported about $51.7 trillion in assets under custody and/or administration and $5.4 trillion in assets under management. It operates in more than 100 geographic markets with around 52,000 employees worldwide.

According to Binance Research’s Full-Year 2025 report, this evolution will force traditional brokers and fintech firms to reconsider how they approach digital payments.

The Numbers Tell the Story

In 2025, stablecoin market capitalization surged nearly 50% to exceed $305 billion, while daily transaction volumes reached $3.54 trillion. The report reveals that stablecoins now achieve an annual monetary velocity of approximately 110x, meaning the average stablecoin dollar circulates once every 3.3 days.

These figures are comparable to Visa’s reported volume of $1.34 trillion, indicating a high level of stablecoin usage for cross-border transactions.

Six new stablecoins crossed the $1 billion market cap threshold in 2025. These include BlackRock’s BUIDL, PayPal’s PYUSD, and Ripple’s RLUSD. Each targets distinct B2B use cases, from institutional settlement to cross-border remittances.

Regulatory Clarity Changes the Game

The passage of the U.S. GENIUS Act in July 2025 established the first federal framework for stablecoin oversight, requiring 1:1 reserve backing and monthly audits. Europe’s MiCA implementation created similar standards, effectively legitimizing stablecoins as regulated financial instruments rather than speculative assets.

For brokers and payment processors, this regulatory clarity eliminates a major barrier to institutional adoption. Under new rules, banks can now integrate stablecoin systems, while fintech platforms gain a foundation for cross-border settlement with lower operational costs than traditional methods.

The 2026 Outlook: Mainstream Consumer Adoption

According to the research, 2026 will mark stablecoins’ transition into everyday consumer finance through neobank applications and digital wallets. The competitive landscape is intensifying. Stripe and PayPal are building stablecoin infrastructure leveraging their distribution networks, while crypto-native platforms like MetaMask (30 million users) and Phantom (15-17 million users) are evolving into full-fledged neobanks.

The report projects a total stablecoin market size of $1.9 trillion by 2030, representing a compound annual growth rate of approximately 58%. For brokers and fintech firms, stablecoin integration is no longer optional—it’s foundational infrastructure for competing in tomorrow’s digital economy.

Ripple will provide $150 million in financing to support LMAX’s long-term cross-asset growth strategy. No further financial terms were disclosed.

Last year, LMAX Digital listed RLUSD on its institutional trading platform, allowing clients to “now access RLUSD Stablecoin.” The move was an early step in integrating regulated stablecoins into the firm’s institutional infrastructure.

RLUSD Enables Cross-Asset Trading at LMAX

Under the partnership, LMAX will integrate RLUSD as a core collateral asset across its institutional trading infrastructure. The stablecoin will serve as collateral and a settlement currency for spot crypto, certain fiat pairs, perpetual futures, and CFD trading.

Custody will be provided through LMAX Custody using segregated wallets to support transferability between traditional and digital assets.

The integration will be available to LMAX’s global institutional customer base, including banks, brokers, and buy-side firms.

David Mercer, Chief Executive Officer of LMAX Group, said, “Partnering with a leader like Ripple is a milestone for LMAX.” He added that “fiat-backed stablecoins will be a key catalyst in driving the convergence of TradFi and digital assets.”

Mercer also said LMAX believes “RLUSD is positioned at the forefront.”

LMAX Kiosk Enables 24/7 RLUSD Trading

LMAX Kiosk will allow institutional on-ramps, enabling clients to trade multiple FX and digital asset products using RLUSD as collateral. The companies said RLUSD will provide continuous, 24/7 cross-asset market access not available with traditional fiat currencies.

Jack McDonald, Senior Vice President of Stablecoins at Ripple, said, “Institutions are increasingly recognising the transformative potential of blockchain technology.” He added that the partnership will “accelerate the utilisation of RLUSD” in large trading environments.

LMAX Reports $8.2 Trillion Volumes

The collaboration also integrates LMAX Digital with Ripple Prime, Ripple’s multi-asset prime brokerage service, providing institutions with a regulated exchange infrastructure combined with credit and brokerage services to reduce market fragmentation and counterparty risk.

Ripple holds more than 75 regulatory licenses globally. The announcement follows a record year for LMAX Group, which reported $8.2 trillion in institutional exchange volumes in 2025.

Coinbase’s Pushback on the Crypto Draft Bill

Armstrong highlighted several issues in the draft bill, including what he described as a “de facto ban on tokenised equities.” This appears to be linked to commercial interests, as Coinbase and other crypto platforms plan to introduce tokenised stocks and assets.

He also said the draft bill would remove rewards on stablecoins, which he argued would allow “banks to block their competition.” Earlier, banking lobbyists warned that stablecoins offering around 5 per cent risk-free returns could trigger a “deposit flight” from low-interest bank accounts.

Read more: Coinbase to Use Cyprus License to Offer Crypto Perps and Futures, Closes BUX's CFD Accounts

The DeFi provisions in the draft bill were another concern raised by Armstrong. He said these measures would give “the government unlimited access to your financial records and remove your right to privacy.”

The Coinbase CEO also criticised the draft bill for weakening the authority of the Commodity Futures Trading Commission (CFTC) over cryptocurrencies.

“We appreciate all the hard work by members of the Senate to reach a bipartisan outcome, but this version would be materially worse than the current status quo,” Armstrong added.

After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written.There are too many issues, including:- A defacto ban on tokenized equities- DeFi prohibitions, giving the government unlimited access to your financial…

— Brian Armstrong (@brian_armstrong) January 14, 2026

A Bipartisan Crypto Bill in the US

US lawmakers introduced the Digital Asset Market Clarity Act earlier this week, renewing a long-running effort to create clear federal rules for classifying digital asset tokens and regulating their issuers.

[#highlighted-links#]

The draft legislation would establish a formal framework for categorising tokens, whether they fall under securities law, commodities oversight, or another category. This issue has driven years of legal uncertainty and enforcement disputes.

However, the crypto industry now appears divided over the proposed bill.

“It’s not perfect, and changes are needed before it becomes law,” said Chris Dixon, managing partner at a16z Crypto. “But now is the time to move the CLARITY Act forward if we want the US to remain the best place in the world to build the future of crypto.”

The move comes as prediction markets face growing regulatory scrutiny. Backpack enters the prediction market sector at a time of increased regulatory attention. Polymarket and other crypto prediction markets have faced review over potential insider trading. In Ukraine, Polymarket has been blocked and classified as gambling.

Backpack Launches Tokenized, Integrated Prediction Platform

Backpack CEO Armani Ferrante described the system as a “native system with everything tokenized and risk profiled, together.” He added, “This isn’t yet another wrapper over Kalshi, Polymarket, or any other prediction market platform.”

The platform allows users to deploy capital across all of Backpack without “fragmenting balances” while maintaining other positions. It also lets users quote on price predictions, get filled, and hedge on perpetual contracts within a single margin account. Ferrante said users often have to lock up funds in prediction markets, which limits flexibility and potential returns. He described prediction markets as “notoriously inefficient.”

Prediction Markets See Growing Crypto Platform Entry

Initial beta testing is invite-only and will focus on ensuring the unified portfolio and risk engine work correctly. The beta will expand gradually to include new features, markets, and mechanisms unique to the integrated system. Backpack has not disclosed which markets will be available at launch or how it will address regulatory compliance amid growing scrutiny of prediction markets.

Other crypto platforms are also moving into prediction markets. Coinbase launched a prediction market in partnership with Kalshi in November 2025, while MetaMask previously partnered with Polymarket to allow trading directly from its self-custodial wallet.

Kalshi Pushes On-Chain Data

Kalshi, a U.S.-regulated prediction market provider, plans to integrate its platform across major cryptocurrency exchanges and apps within 12 months.

The company, which captured 66% of the market by September, is pushing event data on-chain for developers and partnering with exchanges and brokers including FOREX.com and Webull. Kalshi sees prediction markets as an accessible gateway into crypto derivatives.

The new stance may affect crypto firms that had hoped to launch gold-backed tokens in Hong Kong. Several companies have been exploring commodity-backed digital assets as part of the city’s expanding Web3 ecosystem.

SFC Seminar Highlights Digital Asset Compliance

Last year, the Securities and Futures Commission participated in a seminar organised by the Association of Fund Administrators of Hong Kong and the Greater Bay Area, focusing on regulatory compliance in the digital asset sector.

[#highlighted-links#]

At the same time, Chinese technology groups, including Ant Group and JD.com, paused stablecoin plansin Hong Kong following guidance reportedly issued by mainland authorities, highlighting the cautious approach to privately issued digital currencies.

Fiat-Backed Stablecoins Focused Regulatory Approach

Over the past two years, Hong Kong has positioned itself as a regional crypto hub. Authorities have introduced licensing regimes for virtual asset trading platforms and promoted blockchain development through policy statements and pilot projects.

⚡ INSIGHT: Hong Kong hints that the city isn’t entertaining gold-backed stablecoins yet. South Korea’s STO pioneer risks closure. Asia Express via Cointelegraph Magazine pic.twitter.com/bGeUNID7si

— Cointelegraph (@Cointelegraph) January 13, 2026

At the same time, regulators have maintained tight control over higher-risk segments of the market. Earlier proposals focused on a regulatory framework for fiat-backed stablecoins, which did not include commodity-backed tokens such as those linked to gold.

Limiting the framework to fiat-backed stablecoins allows regulators to prioritize clarity and risk management, while commodity-backed tokens raise additional considerations, including custody of physical assets, valuation, and redemption rights.

Hong Kong Expands Gold Trading Infrastructure

Industry interest in tokenised gold products remains. Some institutional trading platforms in Hong Kong already offer gold-pegged tokens, including Tether Gold (XAUt), to professional investors.

Separately, the city has outlined plans to strengthen its physical gold trading and settlement infrastructure as part of broader financial market development. Legal analyses note that the current stablecoin framework focuses on fiat-referenced tokens and does not cover commodity-linked stablecoins, which would require future regulatory expansion or clarification.

The crypto custody company aims to raise up to 201 million dollars in a US initial public offering, targeting a valuation of as much as 1.96 billion dollars as it brings a decade-old safekeeping business to public markets.

BitGo and some of its existing shareholders reportedly plan to sell about 11.8 million shares in the deal. The company set a price range of 15 to 17 dollars per share, which would yield gross proceeds of up to 201 million dollars if the offer prices at the top end.

BitGo Holdings announces launch of initial public offering.https://t.co/f1vM5vl1II

— BitGo (@BitGo) January 12, 2026

Market Backdrop and IPO Recovery

The offering will consist of 11 million newly issued Class A common shares from BitGo Holdings and 821,595 shares sold by current stockholders. BitGo intends to list on the New York Stock Exchange under the ticker “BTGO,” following its earlier registration with the US Securities and Exchange Commission in 2025.

The planned float comes as the US IPO market works to extend a cautious recovery that began in 2025. New issues face tariff-driven market swings, the impact of a prolonged government shutdown, and a late-year selloff in artificial intelligence stocks that cooled risk appetite.

Even so, more crypto-focused firms are preparing to go public after high-profile stock market debuts last year by stablecoin issuerCircle and crypto exchange Bullish. Crypto exchange Kraken has also outlined plans for a listing, pointing to continued investor interest in digital asset businesses despite bouts of price volatility.

Keep reading: Kraken Files for US IPO After Securing $800M Funding

The broader sector still contends with the fallout from a sharp crypto selloff in October that pressured both tokens and relatedequities. That setback has pushed investors to examine revenue quality, regulatory exposure, and diversification before backing new offerings.

BitGo’s Scale in Custody

BitGo’s decision to advance its IPO suggests it sees room for an infrastructure-focused story that leans on fee income from asset safekeeping rather than trading volumes. The final deal size and valuation multiple will offer an early signal of how public markets now price regulatory and market risk in crypto custody.

The sought-after valuation of up to 1.96 billion dollars will test how investors benchmark that scale against other financial and technology names. A successful deal would provide fresh capital for investments in technology, compliance, and expansion, while giving early shareholders an avenue to realize part of their holdings.

BitGo has assembled a large underwriting syndicate to steer the offering. Goldman Sachs will act as lead book-running manager, with Citigroup serving as a book-running manager alongside it.

Bakkt Agrees Stock-Based Acquisition of DTR

Under the agreement, Bakkt will issue Class A common stock equal to 31.5% of the “Bakkt Share Number,” currently estimated at roughly 9.13 million shares, to DTR shareholders, including DTR CEO Akshay Naheta. The final number of shares will be determined in accordance with the Cooperation Agreement and may change prior to closing.

The acquisition is expected to accelerate Bakkt’s time-to-market for stablecoin settlement, reduce third-party dependency, and support revenue across payments and banking use cases. The transaction requires customary regulatory approvals and Bakkt shareholder consent. Intercontinental Exchange, which owns approximately 31% of Bakkt’s Class A shares, has agreed to vote in favour.

Bakkt Announces Rebrand

Bakkt also announced that it will change its corporate name to Bakkt, Inc., effective January 22, 2026, while continuing to trade under the ticker BKKT. The company plans an Investor Day on March 17, 2026.

Colleen Brown, member of Bakkt’s special committee, said the acquisition “broadens the scope of what our platform can deliver across digital assets and settlement.”

JUST IN: Bakkt acquires Distributed Technologies Research Ltd. (DTR) to supercharge its stablecoin settlement and programmable payments platform, accelerate go-to-market, and expand its role in global digital finance as it rebrands to Bakkt, Inc. in 2026. pic.twitter.com/DRrbysQ8SK

— Cryptopolitan (@CPOfficialtx) January 12, 2026

Bakkt Financials Show Improved Liquidity Position

Earlier, Bakkt reported revenue of $214.5 million for the fourth quarter of 2023, bringing full-year revenue to $780.1 million. The company said the results supported its liquidity position and reduced near-term operational concerns.

Revenue comprised gross crypto revenue and net loyalty revenue, with crypto-related income increasing following the acquisition of Bakkt Crypto, formerly Apex Crypto. Despite the revenue growth, Bakkt recorded an adjusted EBITDA loss of $93.9 million for the year.

Net loss narrowed to $225.8 million compared with the prior year. Founded in 2018, Bakkt became a public company in 2021 through a reverse merger and has since focused on crypto trading, custody, and infrastructure services.

According to latest Gen Digital’s Threat Report, this new class of social engineering increasingly combines generative AI with platform distribution tools to scale rapidly and bypass traditional security defences. In many cases, victims are tricked into transferring funds themselves – without malware, phishing links, or credential theft.

YouTube Deepfake “Advisors” Case

One of the most illustrative examples of this broader scam-yourself trend involved AI-generated “crypto advisors” on YouTube. Cybersecurity researchers documented a campaign that used deepfake personas across more than 500 videos to promote tools designed to exploit price discrepancies between blockchain networks.

Rather than delivering malware or stealing credentials, the attackers relied on user participation. Victims were instructed to copy and paste code into web-based integrated development environments (IDEs) and then fund smart contracts. In practice, the code redirected funds to attacker-controlled wallets – with users completing each step themselves.

The campaign also used typo-squatted domains mimicking TradingView, such as “tradlngview.com.” These near-identical URLs were designed to reduce friction and suppress standard security warnings during code compilation, making red flags easier to miss unless users manually verified addresses.

Why This Matters

The YouTube campaign captures the defining feature of scam-yourself attacks described in Gen Digital’s report: defenders can harden systems, but attackers win by manipulating trust, familiarity, and routine behaviour across channels. There is no malicious file to quarantine and no credential database to reset if the user has been persuaded to authorise the transaction.

As scams become more coordinated across platforms, effective defences increasingly depend on user behaviour: checking URLs, questioning step-by-step instructions, and being cautious of polished presentation.

Coinbase Puts Its MiFID II Licence to Use

FinanceMagnates.com reported early last year that the American crypto exchange obtained a MiFID II licence by acquiring the Cyprus-regulated unit of BUX, which was offering contracts for differences (CFDs) to retail customers.

The licence allows Coinbase to offer over-the-counter (OTC) derivatives across the European Economic Area.

It has also closed all BUX Cyprus accounts.

Although Coinbase obtained the MiFID II licence in 2024, it has not yet launched any services under the regulated framework. While the website of its Cyprus unit is now live, the exchange has yet to make any formal announcement.

The offerings under the Cyprus-regulated entity will include perpetual and traditional futures contracts, as well as nano-sized futures contracts. The platform will offer leverage of up to 10x on perpetual contracts.

At launch, the platform is expected to offer a total of 31 derivatives, including a mix of perpetual and traditional contracts, as shown on the website. It will offer derivatives linked to popular cryptocurrencies such as BTC, ETH, and XRP, as well as memecoins, including SHIB and DOGE.

The markets will be open around the clock; however, they will be closed every Friday from 21:00 to 22:00 CET, with an additional three-hour maintenance window each quarter.

FinanceMagnates.com approached Coinbase for details about its European offerings, but had not received a response at the time of publication.

Crypto Exchanges’ Interest in the European Derivatives Market

Meanwhile, Coinbase is not the only crypto exchange targeting European traders with crypto derivatives. Kraken also acquired a Cyprus-based firm and launched crypto derivatives under a MiFID II licence last year. Other crypto firms that have obtained a European crypto licence include Crypto.com and OKX. Gemini is also seeking the same licence from Malta.

Although these exchanges currently appear to be focused on crypto futures and perpetual contracts, the licence also allows them to offer CFDs to their users.

You may also like: Iran’s Revolutionary Guard Moved $1 Billion Through UK Crypto Exchanges

Another Step Towards Making Crypto Mainstream

In an X post yesterday (Sunday), the social media platform’s Head of Product, Nikita Bier, revealed that Smart Cashtags would allow X users to “specify the exact asset (or smart contract) when posting a ticker.”

“From the timeline, users will be able to tap them to see their real-time price, along with all mentions of that asset,” he added.

The social media platform is aiming for a public release of this new feature next month.

X is the best source for financial news -- and hundreds of billions of dollars are deployed based on things people read here.We are building Smart Cashtags that allow you to specify the exact asset (or smart contract) when posting a ticker. From Timeline, users will be able to… pic.twitter.com/nFtuA2ISqJ

— Nikita Bier (@nikitabier) January 11, 2026

Although Bier did not mention anything about in-app trading, a screenshot of the Smart Cashtag shared by him included buy and sell buttons. However, it remains unclear how in-app trading on X would work, including whether trades would be routed to a third-party crypto exchange.

X has about 700 million active users worldwide. A direct crypto trading feature on the platform could make crypto more accessible to a large user base. However, localisation and infrastructure challenges remain unclear.

[#highlighted-links#]

Re-Purpose of an Old Feature

The Cashtag feature on X is not new. The platform first added this feature in December 2022 to show price charts for Bitcoin, Ether, and other top stocks and exchange-traded funds. The feature was initially introduced in partnership with TradingView and later with eToro to add price charts and additional data.

The latest announcement of Smart Cashtags appears to be another step in Musk’s plan to turn X into an all-in-one app, where financial services will play a key role. The platform has also secured money transmission licences in about two dozen US states, but has yet to launch any payment-related features.

In mid-last year, media reports suggested that X was preparing to roll out trading and payment features as part of a broader push into financial services. As part of this plan, X intends to introduce X Money, a digital wallet and peer-to-peer payment service. The platform is expected to launch first in the United States, with Visa as its initial partner.

The platforms, Zedcex and Zedxion, processed transfers that enabled the sanctioned military organization to move funds across borders despite Western financial restrictions. TRM's analysis found IRGC-linked activity represented 56% of total volume across both exchanges during the period examined.

How Britain's Crypto Exchanges Became Iran's Sanctions Workaround

“The $1 billion figure over two years demonstrates that digital currencies are becoming a financial channel for Iran's shadow banking apparatus,” Miad Maleki, a former US Treasury official who worked on Iran sanctions efforts,told the Washington Post.

Transaction flows tied to the Revolutionary Guard jumped from approximately $24 million in 2023 to $619 million in 2024, when they accounted for 87% of all activity on the platforms. Volume dropped to around $410 million in 2025 as non-IRGC transactions increased.

The exchanges operated as a single business despite maintaining separate UK corporate registrations, TRM researchers determined. Nearly all transfers moved through Tether's USDT stablecoin on the Tron blockchain, a combination offering deep liquidity and low transaction costs.

Tether has previously taken proactive steps to align with US sanctions policies, freezing dozens of wallets linked to illicit activities. The company told the Washington Post it “takes any allegation involving terrorist financing extremely seriously” and maintains a zero-tolerance policy, investing heavily in monitoring tools and working closely with law enforcement.

Israeli authorities had previously flagged many of the wallet addresses involved. The National Bureau for Counter Terror Financing issued an administrative seizure order in September 2025, designating 187 wallet addresses as IRGC property. Tether subsequently blocklisted many of these wallets.

Financier With Sanctions History Linked to Operations

Corporate filings connect the exchanges to Babak Zanjani, an Iranian businessman whom US and EU authorities sanctioned in 2013 for helping Iran sell oil on global markets during earlier restrictions. Those sanctions were lifted in 2016 as part of the Joint Comprehensive Plan of Action nuclear agreement.

Zanjani was convicted in Iran of embezzling more than $2 billion from the National Iranian Oil Company and sentenced to death. After repaying the funds, his sentence was commuted in 2024 and he was released from prison, the Washington Post reported.

UK records show someone named Babak Morteza, matching Zanjani's birth date information, served as director of Zedxion Exchange Ltd after its May 2021 incorporation.

ZedcexExchange Ltd was established in mid-2022, using the same virtual office address and successor director. Both companies filed dormant accounts through June 2025, reporting no active trading operations in the UK.

Direct Transfers to Houthi Financier

Blockchain records show more than $10 million moving directly from wallets attributed to both Zedcex and the IRGC to addresses controlled by Sa'id Ahmad Muhammad al-Jamal, a Yemeni businessman whom US Treasury sanctioned in 2021 for smuggling Iranian fuel to fund Yemen's Houthis, according to the Washington Post.

The pattern resembles activities at Russia's Garantex exchange, which US authorities sanctioned in August 2025 for processing more than $100 million in illicit transactions, and North Korean entities using crypto for weapons programs.

TRM's on-chain analysis also showed funds originating from Zedcex-linked infrastructure reaching several of Iran's largest domestic cryptocurrency exchanges, including Nobitex, Wallex, and Aban Tether. Nobitex suffered an $82 million cyberattack in June 2025 claimed by an Israeli-linked hacking group.

Snir Levi, founder of Israeli crypto analysis firm Nominis, told the Washington Post that an initial analysis by his firm based on the same public data also found the exchanges were used by the Iranian military organization, linking at least $150 million in IRGC transactions.

“Iranian-linked actors, including sanctioned military organizations, appear to be testing more persistent crypto infrastructure,” said Ari Redbord, global head of policy at TRM Labs.

The Washington Post mentioned that The UK Treasury's Office of Financial Sanctions Implementation declined to comment, as did Iran's mission to the United Nations and the exchanges themselves.

The Financial Conduct Authority granted Ripple Markets UK an Electronic Money Institution registration and listed the firm under the UK’s Money Laundering Regulations, according to the regulator’s register.

EMI status allows a company to issue electronic money and provide payment services, which could play into Ripple’s plans around its dollar stablecoin, Ripple USD (RLUSD), if the firm decides to deploy it in the UK.

What the FCA Approved

The new approvals add to Ripple’s attempts to build a more regulated profile in large markets while policymakers debate how to treat crypto and stablecoins.

EMI and MLR registrations also signal that the firm has met baseline standards on governance, capital, and anti-money laundering controls that the FCA applies to payments and crypto asset businesses. Despite the EMI registration, Ripple Markets UK must operate under strict conditions until the FCA signs off on any broader crypto activity.

You may also like: How Ripple Pulled Off the Year’s Biggest Crypto Raise While XRP Tumbled 40%

FCA records state that Ripple Markets UK cannot run or support crypto ATMs, serve retail clients, or appoint agents and distributors without prior written consent from the regulator.

The firm also faces limits on its core e-money services. The FCA has barred the company from issuing electronic money or providing payment services to consumers, micro-enterprises, or charities at this stage, effectively narrowing the permission set to more institutional or wholesale use until further approvals arrive.

JUST IN: ???????? Ripple obtains registration with the Financial Conduct Authority through its UK subsidiary. pic.twitter.com/9HR7SW0fPO

— Whale Insider (@WhaleInsider) January 9, 2026

UK’s Crypto Licensing Timeline

Ripple’s approval lands as the UK sets out a timetable for bringing more crypto activity inside the Financial Services and Markets Act regime.

Under the FCA’s plan, firms registered only under the Money Laundering Regulations will need to apply for full FSMA authorization to conduct new regulated crypto asset business before a new framework starts in October 2027.

The application window is expected to open in September 2026, and there will be no automatic conversion from existing MLR or payments permissions into the new crypto licenses.

The regulatory progress in London comes as Ripple’s leadership signals that it has no immediate plans to list its shares. Ripple Labs president Monica Long recently said the company intends to stay private for now, repeating her position from November after a fundraising round that valued the firm at about 40 billion dollars.

The choice to remain private suggests Ripple will continue to rely on private capital and regulatory approvals rather than public markets as it scales its payments and crypto infrastructure.

With this latest expansion, BingX joins an increasingly competitive push by crypto platforms to move beyond digital assets and into multi-asset trading. Crypto-native platforms are leveraging their existing infrastructure and user bases to offer exposure to forex, commodities, and equities without requiring users to open separate brokerage accounts.

This trend is becoming more visible across the industry. Rival exchange Bitget has rolled out its own TradFi trading suite following a private beta, while Binance has introduced regulated perpetual contracts on commodities such as gold and silver. In each case, exchanges are positioning these products as a bridge between crypto trading environments and traditional asset classes.

BingX is launching with futures linked to more than 50 underlying assets, including commodities such as cocoa and soybeans, and is offering leverage of up to 500x, according to company disclosures. The exchange has also highlighted demand from the Middle East and North Africa (MENA) region, where access to global markets through conventional brokerage channels can be limited or costly.

“In today’s dynamic markets, BingX TradFi is designed to broaden access to global assets,” said Vivien Lin, Chief Product Officer at BingX.

Why Crypto Exchanges Are Moving Into Multi-Asset Trading

Operational convenience sits at the core of this strategy. Crypto platforms use stablecoin settlement, continuous trading hours, and familiar derivatives interfaces to attract retail traders seeking global market access without the typical constraints of traditional brokers.

However, this expansion reflects convergence at the product level rather than full regulatory alignment with traditional brokerage models. Even as crypto exchanges add products that resemble those offered by licensed brokers, key differences remain.

These platforms operate under different regulatory frameworks, and the level of investor protection varies widely by jurisdiction. Taken together, the near-simultaneous launches by BingX, Bitget, and Binance underline a broader strategic shift.

Having built scale in crypto derivatives, exchanges are now testing how far their platforms can extend into traditional markets — not by replacing brokers outright, but by reshaping how retail traders access multi-asset exposure in a 24/7, crypto-native environment.

Firms will need authorisation under the Financial Services and Markets Act before the new regime begins in October 2027. The move is part of efforts to regulate the cryptocurrency sector and introduce consumer protections currently lacking.

FSMA Authorisation Mandatory for Crypto Firms

To support this transition, the FCA launched a public consultation to assess how its existing handbook requirements would apply to crypto firms, covering governance, operational resilience, financial crime controls, and Consumer Dutyobligations.

This includes firms currently registered under anti-money laundering or payment and electronic money regulations, which must secure FSMA authorisation as “there will be no automatic conversion.”

Firms already authorised under FSMA for other activities will need to vary their permissions, and cryptoasset firms relying on another FCA-authorised firm to approve financial promotions must obtain direct authorisation to market to UK customers.

???????? ???????? ???????????? ???????????????????? ???????????????????????? ???????????????????????????????????? ????????????????????????????.From September 2026, all crypto firms must apply for FCA authorization before the new regime starts in October 2027.Is your business ready to comply????? Read more:https://t.co/PQ5kCf8Q5m#CryptoNews… pic.twitter.com/vh1uopHZZ2

— Block Tides (@blocktides) January 9, 2026

Firms Advised Seek Independent Compliance Support

The FCA plans to hold information sessions to explain the new regime, authorisation process, and standards. A pre-application support service offers optional, free meetings to discuss business models and FCA expectations, though these “do not guarantee a successful application” and are not advice.

Firms are encouraged to seek independent legal or compliancesupport when preparing applications.

Firms Face Restrictions Without Timely Authorisation

Applications submitted during the designated period can expect to be determined before the regime begins. A saving provision allows firms to continue offering crypto services while applications are pending or under Upper Tribunal review.

Applications submitted outside this period may still be considered but will not receive expedited assessment, and firms not authorised before the regime starts will enter a transitional provision, maintaining existing contracts but restricted from new UK-regulated crypto activities until authorisation is granted.

The development follows StoneX Digital receiving a Crypto-Asset Service Provider licence under the European Union’s Markets in Crypto-Assets Regulation, granted by the Central Bank of Ireland.

StoneX Group also operates Forex.com, a retail trading brand offering foreign exchange and CFD trading through locally regulated entities in multiple jurisdictions.

Expanding Institutional Digital Asset Offerings

StoneX Digital, launched in June 2022, provides institutional clients with access to digital assets and related trading tools. EDG, founded in 2021 by Chris Bae and Chet Sennik, develops bespoke structured solutions and OTC derivatives for digital assets.

Brian Mulcahy, CEO of StoneX Digital, said the partnership aims to “enable clients to safely and securely integrate a new asset class” and to provide a broader range of digital asset products to institutional clients.

StoneX Leverages EDG “Expertise”

The collaboration allows StoneX to leverage EDG’s experience in derivatives and structured products, while EDG gains access to StoneX’s digital asset spot and futures offerings. Both firms expect the partnership to enhance product development and provide more sophisticated crypto derivative trading solutions to institutional clients.

FOREX.com Launches 24/7 Crypto CFD Trading

Alongside its institutional partnership with EDG, StoneX Group has expanded its retail digital asset services through FOREX.com. The platform has launched 24/7 cryptocurrency CFD trading, allowing clients to access digital assets without the traditional weekend gap.

The move follows similar steps by other brokers, including Hantec Markets and CMC Markets, as crypto volatility rises. FOREX.com also extended trading hours for around 160 stock CFDs, covering major companies alongside digital assets.

The changes align with the UAE’s broader efforts to develop digital finance, supported by VARA and the Securities and Commodities Authority. Market analyst Razan Hilal noted that demand for continuous market access is increasing in the region.

While the move is designed to attract foreign investment, it does so within a tightly controlled, licence-driven framework that may deter all but the most compliant operators.

Signed into law in November 2025, the legislation is part of a broader effort to diversify an economy heavily reliant on natural gas exports. It establishes a legal pathway for crypto-related activity, but under a model that prioritises centralised oversight and regulatory control over market openness.

A “Walled Garden” Model for Crypto Activity

For exchanges, service providers and mining operators considering Turkmenistan, the law sets clear boundaries. All crypto-related activity is subject to approval by the central bank, which acts as the primary gatekeeper for licensing, supervision and enforcement.

Foreign firms must establish a local legal entity with a resident director in order to qualify for a licence. Licensees are also required to implement full KYC and AML procedures, include explicit risk warnings in marketing materials, and comply with strict reporting obligations. Anonymous wallets and transactions are prohibited.

Crucially, the law defines virtual assets as property rather than legal tender, meaning cryptocurrencies cannot be used for payments for goods and services within the country.

Despite the regulatory constraints, the economic appeal is clear. Turkmenistan holds the world’s fourth-largest natural gas reserves, resulting in exceptionally low electricity costs, a key factor for energy-intensive mining operations.

The country is positioning itself alongside regional peers such as Kazakhstan and Uzbekistan, both of which have moved to regulate digital assets. Turkmenistan’s framework closely mirrors this regional approach, combining formal legality with tight state oversight.

What Happens Next

While the law is now in effect, much of the practical implementation remains unresolved. Detailed secondary regulations and a formal licensing roadmap have yet to be published. Industry observers estimate that establishing a local entity, navigating administrative procedures and securing regulatory approval could take more than six months for a foreign entrant.

For companies evaluating this frontier market, the next steps are largely preparatory: structuring international corporate arrangements linked to a Turkmen subsidiary, drafting AML and counter-terrorism financing policies tailored to local requirements, and engaging advisors familiar with the country’s political and bureaucratic environment.

The true shape of the market will only become clear once regulators begin publishing a register of licensed entities and foreign firms publicly signal their intent to enter.

Turkmenistan’s new crypto law sends a clear message to the global industry. The country is open to digital asset activity, but only on its own terms — favouring well-capitalised operators willing to operate within a tightly controlled regulatory perimeter. For miners and exchanges, the opportunity is real, but so are the constraints.

Whether the combination of cheap energy and legal certainty outweighs the cost of compliance and operational friction will determine who, if anyone, ultimately takes up the offer.

The company signals that it prefers to build out a broader enterprise crypto platform behind closed doors rather than submit to the scrutiny and short-term pressure of public markets.

Ripple Pushes Back on IPO Route

Ripple's President Monica Long said the company has no current plans to pursue an initial public offering and intends to remain private. She framed the decision as a strategic choice, arguing that Rippledoes not need the liquidity or investor access that a listing would provide because its finances already support expansion.

The comments follow a $500 million fundraising that Ripple closed in November 2025 at a reported $40 billion valuation. Fortress Investment Group, Citadel Securities' affiliates and several crypto-focused funds took part in the round, showing that large institutions still see room for upside in Ripple’s private-market story.

Long described the structure of the deal as “very positive, very favorable for Ripple” when asked about investor protections. The package reportedly included rights for investors to sell shares back to the company at a guaranteed price and return, along with preferential treatment in scenarios such as bankruptcy or a sale.

RIPPLE $XRP PRESIDENT MONICA LONG ON IPO: "WE STILL PLAN TO REMAIN PRIVATE." pic.twitter.com/lNZvAM7ua7

— The Wolf Of All Streets (@scottmelker) January 7, 2026

Investor Protections Draw Scrutiny

Long did not say whether those protections were crucial to securing heavyweight backers at the $40 billion price. That omission leaves open how much risk investors were willing to take without contractual downside cover and how that balance shaped the final valuation.

Such terms, which can include put rights and liquidation preferences, typically insulate investors from extreme outcomes and can influence future capital-raising options. In Ripple’s case, the company portrays the round as aligning its interests with those of new shareholders while keeping room to execute its private playbook.

2025 Deals Reshape the Business

Ripple used 2025 to overhaul its footprint with a string of acquisitions totaling nearly $4 billion. The company bought global multi-asset prime broker Hidden Road, stablecoin payments platform Rail,treasury management system provider GTreasury and digital asset wallet and custody firm Palisade.

Related: How Ripple Pulled Off the Year’s Biggest Crypto Raise While XRP Tumbled 40%

These purchases aim to turn Ripple into a broad supplier of enterprise digital asset infrastructure rather than a single-product company. As of last November, Ripple Payments had processed more than $95 billion in cumulative volume, underlining the scale of its cross-border and enterprise flows.

Ripple Prime, which builds on the Hidden Road acquisition, has started to offer collateralized lending and institutional XRP products as it targets more sophisticated trading clients.

The company signals that it prefers to build out a broader enterprise crypto platform behind closed doors rather than submit to the scrutiny and short-term pressure of public markets.

Ripple Pushes Back on IPO Route

Ripple's President Monica Long said the company has no current plans to pursue an initial public offering and intends to remain private. She framed the decision as a strategic choice, arguing that Rippledoes not need the liquidity or investor access that a listing would provide because its finances already support expansion.

The comments follow a $500 million fundraising that Ripple closed in November 2025 at a reported $40 billion valuation. Fortress Investment Group, Citadel Securities' affiliates and several crypto-focused funds took part in the round, showing that large institutions still see room for upside in Ripple’s private-market story.

Long described the structure of the deal as “very positive, very favorable for Ripple” when asked about investor protections. The package reportedly included rights for investors to sell shares back to the company at a guaranteed price and return, along with preferential treatment in scenarios such as bankruptcy or a sale.

RIPPLE $XRP PRESIDENT MONICA LONG ON IPO: "WE STILL PLAN TO REMAIN PRIVATE." pic.twitter.com/lNZvAM7ua7

— The Wolf Of All Streets (@scottmelker) January 7, 2026

Investor Protections Draw Scrutiny

Long did not say whether those protections were crucial to securing heavyweight backers at the $40 billion price. That omission leaves open how much risk investors were willing to take without contractual downside cover and how that balance shaped the final valuation.

Such terms, which can include put rights and liquidation preferences, typically insulate investors from extreme outcomes and can influence future capital-raising options. In Ripple’s case, the company portrays the round as aligning its interests with those of new shareholders while keeping room to execute its private playbook.

2025 Deals Reshape the Business

Ripple used 2025 to overhaul its footprint with a string of acquisitions totaling nearly $4 billion. The company bought global multi-asset prime broker Hidden Road, stablecoin payments platform Rail,treasury management system provider GTreasury and digital asset wallet and custody firm Palisade.

Related: How Ripple Pulled Off the Year’s Biggest Crypto Raise While XRP Tumbled 40%

These purchases aim to turn Ripple into a broad supplier of enterprise digital asset infrastructure rather than a single-product company. As of last November, Ripple Payments had processed more than $95 billion in cumulative volume, underlining the scale of its cross-border and enterprise flows.

Ripple Prime, which builds on the Hidden Road acquisition, has started to offer collateralized lending and institutional XRP products as it targets more sophisticated trading clients.

Dow Jones and Polymarket entered an exclusive partnership that will make Polymarket’s live prediction market prices available on Dow Jones consumer properties, including The Wall Street Journal, Barron’s, MarketWatch and Investor’s Business Daily.

According to the official announcement, the arrangement covers a broad range of topics, from economics and politics to cultural events, and aims to show how traders assign probabilities to future outcomes.

We're honored to be named the Exclusive Prediction Market Partner of the Wall Street Journal & the Dow Jones.The World's Largest Prediction Market™ ???? the most trusted voices in finance pic.twitter.com/S6o7qkCUS6

— Polymarket (@Polymarket) January 7, 2026

The companies presented the integration as a way to expand the data signals available to readers beyond conventional indicators such as price moves and analyst forecasts. Polymarket will act as the sole provider of prediction market data for these titles under the partnership.

How Prediction Data Will Appear

Dow Jones will display Polymarket data in dedicated modules on its digital platforms, including homepages and market-focused sections where readers track indices, stocks and macro news. These modules will surface prediction prices on key events and will also appear, in selected cases, in print formats.

As part of the rollout, Dow Jones plans to introduce a new earnings calendar that highlights market-implied expectations for corporate results using Polymarket prices. The group expects to add further data-led features over time as editors and product teams experiment with how to present probability information in a way that is useful and easy to interpret for a general business audience.

Keep reading: Why Prediction Markets Are Keeping Users When DeFi Cannot

“The Dow Jones group, including The Wall Street Journal, are setting a new standard for accessible, data-driven information to inform their readers,” commented Shayne Coplan, founder and CEO of Polymarket.

“As Polymarket continues to expand, our prediction market data is increasingly relied upon for reliable, transparent, and accurate information,” he added. “This partnership combines journalistic insight with real-time market probabilities to create a truly comprehensive news experience for readers.”

Background on Polymarket

Elsewhere, Polymarket and Parcl recently collaborated to bring real estate into the onchain prediction market space, allowing traders to speculate on the movement of housing prices without directly dealing with physical assets or mortgage exposure. The deal combined Polymarket’s event-driven trading system with Parcl’s daily home price indices.

Through the partnership, Polymarket will launch a new series of housing prediction markets, while Parcl provides the independent pricing data and settlement values derived from major U.S. housing markets. This integration aims to streamline contract settlement and make real estate price speculation faster, more accessible, and fully onchain.

Polymarket operates what it describes as the world’s largest prediction market, where traders buy and sell contracts tied to the outcomes of future events and receive payouts when they are correct. Activity spans politics, current affairs, pop culture and other themes, with billions of dollars in predictions placed so far.

The transaction was carried out on the Canton Network. This is a public blockchain designed for regulated financial markets. Lloyds Bank PLC issued the Tokenised Deposits on the network. Lloyds Bank Corporate Markets then used the deposits to purchase a Tokenised Gilt issued by Archax.

Archax Transaction Shows Blockchain-Bank Connectivity

Following the purchase, Archax transferred the underlying funds back into its standard account at Lloyds. The movement of funds showed how transactions can flow between blockchain-based systems and existing banking infrastructure. Lloyds said the process demonstrated interoperability between the two environments.

Surath Sengupta, Head of Transaction Banking Products at Lloyds, said the transaction offered “a glimpse into the future of finance.” He said tokenisation brings “real-world assets onto blockchain infrastructure” and allows transactions with greater speed and flexibility. He added that Tokenised Deposits “can continue to earn interest and remain protected by the Financial Services Compensation Scheme.”

Lloyds Pilot Shows Digital Gilt Potential

According to the bank, tokenisation allows real-world assets to be represented in digital form. These assets can then be transferred and settled more quickly than through traditional systems.

Lloyds said the use of a public blockchain differs from private ledgers by allowing wider participation, while still maintaining confidentiality for regulated activity.

The transaction took place as the UK government continues to explore the potential issuance of digital securities.

Lloyds said the pilot showed how established instruments, such as Gilts, could operate within a digital framework without changing their underlying structure.

Tokenised Assets Deliver “Transparency and Instant Settlement”

The bank said tokenised deposits allow businesses to transact on blockchain networks while retaining features of conventional deposits. These include real-time settlement, the use of smart contracts to automate certain processes, and a permanent transaction record to support transparency and compliance.

@LloydsBank and @ArchaxEx complete UK’s first public blockchain transaction using Tokenised Deposits... https://t.co/9Gg0FH4dEC pic.twitter.com/JSAbMninPk

— Archax (@ArchaxEx) January 7, 2026

As part of the pilot, Lloyds operated its own validator node on the Canton Network. The bank said this allowed it to verify transactions directly and apply the same standards used for managing cash deposits.

Lloyds said the transaction builds on earlier work with Archax. Last year, the two firms used units of a Tokenised Money Market Fund as collateral in a separate transaction.

Graham Rodford, CEO and co-founder of Archax, said the transaction showed how tokenised real-world assets can deliver “real-world benefits for institutions.” He referred to “instant settlement and enhanced transparency” as key outcomes.

Sanctions, Bitcoin Seizure and Fraud Allegations

In October, the US Department of Justice unsealed an indictment that accused Chen Zhi of wire fraud and money laundering in connection with a global cryptocurrency scheme built on forced‑labour scam compounds in Cambodia.

US authorities said they seized about 127,000 bitcoin, valued at roughly $15 billion at the time, in what they described as the largest forfeiture action in the department’s history.​

The same operation prompted the US Treasury and the UK government to sanction Prince Group and associated individuals and entities as a transnational criminal organization.

You may also like: Spain “Dismantled” €460 Million Crypto Fraud Ring, Arrested 5

Officials alleged that networks under Chen’s control used shell companies, unhosted wallets and a tangle of corporate structures to launder proceeds from “pig butchering” investment scams, online fraud and other crimes.​

Alleged Scam Compounds and Forced Labour

Investigators and rights groups accuse Zhi and Prince Group of running or backing large scam compounds in Cambodia that relied on trafficked workers. These facilities allegedly detained people under coercive conditions and forced them to operate phone and online fraud schemes that targeted victims around the world.​

What’s most interesting is wallet addresses listed in the US government $14B (127K BTC) seizure previously were named in a Milky Sad report ~2 years ago for having vulnerable private keys and now the USG says they have custody of them. https://t.co/sHNwMXhLKH pic.twitter.com/icLWKU33kC

— ZachXBT (@zachxbt) October 14, 2025

Court filings and analytical reports describe “phone farms” and industrial‑scale cyberfraud operations that blended crypto trading pitches, fake investments and romance scams. Analysts say the network grew into one of Asia’s most significant criminal enterprises, with operations and financial links stretching into Southeast Asia, Europe and beyond.​

Taiwanese media LTN said Prince Group helped provide more than half of a US$260 million grant to Cambodia in 2018, raising questions about how business, politics and security interests intersected around the conglomerate.​​

Suspected Links to Chinese Intelligence and Global Reach

Local media accounts also note that Chen reportedly bought properties in multiple jurisdictions, including units in London located near the US embassy, and used a web of companies to expand his footprint. Financial watchdogs in Singapore, Thailand and other markets have reportedly moved to scrutinize or freeze assets linked to firms associated with the group.​

Chen’s removal from Cambodia to China signals a shift in how authorities handle alleged scam bosses who once operated from loosely regulated hubs. For years, critics argued that law‑enforcement agencies moved too slowly even as the suspected network grew and victims multiplied across continents.​

The investigation in China now adds another layer to ongoing legal actions in the US, UK and other jurisdictions over Bitcoinforfeiture, property seizures and sanctions enforcement.

The update applies only to takers executing against existing liquidity on these short-term markets. Most other Polymarket markets remain fee-free, including deposits, withdrawals, and trading in longer-dated contracts.

How the Arbitrage Worked

Under the earlier model, the lack of fees on 15-minute crypto markets created a narrow but repeatable opportunity for automated strategies. Bots monitored small delays between Polymarket’s internal pricing and spot prices on major crypto exchanges. They entered trades when odds hovered near 50/50 and exiting moments later once prices converged.

On-chain data suggest that at least one wallet executed thousands of such trades in a single month with an extremely high success rate, capturing small but consistent gains without taking meaningful directional risk.

You will ???????????????????? find better ???????????? ???????????????? on Polymarket!This user isn’t a trader.It’s a bot that turned $313 into $414k in one month.???????????? ?????????????????????????He's running one simple strategy.No narratives.No adjustments.Same loop thousands of times.???????????????? ????????… pic.twitter.com/zJoh7uzYfj

— Dexter's Lab (@DextersSolab) January 5, 2026

Fee Design as a Market-Structure Tool

With the new framework, Polymarket has enabled dynamic taker fees on 15-minute crypto markets specifically to fund its Maker Rebates Program. The fees are redistributed daily to liquidity providers, incentivising deeper order books and tighter spreads.

Crucially, the taker fee is highest when odds are closest to 50% – precisely where latency-driven strategies were most active. At that level, fees can reach approximately 3.15% on a 50-cent contract, exceeding the typical arbitrage margin and making the strategy unprofitable at scale.

A Step Toward Market Maturity

The change reflects a broader shift in Polymarket’s market design. While latency-sensitive traders generated trading volume, they profited from infrastructure lag rather than genuine forecasting or liquidity provision.

By redirecting incentives through targeted fees and rebates, the platform is prioritising market quality over raw volume. Trading venues often have to make similar trade-offs, moving from early-stage growth toward longer-term sustainability.

The update signals a continued maturation of Polymarket’s infrastructure, closing early inefficiencies without abandoning fee-free access across the broader platform.

StoneX Group also operates the retail trading brand Forex.com, which became part of the group after StoneX acquired GAIN Capital in 2020. Forex.com provides foreign exchange and CFD trading services to retail clients through locally regulated entities in several jurisdictions.

StoneX Allowed Institutional Crypto Execution in the EU

StoneX Digital launched in June 2022. The authorisation allows the firm to provide digital asset execution and custody services across the European Union under the MiCA regulatory framework.

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Brian Mulcahy, Chief Executive Officer of StoneX Digital, said the firm aims “to enable our institutional and corporate investor base to integrate new products and new technologies into their existing investment lifecycle.” He said the company focuses on “reducing the friction” between traditional finance and digital assets.

StoneX Digital has operated as a Virtual Asset Service Provider for more than a year. With the new licence, it can expand its regulated activities within the EU. The business serves institutional and corporate clients.

StoneX Digital Expands EU Crypto Operations

Stuart Davison, Chief Operating Officer of StoneX Group Inc., said the authorisation supports the group’s long-term strategy. He said it helps clients integrate “new products and technologies into their existing operating and investment frameworks.” He also referred to building “regulated, scalable infrastructure.”

StoneX Expands Retail Trading, India Operations

Earlier, StoneX Group reported growth in its FX and CFD trading business, showing strength in its broader operations alongside the expansion of StoneX Digital into crypto. Q4 revenues rose 7% to $84.7 million, and FY24 revenues increased 21% to $316 million. Retail trading volumes remained steady, and revenue per million traded rose 8%.

Overall net income for the quarter was $76.7 million, up 51% year-on-year. In October, StoneX expanded in India with new offices and IIBX membership, and made a $480 million takeover offer for UK-listed CAB Payments.

The integration links Polymarket’s event-based markets with Parcl’s independently published, daily home price indices, reportedly enabling faster, rules-based settlement of contracts tied to major U.S. housing markets.

Under the partnership, Polymarket will list and operate a new suite of housing-focused prediction markets, while Parcl will supply the independent index data and final settlement values.

Real Estate Markets are officially live on @Polymarket ????Predict home values, exclusively powered by Parcl data. pic.twitter.com/AGj1WKUGRC

— Parcl (@Parcl) January 5, 2026

The indices, produced by Parcl Labs, track home prices in near real time and serve as the objective reference point for determining whether a market resolves higher or lower over a given period.

How the New Markets Will Work

According to the official announcement, the first wave of markets will focus on major U.S. cities, with contracts framed around the movement of Parcl’s city-level home price indices over set timeframes.

“Prediction markets work best when the data is clear, and the outcome can be verified without debate,” commented Matthew Modabber, the CMO of Polymarket. “Parcl’s daily housing indices give us a strong foundation to launch housing markets that settle transparently and consistently.”

Typical structures will ask whether a given city index finishes a month, quarter, or year up or down, or whether it crosses specific price thresholds by a stated date.

Each market will link to a dedicated Parcl resolution page that shows the final settlement value, historical index context, and the methodology used to calculate the index.

By using published indices instead of discretionary judgments, the partners aim to reduce ambiguity around resolutions and to lower the risk of settlement disputes.

Keep reading: Polymarket Rolls Out U.S. App After CFTC Green Light, Starting With Sports Events

Real estate remains the world’s largest asset class, yet investors often need to navigate property-level complexity, leverage, and long holding periods to express even a simple view on price direction.

Why It Matters for Housing and Crypto

By combining daily index data with Polymarket’s event-market structure, the new product offers a more direct way to trade housing outcomes, with clear rules and public, auditable resolution data.

Parcl operates a real-time housing data and onchain real estate platform, delivering indices and analytics that allow users to gain long or short exposure to home price movements.

Meanwhile, Blockchain analyst defioasis.eth recently released data showing that roughly 70% of Polymarket’s 1.7 million trading addresses have realized losses, mirroring loss rates long observed among retail CFD traders in traditional markets.

The analysis covered Polymarket’s entire trading history through December 28, examining realized profit and loss for 1,733,785 unique addresses.

A separate report also showed that Polymarket is outperforming most decentralized finance projects in keeping users active. According to Dune and Keyrock, Polymarket maintained stronger month-to-month user activity than 85% of the platforms analyzed.

The episode provided a rare, real-world stress test for the crypto market and delivered a clear signal to traditional brokers: the transition to genuinely 24/7 trading is no longer a competitive differentiator, but an operational requirement.

While many analysts expected a classic flight to safety amid heightened geopolitical tension in Latin America, the market reacted in the opposite direction. Bitcoin surged past $90,000, while short liquidations exceeded $130 million within the first 12 hours after the events unfolded.

BREAKING:???????? US is attacking Venezuela.And it's happening exactly when crypto is trying to recover.F*cking tired of this shit now.

— Ash Crypto (@AshCrypto) January 3, 2026

Timing was a decisive factor. The military operation took place while traditional markets were shut. As news broke and investors sought to reassess global risk exposure, cryptocurrency markets were effectively the only venue available for immediate capital reallocation.

In that moment, crypto functioned less as a speculative asset class and more as an always-on liquidity layer during a major geopolitical shock.

A Nation Already Running on Crypto

For years, Venezuela has served as a real-world sandbox for cryptocurrency adoption, driven by necessity rather than speculation. Prolonged hyperinflation and U.S. sanctions pushed both citizens and state-linked entities to turn to digital assets as a financial workaround.

According to Chainalysis, Venezuela consistently ranks among the world’s top countries for grassroots crypto adoption, with digital assets deeply embedded in everyday commerce. Local fintech firms have launched crypto wallets tailored for retail payments, allowing merchants to accept digital currencies without specialised point-of-sale infrastructure.

Stablecoins such as USDT are widely used to preserve purchasing power amid the bolívar’s collapse and to receive remittances from abroad. Even the state-owned oil company PDVSA has reportedly turned to Tether to settle payments for crude exports, seeking to reduce reliance on the traditional banking system under sanctions pressure.

This deep, pre-existing integration of crypto into Venezuela’s economic fabric helps explain the market’s unusual — and counterintuitive — reaction to the political shock.

Sputnik Moment for Brokers

For the brokerage industry, the implications are significant, as the episode exposed how geopolitical risk can be repriced entirely outside traditional trading hours.

The End of “Off-Hours.” Geopolitical risk does not follow a Monday-to-Friday schedule. For brokers offering crypto alongside traditional assets, risk and liquidity management can no longer pause over weekends or holidays.

24/7 Infrastructure Under Strain.Crypto-native exchanges, OTC desks and market makers saw a sharp surge in activity, highlighting the operational stress placed on platforms when they become the market of last resort.

A New Risk Model for TradFi. Banks, custodians and multi-asset brokers integrating crypto must update their risk frameworks to account for scenarios in which major geopolitical events occur outside traditional trading hours, triggering large and potentially one-sided flows into or out of digital assets.

The rally also produced irrational side effects that underscored the market’s unique dynamics. The token of Convex Finance (CVX) jumped more than 40% simply because its ticker matched that of oil major Chevron (CVX), which some traders believed could benefit from the political developments.

Ultimately, the Venezuela crisis highlighted crypto’s role as a global, continuously open liquidity layer. For the traditional brokerage world, it served as a clear wake-up call: markets no longer sleep, and the risks of a 24/7 trading environment can no longer be treated as peripheral.

Thanks to President Trump's First Step Act, I have been released from prison early. I remain committed to making a positive impact in cybersecurity as soon as I can.To the supporters, thank you for everything.To the haters, I look forward to proving you wrong.

— Ilya Lichtenstein (@cipherstein) January 2, 2026

The Russian-U.S. national said he has been freed from prison early thanks to the bipartisan prison-reform law signed by Trump.

Early Exit After 2024 Sentencing

Lichtenstein, 38, was sentenced in November 2024 to five years in prison after pleading guilty to a money launderingconspiracy charge and admitting to the hack of crypto assets now valued in billions of dollars.

But late Thursday night, a post on his official X account declared, “Thanks to President Trump’s First Step Act, I have been released from prison early.”

“I remain committed to making a positive impact incybersecurity as soon as I can. To the supporters, thank you for everything. To the haters, I look forward to proving you wrong.”

Keep reading: Hackers Drain Hundreds of Crypto Wallets, Targeting Accounts Under $2,000: Report

CNBC reported that a Trump administration official said Lichtenstein has served a substantial portion of his sentence and is now on home confinement in line with federal law and Bureau of Prisons guidelines.

Trump Law at the Center

Morgan, who also pleaded guilty to helping launder the stolen funds, shared Lichtenstein’s message on her own X account, saying, “The best New Years present I could get was finally having my husband home after 4 years of being apart.”

The best New Years present I could get was finally having my husband home after 4 years of being apart. ???????????? https://t.co/toUJ0Bz70h pic.twitter.com/plsnktmJ5l

— Heather "Razzlekhan" Morgan (@HeatherReyhan) January 2, 2026

Morgan’s tweet, posted two minutes after Lichtenstein’s, included a photo of the couple smiling for a selfie. Lichtenstein’s sentence included credit for time he already served in custody following his arrest in 2022, more than five years after Bitfinex was hacked.

In addition to the massive crypto heist, Lichtenstein was convicted of conspiracy to commit money laundering and faced three years of supervised release after completing the prison term.

Coinbase’s head of investment research, David Duong, also expects stronger momentum from crypto exchange-traded funds, stablecoins, tokenisation, and clearer regulations.

Barhydt made the remarks while speaking to Schwab Network, while Duong shared his views in a year-end wrap-up post on X.

Bullish Crypto Executives

“We are seeing quantitative easing light right now,” the Abra CEO said. “The Fed is starting to buy its own bonds. I think demand for government debt is going to fall next year, along with lower rates. All of this bodes well for all assets, including Bitcoin.”

He expects a continued interest rate cut by the US Federal Reserve this year, which would inject a “ton” of liquidity into the markets.

Like Duong, Barhydt also believes there will be further regulatory clarity around cryptocurrencies in the United States.

The Coinbase executive noted that last year, spot crypto ETFs provided regulated access to cryptocurrencies, and several corporations started digital asset treasuries. There was also growing interest in tokenisation and stablecoins.

“We expect these forces to compound in 2026,” Duong wrote, “as ETF approval timelines shorten, stablecoins take a larger role in delivery-versus-payment (DvP) structures, and tokenised collateral is recognised more broadly across traditional transactions.”

The crypto industry in the US received a strong regulatory push in 2025 following Donald Trump’s return to the White House for a second term. The Securities and Exchange Commission (SEC) also has a crypto-friendly chair, who is taking a more relaxed regulatory approach towards the industry.

“The practical outcome is real operational readiness: clearer policy guardrails that support product development, market growth, and the wider use of crypto systems in payments and settlements,” Duong added. “This forms the base on which the next stage of institutional adoption is being built.”

A Tough Year, but Optimism Ahead

Bitcoin had a difficult year in 2025, despite reaching a record high of around $126,000 in August.

The first day of 2026 failed to impress crypto supporters, as the Bitcoin price dropped by more than one per cent over the past 24 hours. It remains to be seen how the crypto markets perform in the coming weeks and months.

After legalizing mining in late 2024, the government has quickly moved to criminal penalties because most miners still avoid registration and formal taxation.

The Ministry of Justice published draft amendments to the Criminal Code that would treat many forms of unregistered mining as a criminal offence rather than just an administrative violation.

What the Draft Penalties Say

Under the proposal, individuals who minecryptocurrency without proper registration could face fines of up to 1.5 million rubles, roughly the equivalent of high four‑figure dollar sums, or up to two years of forced labor.

Courts would also have the option to impose up to 480 hours of compulsory labor in less severe cases, tightening the consequences even for smaller operations that ignore the rules.

​Lawmakers reserve the harshest sanctions for mining that generates “significant” or “especially large” income, or that involves organized groups. In those cases, offenders could receive up to five years in prison, face forced labor of similar length, and pay fines of up to 2.5 million rubles, with additional financial penalties still possible.

Related: Russia Legalizes Cryptocurrency Mining in New Law Signed by Putin

Despite the new framework that took effect on November 1, 2024, only a minority of miners have entered the official register maintained by the Federal Tax Service. Deputy Finance Minister Ivan Chebeskov said in June that only about 30% of miners had registered, leaving roughly two‑thirds of the sector operating in a “gray zone.”

From Legalization to Tight Control

Russia classifies miners with monthly electricity use below 6,000 kWh as private individuals, who may mine without entering the special register but must pay personal income tax on their coins.

Larger commercial miners and infrastructure operators must register and file a dedicated monthly tax form declaring the amount of digital currency they produce, or risk falling under the scope of the new criminal provisions.

You may also like: Binance Users in Ukraine Pushed to Swift and P2P as Bifinity Quits Fiat Services

President Putin signed the core laws thatlegalized and structured crypto mining last year, with the main provisions coming into force on November 1 that year.

The legislation created registration and reporting requirements for mining firms and pool operators, and gave regulators scope to restrict activity in regions where power systems face stress.

The same framework bars foreign entities from engaging in crypto mining in Russia and bans public advertising or open offers of mining‑related services.

The platform has reportedly paused direct fiat payouts to Visa and Mastercard for affected customers, turning a technical change in payment partners into a new test of how resilient crypto off‑ramps really are under tightening regulation, local media outlet Minfin reported.

Binance notified Ukrainian users that it suspended withdrawals to Visa and Mastercard bank cards, with the pause tied to changes at its fiat provider Bifinity UAB. The exchange said the update applies only to users in Ukraine who previously used Bifinity, rather than to its wider global customer base.

Binance уточнює, що нещодавнє оголошення про зміни у способах оплати стосується виключно тих користувачів з України, які раніше користувалися послугами Bifinity.Сервіс ZEN для українських користувачів тимчасово недоступний і відновить роботу з 6 січня. Зміни в роботі сервісу… pic.twitter.com/4bPRftCBnH

— Binance Ukraine (@BinanceUkraine) December 30, 2025

What Exactly Has Changed

The pause affects several automated features around fiat flows. Local reports say recurring crypto purchases and existing fiat‑based limit buy orders will not execute during the suspension.

The disruption follows Binance’s December communication that Bifinity UAB would stop providing fiat services by the end of 2025 because of regulatory changes.

In that earlier notice, Binance said it would transition to other regulated providers and maintained that users would still be able to deposit, withdraw, buy, and sell crypto without interruption.

The Zen.com payment platform, often used for euro and Polish zloty transfers, has seen its full deposit and withdrawal functionality for these customers pushed back to an expected restart date of January 6, 2026.

Until then, users who want to move funds off the exchange must route transactions through Swift or rely on peer‑to‑peer trades where local rules allow.

What Still Works for Ukrainians

Despite the pause on card withdrawals, Binance continues to support several key on‑ramp options in Ukraine. Users can still top up accounts and buy crypto with Visa and Mastercard for incoming payments, even though they cannot send funds back out to those same cards.

Digital wallets remain part of the toolkit. Apple Pay and Google Pay stay available for account funding, and Swift transfers still handle both deposits and withdrawals, preserving a bank‑linked channel for fiat.

A recent Financial Times investigation, based on leaked internal data, reported that 13 linked accounts processed about 1.7 billion dollars in transactions from 2021, including roughly 144 million dollars after Binance’s 4.3 billion dollar criminal settlement with United States authorities in November 2023.

Those accounts reportedly showed red flags, including alleged ties to networks later accused of moving money for sanctioned actors, and unusual login patterns.

The case, published by an independent researcher, highlights a broader security challenge facing brokers, exchanges, and fintech platforms: while infrastructure security has improved, fraud increasingly targets the human layer.

The threat actor, operating under the alias “Haby,” reportedly relied on low-tech but highly effective social engineering tactics to gain trust before draining user funds.

1/ Meet Haby (Havard), a Canadian threat actor who has stolen $2M+ via Coinbase support impersonation social engineering scams in the past year blowing the funds on rare social media usernames, bottle service, & gambling. pic.twitter.com/bBqrV7GmPi

— ZachXBT (@zachxbt) December 29, 2025

The Attack Vector: Social Engineering, Not Code

According to the investigation, the primary attack vector was not a software exploit but classic impersonation. Posing as a Coinbase support representative, the actor allegedly convinced users to authorize transactions or share account access under the guise of resolving urgent security issues.

Once funds were obtained, they were quickly laundered through a familiar on-chain playbook. Assets from multiple victims were consolidated, swapped across chains — including conversions from XRP to BTC via instant exchanges — and moved into personal wallets to obscure the transaction trail.

A Familiar Pattern Across the Industry

While the case centers on Coinbase, the underlying mechanics are increasingly familiar across the brokerage industry. Brand impersonation, phishing, and lookalike infrastructure have become some of the most common entry points for fraud.

Earlier this year, Tamas Szabo, CEO of Pepperstone, warned that taking down typosquatted domains has become a near-daily task. Even after securing hundreds of domain variations, new lookalikes continue to appear fast enough to occupy entire fraud teams.

Typosquatting itself is not a scam, but it enables phishing and impersonation at scale. Brokers across the market report a sharp rise in brand abuse driven by AI-assisted cloning tools and the near-zero cost of registering new domains — turning what was once an occasional nuisance into a continuous operational threat.

For brokers, exchanges, and fintech platforms, the case reinforces a shifting reality: as technical defences harden, attackers are increasingly targeting psychology, authority, and brand trust. Security strategies that focus solely on infrastructure, without addressing impersonation and social engineering, risk leaving the most exposed surface unprotected.

Amid this growth, regulators have flagged risks tied to the expanding market. The European Securities and Markets Authority warned that tokenized stocks may create investor confusion, as they often track share prices without granting shareholder rights.

ESMA executive director Natasha Cazenave said there is a “risk of misunderstanding” around ownership. The watchdog added most tokenized equity projects remain small and illiquid, despite interest in 24/7 trading and fractional ownership.

Tokenized Stocks Mirror 2020 Stablecoins Growth

“Tokenized stocks today are like stablecoins in 2020,” Token Terminal said. The comparison reflects how early the market remains. Stablecoins were still limited in scale in 2020. They have since grown into a sector valued at about $300 billion, Cointelegraph reported.

Industry participants have also compared tokenized equities to the early decentralized finance boom of 2020. They cite faster settlement, continuous trading, and fractional ownership as key features. These characteristics are seen as factors that could support the movement of more global equities onchain.

???? BIG: Tokenized stocks market cap hits all-time high of $1.2 billion, per Token Terminal. pic.twitter.com/crHvph9A3T

— Cointelegraph (@Cointelegraph) December 30, 2025

Securitize Plans Compliant Onchain Equity Trading

Market activity spiked in September following Backed Finance’s launch of its xStocks suite on Ethereum, which introduced around 60 tokenized equities through partnerships with Kraken and Bybit. Momentum continued into December, with Securitize announcing plans for compliant onchain trading that would enable direct share ownership.

Ondo, Coinbase Expand Tokenized Stock Offerings

Other firms are preparing similar offerings. Ondo Finance plans to roll out tokenized US stocks and exchange-traded funds on Solana in early 2026.

Coinbase is moving in the same direction. This month, it announced plans to offer stock trading as part of its effort to become an “everything exchange.”

Institutional interest has also emerged. Nasdaq disclosed that it has filed with the US Securities and Exchange Commission to offer tokenized stocks on its platform. The exchange said tokenization is a top strategic priority.

According to Coinbase, the lines between traditional markets and decentralized finance are blurring fast. As crypto derivatives mature, perpetual futures – once the playground of speculative traders – are emerging as a core infrastructure layer within decentralized finance.

Decentralized Volumes Surge Amid Slow Spot Trends

Decentralized exchanges (DEXs) processed more than US$1.2 trillion in perpetual futures each month by the end of 2025, with Hyperliquid maintaining a commanding presence among traders.

Analysts point to a shift in trader behavior: in a year with no traditional altcoin rally, investors turned to perps to extract higher returns from flat spot markets.

The ability to control large positions with minimal capital renewed interest in leveraged trading, pushing speculative exposure to nearly 10% of crypto’s overall leverage ratio before a sharp correction in October brought it back down to 4%.

Beyond high-stakes speculation, perpetual futures are increasingly being integrated into the foundation of decentralized finance.

By linking with lending protocols, liquidity pools, and on-chain risk systems, these derivatives are becoming composable – designed to work as functional layers within complex digital financial structures.

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Such integration allows traders and protocols alike to manage risk more dynamically. For example, a decentralized lending protocol might use perps to hedge exposure to asset volatility or even generate yield through structured strategies.

Equity Perps: The Next Step for Retail Traders

Another trend gaining traction is the rise of equity-based perpetual futures. As tokenized versions of major stocks like those in the S&P 500 or Nasdaq appear on decentralized platforms, they offer retail investors a way to trade global equities using crypto-like leverage and around-the-clock access.

The move toward perpetual contracts on tokenized equities may bridge traditional and digital markets, enabling fractional, 24/7 trading that bypasses standard market hours.

This expanded accessibility could attract millions of global retail traders who seek exposure to traditional stocks but value the efficiency and freedom of crypto markets. In doing so, equity perps might redefine how and when markets operate.

The evolution of perpetual futures reflects a broader reconfiguration of the crypto financial landscape. They’re no longer confined to speculative corners of exchanges but are forming new connective tissue between decentralized and traditional trading systems.

Using Rutoken to Secure Digital Collateral

Sberbank reportedly used its in-house digital custody product, Rutoken, to safeguard the Bitcoin collateral through the loan period. According to the bank, the pilot transaction demonstrates how crypto-backed lending could operate within regulated frameworks without compromising asset security.

“Digital currency market regulation is only emerging in Russia, and we are ready to collaborate with the Central Bank to develop relevant regulatory measures and create infrastructure for launching crypto services,” Anatoly Popov, deputy chairman of the Executive Board at Sberbank, said in a statement translated to English.

However, the bank did not disclose the size of the loan but indicated that the structure is designed to be used well beyond the mining sector. It positioned the product as suitable for any company holding cryptocurrencies and framed the arrangement as a practical way to connect blockchain-based assets with traditional finance.

Sberbank’s Expanding Crypto Strategy

Intelion Data described the loan a significant milestone for Russia’s crypto and mining ecosystem. Sberbank has recently deepened its involvement in digital assets beyond custody solutions. The lender is experimenting with decentralized finance instruments and supports the gradual legalization of cryptocurrencies in Russia.

Sberbank confirmed in 2022 that it would withdraw from European markets after mounting pressure from Western sanctions made its operations untenable.

The bank had built a substantial presence in Europe through subsidiaries and branches in countries including Germany, Austria, Croatia and Hungary, but those units began to face exceptional cash outflows as sanctions took hold.

At the same time, a directive from the Central Bank of Russia prevented the parent from supplying liquidity support to its European subsidiaries, further undermining their position.

Despite the strain, Sberbank stressed at the time that it held sufficient capital to meet all obligations to depositors, even as it moved to wind down its European exposure.

The proposed tax reform, expected to take effect from January 1, 2026, is a strategic trade-off. Cyprus is positioning itself as a low-tax crypto hub within the EU, but the price of entry is full transparency and a significant increase in compliance overhead.

The New "Cyprus Deal" for Brokers

The reform creates a mixed picture for crypto brokers operating on the island. For a 100% crypto brokerage, the new 8% rate represents a significant tax reduction compared to the previous 12.5% corporate tax.

On one hand, this advantage is designed to attract crypto-native firms and allow brokers to offer more competitive pricing. On the other hand, the tax benefit comes with potentially higher costs and limited loss offsetting.

The tax break is offset by two major factors. First, the general corporate tax rate is rising from 12.5% to 15%, impacting any non-crypto income.

Second, and more critically, crypto trading losses are ring-fenced and can only be offset against crypto gains, rather than the firm’s broader taxable income or carried forward to future years. It means that a single unprofitable year cannot be used to offset taxes in a profitable one—a significant drawback in a volatile market.

The Real Cost: A Surge in Regulatory Burden

The true cost for brokers comes from the simultaneous implementation of two major EU directives: MiCA (Markets in Crypto-Assets) and DAC8 (Directive on Administrative Cooperation).

MiCA requires all crypto-asset service providers (CASPs) to obtain a full license, a process involving capital requirements of up to €150,000 and a complex governance structure. Existing firms must be fully compliant by July 2026.

Meanwhile, DAC8 mandates that all brokers automatically report detailed client transaction data, balances, and residency information to EU tax authorities. It takes effect from January 2025 and reduces client anonymity on regulated platforms.

The operational impact of DAC8 could be substantial. Brokers will need to upgrade their reporting infrastructure, expand KYC and AML processes, and adapt internal systems to meet detailed, ongoing disclosure requirements. Industry estimates suggest this could lift administrative and compliance costs by 30–50%.

Why Licensed Brokers Are Staying Silent

Notably, major crypto platforms already licensed in Cyprus, including Revolut, Tickmill, Kraken, and Bybit, have so far refrained from publicly commenting on the proposed tax regime. Finance Magnates reached out to several licensed brokers for comment, but had not received responses by the time of publication.

Market participants point to the fact that the legislation has not yet been fully enacted and that the final text, including secondary regulations, has not been published. As a result, many firms prefer to assess the framework privately with tax advisors rather than make forward-looking public statements.

In the absence of official commentary, online discussions around the proposal suggest a broadly mixed but pragmatic reaction. Some market participants view the 8% flat rate as a meaningful improvement over both Cyprus’s current framework and typical EU tax levels, particularly after years of regulatory ambiguity.

Others, however, caution that the higher 15% corporate tax on non-crypto income could undermine Cyprus’ overall appeal and potentially push some firms to consider alternative jurisdictions within the region.

A Strategic Choice

Despite the heavy new compliance load, Cyprus's 8% rate remains highly competitive within the EU, where countries like France (30%) and Italy (26%) have much higher capital gains taxes on crypto.

By embedding MiCA definitions directly into domestic tax law, Cyprus also reduces legal ambiguity around what constitutes a crypto-asset — an issue that has complicated tax treatment in several other EU jurisdictions.

However, the shift is clear: Cyprus is no longer a "light-touch" jurisdiction. It is making a deliberate play for serious, well-capitalized crypto businesses that are willing to trade regulatory scrutiny for a favorable tax rate and passported access to the entire EU market. For brokers, the Cyprus deal is now a strategic choice between a low tax bill and a very high compliance bill.

This move might raise significant conflict-of-interest questions for the CFTC-regulated platform and challenge the industry's core promise of having "no house."

The company is actively hiring a "quant trader" to join a team. According to the job listing, the person will "maximize profits while carefully managing risks" by trading on the firm's own sports-related contracts.

This practice strikes at the heart of how prediction markets have distinguished themselves from traditional sportsbooks. While sportsbooks set odds and profit when bettors lose, prediction markets have argued to regulators that they are neutral venues where users simply trade against each other.

When Prediction Markets Start Acting Like the House

By creating an internal desk designed to profit from user activity, Crypto.com is effectively building its own "house." The practice raises concerns over whether it is in line with the principles of a CFTC-regulated derivatives market.

The potential for conflict is amplified by an alledged Crypto.com rule granting market makers a three-second head start over retail traders placing wagers. This policy could allow the internal desk to see incoming retail interest and adjust its own prices before smaller traders can act.

This is not an isolated incident but a growing industry trend. Competitor platform Kalshi already operates a similar internal unit, which is the subject of a class-action lawsuit alleging it disadvantages customers. Rival Polymarket, after settling its own case with the CFTC, is also reportedly recruiting for its own trading team.

A spokesperson for Crypto.com defended the practice, stating that its internal market maker "does not have access to proprietary data or customer order flow" before other participants and that the ultimate result is beneficial for users.

"The bottom line for customers is more competition and liquidity on the platform creates a better overall experience," they added. However, as prediction markets push for mainstream acceptance in the U.S., they face a fundamental identity crisis.

The move to create internal, profit-seeking trading desks puts them on a potential collision course with the very regulatory framework they sought for legitimacy, forcing regulators and users to ask a simple question: are these neutral exchanges, or are they just sportsbooks in disguise?

According to crypto investigator ZachXBT, hundreds of Trust Wallet users suffered losses due to the vulnerability.

Another Security Lapse in Crypto Wallets

The security breach occurred due to a vulnerability in a version of the Trust Wallet Google Chrome browser extension. The developers urged users to disable the affected version and upgrade to the latest one.

“User funds are SAFU,” Zhao wrote in a post on X. “The team is still investigating how hackers were able to submit a new version.”

Trust Wallet also confirmed that mobile-only users and users of other browser extensions were not affected.

So far, $7m affected by this hack. @TrustWallet will cover. User funds are SAFU. Appreciate your understanding for any inconveniences caused. ????The team is still investigating how hackers were able to submit a new version. https://t.co/xdPGwwDU8b

— CZ ???? BNB (@cz_binance) December 26, 2025

A Binance-Backed Crypto Wallet

The self-custodial crypto wallet platform has over 220 million accounts, although the actual user count may be lower, as users can create multiple accounts. Zhao acquired the wallet in 2018 through Binance, where he is a majority stakeholder, but did not disclose the purchase price.

Recently, Trust Wallet entered the prediction market trend and began offering access to event-based contracts. Earlier, MetaMask, another popular crypto wallet, announced plans to integrate Polymarket’s prediction markets through an exclusive partnership.

Ethereum co-founder Vitalik Buterin recently pushed back against growing criticism of prediction markets, arguing that their risks are overstated and often similar to those already present in traditional financial markets. He also described participation in prediction markets as “healthier” than in traditional markets, largely because their structure limits certain forms of speculative excess.

Meanwhile, the Trust Wallet hack is not the only incident in the crypto industry during the holiday period. On Christmas Day (Thursday), Bitcoin prices on Binance, particularly for the BTC-USD1 pair, briefly dropped to $24,000 before rebounding to around $87,000. The flash crash occurred in the illiquid USD1 market, a stablecoin linked to World Liberty Financial, which is backed by the family of US President Donald Trump.

She described how, when she first examined crypto policy in 2021, there had been “no debates or mentions” of cryptocurrency in the House of Commons despite almost four million UK citizens already engaging with digital assets under Financial Conduct Authority estimates.

Parliament Behind Public and Even Children

Cameron, a clinical psychologist by training and the first in that profession elected to Westminster, recounted that her journey into digital assets began when a constituent approached her in 2021 after losing significant funds in a crypto scam and seeking redress.

“Well, we had had no debates or mentions in the House of Commons in 2021 through a debate process of cryptocurrency. So, I thought to myself, perhaps my constituent's experience is out of the ordinary.”

“And then I went to look at the research, and I was astounded to find out that in 2021, almost 4 million people in the UK were already engaged in cryptocurrency, and either trading or engaged in the sector, according to the FCA figures.”

Building a Crypto Literacy Base in Westminster

To address that gap, Cameron launched the first All-Party Parliamentary Group (APPG) on Cryptocurrency and Digital Assets in the Commons in 2021 and chaired it for four years, focusing initially on basic education for MPs and peers.

“I had so many businesses come to meet with us, to meet with the parliamentarians. I remember we had an uphill struggle in our learning and in thinking about the industry itself. We even had cowboys come to the Parliament, and I mean actually dressed as cowboys.”

The APPG nonetheless ramped up teach-ins through 2021–22, bringing in industry experts to decode jargon and help MPs simply understand what they were being lobbied about.

From Zero Mentions to Political Priority

By 2023–24, research by advisory firm Greengage showed that parliamentary references to cryptocurrency and digital assets had climbed from zero mentions in 2021 to more than 200, much of it driven by the APPG’s work.

Cameron said the growing volume of debates and questions, often directed at City Minister Andrew Griffith, began to force departments to develop positions and technical understanding, gradually moving crypto up the policy agenda.

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“By that point, I think the Minister, the City Minister, who was Andrew Griffiths at the time, was a bit sick of me lodging for debates on crypto and asking him questions because his department had to keep going and finding out information.”

“But I think we were all learning and it was a very, very exceptional time to take things forward. Of course, at the time, Prime Minister Rishi Sunak said that he wanted the UK to be a crypto hub.”

Jurisdictional Competition and the UK-US Sandbox

Cameron stressed that the UK cannot view its regulatory choices in isolation, pointing to Dubai’s Virtual Assets Regulatory Authority (VARA) and Singapore as examples of jurisdictions that have drawn firms by pairing innovation with clear guardrails.

She said the more balanced approach to compliance and consumer protection in the UAE had already prompted a “stream of companies” to relocate there, a trend she believes has continued.

“So, in the past year, since stepping down from parliament, I've become chair of the UK-US Crypto Alliance, and we've had members of parliament, House of Lords, out to Washington to speak with the Crypto Task Force, there with Commissioner Pearce and Chair Atkins, to speak about a UK-US sandbox, which is now being worked on, a joint sandbox between both”

Call for ‘Light-Touch’ Rules – with Guardrails

Looking ahead, Cameron said the UK is watching US legislative efforts such as the proposed GENIUS Act and the Clarity Act as it considers its own next steps after financial services and promotion rules affecting crypto.

She argued that Britain should consider a “light touch” framework that allows innovators to “do their thing within guardrails”, with consumer protection at the core but without stifling entrepreneurship, investment and growth.

“The UK should be pivoting towards a light touch regulatory framework, allowing the innovators to do their thing within guardrails, of course. And making sure that we, of course, have consumer protection at the core, but that we try to enable entrepreneurship, investment, growth and innovation in the UK.”

“And I'm just back from Singapore, which is another jurisdiction which I think is very much at the forefront of progress in this industry. So, for the next year, what I want to do is make sure that members of the Parliament and the members of the House of Lords have access to information, not just about what we're doing here, but about cross-jurisdictional progress that's being made.”

Industry urged to engage MPs directly

One of Cameron’s strongest messages to the FMLS audience was that industry cannot outsource engagement to lobby groups alone. She asked attendees how many had contacted their own MP about their digital assets work and found only a handful of hands raised.

She urged firms to attend all-party groups on crypto, blockchain, digital money and fintech, and to use constituency surgeries to explain where jobs, skills and future growth are emerging.

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“And first of all, I went off to Zug, to Crypto Valley, courtesy of the Swiss Embassy, who were very keen that I engaged with their legislators to find out how they were beginning to put their regulatory processes together.”

A Generational Mandate from the ‘Children’s Parliament’

Perhaps the most striking anecdote came from a session with the UK’s Children’s Parliament, where representatives aged roughly seven to 15 met MPs, peers and industry figures, including a Roblox executive.

It also reinforced her view that Parliament has a duty to design regulatory and education systems that create future-facing jobs rather than replicating traditional career paths such as “doctor or lawyer”.

“And what I would leave you with is in our learning, not only were we way behind on jargon, way behind on the industry itself, way behind on blockchain technology and Web3 and most of those issues in 2021, but when the Children's Parliament came to speak to us, now we have a Children's Parliament across the UK, children aged from around seven or eight up to 15 representing their constituencies across the United Kingdom who come to tell us what's important to them.”

A Race Against a Closing Window

Cameron closed by warning that there is a “window of opportunity” for the UK to shape on-chain innovation that is already beginning to narrow as other centers move faster.

She plans to continue briefing legislators in Spain, the EU, Italy, Germany, Singapore and the US over the next year to give Westminster a clearer picture of where Britain stands in the global hierarchy – and what changes are needed to catch up.

Her appeal to the FMLS audience was blunt: if innovators want to build a future “made in the UK”, they must help educate the politicians who will decide whether those businesses stay in Britain or go elsewhere.

His comments come amid intensifying scrutiny of the sector, with critics warning about the potential for market manipulation and the creation of perverse incentives, particularly around bets on geopolitical events and sports.

Regulators have taken note. Last year, the U.S. Commodity Futures Trading Commission (CFTC) proposed amending its rules for prediction markets, arguing that wagers on events such as war or assassination could be considered morally “offensive”.

More recently, an NFL executive warned lawmakers that prediction markets pose a greater threat to contest integrity than traditional sportsbooks.

Buterin’s Case for Prediction Markets

Buterin addressed these concerns, claiming that equal or even greater risks are present in conventional finance. “Many of the downsides of PMs [prediction markets] are replicated by regular stock markets,” he said, noting that a bad actor seeking to profit from a disaster could simply short the broader market, which offers far higher liquidity and volume.

He argues that prediction markets offer a distinct advantage as an environment for expressing views that “favours truth-seeking”, in contrast to social media, where sensationalism is rewarded and accountability is limited.

“With prediction markets, if you make a dumb bet, you lose,” Buterin said, adding that this financial accountability can make them a more reliable gauge of genuine uncertainty than news headlines or online discourse.

Buterin went further, describing participation in prediction markets as “healthier” than in traditional markets, largely because their structure limits certain forms of speculative excess.

“Prices are bounded between 0 and 1, so they are much less dominated by reflexivity effects, ‘greater fool theory’, pump-and-dumps and similar dynamics,” he said.

His endorsement adds support to a rapidly expanding sector. Leading crypto platforms are integrating prediction markets as a core feature to attract a new wave of younger, self-directed investors.

As prediction markets gain wider adoption, regulators and market participants are likely to focus less on whether they should exist and more on how they should be governed, particularly in terms of market integrity and information quality.

The country will begin enforcing the DAC8 directive on tax reporting from 1 January 2026, followed by the full implementation of the Markets in Crypto-Assets (MiCA) licensing framework by 1 July 2026.

Together, the two regimes will require crypto service providers to obtain full authorisation and automatically report client data, fundamentally altering the competitive landscape in a major European market.

The Two-Pronged Regulatory Overhaul

The new rules establish a comprehensive compliance framework that closely mirrors traditional financial regulation. From 2026, crypto firms operating in Spain will face a dual requirement. MiCA introduces a full licensing regime, obliging platforms to meet capital, governance and operational standards comparable to those applied to regulated brokers.

DAC8 adds a parallel layer of tax transparency, requiring firms to automatically report client balances and transactions. Taken together, the measures align crypto operations far more closely with conventional financial supervision.

Levelling the Playing Field for Brokers

For the brokerage industry, this dual implementation marks a strategic turning point. Crypto-native firms that have historically operated under lighter regulatory conditions will now face the same compliance costs and operational requirements long borne by traditional brokers.

The impact is already becoming visible. According to a study by Dutch crypto trading firm Yieldfund, 42% of crypto-asset service providers (CASPs) report a 45% increase in costs linked to MiCA preparations, while firms that have completed compliance efforts have seen a 45% rise in institutional investment.

Spain’s 2026 timeline underscores a broader shift in Europe’s approach to crypto regulation. The focus is no longer on incremental alignment, but on full integration into the financial system.

For firms able to absorb higher compliance costs, the new regime offers clarity and long-term legitimacy. For those reliant on regulatory arbitrage, the Spanish market may become increasingly difficult to access. Competition will not disappear, but the basis on which firms compete is being fundamentally redefined.

The exchange, one of the largest globally by trading volume, attributed this step as a compliance measure rather than a sudden exit, signaling a controlled wind-down of Japanese exposure.

"As part of our proactive efforts to comply with Japanese regulations, we have decided to discontinue services for residents of Japan and gradually implement account restrictions," it announced.

Japan’s Strict Rules Push Exchanges to the Edge

Japan operates one of the most demanding regulatory regimes for digital asset trading, with exchanges required to register with the Financial Services Agency and comply with rules on customer protection, asset segregation and anti-money laundering.

Bybit announced that it will gradually exit the Japanese market starting in 2026, opting to withdraw rather than continue regulatory disputes with Japan. Japan’s Financial Services Agency has pursued the exchange over unlicensed operations since 2021 and required Apple and Google…

— Wu Blockchain (@WuBlockchain) December 23, 2025

Platforms that fail to meet these standards often face pressure to shut down operations or leave the market entirely. Authorities plan to go further by requiring local cryptocurrency platforms to maintain liability reserves that can absorb losses from hacks and other operational failures.

That measure would place additional capital andrisk-management obligations on exchanges and bring them closer to the framework that already applies to traditional securities firms.

In its notice to users, Bybit links the planned restrictions directly to Japanese requirements and presents the shift as part of efforts to comply with local rules. The language indicates that the exchange prefers to limit services in advance instead of facing enforcement action once new obligations take full effect.

Bybit says it will communicate with affected customers as the timetable becomes clearer, suggesting a phased process rather than an abrupt shutdown. That approach aims to reduce disruption for users while the platform adjusts its exposure to Japan’s tightening regulatory environment.

Japan Retreat Follows UK Return

In October, Bybit said it would suspend onboarding new users and that it will affect both Japanese residents and nationals. The timing of the decision stands out because it comes only days after Bybit confirmed it had returned to the U.K. market, about two years after tougher rules on crypto marketing and promotions forced it out.

A new chapter begins ????????Bybit is now officially operating in the UK.This marks an important step in our long-term commitment to the British market — bringing UK users access to an innovative crypto trading platform designed specifically with the UK market in mind. pic.twitter.com/zWFnXSXBzp

— Bybit UK (@UK_Bybit) December 19, 2025

The exchange has re-entered Britain under a structure designed to fit within the Financial Conduct Authority’s regime, underscoring its willingness to adapt when it decides a market remains strategically important.

The session, “Stablecoins for a Destabilized World: Use Cases in Financial Services,” brought together Jas Shah, independent product strategist; Luke Dorney, head of custody at LMAX Group; Andrew Rosoman, international head of business development at Ripple Prime; and Harpal Sandhu, CEO of Integral. Melissa Stringer, fractional CPO and product strategy consultant, moderated the discussion.

Top Layer Infrastructure Remains Key Friction

Dorney outlined the layered infrastructure of stablecoins, emphasizing that while the coins themselves and the underlying blockchains are relatively well understood, the top layer of connectors — exchanges, wallets, custodians — remains the biggest friction point for regulated firms.

“A lot of those firms on the top layer all operate a little bit differently,” Dorney said. “Sometimes that instant settlement doesn’t occur because one custodian may operate differently to another.”

Stablecoins Enable Near-Zero Cost Transactions

Sandhu framed stablecoins as a fundamental disruption akin to tokenization in telecom or AI breakthroughs, enabling new business models through near-zero-cost and instant money transmission. He highlighted Integral’s on-chain credit facility, which removes counterparty risk by tokenizing US dollars and settling variation margins in real time.

“When you introduce zero into the transmission of money… entrepreneurs are going to figure out totally new value propositions to customers,” Sandhu said.

Stablecoins Unlock Liquidity and Efficiency

Rosoman drew parallels with the FX market, noting that stablecoins can unlock trapped capital and improve liquidity efficiency. Ripple Prime now supports billions of dollars in daily transactions while accepting stablecoins as good collateral for margin financing.

“Blockchain inherently unlocks the technology to reduce friction and move it forward,” Rosoman said.

Third-Party Dependencies Are Main Obstacles

Shah brought a pragmatic perspective on operational challenges, drawing on his experience standardizing CDS contracts post-2008. He argued that the biggest obstacles are not legacy technology but external systems beyond an institution’s direct control.

“The big friction points came when we were looking at accounting book of record, investment book of record, the systems at the heart of those organizations. It’ll be what are the products that are actually not directly in your control that you need to change but actually rely on a third party — third-party timelines, third-party dependencies, resourcing costs,” Shah said.

Shah also emphasized the importance of top-down mandates for adoption. “If you think about AI deployment in corporate environments, it’s very similar — you need buy-in at the top to really get this to work.”

LATEST: ???? US lawmakers have introduced a draft bill that would exempt stablecoin transactions under $200 from capital gains taxes and allow crypto miners and stakers to defer taxes on rewards for up to five years. pic.twitter.com/Trxj8in0xw

— CoinMarketCap (@CoinMarketCap) December 22, 2025

Stablecoins Solve Payroll and FX Challenges

Shah highlighted real-world B2B opportunities over consumer-facing remittances. Payroll and cross-border marketplace paymentspresent larger markets with operational challenges.

“The settlement times are a bit longer, especially for payroll, contractors like myself can be stung with FX volatility, and stablecoins can help solve those problems,” he said.

Adoption Hinges on Regulation and Infrastructure

Panelists agreed that the next phase of adoption depends on regulatory clarity and practical infrastructure, including scalable blockchain networks and multi-chain interoperability.

“Regulatory clarity allows firms to look at more intricate models supporting the infrastructure around stablecoins and actually make implementation decisions,” Dorney said.

???????? UPDATE: Ethereum leads the euro stablecoin market, with 50% of all tokenized euros issued on Ethereum, per Barchart. pic.twitter.com/DemGbDBirC

— Cointelegraph (@Cointelegraph) December 22, 2025

Stablecoins Becoming Core Financial Plumbing

As adoption grows, panelists predicted that stablecoins would become core plumbing in financial services, supporting trading, liquidity management, and cross-border payments. Rosoman highlighted the scale:

“Over the course of the year, $50 trillion of value has been transacted through stablecoins — more than Visa and Mastercard combined.”

Stablecoins Are Tool, Not Novelty

For financial institutions, the message was clear: stablecoins are no longer a novelty but a tool to increase efficiency, reduce risk, and enable new business models, provided firms address regulatory, operational, and technological frictions effectively.

According to CySEC, the deadline for submitting an application under MiCA is 27 February 2026. The regulator referred to its earlier announcement, which outlined the transitional arrangements for existing providers.

CASPs Must Apply Before February Deadline

CASPs that are currently offering services under the national framework may continue operating during the transitional period. This applies until their application is approved or rejected or until the end of the transitional period on 1 July 2026, whichever comes first.

CySEC clarified that CASPs which do not submit an application by the February 2026 deadline must prepare and submit a wind-down plan. After the end of the transitional period, the provision of crypto-asset services will no longer be permitted without MiCA authorisation. Any activity beyond the July deadline is conditional on obtaining the relevant approval under the regulation.

Cross-Border Crypto Services Require Compliance

The regulator also recalled the rules on cross-border activity. The provision of crypto-asset services to another EU Member State is allowed only where this is permitted under the host country’s national legislation. It must also be aligned with the adoption of the grandfathering regime, in line with guidance issued by the European Securities and Markets Authority.

CySEC added that CASPs which remain registered in the relevant national register continue to be subject to all existing obligationsarising from national rules, as previously communicated by the authority.

CySEC Proposes ESAP Reporting Rules

CySEC has launched a consultation on proposed amendments to align national rules with the EU’s European Single Access Point framework. Under the changes, investment firms, asset managers, and AIFMs that are part of a financial conglomerate would be required to submit annual information on their legal, governance, and organisational structures to CySEC for publication on ESAP.

The requirements, effective from January 2030, aim to enhance regulatory transparency and oversight, without introducing any retail-facing obligations.

According to the announcement, FanDuel Predicts began its first phase across five U.S. states – Alabama, Alaska, South Carolina, North Dakota, and South Dakota – with plans to expand nationwide in early 2026.

Trading on Tomorrow’s Headlines

The rollout allows users to to buy or sell event contracts that reflect the likelihood of upcoming events. The app will reportedly cover a wide range of benchmarks including the S&P 500, Nasdaq-100, oil and gas prices, gold,cryptocurrencies, and key indicators such as GDP and CPI.

Beyond that, users can access sports-related contracts covering baseball, basketball, football, and hockey – particularly in states without legalized online sports betting. Once a state approves online wagering, FanDuel will suspend the sports component there to align with local regulation.

CME Group, one of the world’s major derivatives exchanges, views this collaboration as a step toward democratizing access to prediction-based financial products.

“CME Group prediction markets will enable a new generation of users to express their views on global benchmarks, economic indicators, sports and more,” said Lynne Fitzpatrick, CME Group’s President and Chief Financial Officer.

Opening Markets for a New Audience

FanDuel Predicts mirrors the company’s existing stance on responsible engagement. Users can set deposit limits, enable alerts, or opt for self-exclusion. The app will also connect to Kindbridge Behavioral Health, offering mental health support for anyone who may need assistance managing their trading or gaming activity.

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As digital markets evolve and the line between entertainment and investment continues to blur, FanDuel’s partnership with CME may mark the beginning of a new kind of financial participation – one where headlines themselves become tradable assets.

CME partnered with FanDuelto offer event contracts to a large base of gaming customers, extending the reach of these binary options-style products that have seen rapid growth in 2025.

Under the deal, FanDuel customers will be able to place small-stake wagers, starting from around $1, on real-world financial outcomes through simple yes-or-no contracts.

These event contracts can reportedly be traded multiple times a day on underlying benchmarks such as movements in the S&P 500, changes in oil prices and the release of key economic indicators like inflation or other market data.

The Ghanaian parliament passed the Virtual Asset Service Providers Bill, granting the Bank of Ghana (BoG) authority to regulate and license crypto asset service providers (CASPs). BoG Governor Johnson Asiama confirmed the development, saying virtual asset trading is now legal under a defined regulatory framework.

Central Bank Takes the Lead

The law empowers the central bank to oversee all crypto-related activities, giving it supervisory and licensing powers similar to those it holds over traditional financial institutions.

???????? ADOPTION: Ghana’s has passed the Virtual Asset Service Providers Bill, legalizing and regulating crypto. pic.twitter.com/sBQzFulKC4

— Cointelegraph (@Cointelegraph) December 22, 2025

The new policy aims to strike a balance between enabling innovation and safeguarding consumers. The timing reflects earlier commitments from the central bank, which had targeted the rollout of crypto regulations by the end of 2025.

Ghana’s decision comes as the country rises among Sub-Saharan Africa’s most active crypto markets. A recent report by Chainalysis ranked Ghana among the top five countries in the region for total crypto value received between July 2024 and June 2025, Cointelegraph reported.

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Across the region, Nigeria led the way with roughly $92 billion in crypto inflows – almost triple South Africa’s volume – while total regional on-chain activity reached over $205 billion, representing a 52% increase year-over-year. This growth places Sub-Saharan Africa as the third-fastest-growing crypto market globally, just behind Asia-Pacific and Latin America.

A Regulatory Milestone for West Africa

By passing the Virtual Asset Service Providers Bill, Ghana joins a growing list of African nations formalizing their stance on digital assets. The legislative move not only provides legal certainty for traders and businesses but also signals Ghana’s readiness to adapt its financial systems to emerging technologies.

Public Notice on the Virtual Assets Service Providers Act 2025 pic.twitter.com/suDoXIVWhN

— Central Bank of Kenya (@CBKKenya) November 18, 2025

With the Bank of Ghana now at the helm of crypto supervision, the country hopes to minimize illicit activity while nurturing responsible innovation.

Similarly, in Kenya, crypto rules are taking shape. BitcoinATMs recently appeared in major Nairobi malls just days after Kenya’s new crypto law took effect, prompting regulators to warn that no operator has been cleared to run digital-asset services in the country.

Kenya’s parliament passed the Virtual Asset Service Providers Bill to regulate digital currencies and virtual assets, bringing the country a step closer to formal oversight of its fast-growing crypto market, with the legislation now awaiting President William Ruto’s signature to become law.

That shift is backed by scale. Assets on the platform have increased fivefold over the past three years, surpassing $500 billion by late 2025. Coinbase is using it as the foundation for an “Everything Exchange” that brings equities, derivatives and prediction markets into a unified, on-chain environment.

Coinbase has also agreed to acquire The Clearing Company, a firm focused on regulated, onchain prediction markets. The transaction is expected to close in January, with financial terms not disclosed. Coinbase said the acquisition will add specialized expertise to its product teams as it expands prediction market offerings within its broader platform strategy.

The Clearing Company was founded by Toni Gemayel and operates in regulated prediction markets, which Coinbase described as being “at the frontier of regulated, onchain markets.”

At its recent System Update event, the company framed this strategy as a reconfiguration of how financial markets operate. Instead of competing with traditional brokers solely on pricing or features, Coinbase is migrating core market functions onto blockchain infrastructure, narrowing the gaps that have historically separated asset classes and settlement systems.

Integrating the Financial Stack

At the core of Coinbase’s strategy is vertical integration, which allows the company to align infrastructure, liquidity and user access within a single operating environment. Coinbase now increasingly controls how transactions are settled, how capital moves and how users interact with the platform.

This integration compresses the distance between different parts of the financial stack. Settlement takes place on Coinbase’s own Layer 2 network, while capital circulates through a unified monetary layer anchored in USDC.

At the user level, access to this system is abstracted through a simplified interface that removes much of the operational complexity traditionally associated with blockchain-based finance.

Together, these layers function as a continuous system rather than a series of hand-offs between independent providers. The practical effect is the ability to reuse capital across products in near real time.

Assets held in one part of the platform can serve as collateral elsewhere, enabling positions in derivatives or prediction markets without the delays and intermediaries typical of traditional financial systems.

Creating a Self-Reinforcing Financial Flywheel

This integrated model increasingly resembles the approach Amazon used to expand beyond its original product categories. Rather than treating each service as a standalone offering, Coinbase is building an environment in which different parts of the platform continuously feed into one another, keeping users, capital and activity within a single system.

Low-friction entry points, such as zero-fee equity trading, bring users and assets onto the platform. Once inside, capital can circulate across a widening range of use cases, from retail investing to more complex products and corporate financial operations.

Tools aimed at businesses, including payments and treasury functions, further anchor balances within the ecosystem, while emerging machine-to-machine payment standards extend this logic to automated, software-driven activity. Advisory tools sit on top of this infrastructure, using real-time on-chain data to guide decisions rather than relying on static portfolio models.

None of these offerings is transformative in isolation. Taken together, they form a reinforcing flywheel in which infrastructure, liquidity and user engagement strengthen one another.

Regulation as the Foundation for Scale

Coinbase’s push toward an integrated, multi-asset platform is underpinned by a deliberate regulatory strategy. As the company expands beyond crypto into equities, derivatives and tokenised real-world assets, regulatory coverage becomes a prerequisite rather than a constraint.

In Europe, its MiCA licence provides a single legal framework to operate across all 27 EU member states, allowing new products to be rolled out at scale rather than market by market.

In Canada and the United States, Coinbase has pursued structures that support closer integration with traditional banking and securities infrastructure, laying the groundwork for regulated trading beyond spot crypto.

This regulatory positioning is central to Coinbase’s broader model. Initiatives such as tokenisation of real-world assets require legal certainty for institutional participants, particularly when moving instruments like private debt or property onto blockchain rails.

Without regulatory alignment, the integrated stack that underpins Coinbase’s “Everything Exchange” would struggle to attract the scale of capital needed to function as a true financial operating layer.

The Bottom Line

The System Update signalled a shift in how Coinbase positions itself within the financial landscape. The company is no longer focused on individual asset classes. Instead, it is assembling a broader financial operating layer—one that unifies infrastructure, liquidity and user access into a single, cohesive system.

If Amazon’s advantage lay in owning logistics, payments and distribution end-to-end, Coinbase is pursuing a comparable model for capital markets. Whether this approach ultimately reshapes retail and institutional finance will depend on execution and regulatory outcomes. What is already clear, however, is that competition is moving beyond individual products towards control of the underlying financial rails.

Binance Let Suspicious Accounts Trade After $4.3B US Settlement

Internal files reviewed by the FT reveal accounts with red flags – including connections to terror financing networks, impossible login patterns, and failed identity checks – kept trading well after the November 2023 plea agreement. The leaked data covers transactions from 2021 through this year.

One account belonged to a resident of a Venezuelan slum who moved $93 million through Binance between 2021 and 2025. Part of those funds came from a network later accused by US authorities of secretly moving money for Iran and Lebanon's Hizbollah.

Binance allowed suspicious accounts to operate even after 2023 US plea agreement https://t.co/5EEWGrwMCg

— Financial Times (@FT) December 22, 2025

The FT obtained data for 13 suspicious accounts that handled $1.7 billion in transactions, with $144 million occurring after the settlement. One account registered to a 25-year-old Venezuelan woman received over $177 million in crypto over two years and changed payment bank details 647 times in 14 months, cycling through 496 unique accounts across the Americas.

“That qualifies as suspicious,” Stefan Cassella, a former federal prosecutor, commented for FT. “It looks like someone is acting as a money-transmitting business.”

The FT dropped the bombshell months after the SEC abandoned its lawsuit against Binance, which accused the exchange of artificially inflating trading volumes. Other allegations included the diversion of customer funds and misleading investors about the exchange’s surveillance controls.

Concerns over Binance’s operations were also raised this year by France, which launched a criminal investigation in early 2025.

Physically Impossible Activity Went Undetected

The account tied to the Venezuelan bank employee showed access from Caracas at 3:56 p.m. on February 24, 2025, then from Osaka, Japan, at 1:30 a.m. the next day, a physically impossible sequence.

All 13 accounts received funds totaling $29 million in Tether stablecoin from accounts later frozen by Israel under anti-terrorism law. Nearly all came from four crypto wallets linked to Tawfiq Al-Law, a Syrian accused of moving money for Hizbollah and Iran-backed Houthis. Israel seized the accounts in May 2023, and the US Treasury sanctioned Al-Law in March 2024.

Binance told the FT it “maintains strict compliance controls and a zero-tolerance approach to illicit activity” with “robust systems in place to flag and investigate suspicious transactions.”

Trump Pardon Complicates Oversight

President Donald Trump pardoned Binance founder Changpeng Zhao in October for violating US anti-money laundering laws. The Trump family subsequently expanded business ties with the exchange this month through World Liberty Financial, announcing a “massive expansion” of its USD1 stablecoin on Binance.

The Justice Department and Treasury appointed two independent monitors in May 2024 to oversee Binance's compliance. Many transactions the FT reviewed occurred after monitoring began.

Jessica Davis, a former Canadian intelligence official, said Trump's pardon loosened the compliance environment. “Previously, the incentive was: keep your CEO out of jail,” she commented to FT.

“Yes, there are fines, but part of the problem is that we're just talking about so much money being made on these platforms that even a billion-dollar fine becomes fairly meaningless.”

The complaint, filed in federal court in Illinois, seeks $4 billion in damages from Jump, its co‑founder William DiSomma and former Jump Crypto president Kanav Kariya, the Wall Street Journal reported.

The official winding down what remains of Terraform Labs has launched a high‑stakes lawsuit against Jump Trading, arguing that the Chicago trading firm did not just trade around Terra’s collapse but helped shape it while pulling billions out of the ecosystem.

Allegations of Manipulation

The complaint turns the spotlight back on TerraUSD’s supposedly self-stabilising design and alleges that, behind the marketing, a confidential rescue agreement with Jump kept the stablecoin peg alive and misled investors about how the system really worked.

Todd Snyder, the court‑appointed plan administrator for Terraform Labs, reportedly filed the case in the U.S. District Court for the Northern District of Illinois, seeking $4 billion in damages from Jump Trading LLC, co‑founder William DiSomma and former Jump Crypto president Kanav Kariya.

Recently, US court sentenced Do Kwon, the co-founder of Terraform Labs, to 15 years in prison after he pleaded guilty to wire fraud and conspiracy to defraud investors, following the collapse of the Terra ecosystem that wiped out an estimated $40 billion in investor funds.

Keep reading: Terraform Labs’ Do Kwon Gets 15 Years in Prison in the US

At the core of the complaint is an alleged secret agreement under which Jump committed to support UST’s peg during periods of stress, while also receiving significant benefits in Luna and other tokens.

The administrator claims Jump then used that position to help stabilise UST temporarily, sold large quantities of Luna into a market that believed the system’s algorithm worked as advertised and ultimately exited with billions in gains as ordinary holders were left with near‑worthless tokens.

Terra’s 2022 crash and industry fallout

Terraform Labs’ experiment began to unravel in 2022, when its algorithmic stablecoin TerraUSD slipped its dollar peg and failed to recover, triggering a rapid loss of confidence.

The Terra crisis rippled across a crypto market already under pressure, contributing to a series of failures in leveraged trading venues, lenders and hedge funds. That wave culminated later in 2022 with the collapse of Sam Bankman‑Fried’s FTX exchange, as exposures to Terra‑linked losses and broader market stress undermined balance sheets across the sector.

In a separate track, the Singapore‑based company agreed in 2024 to pay roughly $4.5 billion to the U.S. Securities and Exchange Commission to resolve a civil securities fraud case that focused on misleading disclosures around TerraUSD and related products.

The initiative follows a previous CySEC consultation on proposed fees and reporting under MiCA. The consultation is open until 12 January 2026. Responses must be submitted via email in Word format, specifying whether the submitter is an individual, enterprise, or organized group.

Crypto Firms Face New Reporting Requirements

Under the draft Directive, authorized CASPs must provide periodic updates under the EU MiCA regulation. They must also submit financial reports, including trial balance, balance sheet, and profit and loss statements, as well as audited annual financial statements. The reporting framework aligns with existing prudential requirements for investment firms.

Category 2 and 3 CASPs will report quarterly, while Category 1 CASPs will report annually. CASPs must revise submitted data if audited results differ, within five months of the end of the financial year.

Regulator Reviews MiCA Applications, Stablecoins, Prop

CySEC Chair Dr. George Theocharides said the regulator is monitoring AI use in investment firms and reviewing multiple MiCA applications without rushing approvals. Crypto-asset service providers, including Revolut and eToro, undergo extensive scrutiny before licensing.

Stablecoins and prop trading remain areas of ongoing attention due to potential risks to financial stability. Theocharides also noted that investor deception continues despite regulatory measures. The agency monitors finfluencers and issues guidance to ensure promotions comply with EU rules, emphasizing careful and gradual oversight.

Cyprus Firms Face Stricter Compliance Requirements

Theocharides’ observations reflect the broader regulatory environment Cyprus firms will face in 2025. CySEC is increasing supervision of investment firms, funds, and crypto-asset service providers. In 2024, the regulator carried out over 850 audits, issued €2.76 million in fines, and revoked multiple licenses.

Key EU regulations, including MiCA, AML Package, AIFMD II, and DORA, will further shape compliance and investor protection. Despite stricter oversight, Cyprus’ financial sector expanded, with 80 new entities authorized and firms actively seeking MiCA licensing under the evolving framework.

The crypto exchange wants judges to confirm that event-based contracts on its platform fall under the exclusive jurisdiction of the US Commodity Futures Trading Commission (CFTC), not state gaming regulators, Coinbase's Chief Legal Officer Paul Grewal announced on X.

Coinbase has filed federal lawsuits against Connecticut, Michigan and Illinois, arguing that those states cannot use gambling statutes to shut down or restrict prediction markets.

The complaints seek declaratory and injunctive relief that would establish CFTC as the sole regulator of event contracts listed on its platform.

What Coinbase Is Fighting Over

Prediction markets allow users to buy and sell contracts linked to future outcomes, from sports results to monetary policy decisions or election results. The contracts settle based on whether an event occurs, which makes them a form of derivative whose value depends on a future state of the world.

Today @coinbase filed lawsuits in CT, MI, and IL to confirm what is clear: prediction markets fall squarely under the jurisdiction of the @CFTC, not any individual state gaming regulator (let alone 50). State efforts to control or outright block these markets stifle innovation…

— paulgrewal.eth (@iampaulgrewal) December 19, 2025

State gaming agencies in Connecticut, Illinois and other jurisdictions argue that many of these contracts, especially sports-related ones, function as unlicensed betting and therefore fall under gambling law.

Chief Legal Officer Paul Grewal framed the lawsuits as a test of federal preemption, insisting that “prediction markets fall squarely under the jurisdiction of the Commodity Futures Trading Commission, not any individual state gaming regulator.” He described state attempts to control or block these markets as efforts that “stifle innovation and violate the law.”

Continue reading: Coinbase Enters Prediction Markets as the Amazonification of Financial Platforms Gathers Pace

Grewal drew a sharp line between prediction markets and traditional sportsbooks, arguing that “casinos win only if you lose and set odds to maximize their profits,” while “prediction markets are neutral exchanges, indifferent to price, that match buyers and sellers.”

States Push Back as Industry Tensions Rise

Coinbase’s Illinois filing states that it brought the case to stop officials from “unlawfully applying Illinois gambling laws to federally regulated transactions” that it says fall under the CFTC’s exclusive jurisdiction.

“Prediction markets are fundamentally different from sportsbooks. Casinos win only if you lose and set odds to maximize their profits. Prediction markets are neutral exchanges, indifferent to price, that match buyers and sellers,” Grewal argued.

Coinbase recently announced that it is entering the prediction markets business through a partnership with Kalshi, extending its offering beyond traditional crypto trading.

Coinbase is not the only firm targeting prediction markets, as Robinhood has already developed a rapidly growing business in this area through its partnership with Kalshi.

A lot was happening behind the charts. From Washington and policy shifts, through London prime brokerage desks, to European regulation. Here are the top five stories that shaped the cryptocurrency market in 2025 and that also matter for the CFDs industry:

1. Ripple’s $1.25 Billion Infrastructure Play

For years, crypto companies were content to stay in their lane, but Ripple Labs smashed that convention in April. By acquiring Hidden Road Partners for $1.25 billion, the blockchain payments firm bought a seat at the adult table of global finance.

“We are at an inflection point for the next phase of digital asset adoption, the US market is effectively open for the first time due to the regulatory overhang of the former SEC coming to an end, and the market is maturing to address the needs of traditional finance,” said Brad Garlinghouse, CEO of Ripple.

The deal gives Ripple a massive prime brokerage network and the ability to handle credit and clearing for traditional assets. Mid-sized FX and CFD brokers are looking nervously at their liquidity providers, realizing that the entities powering their trade execution might soon be owned by the very crypto giants they used to view as niche competitors.

How companies should approach Europe for crypto license? “Once an entity has a MiFID licence, extending it to include a MiCA licence is indeed a simpler process,” revealed CySEC Chair.

2. The U.S. Government Turns “Hodler”

The regulatory frost in the United States evaporated this year. The pivot began in March with an executive order creating a Strategic Bitcoin Reserve, halting the sale of seized assets. But the real structural change came in July. President Trump signed the GENIUS Act into law, finally giving stablecoin issuers a federal playbook.

This ended the era of “regulation by enforcement” that had paralyzed the sector. For the first time, U.S. institutions had clear rules of the road, and the government itself legitimized Bitcoin as a sovereign store of value.

The psychological impact on the market was immediate, signaling that the world's largest economy was officially open for digital asset business.

3. Bitcoin’s $126,000 Ceiling

Market optimism, fueled by the friendly regulatory stance, pushed Bitcoin to a record high of roughly $126,000 in early October. The rally was a textbook “Trump Trade,” driven by the strategic reserve announcements and relentless inflows into spot ETFs.

???? TOM LEE JUST SAID LIVE ON CNBC ????BITCOIN IS GOING TO $126,000 IN THE NEXT 60 DAYS!!! ????????#Bitcoin #Crypto #TomLee #BTC #Bullish #CryptoNews #CryptoMarket pic.twitter.com/6sjd7tLI6o

— Crypto News Hunters ???? (@CryptoNewsHntrs) December 1, 2025

But trees don't grow to the sky. As the year closes, we’re seeing a harsh 30% correction, dragging prices back toward the $90,000 handle. The pullback serves as a reminder that even with sovereign backing, these markets remain ferociously volatile, rewarding the patient but punishing the latecomers who bought the top.

“Setting a new all-time-highs (ATHs) for BTC was a welcome event for the industry, dusting off ghosts from the past and demonstrating that despite all the setbacks, Bitcoin continues to win interest,” Paul Howard, the Director at Wincent, commented for FinanceMagnates.com. “The advent of new ETFs such as Solana has opened the asset class to new participants and provided opportunities for hedging and wider involvement from financial institutions.”

4. MiCA’s Full Weight Reshapes European Operations

While the U.S. moved toward deregulation, Europe’s crypto market underwent a “hard reset” in 2025 as the Markets in Crypto-Assets (MiCA) regulation took full effect.

The full “Crypto-Asset Service Provider” (CASP) regime mandated that brokers segregate client assets with unprecedented rigor and adhere to strict new rules on stablecoin. Exchanges were forced to delist non-compliant “Asset-Referenced Tokens” (ARTs) that lacked proper EU authorized issuers, including USDT, significantly narrowing the range of tradable assets available to European retail clients compared to their global counterparts.

MiCA has officially been in force for a year, but it continues to spark controversy, and not all countries have implemented it yet. The regulation has generated significant debate, including in Poland.

5. Crypto Exchanges Want a Slice of the CFD Market

For a decade, FX brokers profited by adding crypto CFDs to their platforms. In 2025, the crypto exchanges returned fire. Major venues started aggressively offering CFDs on traditional assets, blurring the distinction between “crypto exchange” and “broker.”

Bybit was arguably the most aggressive mover in 2025. They didn't just add a few stocks. They fully integrated a “TradFi” account that links directly to MetaTrader 5 (MT5).

Moreover, Bitget rebranded itself in mid-2025 as a “Universal Exchange” (UEX), explicitly dropping the “Crypto Exchange” moniker in some marketing materials. Moreover, in December, the platform launched a private beta of the Bitget TradFi offering, allowing users to trade CFDs using USDT as a margin.

What Will 2026 Bring? Bitcoin Price Prediction

I wrote about Bitcoin prices on FinanceMagnates.com almost every single week, covering both the sharp gains in the first part of the year and the steep declines in recent months, including the so-called death cross and the risk of a correction toward $74,000.

So what could 2026 bring? According to my latest technical analysis, the outlook points to a gradual recovery of losses, a return to all-time highs, and a move into a price discovery phase. Support may come from strong gold prices and a persistently weak U.S. dollar.

What do other experts think about Bitcoin? Peter Brandt, a Wall Street and trading veteran, argues that the price could slide by as much as 80%, potentially falling to around $25,000. He outlined this view in one of his recent posts on X.

Bitcoin investors, do you know:1. Bull cycles have experienced exponential decay2. BTC's bull cycles have undergone parabolic advances3. The violation of previous parabolas have all declined <80%4. The current parabolic advance has been violated20% of ATH = $25,240 pic.twitter.com/0hWAaEd6Dy

— Peter Brandt (@PeterLBrandt) December 14, 2025

Optimists, however, remain active in the market. Fundstrat predicts Bitcoin could be worth ten times more, about $250,000, by the end of 2026, driven by inflows into spot Bitcoin ETFs.

Until recently, similar forecasts were shared by Goldman Sachs and Standard Chartered, although both later cut their targets from $250,000 to $150,000 following a 30% drop from this year’s all-time high.

2025 brought many changes to the cryptocurrency market, and 2026 will certainly try to match them. It will certainly not be irrelevant for the CFD industry.

A Big Year for Crypto Theft

The blockchain intelligence firm Chainalysis’s 2026 Crypto Crime Report, a preview of which you can see here, reveals a stark picture of cryptocurrency theft in 2025. According to the report, more than $3.4 billion worth of digital assets were stolen from January through early December 2025, continuing an alarming trend of high-value thefts in the crypto space.

This figure incorporates an unusual pattern: a few extraordinarily large breaches account for the majority of losses, rather than countless small hacks. The top three hacks alone made up 69 percent of total stolen funds.

1/ In the first preview chapter of our 2026 Crypto Crime Report, we look at how North Korean hackers stole $2.02B in crypto during 2025, a 51% increase from 2024, pushing their all-time total to $6.75B: https://t.co/B9l4x1g9VM

— Chainalysis (@chainalysis) December 18, 2025

North Korea: Dominant Threat Actor

The Democratic People’s Republic of Korea (DPRK) stands out as the most significant state-linked threat in the report. North Korean hackers stole at least $2.02 billion in cryptocurrency in 2025, a 51 percent year-over-year increase from 2024, despite carrying out fewer overall attacks than in previous years.

That massive haul has pushed the lower-bound estimate of total DPRK-linked stolen crypto to an astonishing $6.75 billion over time.

The report suggests that these actors are focusing on high-impact, high-value targets and using sophisticated methods to access privileged systems inside exchanges and custodial services. Techniques have evolved beyond traditional breaches to include social engineering and impersonation of recruiters at major web3 and AI firms, giving attackers ways to harvest critical credentials.

Not Just Big Services, But Personal Wallet Targets Too

While institutional and exchange hacks account for most of the dollar value stolen, there is a notable rise in personal wallet compromises. Chainalysis estimates more than 158,000 theft incidents involving individual wallets in 2025, impacting roughly 80,000 unique victims.

Interestingly, even though the number of compromised personal accounts has spiked, the total value stolen from these individual incidents is lower than in previous years, suggesting attackers are targeting many users for smaller amounts rather than a few for big scores.

Today you learned that 2 billion / ~30 billion or 1/15 of North Koreas GDP is from Crypto hacks pic.twitter.com/OBE2rnHK74

— Ammar Safdari (@asapdar) December 19, 2025

This shift could reflect broader adoption of crypto wallets, meaning more potential victims, but also possibly better security practices at major platforms that deter large-scale exploitation.

Large Hacks Are Still the Main Drivers

Despite more incidents overall, a small number of catastrophic hacks drive the lion’s share of losses. For example, early in 2025, a major breach at Bybit, now attributed to North Korean actors, resulted in a haul of around $1.5 billion, making it one of the largest single thefts in crypto history. Officials also dismantled a EUR 700 million fraud ring operating across Europe just this month.

Such high-value thefts skew the industry’s crime landscape. The report notes that the ratio between the largest hack and the median stolen amount has now exceeded 1,000 to 1, underlining how a handful of outliers can dictate annual totals.

These massive breaches also shape broader trends. Centralized platforms, despite their professional security teams, remain vulnerable to private key compromises, and when these attacks succeed, they generate disproportionate losses compared with smaller, decentralized finance (DeFi) hacks.

North Korean hackers stole a record $2 billion of crypto this year, researchers said, a sharp jump from 2024 that underscores the country’s growing ability to pull off massive heists https://t.co/PeXztrIojK

— Bloomberg (@business) December 18, 2025

What This Means for Crypto Security

Evolving Attack Strategies

The 2026 Crypto Crime Report highlights how threat actors are adapting and innovating. Instead of merely exploiting technical bugs, attackers are increasingly leveraging human-targeted tactics, such as impersonation and social engineering to gain privileged access.

Particularly concerning is the possibility that hackers may embed themselves within organizations or pose as potential partners to gain deeper entry into infrastructure systems, a trend that could outpace traditional defensive measures.

Bigger Targets, Bigger Impact

The concentration of losses in a few breaches suggests that platform security remains a weak link. Large exchanges and custodians, where vast sums of assets are aggregated, present attractive targets. Their compromise can ripple across markets and shake investor confidence.

That said, the divergence in DeFi, where hack losses have remained comparatively lower even as total value locked rises, may indicate improved defensive practices in some parts of the ecosystem.

MASSIVE:???????? NORTH KOREA NOW CONTROLS $1.1 BILLION WORTH OF BITCOIN.THIS ISN’T RETAIL VS. WHALES ANYMORE.THIS IS GOVERNMENTS VS. GOVERNMENTS.BITCOIN IS NO LONGER JUST AN ASSET.IT’S STRATEGIC POWER. pic.twitter.com/AXlGxBj8DT

— Merlijn The Trader (@MerlijnTrader) November 1, 2025

Looking Ahead

Chainalysis’s findings paint a complex picture for 2026 and beyond. With attackers capable of inflicting enormous damage in a single incident, the industry will need to double down on robust security, compliance, and threat intelligence to stave off further losses.

At the same time, the rise in personal wallet compromises underscores the need for better education and individual security practices, as users increasingly manage their own keys and assets in a decentralized world.

In a space prized for innovation, the battle against theft and hacking remains a persistent and evolving challenge, one that demands coordinated defenses, smarter protocols, and industry-wide vigilance.

Traditional Finance Connects with Blockchain Infrastructure

Domestic account holders can deposit and withdraw directly using TRX and USDT, while international users can access the integration through connected exchange accounts. The move aims to link traditional finance with blockchain infrastructure.

Sam Elfarra, Community Spokesperson at TRON DAO, said, “The collaboration between Kalshi and TRON demonstrates the growing convergence between traditional financial markets and blockchain infrastructure.”

John Wang, Head of Crypto at Kalshi, added, “TRON’s integration strengthens Kalshi’s multichain vision of maximizing accessibility.”

Blockchain Scale Enhances Prediction Market Liquidity

The TRON network offers three-second block times and near-zero transaction fees. It processes over $24 billion in daily transfer volume and hosts more than $80 billion in circulating USDT. The network has over 350 million user accounts and more than 12 billion total transactions.

The integration reflects a broader trend of traditional financial platforms adopting blockchain for greater efficiency, global access, and reduced settlement friction. Both TRON and Kalshi aim to use the network’s scale and liquidity to support real-world event trading.

TRON ($TRX) is looking like a coiled spring at $0.28. With the new Kalshi integration, utility is meeting price action real soon. ⚡????#TRON #TRX #Web3

— leo sinha (@leo_sinhax) December 18, 2025

Wallets Expand into Prediction Markets

This integration aligns with broader trends in the crypto ecosystem. Trust Wallet is adding prediction market features, allowing users to browse events, take YES/NO positions, and see outcomes within the app. The feature is native and mobile-first, with opportunities tokenized and updated in real time.

Trust Wallet launched the feature with Myriad, a permissionless prediction market protocol on BNB Chain. Polymarket and Kalshi integrations are expected soon. The move follows record activity in October, when Kalshi and Polymarket processed over $7.4 billion in trades.

Other wallets, including MetaMask, are also integrating prediction markets. These developments are turning wallets into all-in-one platforms for tokens, opinions, and expectations while maintaining self-custody.

The move expands onchain access to traditional financial assets for nearly 100 million users within Telegram’s growing ecosystem. xStocks announced its deployment on the TON blockchain, extending access to tokenized equities for users within Telegram.

Early this month, Kraken agreed to acquire Backed Finance, the platform behind the issuance of xStocks, bringing these tokenized products closer to the center of its trading business as the exchange prepares for a planned public listing in 2026.

xStocks are going live on @ton_blockchain.Tokenized equities, built as a neutral public good, are now expanding to meet Telegram’s ecosystem of over 1 billion people.Learn more ↓ pic.twitter.com/QcRQ9wd4gu

— xStocks (@xStocksFi) December 18, 2025

According to the company, the integration with TON Wallet, Telegram’s non-custodial asset hub, enables users to hold, transfer, and manage tokenized stocks and ETFs alongside their crypto assets in a single interface.

xStocks Brings Equities Onchain

Recently, Telegram announced that it was preparing to let users trade tokenized U.S. stocks directly inside its built-in crypto wallet, following a partnership with Kraken and tokenization provider Backed.

“Launching xStocks on TON brings tokenized equities onto truly open infrastructure,” said Arjun Sethi, Kraken Co-CEO. “For the first time, millions of people gain onchain access to U.S. equities inside Telegram with the same ease as sending a message. Instantly, globally, and without traditional gatekeepers.”

Read more: Kraken Taps Alpaca for xStocks After Backed Finance Acquisition

The integration reportedly allows users access to more than 60 tokenized U.S. stocks and exchange-traded funds (ETFs). By embedding tokenized equities directly into the messaging platform, Telegram aims to let users buy and sell traditional market exposure without needing to switch apps or use a separate brokerage interface.

???? We’re bringing @BackedFi, the company driving the issuance of xStocks, fully into Kraken.Why? Because tokenized equities won’t reach global scale without unified rails.With @xStocksFi now fully in-house, we’re accelerating the future of open, 24/7 capital markets ????…

— Kraken (@krakenfx) December 2, 2025

Already live on Solana and Ethereum, xStocks continues its expansion as a multichain standard for tokenized equities. The TON rollout comes after steady onchain growth, surpassing $180 million in assets and nearly 50,000 wallets holding these instruments since its June 2025 launch on Kraken.

Expanding the Multichain Footprint

This interoperability – allowing assets to move freely between blockchain ecosystems – solidifies xStocks’ position as a cornerstone of the emerging onchain capital markets.

With additional deployments planned for Mantle and TRON, as well as the acquisition of Backed Finance, xStocks aims to unify the issuance, trading, and settlement of tokenized securities.

Meanwhile, Nasdaq is prioritizing approval for tokenized stocks and is preparing to address regulatory questions as soon as the U.S. Securities and Exchange Commission clarifies its position. The exchange aims to be ready to respond quickly to any feedback or requirements that emerge during the review process.

Platforms built around a single asset class are evolving into multi-asset environments designed to increase engagement and capture a larger share of users’ trading activity. Prediction markets have emerged as one of the latest areas of expansion in this race.

From Single-Asset Platforms to Multi-Asset Ecosystems

Coinbase’s strategy mirrors changes already visible across retail trading. Recent research by Coinbase and Ipsos shows that younger investors are allocating a growing share of their portfolios to non-traditional instruments, including crypto, derivatives, and event-based products.

Against this backdrop, prediction markets reflect changing investor demand rather than a niche experiment. They align with the preferences of a more self-directed retail audience seeking alternative exposure and continuous market access.

“The everything exchange is our vision where users will be able to trade every asset, 24/7, from anywhere in the world on one trusted platform that starts with crypto,” said Max Branzburg, Coinbase’s vice president of product.

Prediction Markets Move Into the Mainstream

Coinbase is not alone in targeting this segment. Robinhood has already built a fast-growing prediction markets business through its partnership with Kalshi. Gemini, meanwhile, has taken a more formal route, securing approval from the Commodity Futures Trading Commission to operate prediction markets under a designated contract market licence.

These developments point to growing adoption of event-based contracts across retail platforms, supported by rising investor demand. Kalshi has raised $1 billion at an $11 billion valuation, while rival Polymarket has entered a strategic partnership with Intercontinental Exchange, underscoring expectations that the sector can scale.

The push toward “everything stores” reflects a structural shift in how platforms compete for relevance in an increasingly diversified retail market. Just as Amazon expanded from a single product category into a marketplace for almost everything, financial platforms are moving toward one-stop destinations for trading across asset classes, with prediction markets forming an important part of that strategy.

Expanding Tokenized Equities

Kraken named Alpaca as its preferred partner for sourcing and custodying the equities backing xStocks on a one-to-one basis. This agreement allows the API brokerage platform to integrate xStocks more deeply within its brokerage-as-a-service offering.

Kraken x Alpaca just hit a new gear.xStocks → first tokens on @AlpacaHQ’s ITN.Two teams, one goal: make tokenized equities actually work at scale.Info: https://t.co/sT4vgVZgOy

— Kraken (@krakenfx) December 17, 2025

According to the crypto exchange, the collaboration aims to streamline how digital and traditional markets connect, promising institutions faster and more transparent access to tokenized assets outside the United States.

“xStocks is proving that tokenized equities aren’t a future concept. They’re a present reality scaling at record speed,” commented Mark Greenberg, Kraken Global Head of Consumer.

“Deepening our partnership with Alpaca allows us to accelerate that trajectory and deliver an institutional-grade foundation that sets the standard for how real-world assets move across traditional and onchain rails.”

Since their mid-2025 debut, xStocks has reportedly processed more than $10 billion in combined trading volume across on-chain and centralized platforms, highlighting the growing appeal of tokenized real-world assets.

A major step in the partnership sees Alpaca incorporating xStocks into its Instant Tokenization Network. The integration will add real-time mint and redeem options for institutions, reducing liquidity frictions and setting higher standards for tokenization infrastructure.

Market Leaders Eye Global Accessibility

The partnership also reinforces both companies' joint commitment to open and compliant markets. xStocks remains available in select non-U.S. jurisdictions, though Kraken and Alpaca plan to expand access as regulatory frameworks evolve.

Early this month, Kraken agreed to acquire Backed Finance, the firm behind blockchain-based tokens that track real-world securities such as individual stocks and exchange-traded funds. The move is a part of the exchange’s intention to bring tokenized equities into its core trading offering as it positions itself ahead of a planned public listing in 2026.

Kraken already offered several Backed-issued tokenized stocks and ETFs on its platform, but the deal would bring issuance and trading into a single structure. That integration is expected to give Kraken control over product design, liquidity, and market access as tokenized assets gain traction.

Building a Regulated Digital Yen

The two companies have signed a memorandum of understanding to co-develop a compliant, tokenized yen designed for enterprise use and cross-border settlements.

“The transition to a ‘Token Economy’ where all real-world assets are tokenized and tokens permeate society as a means of settlement – is now an irreversible societal trend,” said Yoshitaka Kitao, Representative Director, Chairman & President of SBI Holdings.

“By jointly issuing a Yen-denominated stablecoin with the Startale Group to serve as the foundation of this infrastructure, and by circulating it both domestically and globally, we aim to dramatically accelerate the movement toward providing digital financial services that are fully integrated with traditional finance,” he explained.

Startale Group and SBI Holdings partner to develop a fully compliant Yen stablecoin for the global market.https://t.co/Pz4ASnuMer

— Startale ???? (@StartaleGroup) December 16, 2025

The project is framed under Japan’s Financial Services Agency (FSA) regime for stablecoins and aims to go live in the second quarter of 2026, pending regulatory approval.

Technology Meets Traditional Banking

Using Startale’s blockchain and smart contract expertise alongside SBI’s financial infrastructure, the yen stablecoin will reportedly function as a Type 3 Electronic Payment Instrument, free from the domestic ¥1 million transfer limit. This structure allows for scalable settlement flows across both retail and institutional networks.

Startale will lead the token’s technical development, focusing on smart contract architecture, APIs, and compliance mechanisms. Shinsei Trust & Banking, part of the SBI Group, will handle issuance and redemption, while SBI VC Trade manages circulation under its crypto asset exchange license.

Read more: Visa Brings Stablecoins to Main Street Banking With U.S. Rollout

The initiative complements Japan’s broader push toward compliant stablecoins and tokenized assets, part of the FSA’s Payment Innovation Project. Authorities have encouraged regulated experimentation, backing pilots by major banks such as Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho.

Japan’s Digital Currency Push

Through this new collaboration, SBI and Startale seek to create interoperability between blockchain-native assets and traditional finance, creating a base layer for on-chain settlement, cross-border payments, and real-world asset (RWA) tokenization.

Even as SBI expands into stablecoins, security remain a challenge. Recently, SBI Crypto reportedly suffered losses of about $21million following a blockchain exploit.

The incident was first flagged by blockchain investigator ZachXBT, who said the activity bears hallmarks consistent with suspected North Korean state-backed hacking groups. According to ZachXBT, the exploit involved suspicious outflows of multiple cryptocurrencies from wallets linked to SBI Crypto, including Bitcoin, ether, Litecoin, Dogecoin and Bitcoin Cash.

Gemini Launches Prediction Markets Nationwide After Five-Year Regulatory Wait

The crypto exchange, founded by billionaire twins Tyler and Cameron Winklevoss, rolled out Gemini Predictions through its subsidiary Gemini Titan after receiving a Designated Contract Market license from the Commodity Futures Trading Commission (CFTC) on December 11. Users can now trade yes-or-no contracts on events ranging from whether Bitcoin will close the year above $200,000 to specific regulatory outcomes.

Introducing Gemini Predictions, now live across all 50 US states ????????Users can trade on outcomes of real world events with near instant execution and full transparency. pic.twitter.com/1wRhkLCEG5

— Gemini (@Gemini) December 15, 2025

Gemini first filed for the DCM license in March 2020, making the approval one of the longer regulatory reviews in recent memory.

Cameron Winklevoss credited the Trump administration's approach to crypto regulationfor the eventual greenlight, saying it ended what he called the previous administration's hostility toward digital assets.

Three-Way Race for Market Share

The launch puts Gemini directly against Kalshi and Polymarket, which together processed billions in monthly volume during the run-up to the November elections. Polymarket only resumed U.S. operations this month after being banned from American markets in 2022.

Gemini enters with advantages that neither rival has fully matched: a public listing on Nasdaq, a large retail customer base, and regulatory approvals that took years to obtain. The exchange resolved its SEC disputes in September and has since expanded rapidly, adding tokenized stocks and now prediction markets to its platform.

The CFTC granted Gemini and three other platforms relief from certain swap reporting requirements on December 12, easingcompliance burdens for fully collateralized event contracts. That decision came just one day after Gemini Titan received its DCM license, signaling faster regulatory processing under Acting Chairman Caroline Pham.

Platform Push Beyond Core Trading

Gemini Predictions fits into a wider push across the crypto industry to build what executives call “super apps,” platforms that combine trading, staking, lending, and now event-based betting in a single interface. Coinbase has made similar moves, racing to add prediction markets and tokenized equities before the end of the year.

Smaller platforms followed quickly. PancakeSwap announced Probable, a zero-fee prediction market on BNB Chain, on December 15. The project received backing from YZi Labs, the venture fund started by Binance co-founder Changpeng Zhao. Self-custodial wallets including MetaMask and Trust Wallet have also begun adding prediction features, either through partnerships or direct integrations.

Gemini itself has expanded beyond crypto trading over the past year. The exchange launched tokenized stocks in the European Union in June, starting with MicroStrategy shares and promising to add more equities and ETFs shortly after. That followed an earlier rollout of staking and rewards programs, all aimed at keeping users inside Gemini's ecosystem.

Regulatory Friction Persists in Some States

Federal approval hasn't stopped state-level pushback. Connecticut issued cease-and-desist orders to Kalshi, Robinhood, and Crypto.com in early December, claiming their prediction offerings violated state gambling laws. A judge granted the platforms temporary relief from enforcement while litigation continues.

Those orders marked the tenth state to challenge Kalshi's contracts, illustrating the gap between federal commodity regulation and state gambling statutes. Gemini has not disclosed whether it expects similar challenges or how it plans to navigate conflicting state rules.

Tyler Winklevoss, Gemini's CEO, has called prediction markets a potentially larger opportunity than traditional capital markets, echoing comments he made when the exchange first sought regulatory approval in November. The company also indicated it may pursue broader derivatives offerings, including crypto futures, options, and perpetual contracts, though it gave no timeline for those products.

Gemini Predictions is available on the web and iOS, with no trading fees during an initial promotional period. The platform converts users' existing dollar balances into contract positions with what the exchange describes as near-instant execution.

The FCA launched a public consultation to examine how existing handbook provisions would apply to crypto firms. The consultation covers governance, operational resilience, financial crime controls, and Consumer Duty obligations.

Companies would need FCA authorization before operating. Officials said this is intended to raise standards, strengthen consumer protection, and address risks, including volatility, as new legislation is drafted.

David Geale, executive director for payments and digital finance at the FCA, said the regulator is preparing new rules for the UK’s crypto sector. He added that “regulation is coming – and we want to get it right” and noted that the FCA had considered feedback from the public while developing its proposals.

Rising Risks and Fraud

Crypto growth in the UK has coincided with rising fraud and investment losses. UK Finance data showed a 55% increase in funds lost to crypto-related scams over the past year. Last month, authorities carried out the country’s largest Bitcoin seizure.

Chinese national Zhimin Qian, who defrauded more than 128,000 people in China, had hidden the proceeds in the UK. Authorities recovered 61,000 BTC, worth over £5 billion.

UK TO REGULATE CRYPTO UNDER FINANCIAL LAW FROM 2027- The UK will bring cryptocurrencies like Bitcoin under full financial regulation from 2027, placing crypto alongside traditional financial products, per Reuters.- The Treasury plans to extend existing financial laws to… pic.twitter.com/RhWK96NN51

— BSCN (@BSCNews) December 15, 2025

Goals of the New Rules

The rules are expected to increase market transparency, improve detection of suspicious activity, allow sanctions, and hold companies accountable. Officials said the measures could help position the UK as a hubfor digital asset innovation.

“By giving firms clear rules of the road, we are providing the certainty they need to invest, innovate and create high-skilled jobs here in the UK, while giving millions strong consumer protections, and locking dodgy actors out of the UK market,” UK Chancellor Rachel Reeves said.

Support for "Growth"

City Minister Lucy Rigby said the legislation would support growth. “Bringing forward this legislation is a milestone. Our intention is to lead the world in digital asset adoption.

The rules we are putting in place are going to be proportionate and fair. They are going to be good for growth, encourage firms to invest here and protect consumers as well,” she said.

Rigby is expected to table secondary legislation. Officials aim to have the final rulebook ready by mid-2026, with full implementation in 2027.

Faster Registration Process

The FCA has accelerated its registration process for crypto firms, reducing the average approval time from over a year to five months. Approval rates have increased to 45% in recent months, compared with less than 15% over the past five years.

Cybersecurity researchers have reported a surge in malicious code uploaded to legitimate websites through a vulnerability in the popular JavaScript library React, a tool used by countless crypto platforms for their front-end systems.

Crypto Drainer Attacks Surge via React Flaw

According to Security Alliance (SEAL), a nonprofitcybersecurity organization, criminals are actively exploiting a recently disclosed React vulnerability labeled CVE-2025-55182.

Crypto Drainers using React CVE-2025-55182We are observing a big uptick in drainers uploaded to legitimate (crypto) websites through exploitation of the recent React CVE.All websites should review front-end code for any suspicious assets NOW.

— Security Alliance (@_SEAL_Org) December 13, 2025

“We are observing a big uptick in drainers uploaded to legitimate crypto websites through exploitation of the recent React CVE,” SEAL stated on X (formerly Twitter). “All websites should review front-end code for any suspicious assets NOW.”

The flaw enables unauthenticated remote code execution, allowing attackers to secretly inject wallet-draining scripts into websites. The malicious code tricks users into approving fake transactions via deceptive pop-ups or reward prompts.

Read more: Hackers Exploit JavaScript Accounts in Massive Crypto Attack Reportedly Affecting 1B+ Downloads

SEAL cautioned that some compromised sites may be unexpectedly flagged as phishing risks. The organization advised web administrators to conduct immediate security audits to catch any injected assets or obfuscated JavaScript.

“If your project is getting blocked, that may be the reason. Please review your code first before requesting phishing page warning removal. The attack is targeting not only Web3 protocols! All websites are at risk. Users should exercise caution when signing ANY permit signature,” SEAL urged.

Scan host for CVE-2025-55182Check if your FE code is suddenly loading assets from hosts you do not recognizeCheck if any of the "Scripts" loaded by your FE code are obfuscated JavaScriptInspect if the wallet is showing the correct recipient on the signature signing request

— Security Alliance (@_SEAL_Org) December 13, 2025

Phishing Flags and Hidden Drainers

The group warned that developers who find their projects mistakenly blocked as phishing pages should inspect their code first before appealing the warning.

In September, a major software supply-chain attack infiltrated JavaScript packages, raising the risk that cryptocurrency users could be exposed to theft.

The incident involved the compromise of a reputable developer’s account on the Node Package Manager platform, allowing attackers to distribute malicious code through packages that have been downloaded more than one billion times.

???? There’s a large-scale supply chain attack in progress: the NPM account of a reputable developer has been compromised. The affected packages have already been downloaded over 1 billion times, meaning the entire JavaScript ecosystem may be at risk.The malicious payload works…

— Charles Guillemet (@P3b7_) September 8, 2025

“There’s a large-scale supply chain attack in progress: the NPM account of a reputable developer has been compromised,” Guillemet explained. “The affected packages have already been downloaded over 1 billion times, meaning the entire JavaScript ecosystem may be at risk.”

Another Crypto Mogul Goes to Prison

According to the order of Judge Paul Engelmayer at the US District Court for the Southern District of New York, Kwon will receive credit for time served in the US and 17 months of pre-extradition custody.

Before the sentencing, the judge also heard from some of the victims of Terraform. Kwon also testified in court before the sentencing.

“I would like everyone to know that I have spent all my time thinking about what I could have done, and what I can do,” Kwon said before the sentencing. “It’s been four years since the crash, three years since I’ve seen my family. I’d like to [do] my penance in my home country.”

Do Kwon: I would like everyone to know that I have spent all my time thinking what I could have done, and what I can do. It's been four years since the crash, three years since I've seen my family. I'd like to my penance in my home country.

— Inner City Press (@innercitypress) December 11, 2025

He is also facing fraud charges in South Korea, his home country.

The Collapse that Dented the Crypto Industry

Kwon was known for founding Terraform Labs. However, the project’s two cryptocurrencies, TerraUSD and Luna, collapsed in 2022, erasing about $37 billion in value. The fall of the algorithmic stablecoin led to the closure and downfall of several other cryptocurrency companies.

In 2023, Kwon and an associate were arrested in Montenegro while trying to travel to Dubai using fake travel documents. He was then extradited to the US, while South Korea was also trying to push his extradition.

In June, Terraform Labs and Kwon agreed to a settlement with the US Securities and Exchange Commission (SEC), committing to pay around $4.5 billion in recovery and civil penalties. Kwon personally agreed to pay at least $204.3 million.

At first, the US regulator sought $5.3 billion in settlement. However, the defendants’ legal team countered with an offer of $1 million in civil penalties and no recovery or injunction.

Additionally, Kwon and Terraform Labs were permanently banned from buying or selling crypto asset securities, including tokens in the Terra ecosystem.

Earlier this year, Terraform Labs filed for bankruptcy in Delaware, United States. In the court filing, the defunct company reported liabilities between $100 million and $500 million, with estimated assets in the same range.

After the sentencing, Kwon joined FTX founder and former CEO Sam Bankman-Fried, who received a 25-year prison sentence.

The measure, carried out “based on a decision of the Ministry of Information,” disconnects Belarusian users from platforms that have historically served as informal crypto gateways for client deposits and withdrawals used by many forex and CFD brokers.

Finance Magnates reached out to the affected exchanges for comment; no replies were received by the time of publication.

What Happened in Belarus

Belarusian users with domestic IP addresses report that platform websites no longer resolve. Clients of Beltelecom, the state telecom operator, see the standard regulatory notice: “Access to the information resource is restricted based on the decision of the authorised body of the Republic of Belarus.”

A few comments from a Bybit community channel illustrate the suddenness of the measure, including questions about the nature of the block and calls for official clarification.

Belarus was among the first states to legalise mining and digital asset exchanges, yet its approach has shifted toward tighter control. Presidential Decree No. 367, adopted last year, seeks to curb the illicit use of cryptocurrencies and restricts citizens' ability to perform certain operations on foreign trading platforms—particularly those involving the direct deposit or withdrawal of fiat or electronic money.

Earlier clarifications from the Investigative Committee confirmed that crypto-to-crypto operations on existing accounts were not prohibited, while fiat flows were subject to restrictions.

The current blocking measures go further by limiting access altogether, effectively preventing users from reaching the platforms irrespective of the type of transaction.

What's the Industry Impact

For international forex and CFD brokers, the blocking is a strong signal that working with Belarusian residents through crypto-based products or payment rails is becoming even more sensitive from both a sanctions and regulatory perspective.

Many brokers that previously relied on large exchanges as informal crypto gateways for client deposits and withdrawals will face interruptions to these channels, together with heightened operational risk when attempting to reroute flows through third-party exchangers or P2P mechanisms.

At the same time, the EU’s prohibition on offering crypto-wallet services to Belarusian residents already forces European and MiCA-regulated firms to exclude Belarusian clients from any crypto-related functionality.

Combined with domestic access blocks, this further discourages regulated brokers from serving the market and increases the likelihood that Belarusian traffic will migrate toward offshore or lightly supervised platforms.

This shift raises concerns about fraud exposure, chargebacks, and the overall risk profile associated with “BY” client flows, prompting compliant brokers to rely solely on fiat channels via third-country banks and to implement more intensive source-of-funds verification.

The sudden blocking of major exchanges represents a notable escalation in Belarus’s crypto policy. While the restrictions disrupt retail access, they also reshape the operating environment for brokers, payment firms, and compliance teams handling Belarus-linked flows.

If these measures persist, regulated firms will need to revise their onboarding frameworks, funding routes, and risk assessments to align with both domestic Belarusian requirements and international sanctions regimes.

Gemini first applied for a Designated Contract Market (DCM) license in March 2020, though the regulator approved it only in December 2025. Gemini’s leadership framed the approval as a benefit of a more supportive political environment.

“We thank President Trump for ending the Biden Administration’s War on Crypto,” CEO Tyler Winklevoss said in a pointed statement. “It’s incredibly refreshing to have a President and a financial regulator who are pro-crypto, pro-innovation, and pro-America.”

Gemini’s stock (NASDAQ: GEMI), publicly listed since September 2025, rose 13.7% after-hours as investors weighed the impact of a well-capitalized exchange entering a key crypto sector.

The CFTC has not commented on any political factors surrounding the approval.

What Is Known About Gemini’s Prediction Markets

The new license allows Gemini Titan – a wholly owned subsidiary of Gemini Space Station – to offer prediction markets to U.S. customers. Initially, the company plans to launch simple yes-or-no event contracts, directly competing with Kalshi's and Polymarket's flagship products.

The new trading contracts will be available “soon” on Gemini’s web interface, with mobile trading to follow. U.S. customers of the cryptocurrency exchange will be able to trade them from their USD accounts. Gemini signaled that prediction markets are just the first step in a broader derivatives strategy.

The firm outlined plans to expand into crypto futures, options, and perpetual contracts. “Prediction markets have the potential to be as big or bigger than traditional capital markets,” said Cameron Winklevoss, Gemini’s president.

What It Means for the U.S. Prediction Markets

Gemini’s approval immediately shifts the U.S. prediction market landscape from a stable two-player scene—Kalshi as the sole fully CFTC-regulated venue and Polymarket with strong on-chain growth—to a three-way contest.

With a public-market footprint, strong capital base, and mainstream distribution, Gemini enters as a competitor poised to challenge both competitors. Its arrival is expected to intensify the race for liquidity, product depth, and user acquisition, prompting more aggressive platform differentiation.

Kalshi CEO Tarek Mansour previously described the rivalry between Kalshi and Polymarket as the kind of “ferocious” duel that forces a young market to mature.

Gemini’s entry turns a duopoly into a competitive triangle, spurring faster innovation and sharper rivalry in prediction markets.

Blockchain data provider Arkham reports that the transfers came from a cluster of long-dormant wallets and landed in a Bech32 address starting with “bc1q,” whose owner remains unknown.​

The transfers mark a sharp break with the pattern of near-total inactivity that has defined these addresses for the past decade. Only a handful of minor “test” transactions had gone out from Silk Road-tagged wallets this year before this week’s sudden burst of on-chain activity.​

Inside the $3.14M Bitcoin shift

Arkham’s dashboards show that roughly 300 Silk Road-linked addresses combined their balances in a coordinated series of 100‑plus transactions. Together, they pushed around $3.14 million in Bitcoin to a single destination address, suggesting clear intent to consolidate funds rather than disperse them.​

Despite the fresh movements, most of the tagged holdings remain unmoved. Arkham estimates that Silk Road-associated wallets still control roughly $38–41 million in Bitcoin, while the newly created address holds only the amount received in this latest batch of transfers.​

The renewed wallet activity follows the political and legal drama around Ross Ulbricht, who created and operated Silk Road until his arrest and conviction in 2015.

Ulbricht received two life sentences plus additional years for running a marketplace that enabled anonymous trade in illegal drugs and other illicit goods using Bitcoin as the medium of exchange.​

Keep reading: As Trump Pardons Ulbricht, What Was Silk Road?

JUST IN: Silk Road Founder Ross Ulbricht seen out of prison following pardon from President Trump. pic.twitter.com/90zsIL4Ve2

— Watcher.Guru (@WatcherGuru) January 22, 2025

In January 2025, President Donald Trump granted Ulbricht a full and unconditional pardon, ending his life sentence after more than a decade behind bars. The decision energized Ulbricht’s supporters and triggered renewed scrutiny of the remaining Silk Road-linked coins, some of which the US government had already seized and auctioned in earlier enforcement actions.​

Billions seized, but millions unaccounted

Authorities have previously confiscated large tranches of Bitcoin tied to Silk Road, including tens of thousands of coins that later went to auction under government control. One US government-controlled wallet identified by Arkham holds tens of thousands of BTC from Silk Road seizures, underscoring the scale of the original marketplace’s crypto footprint.​

Ross Ulbricht (@RealRossU) didn’t sell drugs—he built an anonymous, free, and open platform on Tor called Silk Road.Silk Road sold apparel, art, books, collectibles, computer equipment, electronics, herbs, and yeah—drugs. But according to friends who used it, Silk Road was… pic.twitter.com/iNn2iHv4TA

— Ben Sigman (@bensig) January 22, 2025

At current prices, those coins would be worth roughly $47 million, sitting alongside other tagged wallets that hold several million dollars more but have seen almost no recent movement apart from a few tiny test transactions.

The latest $3.14 million transfer is small relative to both the historical Silk Road stash and Bitcoin’s daily trading volume, so it does not pose immediate market risk on its own. However, any sign that much larger Silk Road-linked balances might move could quickly capture trader attention, especially if on-chain data points to potential exchange deposits.​

Citadel Securities, Fortress Investment Group, Marshall Wace, Brevan Howard, Galaxy Digital, and Pantera Capital participated in the November round. The deal valued Ripple at $40 billion, a record for a privately held crypto company.

Several funds assessed that at least 90% of Ripple's net asset value is derived from XRP, the cryptocurrency closely tied to the company, Bloomberg reported, adding that Ripple held $124 billion worth of XRP as of July. Much of that remains locked up and releases gradually.

Volatile Market Tests Valuations

Investors reportedly negotiated the right to sell shares back to Ripple after three or four years and received a guaranteed 10% annualized return. If Ripple forces a buyback, the return jumps to 25%. A liquidation preference clause gives new shareholders priority over existing ones in a sale or bankruptcy.

XRP has since dropped roughly 40% from its mid-July peak, with the token falling about 16% since late October, when Ripple announced the funding. The decline came during the sharpest crypto selloff since 2022.

Despite the drop, Ripple's XRP holdings still exceed the company's valuation. The treasury stood at $83.3 billion as of early December, assuming no changes since July. Ripple would owe investors $732 million if it repurchases shares after four years at the guaranteed rate, according to Bloomberg calculations.

Broader Crypto Funding Wave

Meanwhile, the payments-focused platform has since expanded through acquisitions this year. It acquired treasury software provider GTreasury for $1 billion in October. These moves could reduce XRP's weight in Ripple's overall valuation over time.

Recently, Ripple expanded its institutional services in the U.S. with the launch of its digital asset spot prime brokerage offering, giving professional investors a single platform to trade, clear, and finance their crypto positions. The rollout followed the company’s integration of Hidden Road, the multi-asset brokerage it acquired earlier this year and has since rebranded as Ripple Prime.

Under the Ripple Prime banner, institutional clients in the U.S. can now execute OTC spot transactions across a wide range of digital assets. The service also covers trades involving XRP, Ripple’s native token, as well as its U.S. dollar-backed stablecoin, RLUSD.

Separately, Ondo received Liechtenstein approval last month to offer tokenized stocks and ETFs across the European Union and wider European Economic Area. The approval followed Ondo Finance’s integration with cryptocurrency exchange Bitget and Bitget Wallet, allowing non-US users to access tokenized real-world assets, including stocks and ETFs.

SEC Clears Ondo Multi-Year Investigation

Ondo said that it received formal notice from the SEC that the “confidential, multi-year” investigation was closed. The review examined whether Ondo’s tokenization of real-world assets complied with federal securities laws. It also assessed whether the ONDO token qualified as a security.

The company said, “The probe examined whether Ondo’s tokenization of certain real-world assets complied with federal securities laws as well as whether the ONDO token was a security.”

The SEC has formally closed a confidential Biden-era investigation into Ondo — without any charges.The inquiry began in 2024, focused on whether Ondo’s tokenization of certain real-world assets complied with federal securities laws as well as whether the ONDO token was a… pic.twitter.com/yV4xVX7Qrx

— Ondo Finance (@OndoFinance) December 8, 2025

Crypto “Enforcement Eases” After SEC Leadership Change

According to a report by Crypto in America, the SEC opened the inquiry in October 2023 under former Chair Gary Gensler, whose tenure was marked by stricter enforcement toward crypto firms. Since Paul Atkins became SEC chair, the agency has closed several crypto-related cases, including those involving Coinbase, Ripple, and Kraken.

Tokenized Securities Could Enter US Markets

Ondo said the investigation began during a period of regulatory uncertainty. It described the environment as defined by “caution, confusion, and occasionally overbroad enforcement actions” and noted it was “one of the only firms focused on tokenizing publicly listed equities at scale.” The company added, “Being early, and being successful, came with scrutiny.”

It said the closure marks the end of one chapter and the start of another, where tokenized securities could become a “core part of the US capital markets.”

Most tokenization platforms continue to focus on customers outside the United States, offering tokenized versions of US-listed stocks and ETFs mainly to European clients, including Kraken-owned Backed, the issuer of xStocks.

The deal connects Avelacom’s network directly to Kraken’s matching engine. The setup allows professional traders to receive market data and execute orders more quickly, enabling strategies such as cross-exchange arbitrage and liquidity aggregation.

Low-Latency Connection for Kraken Clients

In an announcement on Monday, Kraken said clients using the integration can expect real-time price updates with minimal delay and improved execution consistency.

The exchange called the upgrade part of its effort to meet the needs of institutions trading across multiple liquidity venues. Avelacom operates a global network linking major financial hubs, including London and Tokyo.

Its fiber route between the two cities offers sub-138 millisecond round-trip latency, while hybrid routes combining fiber and wireless further reduce transmission time.

The partnership strengthens Kraken’s institutional infrastructure as demand grows for faster and more robust trading systems in the crypto sector. Kraken offers access to the network through its institutional division for clients seeking enhanced trading performance.

Recently, Kraken collaborated with Deutsche Börse Group to unify fragmented crypto, foreign exchange, and derivatives marketsinto a single access point for institutional investors. The collaboration linked Deutsche Börse’s traditional exchange infrastructure with Kraken’s digital asset platform.

Expanding Institutional Infrastructure

The deal aims to make trading, settlement, and custody processes seamless across both traditional and digital assets, ensuring investors experience consistent handling whether dealing in stocks, tokens, or futures. The scope covers trading, custody, settlement, collateral management, and tokenized assets.

Both parties said the goal is to deliver “frictionless” institutional access through one integrated setup. Kraken Co-CEO Arjun Sethi described the agreement as an example of “what happens when two infrastructures designed for scale and trust intersect.”

“Our partnership with Deutsche Börse Group demonstrates what happens when two infrastructures designed for scale and trust intersect,” commented Arjun Sethi, Co-CEO of Kraken.

Additionally, Kraken has agreed to acquire Backed Finance, a platform that issues blockchain-based tokens representing real-world securities such as stocks and exchange-traded funds.

The move aims to bring tokenized products closer to Kraken’s main trading operations ahead of its planned public listing in 2026, and will allow the exchange to integrate the issuance and trading of these assets within a single platform.

Taking Down a Vast Fraud Network

According to Europol’s announcement yesterday (Thursday), “the criminal network operated numerous fake cryptocurrency investment platforms, luring thousands of victims with advertisements promising high returns.”

The perpetrators contacted the victims repeatedly from call centres, according to the agency, and used social engineering tactics to pressure them into making investments on the fake trading platforms.

The network came to light after authorities began an investigation into a single fraudulent cryptocurrency platform.

The reach and set-up of the network are said to span across Europe and beyond.

Another earlier report revealed that the European agencies removed over 1,400 fraudulent online trading platforms that tricked retail investors. German investigators, working alongside BaFin, Europol and Bulgarian authorities, traced networks of fake brokers luring users into investing large sums with promises of high returns.

Raids and Arrests

The latest nine arrests were made in the first phase of the crackdown, which took place on 27 October, involving police raids across Cyprus, Germany and Spain at the request of French and Belgian authorities. It also resulted in the seizure of bank accounts, cash, cryptocurrencies, digital devices and high-value watches.

In the second phase of the operation, carried out on 25 and 26 November, the authorities focused on targeting the affiliate marketing set-up that supports these online scams, which use fake advertisements with photos and deep fake videos of celebrities and even politicians.

Interestingly, the Italian financial market regulator recently pointed out that deep fake ads of the country’s Prime Minister, Giorgia Meloni, are being used to promote fake investments.

These ads look like they’re from Nike, KFC, and Coca-Cola…But none of them are realThey’re 100% AI-generated — and shockingly good!Here are 14 wild examples: ????1. Physics? AI doesn’t care. pic.twitter.com/wSq4XtTlNK

— Arsalan (@AIwithArsalan) August 1, 2025

Agencies from Belgium, Bulgaria, Germany and Israel conducted the latest searches against companies and suspects involved in fraudulent advertising campaigns on social media platforms.

It appears that the majority of the fraud operations were based in Cyprus, Germany and Spain, while companies in Belgium, Bulgaria, Germany and Israel ran the fake ads.

“Following these two coordinated actions and multiple arrests and seizures, investigative authorities will continue to track the criminal organisation’s assets in the countries where it operates and resides,” Europol stated.

Recently, the European authorities also closed a crypto-mixing service, “Cryptomixer,” allegedly used by cybercriminals to launder over €1.3 billion in Bitcoin. Authorities confiscated three servers, the platform’s domain, more than €25 million ($29 million) in BTC and over 12 terabytes of operational data.

Richard Teng, a former regulator who became CEO in 2023, represents the company’s intended image of compliance, while Yi He — CZ Zhao’s longtime partner and current leader of product and strategy — reflects its founder-driven origins.

The move follows Zhao’s pardon by U.S. President Donald Trump, which lifts Zhao’s personal criminal restrictions but leaves Binance’s corporate settlement and global regulatory matters unchanged.

A Split Structure, Not a Split Personality

Based on the professional backgrounds of both executives, the new structure suggests a clear split in responsibilities:

Richard Teng serves as the “External CEO,” tasked specifically with regulatory affairs, corporate governance, and ensuring operational stability. He is chiefly responsible for managing Binance’s interactions with global regulators, representing the company externally.

Yi He serves as the “Internal CEO,” overseeing product development, marketing, user community engagement, and the Web3 ecosystem. She also continues to lead Binance Labs and is focused on internal growth, innovation, and user experience.

[#highlighted-links#]

This structure makes official an internal balance that has long existed. Yi He, instrumental in Binance’s growth and product strategy, now receives formal recognition of her influence.

In a letter to the judge during Zhao’s sentencing, He explained their earlier approach and described their mistakes as rooted in a founding team with limited legal experience.

While Zhao himself tried to play down any potential return, the rise of his closest partner to the top job sends a clear signal that Binance is keeping its original product-driven style.

The company is now relying on a plan that depends on keeping two competing priorities in place: its founder’s fast-growth approach and the demands of global compliance. It hopes this structure will allow it to expand well beyond its current size without becoming just another “boring” corporate project.

The move aligns with President Donald Trump’s pledge to usher in what the administration calls a “Golden Age of Innovation” and to position the U.S. as a center for digital asset markets.

Acting Chair Pham Outlines Policy Shift

Pham framed the decision as a course correction after years in which the agency focused on enforcement actions instead of clear rules for retail products. She said the CFTC has a long record of allowing new derivatives products while enforcing core principles around customer protection and market integrity.

.@CFTCpham Announces First-Ever Listed Spot Crypto Trading on U.S. Regulated Exchanges: https://t.co/89Mx6f0ss4

— CFTC (@CFTC) December 4, 2025

In her statement, Pham argued that recent turmoil on offshore platforms highlighted the need for U.S. traders to have access to “safe, regulated U.S. markets” rather than relying on venues with weaker safeguards.

The policy shift ties back to reforms Congress passed after the global financial crisis more than a decade ago. Lawmakers required that leveraged retail commodity trading take place on futures exchanges, but the CFTC never fully implemented this mandate for exchange-traded retail crypto products.

Pham said the vacuum left market demand to flow offshore while domestic policy defaulted to “regulation by enforcement,” resulting in large penalties for crypto firms but no clear path for retail traders to access regulated venues.

Trump Administration Crypto Agenda

Pham’s move effectively operationalizes one piece of that plan by enabling leveraged spot crypto trading on platforms already supervised as futures exchanges.

Keep reading: Revolut Launches UK Waitlist for Corporate Card Automating Business Expenses

Bitnomial, a CFTC-regulated designated contract market (DCM), is set to become the first exchange to list these leveraged spot crypto products, with trading expected to start next week. The Chicago-based platform already operates under the derivatives regulator’s rulebook and will now extend its offering to spot digital assets under the new approach.

???? XRP futures are here! ????Bitnomial is launching the first-ever CFTC-regulated $XRP futures in the U.S. — physically settled for real market impact. Plus, we’ve voluntarily dismissed our case against the SEC as regulatory clarity improves. pic.twitter.com/ARkSanjFNU

— Bitnomial (@Bitnomial) March 19, 2025

As part of that process, the agency gathered feedback from market participants, other regulators and the public on how to integrate digital assets into existing rules. The CFTC worked with the Securities and Exchange Commission during the consultations.

Crypto Sprint and Tokenization Push

Other elements of the Crypto Sprint include plans to allow tokenized collateral, including stablecoins, in derivatives markets and to update technical rules governing collateral, margin, clearing, settlement, reporting and recordkeeping.

The CFTC’s move seeks to balance growing demand for crypto exposure with concerns about leverage, volatility and market abuse. By bringing spot products under the same umbrella as established futures exchanges, regulators aim to apply familiar safeguards to a new asset class without stifling innovation.

The company has also extended its services in Europe. Kraken now operates in all 30 European Economic Area countries under its Markets in Crypto-Assets license. Kraken’s MiCA-regulated entity is authorized by the Central Bank of Ireland and now serves EEA clients directly.

Kraken Launches COP Deposits in Colombia

“Colombia is one of the most dynamic crypto markets in Latin America, with a digitally engaged population and a growing appetite for decentralized financial tools,” said Mark Greenberg, Kraken Global Head of Consumer. “This integration marks an important step in giving Colombian clients more accessible, secure entry points into the global crypto economy.”

Crypto adoption in Colombia has grown steadily, driven by increased financial digitization, interest in stablecoins, and demand for cross-border remittances. Kraken said its local funding support aims to reduce onboarding friction and provide institutional-grade infrastructure.

Kraken expands access in Colombia with local payment integration https://t.co/oaYeZXPXbg

— Crypto Brothers (@LosKruptos) December 4, 2025

Crypto Services Scale Across Latin America

The company’s expansion in Colombia is part of a broader strategy in Latin America. Kraken has already introduced foundational infrastructure in Argentina and Mexico, with the goal of scaling its regional presence.

Colombian clients now have access to local COP payment rails, over 500 digital assets and global liquidity, competitive foreign exchange rates, and 24/7 support. Kraken said this rollout is designed to serve a range of users, from first-time participants to advanced traders.

Tokenized Equities Now Trade Around Clock

Kraken has enabled 24/7 trading for its tokenized stocks, extending “xStocks” from a 24/5 schedule to full-week coverage. The initial rollout includes 10 popularequities, such as TSLAx, SPYx, and NVDAx.

Each token is fully backed by its underlying asset. Available in over 160 countries across multiple blockchains, the feature allows professional traders to react to global events outside traditional market hours, reflecting broader efforts to apply crypto infrastructure to capital markets.

The deal combines an established exchange operator and a long-running crypto venue in a bid to make trading, settlement and custody feel the same whether the asset is a token, a stock or a futures contract.

The agreement spans trading, custody, settlement, collateral management and tokenized assets, with the stated goal to give institutions “frictionless” access to both traditional and digital markets through one connected setup.

“Our partnership with Deutsche Börse Group demonstrates what happens when two infrastructures designed for scale and trust intersect,” commented Arjun Sethi, Co-CEO of Kraken.

We just announced a groundbreaking partnership with Deutsche Börse Group to bring TradFi & crypto closer than ever.FX via 360T is phase one. Derivatives, enhanced liquidity, Embed, & xStocks are next.Institutional access is getting a serious upgrade.https://t.co/rtunQkmtyn

— Kraken (@krakenfx) December 4, 2025

Phase One: FX and 360T Integration

In the first stage, Kraken will plug directly into 360T, Deutsche Börse Group’s foreign-exchange trading platform. That link will allow Kraken clients to tap bank-grade FX liquidity from one of the deepest pools in the market, which should tighten spreads and improve execution quality for fiat funding and withdrawals.

The partnership also leans on Kraken Embed, the platform’s embedded infrastructure product, to broaden crypto access across Deutsche Börse Group’s network.

Using white-label solutions, the two companies plan to help banks, fintechs and other financial institutions offer compliant crypto trading and custody directly to their own end clients in Europe and the U.S. This model allows institutions to add digital asset services without building full-stack crypto infrastructure in-house.

Subject to regulatory approvals, Eurex-listed derivatives will become tradable on Kraken, giving the exchange’s clients a route into one of Europe’s main regulated futures and options markets.

“By linking traditional and digital markets across a wide range of asset classes, we’re building a holistic foundation for the next generation of financial innovation: defined by efficiency, openness, and client access,” Sethi added.

At the same time, Deutsche Börse Group customers will gain the option to trade cryptocurrencies and related derivatives via Crypto Finance and Kraken’s exchange.

Custody for these activities will reportedly rely on Clearstream and Crypto Finance, both part of Deutsche Börse Group, which anchors the structure in existing regulated entities.

Tokenized Equities and Clearstream Assets

A further strand of the deal focuses on tokenization through xStocks within the 360X ecosystem. By integrating this tokenized equity standard, the partners plan to increase the reach of digital representations of traditional securities.

Finance Magnates recently reported that Kraken plans to acquire Backed Finance, the company that develops and issue tokenized equities xStocks. The exchange is gathering momentum ahead of a planned public listing in 2026.

???? We’re bringing @BackedFi, the company driving the issuance of xStocks, fully into Kraken.Why? Because tokenized equities won’t reach global scale without unified rails.With @xStocksFi now fully in-house, we’re accelerating the future of open, 24/7 capital markets ????…

— Kraken (@krakenfx) December 2, 2025

They also intend to enable the distribution of securities held in custody at Clearstream in tokenized form to Kraken’s client base, which would give investors new ways to access conventional instruments through blockchain rails.

In return, Deutsche Börse Group will open its European infrastructure and services to Kraken’s global customers. Both sides present this as a step toward seamless connectivity between traditional markets and the digital asset economy.

The launch is fully in line with the ongoing trend of convergence of traditional finance (TradFi) and the crypto ecosystem. However, unlike crypto-native platforms that offer tokenized equities or traditional brokers that offer crypto via CFDs, Ouinex is positioning itself as a hybrid trading venue.

A Hybrid Architecture Combining Crypto and Traditional Markets

Its architecture supports not only spot crypto and perpetual futures, but also FX and other derivatives, all accessible from one unified trading wallet. This design effectively combines a brokerage-style execution engine with a crypto exchange interface.

A central feature of the platform is its “protective order model,” which aims to improve execution fairness for retail traders by shielding limit orders and ensuring that liquidity providers compete strictly on pricing — an approach that more closely mirrors best-execution standards in regulated FX environments.

The multi-asset structure is one of Ouinex’s core differentiators. Users can trade spot crypto, crypto perpetual futures, FX derivatives, commodities, indices, and stocks without switching accounts or interfaces. Crypto balances can be used as collateral across leveraged markets, enabling a single-wallet, cross-asset setup closer to a broker-dealer model than to a traditional crypto exchange.

Regulatory Foundations and the Project’s Extended Timeline

Ouinex began laying the regulatory groundwork early. The company secured a Virtual Asset Service Provider (VASP) registration in Poland in late 2023, originally targeting a 2024 launch. As the project expanded in scope and regulatory coverage, the full exchange rollout materialized only now, in December 2025.

The Polish registration remains a key component of the company’s European footprint.

“Our goal is to accelerate the convergence between crypto and traditional markets,” said Larbi, Founder and CEO of Ouinex.

Early User Traction and a Community-Driven Development Model

According to the company, more than 40,000 users joined the platform during its pre-launch SocialFi-driven onboarding phase. Larbi noted that community involvement played a central role in shaping the platform: “Ouinex has been fully funded, shaped, and supported by retail traders—the very people who stand behind this platform.”In 2024 the company raised over $5 million through a series of private funding rounds with the aim of enhancing the platform and securing additional regulatory licenses.

With business development teams already active across Africa, LATAM, and Asia, and the upcoming launch of its native $OUIX token, Ouinex is entering a crowded market with an infrastructure model that differs noticeably from both crypto exchanges and traditional multi-asset brokers.

Some users criticized the move. One said Binance was “targeting” children and questioned whether youth-focused marketing had already gone too far. Another joked that children would become “exit liquidity.” A separate commenter said the move “could either go really right, or super wrong.”

Others supported the launch. One user said introducing young people to crypto was “huge for real adoption.” The same user praised the parental control features.

Binance Junior Links Kids to Parents

Binance announced today (Wednesday) that Binance Junior is a standalone mobile app. It links directly to a parent’s main Binance account. Parents can deposit crypto, set spending and transfer limits, and control which features their children can access. The company said this depends on local rules.

Binance described the product as a tool for family financial education. It compared the setup to traditional custodial accounts. In this structure, children can hold assets, but parents remain the legal owners and control permissions.

Introducing Binance Junior, a parent-controlled app and sub-account for kids and teens. Build family-focused crypto savings and prepare your child for a future empowered by crypto.Try it now ???? https://t.co/q4Y50PvApy pic.twitter.com/O1R2yZ4vVE

— Binance (@binance) December 3, 2025

Binance Junior Offers Earn, Pay Features

Binance Junior works as a custodial sub-account. The parent’s verified identity supports the entire account. Parents can move funds from their main Binance account. They can also transfer assets onchain.

The app lets parents decide whether their children can use the Junior Flexible Simple Earn feature. This is an interest-bearing product offered by Binance.

Teenagers aged 13 and above can use Binance Pay. This allows them to send and receive crypto to and from other Junior accounts or their parents. Daily limits are set by the parent.

Gen Z, Millennials Shift Investment Behavior

The launch comes amid a broader trend of younger investors engaging with digital assets. A recent BaFin survey shows that Millennials and Gen Z increasingly use social media for financial information, particularly oncryptocurrencies.

Conducted in May 2024 with 1,000 participants who had invested in the past two years, the study found that over half view platforms like YouTube and Instagram as credible sources. Social media users also tended to diversify portfolios more, including crypto and securities.

Finfluencers play a role as well, with more than half seeking advice from them, though many are unaware these influencers may receive compensation for recommendations or linked products.

Historically, the reinsurance industry has operated in an opaque way, with low visibility into contract structures, pricing and risk assessments.

For example, direct participation in Insurance-Linked Securities in traditional reinsurance come with typical minimum investment requirements ranging from $1-$25 million—constraining market entry to a narrow segment of institutional investors, and making the landscape fragmented and less liquid.

Risk pools linked to global reinsurance markets have also been historically closed off to retail investors.

Although reinsurance is structurally appealing for investors, investor access is shaped by entry barriers that define how capital is held and deployed within the industry.

By addressing the inefficiencies in the reinsurance market, tokenization allows users to access insurance premiums and gain exposure to uncorrelated returns from diversified reinsurance portfolios, while enhancing accessibility for investors and insurers alike.

Linking Global Capital Markets With Blockchain Technology

Blockchain companies act as a decentralized counterpart to traditional reinsurance marketplaces through a structural model that is designed to drive transparency via real-time reporting of on-chain data. As a result, the emergence of high-yield products that bridge digital collateral with on-chain infrastructure has fostered increased investor appetite for new, uncorrelated sources of returns.

It works as such: a blockchain protocol can leverage reinsurance contracts to generate yield on staked capital by allowing users to deposit assets into core custody vaults known as Insurance Capital Layers.

All collateral is on-chain and ICLs participate in quota-share reinsurance notes backed by licensed insurance companies. For added security, all transactions are managed through the cryptographic framework, Multi-Party Computation.

Collateralized Reinsurance: Reducing Risk

In terms of infrastructure, collateralized reinsurance operates as a type of risk transfer wherein reinsurers cover, in full, the potential claims that could arise from the reinsurance contract. In the event of a claim, the funds are available, which reduces credit risk for insurers.

Whereas in traditional reinsurance, the reinsurer’s ability to pay depends on its solvency—collateralized reinsurance guarantees payment through the collateral posted, which is equal to the full reinsurance contract limit (minus the net premiums charged for the protection).

For instance, a company can use a stablecoin provided as collateral by an investor to underwrite climate insurers that transfer their risk out to third parties.

Stablecoins doing nothing? Put them to work.Hear from @contraryactuary on how a stablecoin deposit becomes a transferable claim on real reinsurance profits, without the lock-ups of private equity.Featuring art by @kimmoonsoon pic.twitter.com/dt0YDhmcdE

— Re (@re) November 21, 2025

Risk-Sharing Enables Broad Insurance Market Access

This risk-sharing mechanism enables underwriting across a broad set of insurance markets—from property damage to health to specialty lines including war and political violence or cyber threats. With tokenized reinsurance, there’s no individual investor exposure so risk is distributed across a broad network of participants.

Furthermore, since reinsurance portfolios perform independently of traditional financial assets, returns are tied to insurance events rather than correlated with market cycles or fluctuating price swings.

Why Reinsurance Works onchainEver notice how when the Fed prints more money, everything else feels unstable? Reinsurance is different. Costs rise with real-world events, not speculation. That’s what makes it reliable.@Re brings that stability onchain: premiums, capital, and… pic.twitter.com/3zG7OAKbKn

— KreigDK (@Kreig_DK) December 1, 2025

Real Yield, Built On-Chain

Tokenized reinsurance relies on blockchain rails, automated execution and composable digital collateral to offer a more capital-efficient approach to underwriting real-world risk. This innovative framework is what enables blockchain companies to reconnect digital capital to insurance via on-chain collateralized risk-sharing. As a result, investors worldwide can diversify investment opportunities and risk exposures programmatically.

All in all, onchain reinsurance solves long-standing legacy industry problems associated with a traditionally opaque asset class, all while connecting crypto-assets to the trillion-dollar traditional reinsurance markets. This unlocks global crypto liquidity and, crucially, democratizes investor access.

Reimagining reinsurance does not entail the replication of traditional systems, but signifies the creation of an entirely new market architecture—one that blends decentralized capital, automated underwriting and compliant access to real-world risk.

Why 24/7 Trading Matters for Market Structure

The feature, now live on its Kraken Pro platform for professional traders, extends trading for its “xStocks” from a 24/5 schedule to full 24/7 coverage. The initial rollout includes 10 of its most popular tokenized equities, such as TSLAx (Tesla), SPYx (S&P 500 ETF), and NVDAx (Nvidia).

Since launch, xStocks have recorded more than $10 billion in combined CEX and on-chain transaction volume, reflecting growing demand for tokenized market exposure. While the immediate change is an extension of hours, the strategic implication is much broader.

The move is designed to address one of the oldest limitations of capital markets: the inability of investors to trade or manage risk when markets are closed.

By allowing trading on weekends and public holidays, Kraken aims to let professional traders react instantly to global news, after-hours earnings reports, or macroeconomic events, rather than waiting for the opening bell on Monday morning.

A Growing Infrastructure Behind Tokenized Equities

xStocks are available to users in more than 160 countries and operate across multiple blockchains, initially launched on Solana and later expanded to Ethereum, providing broader access and liquidity for tokenized equity exposure. Each tokenized asset is fully backed 1:1 by its underlying stock or ETF, held by a licensed custodian in a bankruptcy-remote structure – a key difference from synthetic exposure products.

Kraken recently moved to deepen its involvement in tokenized securities by agreeing to acquire Backed Finance, the platform responsible for issuing xStocks and other blockchain-based tokens mirroring real-world stocks and ETFs. The acquisition is intended to bring these products closer to Kraken’s core trading business as the company prepares for its planned public listing in 2026.

This places Kraken at the forefront of a broader push to create “always-on” markets. It also presents a crypto-native alternative to efforts by firms like 24 Exchange, which recently gained SEC approval to offer 23/5 trading of actual U.S. equities. While 24 Exchange aims to extend the hours of the traditional system, Kraken is using its blockchain-based infrastructure to bypass it entirely.

The move reinforces a key trend of convergence, in which the core principles of digital assets are being applied to address inefficiencies in traditional finance. By applying crypto’s continuous-market model to tokenized versions of major equities, Kraken is taking another step toward redefining how and when global markets operate.

Deal Details and Strategic Fit

Kraken already lists a range of tokenized stocks and ETFs that Backed issues, but the acquisition will allow the exchange to integrate issuance and trading under one roof.

???? We’re bringing @BackedFi, the company driving the issuance of xStocks, fully into Kraken.Why? Because tokenized equities won’t reach global scale without unified rails.With @xStocksFi now fully in-house, we’re accelerating the future of open, 24/7 capital markets ????…

— Kraken (@krakenfx) December 2, 2025

“Integrating Backed into Kraken strengthens the core architecture required for open and programmable capital markets. Unifying issuance, trading and settlement under one framework ensures the infrastructure for tokenized assets remains transparent, reliable and globally accessible,” commented Arjun Sethi, the Co-CEO of Kraken.

However, the companies did not disclose financial terms, but Kraken described the deal as part of a broader investment program around real-world asset tokenization.​ Backed Finance, founded in 2021, has quickly become a key player in tokenized public equities.

Earlier, Kraken collaborated with Trust Wallet to integrate its xStocks tokenized equities product into the self-custody wallet, enabling Trust Wallet users to purchase 60 different xStocks using various fiat currencies and to transfer these assets seamlessly across multiple blockchains, including Solana, BNB Chain, TRON, and Ethereum.

Wall Street’s growing interest in tokenization

Meanwhile, the tokenization of traditional financial instruments has drawn attention from large asset managers and centralized exchanges. According to Bloomberg, BlackRock has issued a tokenized money-market fund that holds more than 2.3 billion US dollars in assets, highlighting institutional willingness to experiment withblockchain rails for familiar products.

You may also find interesting: Prediction Markets Boom Draws CZ-Owned Trust Wallet, Joining MetaMask and Polymarket Integration

Several centralized trading venues have rolled out tokenized stock and ETF markets this year, pitching 24/7 trading access and the ability to use tokenized securities as collateral in other crypto-native transactions.​

Despite the adoption of tokenization, Kraken is against the idea of private stock tokenization. Sethi recently distinguished the exchange's tokenized stock offerings from competitors that provide digital shares in private companies. He described Robinhood's approach to tokenizing private equity as fundamentally flawed and risky for investors, emphasizing the differences in their business models.​

Sethi rejected the increasing popularity of outright tokenizing private company equity, noting that investors encounter significant challenges when attempting to exit such positions due to liquidity and resale restrictions.

The self-custodial platform, which counts over 220 million users, introduced a predictions section built into its existing Swaps page. With this step, users can reportedly browse through a list of events, take YES or NO positions, and see event outcomes all from the same interface.

Introducing Predictions in Trust Wallet ????The first major wallet with native predictions.Trade sports, crypto, politics & more. All in one place & self-custodial.Powered by @MyriadMarkets (live). @Polymarket & @Kalshi coming soon.Update now: https://t.co/VHh3snlsip pic.twitter.com/LCOu9BbjTH

— Trust Wallet (@TrustWallet) December 2, 2025

According to the company, each opportunity appears in tokenized form, where community sentiment and market pricing are updated in real time. There is no need for a separate app and the feature is native and keeps the familiar mobile-first experience, the company explained.

Growth and Integration Trends

Trust Wallet has opened with Myriad, a permissionless prediction market protocol operating on BNB Chain. Polymarket and Kalshi, two other major event-market platforms, are planning integrations in the upcoming weeks, a move Trust Wallet expects to broaden regional access and coverage.

The launch followed surging activity in prediction markets, which shattered records in October. Kalshi and Polymarket together processed over $7.4 billion in trades during the period, the highest monthly volume these platforms have ever achieved.

JUST IN: @MetaMask launches in-app perpetuals trading through @HyperliquidX with @Polymarket integration to follow. pic.twitter.com/1W68uH4KfI

— CoinGecko (@coingecko) October 8, 2025

Wallet-Based Event Markets

In October, MetaMask, another top crypto wallet, announced plans to integrate Polymarket’s prediction markets through an exclusive partnership. The addition aims to let users in approved regions wager on real-world outcomes, such as elections, sports, and crypto price moves – directly in the wallet, while retaining self-custody.

As major competitors like MetaMask move to enable in-wallet prediction trading, wallets are fast evolving into all-in-one hubs for tokens, opinions, and expectations. Geographic access is reportedly automatically managed by each underlying provider, with respect to regional restrictions.

The shift marks a departure from the company’s previous public stance, which characterised crypto as excessively speculative and unsuitable for long-term portfolios.

The change reflects growing client demand and the rapid expansion of the market, highlighted by the success of BlackRock’s IBIT Bitcoin ETF, which has gathered roughly $70 billion in assets under management. By maintaining restrictions, Vanguard had been directing part of its client base toward competing providers.

The firm’s earlier position was articulated by Janel Jackson, Vanguard’s global head of ETF Capital Markets: “In Vanguard’s view, crypto is more of a speculation than an investment.”

She noted that digital assets “have no inherent economic value, generate no cash flow, and can introduce unnecessary volatility into a portfolio.”

A Limited Policy Adjustment, Not a Strategic Pivot

The updated framework is a limited adjustment rather than a full strategic pivot. Under the new policy, Vanguard will allow trading most regulated crypto ETFs from third-party managers, treating them similarly to other non-core assets such as gold.

Starting tmrw vanguard will allow ETFs and MFs tracking bitcoin and select other cryptos to begin trading on their platform. They cite how the ETfs have been tested performed as designed through multiple periods of volatility. Story via @emily_graffeo pic.twitter.com/AKhMdR7pab

— Eric Balchunas (@EricBalchunas) December 1, 2025

However, the company will continue restricting products tied to highly speculative meme coins, refrain from launching proprietary crypto funds and instead focus on providing access to external offerings.

Explaining the change, Andrew Kadjeski, head of brokerage and investments, said: “Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility… investor preferences continue to evolve.”

The decision comes more than a year after former BlackRock executive Salim Ramji, who has previously discussed the potential of blockchain technologies, was appointed as Vanguard’s CEO. His arrival had prompted expectations that the firm might eventually reconsider its approach to digital assets.

While the update does not signal a fundamental shift in Vanguard’s investment philosophy, it indicates a growing need to accommodate client interest in regulated crypto products and acknowledges the asset class's increasing relevance within the broader ETF market.

Market Context: A Volatile Backdrop for Digital Assets

The policy shift comes at a moment when cryptocurrency markets are experiencing renewed volatility. After briefly trading above $126,000 in October, Bitcoin has since fallen below $86,000 in early December, underscoring the asset’s sensitivity to shifts in broader risk sentiment.

Analysts describe the pullback as part of a broader risk-off tone heading into December, with investors reducing exposure to higher-volatility assets amid macroeconomic uncertainty and signs of buyer exhaustion following the strong rally earlier in the autumn.

Bitnomial’s self-certified rules, which took effect Friday, allow it to list both leveraged and non-leveraged spot crypto products, Coindesk reported. Customers will be able to trade digital assets and access financing options on a platform fully recognized by federal authorities.

Regulatory Clarity for Crypto Exchanges

The approval comes as the CFTC moves to clarify its role in supervising spot crypto commodities. Both the CFTC and the Securities and Exchange Commission (SEC) recently confirmed that existing laws allow exchanges registered with either agency to offer certain crypto products, including those with leverage, provided there is proper coordination with regulators.

Bitnomial’s approval could set a precedent for other exchanges holding designated contract market (DCM) status. Platforms such as Coinbase, Kalshi, and Polymarket may follow suit, bringing additional spot crypto offerings under federal supervision. The development represents a significant step toward integrating digital assets into regulated U.S. financial markets.

CFTC-Regulated XRP Futures

Early this year, Bitnomial launched the first CFTC-regulated XRP futures in the United States. The move followed the company’s voluntary decision to dismiss a lawsuit against the SEC.

???? XRP futures are here! ????Bitnomial is launching the first-ever CFTC-regulated $XRP futures in the U.S. — physically settled for real market impact. Plus, we’ve voluntarily dismissed our case against the SEC as regulatory clarity improves. pic.twitter.com/ARkSanjFNU

— Bitnomial (@Bitnomial) March 19, 2025

The Chicago-based firm said that its physically settled XRP futures will be available to existing users starting March 20. This marked the first time such XRP derivatives traded under federal oversight in the U.S., and represented a milestone for the country’s cryptocurrency derivatives market.

Continue reading: Bitcoin Mixer Tied to €1.3 Billion in Illicit Flows Taken Down by European Authorities

Bitnomial explained that improved regulatory clarity was a key reason for dropping its legal action against the SEC. The lawsuit had previously challenged the SEC’s attempts to block the exchange from listing XRP futures.

Law enforcement agencies from Switzerland and Germany, coordinated by Europol, targeted Cryptomixer between November 24 and 28, 2025. It is alleged to have laundered over €1.3 billion ($1.51 billion) in Bitcoin since 2016.

According to Europol, authorities confiscated three servers, the platform’s domain, more than €25 million ($29 million) in BTC, and over 12 terabytes of operational data.

Europol supports Germany and Switzerland in taking down 'Cryptomixer', seizing EUR 25 million in Bitcoin. This illicit mixing service facilitated money laundering of proceeds from a variety of criminal activities.Details ➡️ https://t.co/d3oTlbrDzd pic.twitter.com/Qtml6nhGlX

— Europol (@Europol) December 1, 2025

Europol Leads Cross-Border Raid

Europol’s cybercrime experts coordinated the operation, provided forensic support, and facilitated real-time information exchange among participating agencies. Following the takedown, a seizure banner was placed on the Cryptomixer website.

Cryptomixer was reportedly a hybrid mixing service accessible via both the clear web and the dark web. It allowed users to depositBitcoin, which was then pooled, randomized, and redistributed to destination addresses over extended periods.

The service was widely used by ransomware groups, dark web marketplaces, and other criminal networks to obscure the origin of illicit funds, including proceeds from drug trafficking, weapons sales, ransomware attacks, and payment-card fraud.

The raid involved Germany’s Federal Criminal Police Office and the Prosecutor General’s Cyber Crime Centre, as well as Zurich City Police, Zurich Cantonal Police, and the Public Prosecutor’s Office in Switzerland. Eurojust provided legal coordination and operational support.

Coordination Across Borders

Europol facilitated the exchange of intelligence through its Joint Cybercrime Action Taskforce (J-CAT), helping member states share expertise and conduct a coordinated takedown.

The Cryptomixer shutdown follows Europol’s 2023 dismantling of ChipMixer, which was then the largest crypto-mixing service. Authorities continue to prioritize tracing illicit cryptocurrency flows and targeting platforms that facilitate money laundering.

In a similar crackdown, a Europe-wide enforcement effort recently traced more than €47 million in cryptocurrency moving through accounts linked to illegal streaming and digital piracy networks. Authorities said the findings mark one of the largest financial-tracking exercises ever conducted against online intellectual property crime.

Around the same time, another large-scale operation took down more than 1,400 fraudulent online trading platforms targeting retail investors. According to Reuters, German investigators, together with BaFin, Europol and Bulgarian authorities, traced networks of fake brokers that persuaded users to invest significant amounts with promises of high returns.

The Drop: What Happened?

It did not go quietly. In early Asian trading on Monday December 1, Bitcoin dropped sharply. The world’s biggest cryptocurrency lost up to 6 percent, dipping below $86,000. Earlier reports had flagged it crossing under $88,000, already a bruising moment after a rally that earlier pushed Bitcoin into six-figure territory.

Bitcoin isn’t alone in this. Across the crypto market, tokens followed the same flight path. Ethereum, for instance, tumbled by more than 7 percent to around $2,800 in the same session, along with drops for RP, BNB, Solana, Cardano, Tron and more.

Why It’s Falling: Risk Sentiment, Macro Jitters, and Exhausted Buyers

The decline is being widely described as a “risk-off start to December”, meaning investors are dumping risky assets, and crypto is at the top of that list.

BREAKING: Bitcoin falls -$4,000 in 2 hours as mass liquidations return.$400 million worth of levered longs have been liquidated over the last 60 minutes. pic.twitter.com/qKB7MYJapu

— The Kobeissi Letter (@KobeissiLetter) December 1, 2025

Investor caution has ramped up amid macroeconomic uncertainty. With fewer expecting interest-rate relief from the Federal Reserve and inflation still stubborn in major economies, risk assets are getting trashed, and crypto is no exception. In addition, there are fears that the Bank of Japan is set to raise interest rates.

Absence of Dip-Buyers and Raised Red Flags

Normally, when Bitcoin dips, a fresh wave of buyers swoops in thinking they’re getting a steal. Not this time. Analysts point to “meagre inflows into Bitcoin exchange-traded funds and the absence of dip buyers” as a key reason why the fall accelerated.

With no immediate bargain hunters coming in, leveraged positions likely unwound quickly. The result: more liquidations, more downward pressure, more panic.

Macro Cross-Winds and Institutional Strain

The crypto rally had been partly fueled by hopes around rate cuts and institutional capital flows. That tide may be turning. Some institutional holders are now sitting on losses. With falling prices, there’s also pressure on crypto-heavy firms and funds, which may spark forced selling.

My family: You’ve been buying bitcoin for over 5 years you must be so rich by nowMe:pic.twitter.com/P1bVIOLBG3

— The ₿itcoin Therapist (@TheBTCTherapist) December 1, 2025

The broader pattern recalls previous sell-offs: high volatility, quick reversals, and a steep flight from risk assets.

Danger, Opportunity, Or Both?

Several analysts now say the $80,000–$85,000 range has become critical support. If that zone holds, Bitcoin could stabilize or even rebound over coming weeks. But if that floor cracks, we could be witnessing the beginning of a much deeper drop. For holders who bought near the October peak of $126,000, a return to profitability may still lie far off.

Volatility Is Back With a Vengeance

Crypto fans love volatility when it goes up. It’s less fun when it goes down. This drop underlines how closely Bitcoin remains tied to risk sentiment and macro conditions, and that it is not insulated from economic turbulence.

If macroeconomic uncertainty persists, say, further rate-hike surprises or weak economic data, expect more swings. For veteran crypto traders, that means opportunity. For newcomers, it could be bruising.

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Could This Be a Buying Opportunity?

For disciplined investors, this might be a discount window. If holders believe in Bitcoin’s long-term fundamentals, accumulating slowly via dollar-cost averaging around support could pay off, provided they can stomach the swings.

For hedge funds and institutional buyers, the collapse might also reignite interest: lower prices, high liquidity, potential for rebound, if macroeconomic winds shift back in their favor.

But Don’t Pretend It’s Risk-Free

This is not a safe haven. Bitcoin is behaving like an ultra-volatile risk asset, correlated with broader markets, sensitive to policy signals, and prone to sudden dumps. Anyone treating this as digital gold or a stable store of value is likely in for a shock.

LIKE, IF YOU ARE NOT SELLING #BITCOIN pic.twitter.com/ZFD82Cj4N2

— Vivek Sen (@Vivek4real_) December 1, 2025

What’s Next: What to Watch

• Whether Bitcoin stabilizes near $85,000–$80,000 or slides toward lower zones.
• Fresh signals from central banks (especially the Fed) on interest-rate policy.
• ETF flows and institutional demand: whether buyers step in or continue pulling out.
• Global market sentiment. If equities recover, crypto could ride shotgun — but if the risk-off mood deepens, more pain may be coming.

Bitcoin’s crash below $86,000 might feel like a gut-punch for bulls. But in volatile crypto land, yesterday’s horrors can become tomorrow’s value plays, if you’re ready for the ride.

UK Sets Start Date for Mandatory Transaction Tracking

Beginning January 1, 2026, crypto exchanges operating in the country must start gathering complete transaction histories for all their U.K. users. The requirement covers how much customers pay for digital assets, the amounts they sell for, and any profit or loss.

HM Revenue & Customs (HMRC) will receive that information in 2027. Exchanges classified as “Reporting Crypto asset Service Providers” will send the data without exception. The tax authority will then compare the records to individual self-assessment filings.

"UK reporting Cryptoasset Service Providers will be required to report on their UK tax resident customers under the Cryptoasset Reporting Framework. Information for first reports to HMRC will be collected from 1 January 2026 and reported to HMRC in 2027," HM Treasury mentioned.

Tax specialists say the timeline gives traders until the end of 2026 to ensure their filings match their actual transaction history. HMRC has warned it will sanction platforms that fail to gather the required information, as well as pursue individuals who underreport their gains.

The government confirmed the plan in its 2025 Budget, describing it as part of a broader clampdown on tax avoidance. From 2027, HMRC will receive crypto trading data automatically for the first time, removing the uncertainty that has long surrounded digital asset taxation.

Read more: UK Crypto Firms Will Need to Collect Every Customer's Address, Tax Number from 2026

The rules align the U.K. with the OECD’s Crypto-Asset Reporting Framework. This global initiative aims to standardize how governments track digital asset activity. The framework is already underway in the European Union, Canada, Australia, Japan, and South Korea.

Budget Also Tweaks Economic Crime Levy Bands

Alongside the crypto measures, the Budget outlined changes to the economic crime levy starting April 1, 2026. The former “large” revenue band of £36 million to £1 billion will split into two tiers: £36 million to £500 million and £500 million to £1 billion.

Charges remain set at 0.1% of revenue for firms at the lower end of each band. The government also committed over £1.5 billion to youth employment and skills programs, including the Youth Guarantee, which promises education or job support for people aged 16 to 24.

The Budget document further stated that visa system reforms will ensure U.K. businesses can access global talent as the economy adapts to new regulatory and technological developments.

The license requires compliance with MiCA rules, which set a single standard for crypto firms across the bloc and mandate a Crypto-Asset Service Provider license for companies offering exchanges, custodial wallets, advice, and related services.

Legal Basis and Expansion

The approval gives KuCoin a legal basis to operate under the EU’s unified crypto framework. MiCA sets common rules for digital asset firms across the bloc, and the company said it supports its broader compliance expansion.

The firm added that the approval follows its recent registration with AUSTRAC in Australia. It also pointed to expanded compliance systems in several major markets.

BC Wong, KuCoin’s chief executive, called the license a “defining milestone” in its compliance plans. He emphasized that MiCA represents “one of the highest regulatory standards worldwide.”

JUST IN: KuCoin has obtained a MiCA license in Austria.The approval lets it offer regulated crypto services across the full EEA. pic.twitter.com/tVqIxtRz1U

— BeInCrypto (@beincrypto) November 28, 2025

User Transition in the EEA

The company also referenced its security certifications and ongoing proof-of-reserves audits as part of its risk controls.

KuCoin said that users in the EEA, except Malta, will be served through its EU platform. New registrations on the global platform will no longer be available for EEA users and further updates will be shared through official announcements.

Coinbase, Bybit, and Other Exchanges Secure MiCA Approval

Other crypto exchanges have also obtained MiCA licenses to operate across the European Economic Area. Kraken launched services in all 30 EEA countries, while Coinbase and Bybit hold full approvals. Crypto.com has received an in-principle license.

Kraken’s entity is authorized by the Central Bank of Ireland, allowing it to serve EEA clients directly under the unified MiCA framework.

Crypto tokens linked to traditional financial assets may pose new risks for investors, the global securities regulator IOSCO warned. The organization noted that while most risks are covered by existing frameworks, the underlying technology could introduce additional vulnerabilities.

Differences in token structures can create uncertainty over asset ownership, and third-party issuers may add counterparty risk. “Tokenization could also suffer from potential spill-over effects from increased inter-linkages with the crypto asset markets,” IOSCO added.

Advantages Highlighted by IMF

“Tokenization can make financial markets faster and cheaper, but efficiencies from new technologies often come with new risks,” the IMF video said. It explained that tokenization allows assets to be “faster and cheaper to buy, own, and sell” by reducing reliance on intermediaries such as clearinghouses and registrars.

Tokenization can make financial markets faster and cheaper but efficiencies from new technologies often come with new risks. Watch our latest video to learn more. pic.twitter.com/hBsQxlhHFh

— IMF (@IMFNews) November 28, 2025