Crypto Exchanges Struggle with Market Volatility; Polymarket and Kalshi Secure Major Investments
This week, crypto exchanges faced meaningful challenges due to market volatility. Binance, one of the largest exchanges, experienced system issues during Bitcoin’s sharp drop from $124,000 to $104,000. Co-founder Yi He apologized and promised compensation for affected users.
Simultaneously occurring, Polymarket, a prediction market platform, is preparing to launch its native token. The company received a $2 billion investment from Intercontinental Exchange, boosting its valuation to $9 billion. This comes after the platform was banned by the CFTC in 2022.
Kalshi, another prediction market platform, secured $300 million in funding, achieving a $5 billion valuation. The investment will help expand its operations to 140 additional countries.
The Monetary Authority of Singapore (MAS) has delayed new crypto asset treatment rules for banks until 2027. This decision follows industry feedback on timing and classification concerns.
Bybit, the second-largest crypto exchange by trading volume, obtained a Virtual Asset Platform Operator License from the UAE. This makes it the first exchange to receive full regulatory approval in the region.
North Korean crypto theft reached record levels, with over $2 billion stolen this year. The funds are believed to finance the country’s weapons program. India also announced plans to expand its central bank digital currency (CBDC) while discouraging private cryptocurrencies.
