BitcoinKE

Prediction market platforms are moving beyond simple event-based wagering into mainstream derivatives trading.

Polymarket and Kalshi are preparing to launch perpetual futures trading, marking a significant expansion of their offerings and positioning them in direct competition with crypto exchanges and retail trading platforms.

MILESTONE | Polymarket Tops $10 billion Monthly Volume for First Time in March 2026@Polymarket US now accounts for 6.6% of total platform activity, more than doubling its share since the start of 2026, despite remaining invite-only and limited to sports-related markets.

The…

— BitKE (@BitcoinKE) April 9, 2026

Perpetual futures – leveraged derivative contracts with no expiry date – will allow users to take long or short positions on a range of assets including cryptocurrencies, stocks and commodities, according to multiple reports.

The move represents a shift for both firms which have historically focused on ‘event contracts’ that let users bet on outcomes such as elections, economic data, or weather events.

REGULATION | ‘Gambling by Another Name is Still Gambling,’ Says New York as It Sues Coinbase, Gemini Over Prediction Markets Offerings

Polymarket has already opened early access sign-ups for the product while Kalshi is expected to follow with a U.S.-focused rollout, potentially leveraging its regulatory status to offer the contracts domestically.

Analysts say the expansion brings the two platforms into more direct competition with established crypto derivatives venues as well as brokerages that are increasingly integrating multiple asset classes into a single trading interface.

Combined monthly trading volumes for Polymarket and Kalshi have already exceeded $20 billion suggesting a large existing user base that could be funneled into higher-risk leveraged products.

However, the push into perpetual futures comes amid growing regulatory scrutiny of prediction markets, including concerns around market manipulation and insider trading, which could complicate rollout timelines and broader adoption.

 

REGULATION | SEC Thailand Seeks Public Feedback on Draft Law to Permit Derivatives Products by Crypto Firms

 

 

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___________________________________________

Proposed new capital flow regulations by National Treasury and the South African Reserve Bank are drawing criticism from legal and industry stakeholders, who warn the measures could impose sweeping controls on cryptocurrency use and raise constitutional concerns.

The Draft Capital Flow Management Regulations, 2026, published on April 17 2026 are intended to modernize South Africa’s exchange control regime dating back to 1961. Authorities say the framework introduces a risk-based approach to managing cross-border capital movements in an evolving financial system.

REGULATION | Crypto Assets To Be Formally Incorporated into the South Africa Capital Flow Management

However, critics argue the draft relies on a broad permission-based system that could restrict individuals and businesses from freely transacting in digital assets. The rules would require disclosure of crypto holdings above thresholds yet to be defined and could mandate that transactions beyond those limits receive prior approval.

Critics say the changes raise serious constitutional concerns around privacy, property rights, and freedom of association, calling them among the most aggressive updates to South Africa’s decades-old exchange control system.

Under the proposals, residents may be barred from buying, selling, lending or transferring crypto assets above set thresholds except through authorized providers. Transactions would also need a declared purpose, with potential penalties, including forced resale, if funds are used outside that scope.

REGULATION | South African Reserve Bank Moves Quickly to Block Crypto Loophole, Files Appeal Against High Court Ruling on Exchange Controls

Some provisions suggest authorities could compel the sale or surrender of assets such as foreign currency, gold or cryptocurrencies under certain conditions, a move critics say may conflict with property protections under Section 25 of the Constitution.

The draft also grants enforcement powers that include searches, seizures and mandatory disclosures. Legal observers have raised concerns that requiring access to sensitive information, such as cryptographic private keys, could infringe on privacy rights and effectively transfer control of digital assets.

REGULATION | How Do You Declare or Deposit Crypto At a Border in South Africa?

“The legal status is in limbo, and that is precisely the problem,” says Chong, Partner at @webberwentzel https://t.co/DlJrMAsEm7 @SAReserveBank pic.twitter.com/gf9IixLI7t

— BitKE (@BitcoinKE) November 5, 2025

Further criticism has focused on the grouping of all digital assets under a single definition of “crypto assets.” Analysts note that decentralized cryptocurrencies like Bitcoin differ significantly from centrally issued stablecoins or other tokens, both in structure and risk profile.

South Africa already regulates crypto service providers under existing frameworks. In 2022, crypto assets were classified as financial products under the Financial Advisory and Intermediary Services (FAIS) Act, placing providers under the supervision of the Financial Sector Conduct Authority. Firms are also subject to anti-money laundering rules under the Financial Intelligence Centre Act.

2025 RECAP | South Africa Had Approved 300 Crypto Firms Out of 512 Applications as of December 2025

Critics say the new proposals risk creating overlapping or conflicting requirements, rather than aligning with established oversight mechanisms.

Concerns have also been raised over due process, with provisions that appear to allow asset freezing or forfeiture based on administrative decisions rather than court orders. Legal experts argue this could undermine constitutional protections guaranteeing fair administrative action and access to courts.

The Treasury and central bank have not yet responded to specific criticisms but have invited public comment as part of the consultation process.

Market participants and legal commentators are urging policymakers to revise the draft to clearly

define thresholds,

distinguish between types of digital assets, and

ensure judicial oversight in enforcement actions.

They also call for safeguards to protect self-custody of digital assets and to avoid requirements that could compel disclosure of private keys.

The proposals, if adopted in their current form, would mark one of the most significant overhauls of South Africa’s capital control framework in decades, with potentially far-reaching implications for crypto adoption and cross-border financial activity.

 

REGULATION | Is Regulation Slowing Down South Africa’s Crypto Momentum?

 

 

Stay tuned to BitKE for updates into crypto regulation in Africa.

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_________________________________________

Proposed new capital flow regulations by National Treasury and the South African Reserve Bank are drawing criticism from legal and industry stakeholders, who warn the measures could impose sweeping controls on cryptocurrency use and raise constitutional concerns.

The Draft Capital Flow Management Regulations, 2026, published on April 17 2026 are intended to modernize South Africa’s exchange control regime dating back to 1961. Authorities say the framework introduces a risk-based approach to managing cross-border capital movements in an evolving financial system.

REGULATION | Crypto Assets To Be Formally Incorporated into the South Africa Capital Flow Management

However, critics argue the draft relies on a broad permission-based system that could restrict individuals and businesses from freely transacting in digital assets. The rules would require disclosure of crypto holdings above thresholds yet to be defined and could mandate that transactions beyond those limits receive prior approval.

Critics say the changes raise serious constitutional concerns around privacy, property rights, and freedom of association, calling them among the most aggressive updates to South Africa’s decades-old exchange control system.

Under the proposals, residents may be barred from buying, selling, lending or transferring crypto assets above set thresholds except through authorized providers. Transactions would also need a declared purpose, with potential penalties, including forced resale, if funds are used outside that scope.

REGULATION | South African Reserve Bank Moves Quickly to Block Crypto Loophole, Files Appeal Against High Court Ruling on Exchange Controls

Some provisions suggest authorities could compel the sale or surrender of assets such as foreign currency, gold or cryptocurrencies under certain conditions, a move critics say may conflict with property protections under Section 25 of the Constitution.

The draft also grants enforcement powers that include searches, seizures and mandatory disclosures. Legal observers have raised concerns that requiring access to sensitive information, such as cryptographic private keys, could infringe on privacy rights and effectively transfer control of digital assets.

REGULATION | How Do You Declare or Deposit Crypto At a Border in South Africa?

“The legal status is in limbo, and that is precisely the problem,” says Chong, Partner at @webberwentzel https://t.co/DlJrMAsEm7 @SAReserveBank pic.twitter.com/gf9IixLI7t

— BitKE (@BitcoinKE) November 5, 2025

Further criticism has focused on the grouping of all digital assets under a single definition of “crypto assets.” Analysts note that decentralized cryptocurrencies like Bitcoin differ significantly from centrally issued stablecoins or other tokens, both in structure and risk profile.

South Africa already regulates crypto service providers under existing frameworks. In 2022, crypto assets were classified as financial products under the Financial Advisory and Intermediary Services (FAIS) Act, placing providers under the supervision of the Financial Sector Conduct Authority. Firms are also subject to anti-money laundering rules under the Financial Intelligence Centre Act.

2025 RECAP | South Africa Had Approved 300 Crypto Firms Out of 512 Applications as of December 2025

Critics say the new proposals risk creating overlapping or conflicting requirements, rather than aligning with established oversight mechanisms.

Concerns have also been raised over due process, with provisions that appear to allow asset freezing or forfeiture based on administrative decisions rather than court orders. Legal experts argue this could undermine constitutional protections guaranteeing fair administrative action and access to courts.

The Treasury and central bank have not yet responded to specific criticisms but have invited public comment as part of the consultation process.

Market participants and legal commentators are urging policymakers to revise the draft to clearly

define thresholds,

distinguish between types of digital assets, and

ensure judicial oversight in enforcement actions.

They also call for safeguards to protect self-custody of digital assets and to avoid requirements that could compel disclosure of private keys.

The proposals, if adopted in their current form, would mark one of the most significant overhauls of South Africa’s capital control framework in decades, with potentially far-reaching implications for crypto adoption and cross-border financial activity.

 

REGULATION | Is Regulation Slowing Down South Africa’s Crypto Momentum?

 

 

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_________________________________________

Thailand’s securities regulator has proposed new rules that would allow cryptocurrency firms to offer futures products more directly as part of a broader effort to expand the country’s digital asset market while tightening oversight.

The Thailand Securities and Exchange Commission (SEC Thailand) said it is seeking public feedback on draft amendments that would permit licensed digital asset businesses to apply for derivatives licenses within their existing corporate structures removing the need to set up separate entities.

The move is expected to lower operational and regulatory barriers for crypto companies seeking to enter the derivatives market streamlining the process for offering futures tied to digital assets.

Under current rules, firms must establish standalone entities to conduct derivatives business, a requirement the regulator now aims to eliminate in order to improve efficiency and market access.

REGULATION | Vietnam Moving to Block Overseas Crypto Exchanges as Crypto Framework Takes Shape

The proposal builds on earlier regulatory changes that recognized cryptocurrencies as eligible underlying assets for futures and options contracts, effectively integrating digital assets more deeply into Thailand’s financial system.

Despite easing entry requirements, SEC Thailand said the new framework would introduce stricter safeguards, including measures to manage conflicts of interest and enhance supervision of exchanges and clearing houses.

Officials added that the reforms are intended to give investors more tools for hedging and portfolio management while aligning Thailand’s derivatives market with international standards.

The proposal is open for public consultation until May 20 2026 after which industry feedback will be used to shape the final regulatory framework.

Thailand’s initiative comes amid a broader global push to expand crypto derivatives offerings as regulators and exchanges explore new products to meet growing investor demand.

 

REGULATION | Thailand Proposes Adding ‘Funding Source Providers’ for Crypto Firms

 

 

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___________________________________________

Morgan Stanley’s investment management arm has launched a new portfolio designed to hold reserves backing stablecoins marking a further step by a major Wall Street firm into digital asset infrastructure.

The Stablecoin Reserves Portfolio, introduced by Morgan Stanley Investment Management, is structured as a government money market fund aimed primarily at stablecoin issuers seeking compliant ways to manage reserve assets.

 

Morgan Stanley said the launch reflects rising demand as the stablecoin market expands and regulatory scrutiny increases.

“We are pleased to deliver a new investment solution to the marketplace that seeks to address the needs of stablecoin issuers,” said Fred McMullen Co-Head of Global Liquidity, Morgan Stanley Investment Management.

“The significant increase in stablecoin issuers as well as the growing number of assets held in stablecoins represents an evolving portion of the marketplace that is ripe for future growth.”

REGULATION | Morgan Stanley, a Top 10 U.S Bank, Files for a Bank Charter to Custody and Trade Crypto

The fund is designed to align with proposed U.S. legislation, the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), which would require payment stablecoins to be fully backed by high-quality liquid assets.

According to the firm, the portfolio seeks to

preserve capital,

offer daily liquidity and

generate income

while maintaining a stable net asset value of $1 per share.

The fund will invest only in

cash,

short-term U.S. Treasury securities and

overnight repurchase agreements collateralized by U.S. Treasury securities and/or cash.

The product is expected to be used mainly by stablecoin issuers to park reserves underpinning their tokens though other institutional investors may also participate.

 

“Developing innovative ways to work with stablecoin issuers is another step towards modernizing the financial infrastructure and a key way to improve our institutional clients’ experience,” said Oldenburg.

“Creating opportunities for all client segments as markets evolve will make the next phase of finance possible and more broadly accessible.”

STABLECOINS | Financial Institutions and Corporate Treasury Teams Driving Stablecoin Adoption in Europe

The move highlights growing involvement by traditional financial institutions in crypto-linked services, particularly as policymakers push for clearer rules governing reserve backing and risk management in stablecoins typically pegged to the U.S. dollar.

The portfolio is part of Morgan Stanley’s broader push into digital assets following earlier initiatives including crypto-linked investment products and tokenized fund offerings.

 

“We have actively engaged across the industry to develop the ability to offer digital asset related liquidity solutions,” said McMullen.

“While still in the early stages, these recent product launches signify our commitment to develop relevant, timely solutions that may address evolving investor needs in an increasingly digital marketplace.”

 

INSTITUTIONAL | Morgan Stanley’s Bitcoin ETF (MSBT) Debut Ranks it Among Top 1% ETF Launches

 

 

 

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___________________________________________

A U.S. Army Special Forces soldier has been charged with fraud and misuse of classified information after allegedly earning more than $400,000 by betting on the removal of Venezuelan leader Nicolás Maduro on a cryptocurrency-based prediction market, in a case that is intensifying scrutiny over insider trading risks in the fast-growing sector.

Prosecutors said Master Sergeant Gannon Ken Van Dyke used non-public military intelligence tied to a covert U.S. operation to place a series of wagers in late December 2025 and early January 2026, shortly before the mission became public.

 

“Prediction markets are not a haven for using misappropriated confidential or classified information for personal gain,” said U.S. Attorney Jay Clayton.

“The defendant allegedly violated the trust placed in him by the United States Government by using classified information about a sensitive military operation to place bets on the timing and outcome of that very operation, all to turn a profit. 

That is clear insider trading and is illegal under federal law. 

Those entrusted to safeguard our nation’s secrets have a duty to protect them and our armed service members, and not to use that information for personal financial gain. 

Our Office will continue to hold accountable those who misuse confidential or classified information in a way that undermines and exploits our national security.”

 

According to court filings, Van Dyke placed roughly $33,000 across multiple bets linked to U.S. military action and Maduro’s removal, generating profits of about $400,000.

Authorities allege he was directly involved in planning and executing the operation, giving him access to highly sensitive information that allowed him to effectively ‘trade ahead’ of a known outcome – a hallmark of insider trading.

REGULATION | Insider Trading Risks Escalate on Prediction Markets as Enforcement Intensifies

The case is believed to be one of the first criminal prosecutions explicitly linking insider trading laws to prediction markets, a rapidly expanding category of platforms where users wager on real-world events ranging from elections to geopolitical conflicts.

Legal experts say the incident exposes a fundamental vulnerability in such markets: participants with privileged information can exploit outcomes before they are publicly known, blurring the line between forecasting and illegal profiteering.

 

“Our men and women in uniform are trusted with classified information in order to accomplish their mission as safely and effectively as possible, and are prohibited from using this highly sensitive information for personal financial gain,” said Acting Attorney General Todd Blanche.

“Widespread access to prediction markets is a relatively new phenomenon, but federal laws protecting national security information fully apply.”

 

Prediction markets like Polymarket allow users to trade on the probability of future events, often using cryptocurrency. While proponents argue they aggregate information efficiently, critics have long warned they create incentives for manipulation and misuse of confidential data.

 

“Today’s announcement makes clear no one is above the law, and this FBI will do whatever it takes to defend the homeland and safeguard our nation’s secrets,” said FBI Director Kash Patel.

“Any clearance holders thinking of cashing in their access and knowledge for personal gain will be held accountable.”

INSIGHTS | Prediction Markets Have an Insider Trading Problem That Needs Fixing

U.S. regulators, including the Commodity Futures Trading Commission (CFTC), have filed parallel civil charges, emphasizing that existing financial laws apply regardless of whether trades occur on traditional exchanges or emerging digital platforms.

REGULATION | Prediction Markets Fall Under Our Federal Mandate, Says Chairman, CFTC

Prediction markets, offered by platforms such as @Polymarket and @Kalshi, have surged in popularity, drawing both #retail and #institutional interest, but also scrutiny over risks such as… pic.twitter.com/dpkSpQ2Vxw

— BitKE (@BitcoinKE) April 13, 2026

Investigators also allege Van Dyke attempted to conceal his activity by routing funds through cryptocurrency accounts and requesting the deletion of his trading account after the bets paid out.

The case adds to a growing list of controversies surrounding prediction markets where suspiciously timed trades tied to wars, political events, and corporate developments have raised repeated concerns about insider access and market integrity.

If convicted, Van Dyke could face decades in prison. The Justice Department said the charges underscore that ‘trading on government secrets’ remains illegal, even in newer financial arenas.

REGULATION | PolyMarket Updates Own Rules to Curb Insider Trading and Market Manipulation

 

 

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_________________________________________

Global banking giant, JPMorgan, has said persistent security vulnerabilities and limited growth in decentralized finance (DeFi) are continuing to deter institutional investors from entering the sector.

In a recent assessment, the bank, which manages roughly $4.8 trillion in assets, pointed to a surge in exploits as a key concern. More than $600 million has been lost to DeFi-related hacks so far in April 2026 alone, underscoring ongoing risks in the ecosystem.

DeFi | Liquid Restaking Protocol, Kelp DAO, Compromised Loosing ~$300 Million

JPMorgan also highlighted the cumulative scale of the issue, noting that over $17 billion has been stolen across 518 crypto-related hacks over the past decade.

Beyond security challenges, the bank cited stagnant growth across DeFi markets as another factor limiting broader institutional participation suggesting that both risk exposure and lack of meaningful expansion are weighing on investor confidence.

In February 2026, Changpeng ‘CZ’ Zhao, the Co-Founder of Binance, said that the absence of meaningful privacy on blockchain networks remains one of the biggest barriers preventing cryptocurrencies from becoming a true medium of exchange particularly for business and institutional payments.

REALITY CHECK | Lack of On-Chain Privacy Risks Holding Back Business, Corporate Payments, Says Founder, Binance

“Imagine a company pays employees in crypto on-chain. With the current state of crypto, you can pretty much see how much everyone in the company is paid by clicking…

— BitKE (@BitcoinKE) February 16, 2026

CZ argued that the transparency inherent to most public blockchains, often praised as a core feature of crypto, can also be a practical liability when it comes to everyday payments. He highlighted that without privacy, companies might hesitate to adopt crypto for payroll or expense payments because transaction histories can be easily traced.

The findings reinforce a broader industry narrative that, despite technological innovation, unresolved structural risks continue to hinder DeFi’s transition into a mainstream financial alternative.

DeFi | AAVE TVL Drops Over 50% After the Kelp DAO Exploit

 

 

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___________________________________________

USDT Stablecoin issuer, Tether, has announced it has frozen more than $344 million worth of its USDT tokens in coordination with the U.S. Treasury’s Office of Foreign Assets Control (OFAC) and U.S. law enforcement agencies in one of the largest enforcement actions involving the cryptocurrency to date.

The freeze targeted two wallet addresses identified by U.S. authorities as being linked to suspected illicit activity, including sanctions evasion and criminal networks, the company said. The action was taken after investigators shared intelligence on the wallets preventing further movement of the funds.

Tether said the funds were held on the TRON blockchain and that the move reflects its ongoing cooperation with regulators and law enforcement globally.

2025 RECAP | Over Half of All Circulating USDT Stablecoin Supply in 2025 Issued on TRON Blockchain

 

Chief Executive, Paolo Ardoino, said the company acts “immediately and decisively” when tokens are tied to unlawful activity, adding that USDT is not intended to serve as a safe haven for illicit use.

“USD₮ is not a safe haven for illicit activity,” said Paolo Ardoino, CEO of Tether.

“When credible links to sanctioned entities or criminal networks are identified, we act immediately and decisively.

Recent events have shown what happens when platforms fail to move quickly, enforcement breaks down, users are exposed, and trust erodes. Our approach is different. We combine blockchain transparency with real-time monitoring and direct coordination with law enforcement to stop funds before they can move.

That’s a responsibility we take seriously as one of the largest issuers in the market.”

 

MILESTONE | Tether Voluntarily Freezes $225 Million in Stolen USDT – The Largest Ever Freeze of USDT in History

The company said it has worked with more than 340 law enforcement agencies across 65 countries and has supported over 2,300 investigations worldwide. In total, Tether reports freezing more than $4.4 billion in assets linked to illicit activity, including over $2.1 billion tied to U.S. agencies.

 

“We work closely with law enforcement globally to identify and, upon request, freeze assets to prevent further movement when they are linked to illegal activity or illicit actors.”

 

The latest action surpasses previous freezes by the company and comes as regulators increase scrutiny of stablecoins and their role in global financial crime enforcement.

REGULATION | Binance Reportedly Freezing P2P User Accounts in Kenya at the Request of Law Enforcement

 

 

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_________________________________________

USDT Stablecoin issuer, Tether, has announced it has frozen more than $344 million worth of its USDT tokens in coordination with the U.S. Treasury’s Office of Foreign Assets Control (OFAC) and U.S. law enforcement agencies in one of the largest enforcement actions involving the cryptocurrency to date.

The freeze targeted two wallet addresses identified by U.S. authorities as being linked to suspected illicit activity, including sanctions evasion and criminal networks, the company said. The action was taken after investigators shared intelligence on the wallets preventing further movement of the funds.

Tether said the funds were held on the TRON blockchain and that the move reflects its ongoing cooperation with regulators and law enforcement globally.

2025 RECAP | Over Half of All Circulating USDT Stablecoin Supply in 2025 Issued on TRON Blockchain

 

Chief Executive, Paolo Ardoino, said the company acts “immediately and decisively” when tokens are tied to unlawful activity, adding that USDT is not intended to serve as a safe haven for illicit use.

“USD₮ is not a safe haven for illicit activity,” said Paolo Ardoino, CEO of Tether.

“When credible links to sanctioned entities or criminal networks are identified, we act immediately and decisively.

Recent events have shown what happens when platforms fail to move quickly, enforcement breaks down, users are exposed, and trust erodes. Our approach is different. We combine blockchain transparency with real-time monitoring and direct coordination with law enforcement to stop funds before they can move.

That’s a responsibility we take seriously as one of the largest issuers in the market.”

 

MILESTONE | Tether Voluntarily Freezes $225 Million in Stolen USDT – The Largest Ever Freeze of USDT in History

The company said it has worked with more than 340 law enforcement agencies across 65 countries and has supported over 2,300 investigations worldwide. In total, Tether reports freezing more than $4.4 billion in assets linked to illicit activity, including over $2.1 billion tied to U.S. agencies.

 

“We work closely with law enforcement globally to identify and, upon request, freeze assets to prevent further movement when they are linked to illegal activity or illicit actors.”

 

The latest action surpasses previous freezes by the company and comes as regulators increase scrutiny of stablecoins and their role in global financial crime enforcement.

REGULATION | Binance Reportedly Freezing P2P User Accounts in Kenya at the Request of Law Enforcement

 

 

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_________________________________________

Pantera Capital, one of the leading crypto venture capital fund globally, has reportedly urged London-listed Satsuma Technology to liquidate its remaining bitcoin holdings and return cash to shareholders after the company’s shares plunged about 99%, according to reports.

The investment firm, which holds roughly a 7% stake in Satsuma, said the collapse in Satsuma’s stock highlights the risks of the ‘digital asset treasury’ model in which companies hold cryptocurrencies like Bitcoin as a core balance sheet strategy.

Satsuma’s share price illustrates the strategy’s pitfalls. The stock has fallen more than 99% from a June 2025 peak to trade around 24 pence.

UK-based #Bitcoin asset treasury firm, Satsuma Technology, sees its share price plunge by ~99% since June 2025.#BitcoinTreasury $BTC pic.twitter.com/KCANRM09fH

— BitKE (@BitcoinKE) April 23, 2026

Pantera reportedly argued that selling the bitcoin (~$50 million remaining) and returning capital would better protect shareholders following the sharp decline in both the company’s valuation and broader crypto market conditions.

“We are exploring options to facilitate these requests while protecting the interests of all shareholders,” Satsuma Executive Chairman Ranald McGregor-Smith said in an emailed statement to Bloomberg News.

CASE STUDY | Bitcoin Treasury Firm Sees a 99% Drop in Share Price One Year After a Milestone Capital Raise

 

Satsuma reportedly raised over $220 millon through a convertible loan note to pursue what it called an “AI-powered” Bitcoin treasury strategy. Satsuma’s market capitalization now stands at well below the value of its Bitcoin hoard (646 tokens) and currently ranks at number 57 among Bitcoin treasury firms.

The development underscores growing scrutiny of listed firms using bitcoin treasury strategies, particularly as volatility in crypto prices and equity markets exposes structural weaknesses in the model.

Pantera has reportedly deployed over $300 million in digital asset treasury investments as of August 2025.

The latest development is a sign of digital asset treasury fatigue as share prices crater and valuation premiums to crypto holdings disappear.

EXPERT OPINION | ‘The Market Does Not Have an Appetite for Dozens of Digital Asset Treasuries,’ Says Director of Institutional at Gemini

 

 

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___________________________________________

Payments provider, Ozow, has announced a new partnership with SME financial services platform, Lula, aimed at expanding access to business funding for small and medium-sized enterprises (SMEs) across South Africa.

The partnership introduces a new funding access channel for Ozow’s merchant base enabling eligible businesses to apply for funding through a co-branded Ozow-Lula digital interface. Applications will be assessed and fulfilled by Lula, with Ozow facilitating access through its payments ecosystem.

The collaboration reflects a broader evolution in the fintech sector where payments platforms are increasingly extending their role to support the operational and financial needs of businesses, particularly in a constrained economic environment.

South African SMEs continue to operate under pressure from rising input costs, including fuel and electricity, alongside ongoing macroeconomic uncertainty. Access to appropriate and timely funding remains a persistent challenge, particularly for businesses without extensive credit histories or traditional collateral.

 

Ozow interim CEO Rachel Cowan said the partnership forms part of the company’s ongoing focus on supporting merchants beyond payments.

“Our focus has always been on empowering businesses and giving them the tools to thrive in the digital economy,” said Cowan.

“Through this partnership with Lula, we are extending that role by improving access to funding for our merchants through a channel they already use and trust.”

Cowan added that the partnership reflects how the payments landscape is evolving.

“Fintech platforms are increasingly expected to deliver more integrated solutions that support how businesses operate day-to-day. This collaboration is a practical extension of that shift, allowing us to connect merchants to additional services that support their growth.”

PRESS RELEASE | South African Payment Processor, Ozow, Announces New Crypto Payments Solution Powered by MoneyBadger 

Through the partnership, Ozow merchants will be able to access Lula’s established funding solutions directly without needing to navigate multiple platforms or application processes.

The integration is designed to reduce friction in accessing funding while improving visibility of relevant funding options for businesses already active within Ozow’s ecosystem.

Because the merchant already has a transacting history with Ozow, they will be able to dynamically see how much funding they could qualify for on their Ozow Merchant Portal, before even completing their application. This means that Lula will have a trusted channel delivering qualified businesses to their platform, while the businesses application process is simplified.

David Winter, SVP: Business Development at Lula said the partnership aligns with Lula’s approach to expanding access to funding through embedded distribution channels.

“Lula’s approach has always been to meet businesses where they are,” said Winter.

“By partnering with Ozow, we are able to extend our reach to a large and active base of SMEs that are already participating in the digital economy.

This collaboration enables us to provide funding solutions in a way that is both accessible and aligned with how these businesses operate on a day-to-day basis.”

The announcement comes as fintech partnerships increasingly focus on ecosystem expansion with companies embedding complementary financial services into existing platforms to create more seamless user experiences and ultimately deliver more value, whether that be time saved, reduced costs, or more interoperability.

For Ozow, the partnership builds on a series of recent collaborations aimed at strengthening its broader merchant value proposition, including integrations that support real-time payments and alternative payment methods.

 

The company indicated that communication around the new funding channel will be rolled out to its merchant base in the coming weeks, alongside broader market engagement.

“Our merchants are central to everything we do,” Cowan added.

“Ensuring they have access to the tools, resources, data and insight they need, whether that’s payments infrastructure or funding, is critical to their ability to operate and grow, and ultimately contributes to broader economic activity.”

Merchants can find out more and submit their application here, or, if you’re already an Ozow merchant, you can visit your Merchant Portal.

 

___________

ABOUT OZOW

Ozow is a leading South African fintech company transforming the way consumers and businesses transact through innovative, seamless, and secure payment solutions.

Founded in 2014, Ozow specialises in real-time digital payments, offering a range of products including Pay by Bank, Card Payments, PayShap Request, Instant Refunds, Payouts, and Cash Vouchers.

Trusted by South Africa’s leading brands, Ozow enables millions of South Africans to transact effortlessly, helping merchants unlock growth, reduce friction at checkout, and improve financial accessibility.

Ozow is a licensed System Operator and Third-Party Payment Provider with the Payments Association of South Africa (PASA) and is fully compliant with industry regulations.

For more information, visit www.ozow.com

ABOUT LULA

Lula is a dedicated SME funding platform that offers easy and convenient funding of up to R5 million within 24 hours.

Its repayment terms are flexible, with no early repayment penalties.

Lula’s Cash Flow Facility operates as a line of credit without monthly account or admin fees, allowing businesses to pay only for what they use.

Its Fixed-Term Funding provides lump sum funding with repayment periods of 3, 6, 9, or 12 months, offering predictable terms and fees.

For more information, visit www.lula.co.za

 

CASE STUDY | Ozow’s Latest Appointment Reveals South African Fintechs Are Prioritizing Compliance as Regulatory Scrutiny Grows

 

 

 

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The Financial Conduct Authority (FCA) of the UK says it carried out its first coordinated crackdown on illegal peer-to-peer (P2P) crypto trading by raiding eight sites across London in a joint operation with law enforcement and tax authorities.

The watchdog said it worked alongside HM Revenue & Customs and the South West Regional Organised Crime Unit to inspect premises suspected of operating unregistered crypto trading services, issuing cease-and-desist notices at each location.

Evidence gathered during the raids is now supporting multiple ongoing criminal investigations, the regulator added.

Peer-to-peer (P2P) crypto trading, where users transact directly without intermediaries, requires registration under Britain’s anti-money laundering rules. However, the FCA said no such traders are currently registered in the country, rendering the activity illegal.

Authorities said the crackdown aims to prevent unregulated trading channels from being used to move and conceal illicit funds, warning that such activity poses a financial crime risk.

CASE STUDY | This UK Sanction Signals Early Separation of Legal and Illicit Crypto Ecosystems

 

Steve Smart, executive director of enforcement and market oversight at the FCA, said:

“Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk. We will use our powers and work with partners to disrupt them.

Consumers should protect themselves by only dealing with firms registered with the FCA and by remembering that crypto remains a high risk investment.”

 

The action marks the FCA’s first enforcement operation specifically targeting peer-to-peer crypto trading and signals a broader push to tighten oversight of the sector as the UK moves toward a more comprehensive regulatory framework.

 

REGULATION | Binance Reportedly Freezing P2P User Accounts in Kenya at the Request of Law Enforcement

 

 

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A consortium of 12 European banks, under an entity dubbed Qivalis, has selected digital asset infrastructure provider, Fireblocks, to support the launch of a Euro-denominated stablecoin compliant with the European Union’s Markets in Crypto-Assets (MiCA) regulation, according to a recently released statement.

The project is being led by Netherlands-based venture, Qivalis, which is backed by major lenders including:

BBVA,

BNP Paribas,

ING and

UniCredit.

The group plans to roll out the stablecoin in the second half of 2026, subject to regulatory approval from the Dutch central bank, De Nederlandsche Bank.

STABLECOINS | A Euro Stablecoin is Coming in H2 2026

Fireblocks will provide:

the underlying infrastructure, including

tokenization technology,

custody, and

compliance tooling such as identity verification and sanctions screening,

enabling banks to issue and manage the digital Euro asset within a regulated framework.

The stablecoin is expected to be fully backed on a one-to-one basis and structured under an electronic money institution model, positioning it as a regulated settlement instrument for

payments,

treasury management and

tokenized assets.

The initiative comes as European banks accelerate efforts to develop euro-based digital payment solutions and reduce reliance on dollar-denominated stablecoins, which currently account for the vast majority of the roughly $320 billion global market.

Industry participants say the platform could allow banks to offer clients a compliant, Euro-native digital payment option across multiple business lines, as institutions seek to expand blockchain-based financial services under clearer EU regulation.

STABLECOINS | Europe Should Develop More Euro-Backed Stablecoins to Counter Dollar-Pegged Assets, Says French Finance Minister

 

 

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A Shariah-compliant stablecoin, PUSD, is set to launch on the ADI Chain, a Layer 2 blockchain focused on institutional settlement in the Middle East, as it seeks to tap into the global Islamic finance market valued at more than $3 trillion.

PUSD, which has roughly $2.3 billion in circulation, is backed 1:1 by reserves held in Saudi Riyals and United Arab Emirates Dirhams, both of which are pegged to the U.S. dollar, according to a recent announcement.

The stablecoin is already available on several major blockchains, including Ethereum, BNB Chain, Solana and TRON, with the ADI Chain integration marking its latest expansion.

ADI Chain serves as a settlement layer for a Dirham-backed stablecoin initiative linked to Abu Dhabi-based institutions, including International Holding Company and First Abu Dhabi Bank, and operates under licensing from the UAE central bank.

M-PESA Africa Reportedly Signs MoU with ADI Layer 2 Chain, Specifically Designed for Emerging Markets

The addition of PUSD introduces a second stablecoin to the network, enabling institutions to settle transactions using either a dollar-linked or dirham-denominated digital asset on the same infrastructure.

The move comes as the United Arab Emirates continues to develop regulatory frameworks for stablecoins and digital assets, aiming to modernize cross-border payments and strengthen its position as a regional financial hub.

REGULATION | Dubai Regulator Greenlights Ripple’s $RLUSD Stablecoin Within the Economic Zone Serving Middle East, Africa, and South Asia

 

 

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U.S. banking groups are escalating a coordinated campaign to stall the Senate’s progress on the CLARITY Act, zeroing in on a narrow but consequential regulatory gap left open by last year’s GENIUS Act: who, exactly, is allowed to pay yield on stablecoins.

More than 3,000 banks, led by the American Bankers Association, have funded advertising and lobbying efforts urging lawmakers to “close the stablecoin loophole,” arguing that current draft language would allow crypto platforms to sidestep existing restrictions on interest-like payments.

REGULATION | Here is Why Banks are Still Fighting the CLARITY ACT Stablecoin Yield

At the center of the dispute is a structural ambiguity in the GENIUS Act, signed into law in 2025. While the legislation explicitly prohibits stablecoin issuers from offering yield to holders, it does not clearly extend that ban to affiliated entities or third-party platforms – a gap now shaping the fate of broader crypto market legislation.

Banking groups argue that this omission creates a workaround whereby exchanges or partners could offer rewards tied to stablecoin balances, effectively replicating interest-bearing accounts outside the traditional banking system.

 

“That is the substance behind the word ‘loophole,’” one policy analysis noted, describing how such structures could allow crypto firms to compete directly for deposits without being subject to bank regulation.

 

The industry is pushing lawmakers to amend the CLARITY Act to explicitly ban yield-like incentives not just from issuers, but also from affiliates and third parties – closing what regulators and legal analysts have increasingly referred to as the ‘affiliate loophole.’

CLARITY ACT | American Banks Need Regulatory Clarity More Than Crypto Companies, Says Former CFTC Chairman

Banks warn that leaving the gap unaddressed could accelerate deposit outflows from traditional lenders into crypto platforms offering higher returns. Some industry estimates suggest trillions of dollars in deposits could be at risk if stablecoin-based rewards scale.

Crypto firms, however, argue the banking sector is attempting to re-litigate settled provisions by expanding restrictions beyond the GENIUS Act’s original scope. They maintain that allowing rewards – particularly those tied to platform activity rather than passive holding – is essential for innovation and user adoption.

The White House has further complicated the debate. A recent analysis by the Council of Economic Advisers found that banning stablecoin yield would have only a marginal impact on bank lending – increasing it by roughly $2.1 billion, or 0.02% – while imposing broader costs on consumers.

Stablecoin yield has been a central issue as banks have raised concerns that allowing interest-like returns could draw deposits away from the traditional financial system.

The White House has pushed against banks citing a recent Council of Economic Advisers report which found…

— BitKE (@BitcoinKE) April 22, 2026

The disagreement has become the primary bottleneck for the CLARITY Act, a sweeping bill intended to define federal oversight of digital asset markets. Despite strong bipartisan support in the House, the Senate has delayed moving the legislation forward as negotiations over the yield language continue.

Lawmakers are now effectively deciding whether stablecoins should remain strictly non-yielding payment instruments, as envisioned by banks, or evolve into yield-generating financial products through affiliated platforms, as supported by parts of the crypto industry.

With the legislative calendar tightening ahead of the election cycle, the unresolved loophole has become more than a technical detail – it is now the central fault line determining whether the CLARITY Act advances at all.

REGULATION | America’s Largest Bank Says the CLARITY Act Crypto Legislation is Nearing a Breakthrough

 

 

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Nigerian Web3 startups raised $43 million in 2025, more than double the previous year, signalling a tentative recovery in funding, though investment remains concentrated in early-stage deals and stablecoin-driven financial services, according to a new report.

The report showed that about 89% of total funding, roughly $38 million, flowed into finance-related products tied to stablecoin use cases such as payments and fiat-crypto exchanges, 5x YoY, underscoring a narrow sector focus within the ecosystem.

FUNDING | Nigerian Stablecoin Fintech, Kredete, Raises $22 Million Series A After Crossing 700K Users and $500 Million+ in Remittances

Despite the rebound in capital, deal structures pointed to a market still in its infancy. Nigerian Web3 startups recorded 82 deals in 2025, up from 72 a year earlier, but 73 of those were grant-based, with only one Series A transaction completed during the year.

Early-stage rounds dominated activity, with most funding concentrated at pre-seed and seed levels highlighting limited availability of growth capital needed to scale companies.

Sector performance remained uneven.

Infrastructure-focused startups, including those building stablecoin rails and interoperability tools, raised just $4 million, down from $11 million in 2024

Web3 entertainment segments such as gaming and social applications attracted just $1 million, marking a 50% decline year-on-year

The funding trends reflect a broader shift in Nigeria’s crypto market from speculative trading toward utility-driven use cases, particularly cross-border payments powered by stablecoins. On-chain transaction value rose 56% year-on-year to $92 billion while stablecoin deposits surged significantly over the past several years, the report said.

Analysts say the concentration of capital and reliance on grants suggest global venture capital interest has yet to fully return even as startup formation accelerates and Nigeria maintains its position as one of Africa’s most active Web3 hubs.

REPORT | Nigeria’s Web3 Infrastructure Startups Dominated 2024 Nigeria Web3 Funding By Raising $11 Million Out of $20 Million

 

 

 

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Japan’s clearing house said it will test the use of blockchain to handle government bond collateral in a move that could modernize how one of the world’s largest sovereign debt markets operates.

Japan Securities Clearing Corporation (JSCC), part of Japan Exchange Group, will launch a proof-of-concept with Mizuho Financial Group, Nomura Holdings and Digital Asset to examine whether Japanese government bonds (JGBs) can be used as digital collateral on the Canton Network, the companies said.

The trial will assess whether JGBs can be transferred and managed on blockchain infrastructure while maintaining their legal status under Japan’s Book-Entry Transfer Act and Financial Instruments and Exchange Act, a key requirement for any future commercial rollout.

The project will also test whether existing financial systems can integrate with the Canton Network to enable real-time, 24-hour collateral transactions, including cross-border settlement, replacing processes currently limited to business hours.

REGULATION | Japan Approves Bill to Classify Cryptocurrencies as Financial Instruments

Japan’s Financial Services Agency selected the initiative for support under its Payment Innovation Project, part of a broader push to modernize financial infrastructure using distributed ledger technology.

The pilot builds on earlier tests on the Canton Network involving tokenized U.S. Treasuries and reflects growing efforts among major financial institutions globally to improve collateral efficiency through blockchain without disrupting existing regulatory frameworks.

No timeline for commercial deployment has been announced, with the results expected to inform future policy and infrastructure decisions, JSCC said.

STABLECOINS | A ‘Big Three’ Investment Bank in Japan Bets on USDC as it Overtakes USDT in Transaction Volume

 

 

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Kenyan authorities have frozen an undisclosed number of user accounts on crypto exchange, Binance, as part of a widening crackdown on suspected fraud, money laundering and terrorism financing, according to investigators familiar with the matter.

The action, led by Kenya’s Directorate of Criminal Investigations (DCI Kenya), follows a surge in complaints from users who said they were suddenly locked out of their accounts, with some unable to access funds tied to peer-to-peer (P2P) transactions – a popular channel for converting crypto into cash locally.

REGULATION | Binance Reportedly Freezing P2P User Accounts in Kenya at the Request of Law Enforcement

Under the hashtag, #BinanceUnmasked, a number of users have complained that their @binance accounts have been frozen at the request of law enforcement. The law enforcement… pic.twitter.com/ekZgbUrqMh

— BitKE (@BitcoinKE) April 20, 2026

Binance told affected users the restrictions were imposed at the request of law enforcement agencies, directing them to contact authorities for further details. The company said account limitations can arise from compliance with legal and regulatory obligations or internal policies, and may include cooperation with official investigations.

 

A Binance spokesperson reportedly said:

“Binance is aware of recent conversations regarding account access. Account restrictions may occur for a range of reasons, including adherence to applicable laws, regulatory requirements, and our internal compliance policies.

In certain circumstances, actions may also be taken in accordance with requests from relevant authorities.”

 

 

A senior investigator reportedly said that Kenya is committed to getting off the FATF greylist and we can ‘expect more crackdowns’ to ensure that happens.

Kenya is in the process of finalizing VASP regulations with one of the key expectations being exiting the FATF ‘grey list’ that ensures the country aligns with global anti-money laundering and reporting standards for virtual assets.

Kenya stays on the FATF grey list – even after President Ruto signs sweeping AML/CFT reforms into law.

Crypto firms (VASPs) now face mandatory licensing, KYC, and local vetting.

Laws are in place. But FATF wants proof of enforcement.

Details https://t.co/Y0KcfW6L3P pic.twitter.com/5IdTgJlJ01

— BitKE (@BitcoinKE) June 18, 2025

In order to exit the FATF grey list, jurisdictions to target strategic deficiencies across the national AML/CFT framework, including

improving supervision of financial institutions,

enhancing information sharing,

strengthening criminal asset seizure procedures, and

boosting the capacity to investigate and prosecute illicit financial activity.

Demonstrated identification, investigation, and prosecution of serious financial crimes with enforced penalties such as confiscation of illicit proceeds is also requirement for getting off the grey list.

CRYPTO CRIME | International Law Enforcement Bodies Take Down CyberCrime Infrastructure, Confiscates Associated Crypto – BitKE https://t.co/6LDH4LLqC9

— Dr.Philippe Vynckier, CISSP – Influencer (@PVynckier) March 15, 2026

It remains unclear whether the freezes were backed by court orders, as typically required under Kenya’s anti-money laundering laws, which mandate judicial oversight for asset seizures linked to suspected illicit activity.

Investigators reportedly said some of the flagged accounts are linked to individuals under scrutiny for terrorism financing and cross-border money laundering, while others are suspected of being used to move proceeds of corruption, including public funds.

The Prevention of Terrorism Act allows authorities to freeze assets without prior notice in cases involving national security, a provision officials said may apply to some of the accounts affected.

The Kenya National Police Service and the national investigative body, DCI Kenya, are yet to comment on these developments.

REGULATION | ‘Proceeds of Crime Are Laundered and Concealed Within Real Estate or Cryptocurrency in Kenya,’ Says Kenyan Director of Criminal Investigations (DCI)

 

 

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Singapore-based payments firm, Nium, has partnered with U.S. crypto exchange, Coinbase, to integrate the USDC stablecoin into its global payments network, aiming to cut the cost of cross-border transactions by eliminating the need for prefunded accounts.

The integration allows Nium’s clients to send, receive and settle payments in USDC or convert them into local currencies across more than 190 countries, the companies said.

PARTNERSHIP | Ecobank Partners with Ripple-Powered Payments Platform, Nium, to Unlock Real-Time Payments Across 35 African Markets

Traditionally, cross-border payment providers must hold funds in multiple jurisdictions in advance to facilitate payouts, tying up capital. Nium said the new system enables “just-in-time” settlement where funds are deployed only when transactions occur, reducing liquidity costs.

Under the partnership, Coinbase will provide the underlying infrastructure, including

custody,

wallet services and

liquidity,

allowing businesses to manage stablecoin payments and fiat conversions within a single platform.

The companies said the setup also enables firms to fund payouts in USDC while recipients receive local currency, bridging digital assets with traditional payment rails.

Nium added that the integration could support broader use cases, such as stablecoin-linked card programs, enabling businesses to spend digital dollar balances across global merchant networks.

The move comes as financial institutions increasingly explore regulated stablecoins as a way to improve the speed and efficiency of cross-border payments while reducing reliance on capital-intensive prefunding models.

STABLECOINS | A ‘Big Three’ Investment Bank in Japan Bets on USDC as it Overtakes USDT in Transaction Volume

 

 

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New York Attorney General, Letitia James, has sued crypto exchanges, Coinbase and Gemini, alleging their prediction market offerings amount to illegal gambling under state law, court filings show.

The lawsuits, filed in Manhattan state court, claim the companies operated unlicensed platforms that allow users to trade on the outcomes of events such as sports and elections without approval from the New York State Gaming Commission.

 

James said the so-called ‘event contracts’ are ‘quintessentially gambling’ because outcomes are outside users’ control and rely on chance, adding that ‘gambling by another name is still gambling.’

REGULATION | Gambling Rules Apply to Prediction Markets, Warns Major League Baseball of America

The state also alleges the platforms allowed users aged 18 to 20, below New York’s legal betting age of 21, and failed to comply with regulations imposed on licensed sportsbooks.

New York is seeking to halt the businesses unless they obtain licenses, and is asking for financial penalties including disgorgement of profits, civil fines, and restitution for customers.

The cases come amid a broader jurisdictional dispute between state regulators and the federal Commodity Futures Trading Commission which has argued it holds primary authority over prediction markets.

REGULATION | Prediction Markets Fall Under Our Federal Mandate, Says Chairman, CFTC

A spokesperson for Coinbase said the company would continue to push for federal oversight of such markets while Gemini did not immediately respond to requests for comment.

Prediction markets have grown rapidly in popularity since 2024.

Polymarket aims to raise $400 million at a $15 billion valuation highlighting investor apptetite and continues expansion.

This comes just a few weeks after Kalshi, Polymarket’s main competitor, raised a massive $1 billion at a $22 billion valuation.

All of the above is intensifying regulatory scrutiny and setting up a legal battle over whether they should be treated as financial instruments or gambling products.

REGULATION | Kalshi Prediction Markets Secures Regulatory Approval for Institutional Traders

 

 

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