Binance compensates users, Polymarket plans token launch, Morgan Stanley opens crypto access | Weekly Recap

In this week’s edition of the weekly recap, crypto exchanges faced challenges following performance degradation during severe market volatility that sent Bitcoin to $104,000.

Meanwhile, Polymarket prepared for token introduction following its $9 billion valuation and prediction market Kalshi secured $300 million at a $5 billion valuation.

Binance addresses platform performance failures

• Co-founder Yi He issued a public apology on Saturday following the system degradation that occurred on Friday night, which affected users during extreme market turbulence.
• The exchange committed to compensating affected users after technical issues arose during Bitcoin’s (BTC) dramatic drop from $124,000 to $104,000 and Ethereum’s (ETH) drop from $4,300 to $3,460.

Polymarket preps native token introduction

• The prediction market platform plans to launch its cryptocurrency token in 2026.
• Polymarket also received a $2 billion investment from Intercontinental Exchange, valuing the company at $9 billion.
• This development follows the platform’s anticipated return to the U.S. market after effectively being banned by the CFTC in 2022.

Singapore delays crypto prudential standards

• The Monetary Authority of Singapore postponed implementation of new cryptocurrency asset treatment rules for banks until 2027.
• The delay responds to industry feedback regarding timing concerns and questions about the classification of blockchain assets under banking regulations.

Kalshi secures major funding round

• The prediction market platform raised $300 million from investors including Sequoia, Andreessen Horowitz, and Paradigm, establishing a $5 billion valuation according to CEO Tarek Mansour.
• The capital will fund expansion into 140 additional countries beyond the company’s current U.S.-only operations.

Morgan Stanley eliminates crypto access barriers

• The financial services firm will open access to cryptocurrency funds across all client accounts starting October 15.
• Prior requirements limited crypto investments to clients with at least $1.5 million in assets, aggressive risk profiles, and taxable brokerage accounts, explicitly excluding retirement plans.

Acquisition interest surrounds stablecoin startup

• Coinbase and Mastercard have separately pursued the acquisition of London-based BVNK, with projected sale prices ranging from $1.5 billion to $2.5 billion.

Roger Ver reaches tentative agreement with DOJ

• The early Bitcoin investor known as “Bitcoin Jesus” has reached a preliminary settlement with the U.S. Justice Department regarding criminal tax charges filed in April 2024.
• The original charges included mail fraud, tax evasion, and filing false returns related to allegedly concealing Bitcoin ownership from the IRS, resulting in purported $48 million in losses.

Bybit obtains UAE regulatory approval

• The world’s second-largest cryptocurrency exchange by trading volume secured a Virtual Asset Platform Operator License from the Securities and Commodities Authority of the United Arab Emirates.
• Bybit claims to be the first exchange to receive this full license from the SCA, establishing regulated operations in a significant Middle Eastern financial hub.

Ethereum Foundation formalizes privacy focus

• The organization is elevating privacy research to a formal pillar of its roadmap and expanding efforts into a dedicated cluster that encompasses private payments, proofs, identity, and enterprise applications.
• This builds upon work conducted since 2018 through the Privacy and Scaling Explorations team, including projects like Semaphore, MACI, zkEmail, and Anon Aadhaar.

YZi Labs establishes billion-dollar development fund

• The firm formerly known as Binance Labs announced a $1 billion Builder Fund to support founders and developers within the BNB Chain ecosystem.
• The initiative combines capital with tools, integrations, and access to a claimed 460 million user ecosystem.

North Korean crypto theft reaches record levels

• Blockchain forensics firm Elliptic reports North Korea-linked hacking groups have stolen over $2 billion in cryptocurrency assets year-to-date.
• With three months remaining in 2025, the figure indicates Pyongyang’s growing reliance on cyber-enabled theft for funding its weapons program.
• United Nations and intelligence agencies confirm these proceeds directly finance North Korea’s nuclear and ballistic missile development efforts.

India advances central bank digital currency

• Union Minister Piyush Goyal announced Monday the government’s plans to expand its CBDC while maintaining its discouragement of private cryptocurrencies.
• The Reserve Bank of India’s digital rupee, piloted since late 2022, aims to simplify transactions, reduce paper consumption, and allow faster, more traceable payments than traditional banking systems.