Core Viewpoint - Bybit will discontinue services for Japanese residents starting in 2026 to comply with local regulations, marking a complete withdrawal from the Japanese market [1][4]. Regulatory Pressure - The decision follows increased regulatory scrutiny from Japan's Financial Services Agency (FSA), which has intensified oversight of unlicensed crypto platforms [2]. - Bybit had previously suspended new user registrations from Japan in October 2024 to assess compliance with local regulations [2]. Compliance History - Japan's regulatory framework for crypto exchanges has been in place since 2017, requiring FSA-issued permits for platforms serving Japanese residents [3]. - The FSA issued formal warnings to Bybit in November 2024 and March 2023 for operating without proper authorization [3]. Service Disruption - Following the October registration pause, existing services remained operational until the latest announcement, which signifies a full market exit [4]. - Apple blocked Japanese users from downloading Bybit's app in February, indicating further operational challenges in the region [4]. Customer Engagement - The FSA has claimed that Bybit targets Japanese clients through Japanese-language interfaces and customer support despite lacking domestic licenses [5]. - Bybit has apologized for any inconvenience and will provide updates to affected users regarding the remediation process [5]. Global Strategy - Bybit is facing regulatory challenges across Asia and is exploring relocation of staff to Dubai and Hong Kong, where regulatory frameworks are more favorable [6]. - The exchange is reportedly in talks to acquire Korbit, South Korea's fourth-largest crypto exchange, to facilitate its entry into the South Korean market [7].

The second-largest cryptocurrency exchange by trading volume, Bybit, said it will begin restricting access to its services for residents of Japan next year as part of an effort to comply with the country’s financial regulations. The company did not specify which services would be affected, but said impacted users will receive further communication as the restrictions roll out. Japan has some of the most stringent crypto regulations globally. Exchanges operating in the country must register with the Fina ...

Core Insights - Coinbase Global (COIN) is acquiring The Clearing Company to enhance its presence in the prediction market, with the transaction expected to close next month [1][9] - The prediction market is seen as a promising avenue for event-based trading, allowing COIN to diversify its revenue streams beyond transaction volumes [2] - This acquisition marks COIN's 10th acquisition in 2025, reflecting its strategy to evolve into a comprehensive investment platform [4][9] Company Developments - COIN recently launched a prediction market enabling users to trade on real-world event outcomes, which aligns with its acquisition strategy [2][9] - Max Branzburg, COIN's VP of Product Management, emphasized the shift of the financial system towards on-chain solutions, highlighting the potential of prediction markets [3] - The company aims to support innovation in the prediction market space by leveraging The Clearing Company's expertise [3] Competitive Landscape - Robinhood Markets (HOOD) is also pursuing growth through strategic acquisitions, enhancing its global crypto reach and institutional services [4] - Interactive Brokers Group (IBKR) has made strategic acquisitions to expand its services and improve technology, positioning itself for long-term growth [5] Financial Performance - COIN shares have decreased by 7.5% year-to-date, although this performance is better than the industry average [8] - COIN's price-to-earnings ratio stands at 41.83, significantly higher than the industry average of 23.72, indicating a potentially expensive valuation [10] - The Zacks Consensus Estimate for COIN's fourth-quarter 2025 EPS has decreased by 2 cents, while the estimate for first-quarter 2026 has increased by 7 cents [11]

Core Viewpoint - Bybit will cease operations for Japanese residents in January due to regulatory pressure from Japan's Financial Services Agency (FSA) [1][2][4] Group 1: Regulatory Actions - The FSA has been pressuring Bybit since May 2021, issuing multiple warnings and ultimately leading to the exchange's decision to terminate services for Japanese customers [2][4] - Bybit's withdrawal follows a pattern of regulatory actions against overseas exchanges that provide services to Japanese residents, with the FSA actively enforcing compliance since 2017 [4] Group 2: User Impact - Bybit claims to have over 70 million users globally, and its exit from the Japanese market is expected to significantly impact many domestic users [6] - Users identified as Japanese residents will face account restrictions starting in 2026 unless they complete proof of address checks by January 22, 2026 [3] Group 3: Market Dynamics - Analysts speculate that Bybit's recent actions may be a strategic move towards officially entering the Japanese market, similar to Binance's approach in the past [5] - The FSA's regulatory environment has led to other exchanges, like Binance, adapting their strategies to comply, including acquiring local exchanges [5]

Core Viewpoint - Bybit has announced a phased exit from the Japanese market starting in 2026, opting to withdraw rather than continue to confront Japanese regulatory authorities [1] Regulatory Environment - The Japanese Financial Services Agency (FSA) has been pursuing Bybit for "unlicensed operations" since 2021, leading to increased scrutiny [1] - In 2023, the FSA requested Apple and Google to remove Bybit's related apps from their platforms [1] Operational Changes - Bybit will begin to restrict accounts of Japanese residents starting in 2026, with a deadline of January 22, 2026, for users to submit any necessary materials in case of misclassification [1]

Singapore-based Crypto.com is looking to hire a new employee to work on a market-making team for sports prediction markets. In other words, this employee will face off against customers on the company’s prediction market exchange. On this premise, the cryptocurrency exchange has published a job listing to fill the position. Quant Trader to Join Crypto.com’s Internal Market Making Team Crypto.com has posted a job listing for a “quant trader” who will join its internal market-making team for sports predic ...

Core Insights - OKX, a cryptocurrency exchange, reported a 53-fold increase in trading volume in regulated markets by 2025, driven by its entry into the U.S. market and expansion in the European Economic Area (EEA) [1] Group 1: Market Performance - The number of daily active wallets on the platform doubled over the past year [1] - The average daily addition of new wallets is approximately 190,000 [1] - Decentralized exchange (DEX) trading volume globally increased by 262% [1] - Centralized exchange (CEX) trading volume grew by 16% [1]

Group 1 - Coinbase announced the acquisition of the prediction market startup The Clearing Company, marking its tenth acquisition this year to expand beyond its core digital asset business [1] - The company did not disclose the terms of the transaction, which is expected to be completed in January [1]

Core Insights - Coinbase is expanding its prediction markets business by acquiring The Clearing Company, enhancing its capabilities in this emerging sector [2][3] - The acquisition aligns with Coinbase's strategy to offer a comprehensive trading platform, referred to as the "Everything Exchange," allowing users to trade across various asset classes [3] - The partnership with Kalshi is integral to Coinbase's new offering, aiming to provide seamless access to prediction markets alongside traditional financial instruments [2] Company Developments - The Clearing Company, led by founder Toni Gemayel, is recognized for its significant contributions to the prediction markets landscape [3] - Coinbase has initiated legal action against states like Connecticut, Michigan, and Illinois, asserting that prediction markets should be regulated by the Commodity Futures Trading Commission (CFTC) rather than state gaming regulators [4][5] - The legal dispute highlights the ongoing tension between federal and state regulators regarding the classification and regulation of prediction markets [5] Industry Context - The prediction markets industry is experiencing rapid growth, with total trading volumes surpassing $28 billion globally in 2025 and weekly peaks reaching $2 billion [6] - Kalshi, the largest market in this space, is valued at $11 billion, indicating significant investor interest and potential in the prediction markets sector [6]

Core Viewpoint - Coinbase is expanding its business by acquiring The Clearing Company, a prediction markets startup, marking its tenth acquisition this year as it seeks to diversify beyond its core digital assets operations [1]. Group 1: Acquisition Details - The acquisition of The Clearing Company is part of Coinbase's strategy to broaden its product offerings and enhance user engagement [5]. - The deal is expected to close in January, but Coinbase has not disclosed the financial terms of the transaction [5]. Group 2: Market Context - Prediction markets allow users to trade contracts based on real-world event outcomes, which can provide a more accurate reflection of collective expectations compared to traditional polls [2]. - The popularity of prediction markets has surged during the 2024 U.S. presidential race, attracting significant interest and investment from various sectors of the financial ecosystem [2]. Group 3: Competitive Landscape - Analysts suggest that expanding into prediction markets could help Coinbase reduce its reliance on crypto trading amid increasing competition in the market [3]. - Coinbase's recent initiatives, including the launch of its prediction markets platform and plans to allow stock trading, position it as a competitor to traditional brokerages like Robinhood and Interactive Brokers [4]. Group 4: Financial Performance - Coinbase's notable acquisitions this year include the $2.9 billion purchase of derivatives exchange Deribit in May and a $375 million deal for investment platform Echo in October [6]. - Following the announcement of the acquisition, Coinbase's shares rose by 2.6% in afternoon trading [6].