Author: Gabby

Singapore’s central bank, the Monetary Authority of Singapore (MAS), has officially placed Bybit, a major global cryptocurrency exchange, on its Investor Alert List. The designation, issued on June 17, serves as a public warning that Bybit Fintech Limited and its trading platform are not licensed to offer regulated services to residents in Singapore. The list is meant to alert investors to entities that may be mistakenly perceived as having MAS authorization.

Unlike formal enforcement actions, inclusion on the alert list does not carry penalties but acts as a cautionary measure. MAS updates the list based on available information and clarifies it is not exhaustive. Bybit’s entry includes its primary website, which is now flagged for Singapore users.

Bybit was founded by Singapore-born entrepreneur Ben Zhou and has become the second-largest crypto exchange globally by trading volume. Despite its local origins, Bybit’s terms of service already prohibit Singapore users, and the exchange employs geo-blocking to restrict access from local IP addresses. Under Singapore law, firms offering digital payment token services must obtain a license under the Payment Services Act. Operating without such approval can lead to regulatory action if local customers are solicited or served.

MAS continues to guide investors to its Financial Institutions Directory to verify the licensing status of any platform before use. This latest warning aligns with Singapore’s ongoing crackdown on non-compliant crypto firms. In May 2024, MAS revoked the Major Payment Institution license of Bsquared Technology due to false statements and significant weaknesses in risk management, conflict-of-interest controls, and outsourcing. The regulator has also indicated it is investigating whether senior officers at Bsquared bear personal responsibility for those breaches.

The Bsquared case was notable because the firm had previously received regulatory approval before losing its license. Combined with warnings targeting unlicensed platforms, this underscores MAS’s commitment to investor protection and strict oversight. Meanwhile, the regulator continues to approve compliant firms, such as BitGo, which received authorization for crypto infrastructure services, highlighting the high compliance bar required in Singapore.

Bybit’s global operations remain unaffected by the alert. The exchange continues to offer trading, token listings, proof-of-reserves, and other services in permitted jurisdictions. Bybit had not commented publicly on the MAS listing at the time of publication and did not respond to requests for comment. This action follows a different outcome in Malaysia, where Bybit was removed from the investor alert list in April 2026 after engaging constructively with regulators and addressing compliance issues.

Prior to the MAS alert, Bybit partnered with Plume to launch institutional fixed-income vaults, allowing users to deploy stablecoins into products linked to traditional instruments from PIMCO and China Merchants Bank International. This expansion reflects Bybit’s broader strategy to diversify its offerings while navigating varying regulatory landscapes.

Kalshi, a platform for event-based contracts, has formed an alliance with StarCompliance to provide financial institutions with immediate access to employee trading data. This initiative aims to alleviate insider trading risks and draw more institutional players into the prediction market ecosystem.

Workers at firms that utilize StarCompliance can now connect their Kalshi accounts to compliance systems that watch for unusual transactions. This setup lets employers oversee participation in prediction markets similarly to how they monitor stock and derivatives trades by their staff.

The collaboration follows Kalshi’s recent introduction of stricter compliance protocols, including obligatory employer disclosures for markets prone to insider abuse. The firm earlier reported that in the first quarter of 2026, it probed over 150 cases, stopped more than 100 suspected insider trading attempts, and sent 20 incidents to law enforcement.

As prediction markets gain traction, financial entities face emerging hazards from employees potentially using confidential information to profit from event-linked contracts. StarCompliance’s software is designed to help firms watch Kalshi activity and enforce their own compliance rules.

Kelvin Dickenson, chief product officer at StarCompliance, explained that organizations can permit staff to trade while requiring account disclosure. He described the approach as allowing employers to say, “You can participate, but you must reveal your accounts to me.” Currently, the system concentrates on monitoring after account linkage, with the possibility of introducing pre-trade approval later if clients desire.

Kalshi’s business development vice president, Max Crowley, noted that the company is “obsessed with compliance” and views robust monitoring as essential for working with major financial institutions. The StarCompliance integration originated from a request by a large New York hedge fund that needed such connectivity to hedge risks via Kalshi.

Beyond this partnership, Kalshi has launched a whistleblower channel, implemented risk-scoring for every proposed market before listing, and enforced employer disclosures for higher-risk contracts. These steps come amid heightened regulatory scrutiny, including investigations by the U.S. Department of Justice and the Commodity Futures Trading Commission into prediction market trades, such as those linked to former Representative George Santos and others on Polymarket.

Wall Street’s expectations for the Federal Reserve’s upcoming policy moves have shifted dramatically, with Citadel Securities now cautioning that the central bank could resume raising interest rates as soon as September 2026. This stark warning comes as inflationary pressures persist across the U.S. economy, potentially forcing the Fed to adopt a more aggressive stance than currently priced in by markets.

According to Frank Flight, head of macro strategy at Citadel Securities, the firm believes inflation is becoming entrenched, despite the recent retreat in oil prices following the U.S.-Iran peace deal. Flight argues that the economy risks falling into a “hysteretic equilibrium,” where temporary shocks leave lasting scars on price levels long after the initial trigger subsides. He points to accommodative financial conditions, ongoing supply chain disruptions, and a robust labor market as key drivers keeping inflation elevated.

Recent data underscores these concerns: headline CPI hit 4.2% in May, while the Producer Price Index soared to 6.5%, signaling continued cost pressures on businesses. Additionally, a growing share of core CPI components are rising above 3% year-over-year, suggesting broad-based price gains. The artificial intelligence investment boom adds further fuel, with Citadel estimating AI-related capex could reach $750 billion in 2026 before climbing to $1.25 trillion in 2027, tied to spending by companies like OpenAI, Anthropic, and SpaceX.

Ahead of the Federal Open Market Committee meeting on June 17, where CME FedWatch data indicates a 99.6% probability of rates being held steady, Citadel advises focusing on how Fed Chair Kevin Warsh communicates the outlook. The firm expects Warsh to adopt a distinctly hawkish tone, potentially removing any easing bias from projections and forecasting no rate cuts this year. Citadel now sees the risk skewed toward a rate hike at the September meeting, with at least five Fed officials likely signaling support for tightening. Their analysis suggests that an inertial Taylor Rule framework justifies roughly 75 basis points of increases during 2026, possibly executed in September and December, followed by another hike in March 2027.

Other market indicators align with this view. Prediction market Kalshi shows a 60% probability of a rate hike before July 2027, and a Bank of America fund manager survey found 40% of respondents expect at least one increase within the next year, up from 16% a month earlier. BNP Paribas has also shifted, now forecasting three rate hikes starting in December, citing strong employment data and inflation risks partly linked to the U.S.-Iran conflict.

For risk assets, Citadel warns that prolonged tighter policy could dampen valuations. Higher borrowing costs and reduced liquidity would likely create a challenging environment for Bitcoin and the broader cryptocurrency market if investors begin pricing in additional Fed tightening.

The U.S. Securities and Exchange Commission is preparing a new exemption that would permit tokenized stock trading, according to reports citing legal experts and market analysts. SEC Chair Paul Atkins is expected to unveil an innovation exemption allowing companies to test blockchain-based financial products under adjusted regulations. This move comes as Coinbase and other crypto firms develop tokenized equity offerings for round-the-clock trading with near-instant settlement.

Coinbase has announced plans to issue tokenized shares backed one-for-one by underlying stocks, while Binance and other exchanges have already expanded similar services outside the U.S. The proposed framework would grant tokenized shares the same economic rights as traditional equities, including dividends and voting privileges. The SEC had previously delayed such exemptions due to concerns about investor protection and custody, but now appears to be crafting a revised approach that allows experimentation without requiring full compliance with existing rules.

Separately, the SEC advanced a proposal last week to modify market structure rules that could impact tokenized equities. The agency suggested rescinding Rules 611 and 610(e) of Regulation NMS, which have governed stock trading since 2005. Rule 611 prevents trading venues from executing orders at inferior prices when better quotes exist, while Rule 610(e) addresses locked and crossed quotations. Atkins argued that two decades of Rule 611 may have produced unintended consequences by limiting competition and increasing complexity.

Interest in tokenized stocks has surged dramatically, with CoinGecko reporting growth from 14 assets in January 2024 to 478 assets by May 2026—an increase of over 3,300%. Real-world assets also grew from 64 projects to 1,282, a nearly 1,900% rise. Major financial institutions are entering the space; Citigroup is preparing tokenized shares for private companies like OpenAI and Anthropic, initially targeting international investors. The New York Stock Exchange is also developing infrastructure for 24-hour trading through tokenized systems. Together, these developments suggest blockchain-based stock trading is moving closer to mainstream U.S. regulatory acceptance.

Bernstein analysts have reiterated a buy recommendation on Coinbase shares while holding a $330 price target following the company’s recent System Update event. The research firm sees the exchange’s expansion into new product lines as a catalyst for long-term growth, even though earlier forecasts had been trimmed from $440 due to broader market headwinds.

During the event, Coinbase introduced an SEC-registered AI investment advisor capable of accessing user portfolio histories and account data. Customers can interact with the advisor using natural language to receive personalized suggestions. Additionally, artificial intelligence agents from platforms like ChatGPT and Claude can now connect directly to Coinbase, allowing users to set trading rules and authorize automated executions.

Beyond AI, the company unveiled plans for tokenized stocks backed one-for-one by underlying shares, prediction markets, pre-IPO trading products tied to large private tech firms, and expanded derivatives access. These initiatives are part of Coinbase’s vision to create an “Everything Exchange” that blends crypto services with traditional financial market tools.

Coinbase stock traded higher on Wednesday, gaining about 1.6% to near $171.93 after closing at $169.27 in the prior session. The move came as investors weighed the Federal Reserve’s policy decision and interest rate outlook, with stronger-than-expected retail sales data suggesting rates could stay elevated for longer. Bitcoin briefly dipped below $65,000 ahead of the Fed announcement, adding some caution to the sector.

Analyst opinions on Coinbase remain split. Barclays reiterated an underweight rating with a $107 target, arguing that new offerings may not compensate for weaker crypto trading volumes if market activity stays subdued. On the other hand, Benchmark reaffirmed a buy rating with a $270 target, while Cantor Fitzgerald maintained an overweight rating and $250 target. Both firms view Coinbase’s product expansion as strengthening its competitive position, though they acknowledge ongoing cyclical risks from crypto price fluctuations.