Polymarket, the world’s largest decentralized betting platform, has gone dark for users in India. The website says, “This site can’t be reached. Check if there is a typo in polymarket.com.”

Refreshing the page does not resolve the connection issue.

The outage follows an April 25 advisory from the Ministry of Electronics and Information Technology (MeitY) directed at VPN service providers. The advisory warned that local users were continuing to access “illegal and blocked prediction market and online betting platforms” despite “domestic prohibitions.”

According to the directive, internet service providers were required to terminate access to prediction markets, with Polymarket among the primary targets.

While Kalshi, a platform regulated by the U.S. Commodity Futures Trading Commission (CFTC), is currently still accessible, it may soon face a similar fate. Local media reports, citing an anonymous source within MeitY, claim the agency has “already issued a blocking order to Polymarket and are in the process of issuing an order to Kalshi as soon as Friday.”

CoinDesk reached out to Polymarket and Kalshi for a comment.

Prediction markets enable users to wager real money on the outcomes of binary events, such as referendums, financial asset price movements, and election results. These platforms saw a massive surge in global popularity during the 2024 U.S. presidential election, becoming a primary venue for investors to hedge or bet on political outcomes.

However, the Indian government classifies the activity on these platforms as online money gaming. As a result, they fall under a category that is completely prohibited under the Promotion and Regulation of Online Gaming Act 2025.

The Indian government has maintained a consistently “risk-averse” and prohibitive stance toward the cryptocurrency sector, prioritizing financial stability and capital control over industry growth. New Delhi has utilized a “shadow ban” strategy through punitive taxation, including a 30% flat tax on gains and a 1% tax deducted at source (TDS) on all transactions, which has effectively throttled domestic trading volumes.

The Ministry of Finance has focused on bringing the sector under strict Anti-Money Laundering (AML) and Counter-Strike Financing (CFT) oversight via the Financial Intelligence Unit (FIU). This regulatory environment has pushed many local crypto startups to relocate to more friendly jurisdictions like Dubai or Singapore, as the government and the Reserve Bank of India continue to signal that it views private cryptocurrencies more as speculative “money games” than legitimate financial innovation.

India’s Parliamentary Standing Committee on Finance met crypto exchanges Binance, WazirX and Zebpay in Delhi on May 20 to discuss regulations and taxation for what it calls a virtual digital assets (VDA) industry.

The committee expressed concerns over massive outflows from the country via the crypto channel.

XRP held near $1.37 by midday Hong Kong time on Thursday, according to CoinDesk market data, with fresh ETF and on-chain data suggesting some investors may be rotating into XRP. Meanwhile, market leader bitcoin BTC$77,341.59 hovered around $77,400 and ether (eTH) remained under pressure.

CoinGlass data shows XRP-linked funds pulled in $8.88 million in the latest session, extending a streak of positive flows that includes $18.52 million on May 14 and $10.87 million on May 15. Across the past week, XRP products have attracted roughly $42 million in net inflows.

This has caught analysts’ attention because money has been leaving the largest listed crypto products. Bitcoin ETFs lost another $100.9 million in the latest daily session, following redemptions of $648.6 million, $331.1 million, and $290.4 million earlier in the same stretch. Ether products also remained under pressure, losing $32.6 million in the latest session.

The data suggests a selective appetite for alternative crypto exposure, though XRP’s broader network growth trend remains weaker than late 2025 levels.

Onchain activity offers a second, though less definitive, signal.

XRP recorded the fourth-largest daily spike in wallet creation this year, with 4,300 new wallets added in 24 hours, according to Blockchain analytics firm Santiment.

Fresh wallet creation can sometimes point to new network participation, particularly when paired with capital inflows.

But the broader Santiment chart suggests caution.

XRP’s network growth has generally trended lower since late 2025, making the latest move look more like a sharp one-day spike than clear evidence of sustained adoption.

For traders, the question is whether XRP is seeing the early stages of a broader rotation trade, or simply a short-lived burst of speculative positioning while the wider crypto market remains under pressure.

Binance CEO Richard Teng has rejected a new Wall Street Journal report, saying it contains wrong claims about the exchange’s sanctions controls.

Teng said in a post on X that the WSJ report contains “fundamental inaccuracies” about Binance and its compliance program. He said Binance did not permit transactions with sanctioned individuals and that the transactions mentioned by the publication happened before the people involved were sanctioned.

The WSJ reported that Iranian-linked networks used Binance accounts to move large sums, including funds allegedly tied to sanctioned activity. The report said the activity involved accounts connected to financier Babak Zanjani and crypto firm Zedcex. Binance disputed the claims and said the information was inaccurate.

Teng says Binance reviewed the matter

Teng said Binance had already reviewed the issues before the WSJ contacted the company. He also said Binance gave those details to the publication, but they were not included in the report.

He added that Binance has “zero-tolerance for illicit activity” and will continue working with U.S. and global law-enforcement agencies to fight financial crime. The comment keeps Binance’s defense focused on timing, internal review, and cooperation with authorities.

Compliance record stays under review

The latest dispute follows earlier reports and government questions about Binance’s sanctions systems. In March, Binance formally denied allegations that it allowed transactions linked to Iran and said media reports cited in a U.S. Senate inquiry contained false claims about its compliance program.

Binance said at the time that it requires identity checks for every user and bars people located in Iran from using the exchange. The company also said it uses more than 25 monitoring tools to screen users and review transactions.

Past settlement shapes the debate

The issue remains sensitive because Binance pleaded guilty in 2023 to U.S. anti-money-laundering and sanctions violations. The Justice Department said Binance agreed to pay more than $4.3 billion and retain an independent compliance monitor as part of that resolution.

U.S. officials said the case included failures that allowed transactions between U.S. users and users in sanctioned jurisdictions, including Iran, between 2018 and 2022. Binance has since said it rebuilt parts of its compliance system and improved its monitoring.

Binance points to stronger controls

Binance has repeatedly pointed to recent metrics as proof of progress. Earlier reports said the exchange claimed sanctions-related exposure fell 96.8% between January 2024 and July 2025, from 0.284% of total exchange volume to 0.009%.

The company also said more than 1,500 workers now support compliance, sanctions screening, investigations, and risk functions. Binance said it processed more than 71,000 law-enforcement requests in 2025 and helped authorities recover funds linked to illicit activity.

U.S. Securities and Exchange Commission Commissioner Hester Peirce has pushed back against expectations that the agency could soon open the door to unrestricted tokenized stock trading through a proposed “innovation exemption.”

According to comments Peirce posted on X on Thursday, any exemption under consideration would apply only to on-chain versions of existing equity securities that already trade in public secondary markets.

She said she has always expected the proposal to remain “limited in scope,” adding that it would facilitate trading only for “digital representations of the same underlying equity security that an investor could purchase in the secondary market today.”

Her clarification arrived days after Bloomberg reported that the SEC was exploring a conditional exemption framework that could allow certain tokenized securities products to operate with modified regulatory requirements.

Fox Business journalist Eleanor Terrett described Peirce as “tempering expectations” around the proposal and narrowing its focus to “onchain equity products, not synthetic tokens that mimic stocks without giving investors the same shareholder rights.”

Peirce’s comments also appear to rule out synthetic stock-style tokens under the contemplated exemption. Such products typically track the price of equities without granting holders ownership rights tied to the underlying shares.

SEC discussions focus on shareholder rights

As previously reported crypto.news, SEC officials have discussed permitting tokenized equities only if the tokens preserve the same economic and governance rights attached to traditional shares, including voting rights and dividend access.

People familiar with the matter said the agency has gathered feedback from hundreds of market participants while shaping the proposal. The report added that discussions remain ongoing and the final terms could still change before any exemption is approved.

Concerns over synthetic stock products surfaced soon after the news surfaced. Brett Redfearn, president of tokenization firm Securitize, warned that allowing third parties to tokenize stocks without issuer involvement could create fragmentation problems across the market.

Other industry figures have also backed Peirce’s narrower interpretation.

Robert Leshner, CEO of tokenization platform Superstate, said on X that limiting tokenized trading to properly structured on-chain equities would allow decentralized finance and tokenization markets to grow “without compromising the standards that make the USA the center of capital markets.”

Meanwhile, Carlos Domingo, CEO of Securitize, has argued that restricting the exemption to genuine equity-linked assets would reduce risks tied to synthetic products.

“This is good, we want to do on-chain trading, but for the right assets, and not to help proliferate those derivatives that are fragmenting the market and introducing additional risks,” Domingo said.

Even with rising interest from crypto firms and financial institutions, tokenized equities remain a relatively small corner of the digital asset sector, though it is expected to grow. 

Data from RWA.xyz shows that tokenized stocks currently account for roughly $1.48 billion in on-chain assets. Existing offerings include tokenized exposure tied to companies such as Circle, Strategy, and Google.

Total RWA market value. Source: RWA.xyz

Previously, it was also reported that some SEC officials remain hesitant about allowing tokenized stock trading at all, despite ongoing discussions around a possible exemption.

Bitcoin (BTC) has dropped nearly 7% from its local peak of $82,800, as several groups of wallet holders switched from accumulation to distribution. Data suggests that this distribution, combined with increasing realized losses, points to a potential shift in momentum.

Key takeaways:

• Whale absorption of newly mined BTC supply drops to all-time lows below -150%.
• Bitcoin holders shift from accumulation to distribution after BTC price drop
• Bitcoin realized losses surged above $600 million in a single day as BTC price fell to $76,000.

Bitcoin whales absorbing at all-time lows

The yearly absorption rate measures the amount of new BTC issued that has been absorbed by the market over the past year. Currently, the absorption rate by exchanges is improving while whales are losing coins at a historic pace.

Notably, Bitcoin’s yearly absorption rate by exchanges has improved to -75 % from below -100% in April as inflows continue.

Bitcoin yearly absorption rates. Source: Glassnode

The chart above shows that a similar jump in the exchange absorption rate in January preceded a 38% BTC price decline to $60,000 from $98,000. 

While large holders (100–1,000+ BTC) are scooping up more than 150% the new issuance, the rate has dropped sharply since mid-April and is significantly below the record levels seen in November 2025.

Meanwhile, the rate of accumulation among whales (entities holding more than 1,000 BTC) has dropped to -151%, its lowest in Bitcoin’s history.

Bitcoin yearly absorption rates by whales and sharks. Source: Glassnode

This marks a shift in institutional sentiment, particularly with heavy outflows from spot Bitcoin’s exchange-traded funds, reflecting a reduction in long-term conviction among large holders.

All Bitcoin holder cohorts are “taking profits”

Bitcoin investors went risk-off, distributing their BTC as the price dropped to $76,000.

Glassnode’s Accumulation Trend Score (ATS) is near zero (light yellow), indicating that whales are selling BTC or not accumulating. 

Related: Bitcoin retakes $71K as US sends Iran 15-point ceasefire plan

The drop in the trend score indicates a transition from accumulation to distribution across almost all cohorts. This shift mirrors a similar pattern observed in mid-January 2025, which aligned with Bitcoin’s drop to $60,000 in February. 

Bitcoin accumulation trend score. Source: Glassnode

Additional data from Glassnode reveals a shift toward distribution or inactivity across all investor cohorts, as seen in the chart below.

Bitcoin accumulation trend score by cohort. Source: X/Glassnode

This is in contrast to Q4 2024, where broad cohort accumulation preceded a sustained rally that saw BTC/USD trade above $100,000 for the first time in history, fueled by the 2024 US Presidential elections.

CryptoQuant analyst Woominkyu highlighted “continued selling pressure” from whales who sent more than 8,000 BTC to exchanges on Monday. 

“As Bitcoin rallied to a peak of $82,196, whales began sending coins back to exchanges,” the analyst said in a QuickTake note on Thursday, adding:

“This is a classic sign of smart money selling into strength — taking profits while retail FOMO was building.”

Bitcoin whale activity. Source: CryptoQuant

Bitcoin’s realized losses jump to $600 million

Bitcoin’s latest correction triggered a sharp spike in realized losses. The losses by long-term holders (LTHs) reached $513.6 million on Tuesday, while losses by short-term holders (STHs) reached $101.8 million.

The aggregate realized losses across all holders reached $616 million after Bitcoin dropped to $76,000 on Monday. 

This marked the highest single-day loss realization since March and an over 1,500% jump in less than two days, compared with $41.5 million on Sunday.

Bitcoin realized losses by LTHs and STHs. Source: Glassnode

LTHs account for the bulk of the losses, while STH losses stay comparatively contained, indicating that the stress is largely on older buyers.

As Cointelegraph reported, Bitcoin investors who have held their coins for over six months could sell near their entry price after extended drawdowns, creating strong overhead pressure that may stall Bitcoin’s recovery.

A key indicator of institutional crypto market participation, the Coinbase premium has fallen deeper into negative territory, indicating increased selling pressure from institutions.

The Coinbase premium has been mostly negative since late April, but it has fallen much faster over the past seven days and recorded its lowest level this month at -0.0983% on May 21.

“Institutional selling pressure has intensified recently,” CryptoQuant analyst Darkfost said on Thursday. 

“This suggests that the population of institutional and professional investors trading on Coinbase Advanced is selling more aggressively than investors trading on Binance.”

Institutional investors are also shying away from store-of-value assets such as gold, which is down 5.8% over the past month, favoring stocks with the S&P500 and Dow Jones indexes trending up since the beginning of April. 

Analyst Axel Adler said the results suggest “zero confirmation from US spot demand.”

The Coinbase premium is a measure of the difference between Bitcoin prices on Coinbase, which is used more by US institutions, and Binance, favored more by retail investors. 

Coinbase premium falls to its lowest level this month. Source: Coinglass

Institutions are repositioning  

“The uncertainty surrounding the current macro environment appears to be pushing institutions toward hedging strategies while waiting for greater clarity,” Darkfost said. 

LVRG research director Nick Ruck told Cointelegraph the decline of the Coinbase premium could also reflect the “emergence of net selling pressure from larger holders,” and suggest institutions are taking profits or repositioning, which  “could weigh on near-term price momentum across major crypto assets.”

Bitcoin ETF outflows accelerate, derivatives decline

Another signal of institutional selling pressure is US spot Bitcoin exchange-traded funds, which have seen four trading days of outflows totaling $1.3 billion since May 14, according to CoinGlass.

Related: Bitcoin longs soar despite weak US macroeconomic data: Is $82K BTC next?

Derivatives demand also appears to be weakening, with open interest, or the value of open Bitcoin futures or perpetual contracts, dropping by around $1.5 billion this week, “clearing much of the leverage built up during Bitcoin’s move toward $82,000,” said Bitfinex.

“With short-side fuel exhausted and long positioning reset lower, the next major move likely depends on spot demand,” it added.

Bitcoin has declined 4.5% over the past week, hitting a monthly low just above $76,000 on Tuesday. It was flat on the day at $77,621 at the time of writing, down 38% from its October peak.

Magazine: Crypto scammers face death, Aussie CGT makes Asian hubs attractive: Asia Express

Bitcoin BTC$77,415.47 traded near $77,733 by midday Hong Kong time, according to CoinDesk data, little changed over the past 24 hours, after sliding as low as $76,685 and failing to hold above $78,000 during U.S. trading hours.

Derivatives positioning suggested the recent selloff may have been more of a leverage flush than the start of a broader market breakdown. Open interest, a measure of outstanding leveraged futures positions, held relatively steady while funding rates stayed low or negative, a sign that traders were not aggressively piling into bullish bets before the drop.

“There was no massive accumulation of leveraged longs prior to this, meaning most of those liquidated in this drop were leveraged funds attempting short-term bottom-fishing. Second, this signals that we are not in the middle of a structural trend reversal downward. The temporary bottom of $75,000–$77,000 remains well-defined,” Tim Sun, senior researcher at HashKey Group, told CoinDesk

The bigger problem, he said, is macro: investors are de-risking as long-term yields rise, oil and inflation risks remain in focus, and there is “currently no compelling reason for new capital to enter the market.”

CoinGlass data showed $200 million in crypto liquidations over the past 24 hours, split almost evenly between long and short positions, suggesting the move was less a one-sided capitulation than a volatile market whipping both directions.

Sun pointed to the U.S. 30-year Treasury yield, which recently pushed above 5%, as the more important pressure point. Higher long-term yields tend to weigh on speculative assets by raising the opportunity cost of holding non-yielding assets like bitcoin while tightening broader financial conditions.

The next catalyst may come from geopolitics.

Sun said a meaningful de-escalation in U.S.-Iran tensions could cool oil prices and inflation expectations, easing pressure on yields and giving bitcoin room to rebound.

But if yields remain elevated and geopolitical risks persist, bitcoin may stay stuck in what he described as a defensive, range-bound market, with the $75,000 to $77,000 zone serving as the key near-term support level.