“Irresponsible users is a real worry for any of these types of products,” Mansour said in an interview with Emily Chang on Bloomberg’s The Circuit, per the report
Facing research showing that most Kalshi customers lose money, Mansour said speculators do not do well with many of the products that have become popular with retail traders, such as options and futures, according to the report. These losses are not keeping Kalshi from discussions with regulators about establishing additional safeguards for its customers.
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“Our message is not, ‘Hey, there’s nothing to see here,’” Mansour said, per the report. “Our message is like, ‘Let’s regulate it, let’s figure out the right guardrails and where there are gaps.’”
As Kalshi and other prediction platforms have grown in popularity, they have faced criticism for exposing wagers on sports and elections to new audiences of vulnerable people, younger users and recovering gambling addicts among them, the report said.
Although online sportsbooks are normally limited to people over the age of 21, Kalshi is available to nearly anyone over 18 in the United States, aside from a few states where it has halted service, according to the report.
In other Kalshi news, a new financing arrangement allows eligible Kalshi Prime brokerage customers to borrow dollars against digital assets held by BitGo Bank & Trust, PYMNTS reported Oct. 21, citing Bloomberg.
The PYMNTS Intelligence report “From Asset to Everyday Money: Making Digital Currencies Spendable,” the July edition of the Payments Innovation Tracker® Series, explored the difficulty of putting digital holdings to use while their value fluctuates. Binance research cited in the report showed that 43% of respondents identified price volatility as a barrier to spending cryptocurrency.
“Crypto-backed financing carries that uncertainty into a credit relationship,” PYMNTS reported Thursday (Oct. 22). “When bitcoin falls, the collateral supporting a dollar loan loses value without reducing the principal owed. Against that scenario, an investor holding unencumbered bitcoin chooses whether to sell during a decline. A borrower has already granted a lender rights over pledged coins. Holding through a downturn requires continued compliance with the financing agreement.”
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