Retail traders in emerging markets, including Kenya, can now access highly leveraged bets on US stocks through cryptocurrency exchanges, operating largely unregulated. This trend is gaining traction despite significant associated risks and a widening regulatory gap.

• Seychelles-based exchange Bitget reported its stock-linked futures crossed $5 billion in cumulative trading volume shortly after launch.
• The platform offers up to 25 times leverage on synthetic versions of over 30 US stocks, settled using the USDT stablecoin.
• In Kenya, where an estimated six million people use cryptocurrency, regulators have not yet licensed any virtual asset service providers, with implementing rules for the recently passed VASPs Act still being drafted.
• These products carry substantial risk; for example, over $2 billion in leveraged cryptocurrency positions were liquidated globally in November when Bitcoin tumbled.