ESMA Warns Prediction Market Contracts May Fall Under EU's Retail Binary Options Ban
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6 Articles
ESMA Warns Prediction Market Contracts May Fall Under EU's Retail Binary Options Ban
The European Securities and Markets Authority said Friday that some “event contracts,” the yes-or-no wagers underpinning prediction markets like Kalshi and Polymarket, may fall under the EU’s existing ban on marketing and distributing binary options to retail investors. ESMA said event contracts with a binary payout tied to the outcome of a future event whose underlying assets are financial instruments under MiFID II are derivatives. The commerc…
What to remember: The ESMA considers that certain contracts for predictive markets fall within the scope of the European ban on binary options. Their sale to individuals is prohibited as soon as they meet the definition of financial instrument. The warning falls as Kalshi, valued at $22 billion, and Polymarket attracts lust. Predictive markets have just found a sizeable opponent in Europe. The ESMA, the European financial market agent, warned Fr…
Gaming in Europe: Do prediction markets have a place in Europe?
Prediction markets were placed front and centre at the latest Gaming in Europe webinar, with a panel of legal and gambling experts setting the record straight about the medium’s place in the local market. Platforms like Kalshi and Polymarket have caused a stir across the regulated gambling sector over the past few years. Many believe that their offer is not much different from sports betting, but prediction market platforms have remained adamant…
ESMA Warns Prediction Market Platforms Could Face Strict EU Financial Regulations
On July 3, ESMA issued a statement warning that some event contracts resembling binary options could fall under current derivatives regulation. The regulator stressed that firms offering these instruments should assess whether these contracts fall under this classification to comply with regulatory requirements. Europe Puts Its Sights on Binary Options-Like Event Markets The European Securities […]
While predictive markets have record volumes worn by the World Cup, the European Securities and Markets Authority recalls that "event contracts" are tantamount to binary options, banned from selling to private investors in Europe. L的article How would predictive markets in Europe be regulated? appeared first on Cryptoast.
Faced with the rise of betting platforms like Polymarket, the Esma reaffirms the scope of event contracts that can be qualified as financial instruments.
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