ESMA classifies prediction market contracts as derivatives, triggering the EU's binary options ban and threatening Polymarket and Kalshi's
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The European Securities and Markets Authority considers that many binary contracts linked to financial instruments are derivatives, an interpretation that could leave Polymarket and Kalshi out of the European Union market if they do not obtain authorisation under MiFID II.
ESMA alert on event contracts pressures Polymarket and Kalshi in the European UnionESMA says Polymarket and Kalshi have no authorisation to operate in the EU and cryptic risk alert