Esma

Europe’s securities regulator has warned that major prediction market platforms generally need authorization to serve EU users. ESMA also flagged the risk that an AI-driven technology stock sell-off could spill into crypto markets.

European regulators have warned that some yes-or-no prediction-market contracts may be prohibited for retail clients when they qualify as financial instruments. The move raises compliance pressure on fast-growing event-contract platforms operating across crypto and traditional finance.

Europe’s crypto market is heading into a major regulatory reset as the MiCA transition period closes. Industry estimates suggest most previously registered firms may fail to secure full authorization.