ESMA warns Polymarket and Kalshi over EU binary-options bans
The European Securities and Markets Authority questions whether event contracts from these platforms fall under existing EU financial regulations.
European regulators are questioning the legal status of Polymarket and Kalshi within the EU. ESMA stated that event contracts may be classified under current binary-options bans rather than new crypto-asset frameworks like MiCA or national gambling laws. This distinction creates authorization gaps for these platforms operating in Europe. The regulator noted that existing binary-options restrictions could apply to what companies currently market as distinct financial instruments. No specific deadlines or fines were mentioned in the official statement. ESMA emphasized the need for clear regulatory coverage, suggesting current frameworks might not adequately address this asset class if it is deemed a derivative under previous laws. The situation highlights potential regulatory fragmentation between crypto rules and traditional gambling or option definitions.
