ESMA Flags Kalshi and Polymarket for Lacking EU Authorization, Questions Geo-Blocks
Summary
ESMA's report states that major prediction platforms, including Kalshi, lack the EU authorization generally required to market and sell event contracts. The regulator questions the effectiveness of partial geo-blocks, noting VPNs can bypass them, and raises concerns about insider trading and market manipulation on DLT-based platforms. This adds regulatory pressure in Europe following recent U.S. legal challenges from New York and the CFTC. The report also notes growing interest from traditional exchanges, which could intensify competition. Watch for any EU member state enforcement actions or Kalshi's response to the authorization gap.
This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: The Block.