ESMA warns some prediction markets could be subject to EU ban

The European Securities and Markets Authority (ESMA) has warned that some prediction market contracts could be subject to prohibition measures in the European Union, CoinDesk reported. In an official statement, ESMA clarified that binary, "Yes-or-No" style "event contracts" that are considered financial instruments cannot be marketed, distributed, or sold to retail investors under current regulations. The authority emphasized that any contract with a binary structure that pays a fixed amount or nothing depending on the outcome of a future event falls under this regulatory scope.