UK FCA weighs easing retail ban on prediction markets

The UK Financial Conduct Authority is considering easing restrictions on retail access to prediction markets, CoinDesk reported, citing The Times. The report said the UK currently classifies contracts tied to financial and some weather-related outcomes as binary options and has barred retail investors from using them since 2019. It added that a review of the current rules is gaining traction as more UK users turn to offshore prediction market platforms such as Kalshi and Polymarket. The FCA’s official position remains in favor of keeping the existing ban. In a recent report, however, the regulator said the current rules were appropriate given the speculative nature of the products and the risk of consumer harm, while leaving open the possibility of further review of its market access approach or regulatory scope.