EU Crackdown: ESMA Confirms Retail Ban Hits Prediction Markets

Europe’s top securities regulator, ESMA, has delivered a decisive blow to retail participation in certain speculative sectors. The agency clarified that many prediction-market event contracts are already subject to the EU's existing retail ban on binary options, confirming that these restrictions are active law rather than mere legislative proposals.
This regulatory shift creates a complex landscape for blockchain-based platforms. While traditional event contracts face immediate restrictions, contracts issued as blockchain tokens may fall under the MiCA framework, potentially shifting the compliance burden to the bloc's comprehensive crypto-asset regulations.
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