Gibraltar will become the first jurisdiction in the world to introduce a regulatory regime specifically for the prediction markets sector. <\/p>\n\n\n\n
The British Overseas Territory has already licensed two prediction platforms, ADI Predictstreet <\/strong>and Wire Markets<\/strong>, the former under a betting intermediary licence while the latter has been \u2018approved in principle\u2019.<\/p>\n\n\n\n These two companies will now be regulated under Gibraltar\u2019s new predictions regime and the licence this includes, once the government gets the standalone framework in place.<\/p>\n\n\n\n The framework will be overseen by a dedicated supervisory authority, similar to the role of the Gambling Commissioner overseeing Gibraltar\u2019s regulated gambling market.<\/p>\n\n\n\n Nigel Feetham KC MP<\/strong>, Gibraltar\u2019s Minister for Justice, Trade and Industry, said: \u201cGibraltar\u2019s approach is to regulate innovation responsibly by providing a clear regulatory framework for operators that wish to conduct prediction market activities under this regime, where it is the appropriate regulatory framework for their business. <\/p>\n\n\n\n \u201cThe focus is not on labels, but on ensuring that the chosen framework is capable of effective supervision and robust standards of market integrity, transparency, participant protection and financial crime prevention.\u201d<\/p>\n\n\n\n The Gibraltar predictions market regulatory framework will cover the following:<\/p>\n\n\n\n The inclusion of the latter may be particularly important as crypto has been a significant part of the predictions market operation globally.<\/p>\n\n\n\n Gibraltar-licensed ADI Predictstreet is built on the ADI Chain <\/strong>blockchain run by UAE tech firm ADI Foundation. <\/strong><\/p>\n\n\n\n Polymarket, one of the biggest predictions platforms in the world, uses the USDC<\/strong> stablecoin and is built on the Polygon<\/strong> blockchain.<\/p>\n\n\n\n The issue of market integrity is also an important one. Predictions have faced scrutiny over this, particularly Polymarket, due to the concerns around insider trading around the markets it offers on politics and military conflicts.<\/p>\n\n\n\n Gibraltar throws doors open to predictions<\/strong><\/p>\n\n\n\n Predictions are a touchy topic globally, with many national regulators \u2014 France, Belgium, Singapore, Portugal, Argentina and Italy to name a few \u2014 seeing the platforms as illegal gambling, and blocking them as such.\u00a0<\/p>\n\n\n\n The US is the birthplace of the modern online predictions market as the home nation of Kalshi and Polymarket, the two biggest companies in the space with respective valuations of $22bn and $15bn.<\/p>\n\n\n\n The regulatory situation is not exactly clear there either though.<\/p>\n\n\n\n\n