ESMA questions legality of Polymarket, Kalshi in Europe

The European Securities and Markets Authority (ESMA) has questioned the legality of Polymarket and Kalshi operating in the EU without proper authorizations, citing incomplete trading restrictions across member states and doubts on the effectiveness of these restrictions against circumvention like VPN use. ESMA also highlighted regulatory uncertainty with these contracts potentially falling under MiFID II financial instruments rules, MiCA crypto-asset rules, or national gambling laws, and noted enforcement actions from Spain and France.

This Wire brief sits within Fusion42's coverage of Fintech.