UK Regulator Considers Easing Ban on Financial Prediction Markets

September 7 news, according to CoinDesk citing The Times, the UK Financial Conduct Authority (FCA) has held talks with trading platforms and may consider easing the ban on retail investors participating in financial prediction markets. The FCA has treated financial and certain weather-related event contracts as binary options since 2019, prohibiting their sale to retail investors. As UK consumers increasingly use overseas platforms such as Kalshi and Polymarket, the FCA is weighing whether to lift the restrictions. Any platform seeking to offer a broad range of contracts in the UK would face dual regulatory hurdles—financial contracts require FCA approval, while sports and political markets require a license from the Gambling Commission.