ESMA Warns Prediction Markets Face Insider-Trading Risks and Uneven EU Access

The European Securities and Markets Authority (ESMA) has raised concerns that prediction markets are vulnerable to insider trading, describing the sector as rife with the practice. The regulator is also seeking clarification on why major platforms Kalshi and Polymarket restrict access in some European Union countries but remain available in others. ESMA noted that users can bypass country-level blocks through virtual private networks (VPNs), adding another complication to how restrictions are applied and enforced. The comments place both market integrity and cross-border access under scrutiny. The statement is relevant to crypto-market participants because prediction-market platforms have attracted attention across the broader digital-asset ecosystem, although the source material does not identify any specific token or market affected by the regulator’s remarks.