Hong Kong SFC Investment Committee Warns Prediction Market Trading May Constitute Illegal Gambling

Gate News message, April 18 — Hong Kong's Securities and Futures Commission (SFC) Investment and Financial Education Committee issued a warning that prediction market trading activities are not investment products and lack regulatory protection. The committee stated that participants in prediction markets face potential difficulties in seeking recourse if issues arise, and may have no means of redress whatsoever.

The committee emphasized that prediction markets are speculative markets designed for making predictions, allowing participants to place bets on the outcomes of specified future events. These activities contain elements of gambling, and the committee warned that prediction market trading in Hong Kong may currently constitute illegal gambling.

The SFC committee distinguished between investment and gambling, noting that true investment involves assessing an asset's intrinsic value and potential—whether in stocks, bonds, precious metals, property, collectibles, or virtual assets. The committee urged the public to reflect on the fundamental nature of investment and to distinguish between investing and gambling.