Prediction Markets Like Polymarket Face Strict Australian Regulation as ASIC Confirms No Operating Applications Received

Oct. 31 — Bloomberg reported that Sarah Court, chair of the Australian Securities and Investments Commission (ASIC), told a parliamentary hearing that the regulator has not received any applications from prediction market operators, and that platforms such as Polymarket may face strict regulation in Australia, with any operating license application also facing strict scrutiny.

Court noted that prediction markets' trading mechanism is similar to binary options, which Australia has already banned, with win-or-lose outcomes, and that the underlying is often unrelated to investment or financial markets. Although Australian users can directly access the relevant overseas platforms, they are not protected by local financial regulation and have difficulty obtaining measures such as dispute resolution and client fund protection.