Asia's Prediction Markets Struggle with Regulatory Uncertainty

Asian regulators are struggling to define their stance on prediction markets, leaving them in a regulatory gray zone. Tiger Research's report highlights that despite the absence of clear rules, user inflows cannot be fundamentally blocked, leading to missed tax revenue opportunities and gaps in consumer protection.

Prediction markets are platforms where participants trade contracts tied to future events, such as elections or sports results. While these markets have existed for decades, blockchain-based platforms have gained traction by offering global access and lower barriers to entry.

Several Asian jurisdictions, including South Korea, Japan, and Singapore, lack explicit regulations for prediction markets. The report notes that existing financial laws do not neatly fit these platforms, leaving them in a state of ambiguity.