Investment Advisory Committee under the Securities and Futures Commission (SFC) of Hong Kong: Trading activities in prediction markets may constitute illegal gambling

According to a report by Hong Kong media outlet Now Finance, the Investor and Financial Education Council (IFEC), under the Securities and Futures Commission (SFC) of Hong Kong, stated that trading activities or contracts related to prediction markets are not investment products. Members of the public engaging in such prediction market trading activities receive no regulatory protection; should problems arise, redress may be difficult—or even impossible—to obtain. The IFEC noted that prediction markets are speculative markets created for the purpose of making forecasts, enabling participants to wager on the outcome of a specific future event—thus containing elements of gambling. Currently, prediction market trading activities in Hong Kong may constitute illegal gambling. The IFEC emphasized that investing is not merely about placing a probabilistic bet. Whether it involves stocks and bonds of listed companies, precious metals, real estate, collectibles, or virtual assets, the decision to invest should hinge on the intrinsic value and growth potential of the underlying asset. The public should reflect on the fundamental nature of investment and clearly distinguish between investing and gambling.