UK Authorities Urged to Curb Polymarket Bank Failure Bets
UK regulators face pressure to intervene after Polymarket allowed users to bet over $77,000 on the failure of major global banks.
UK authorities are facing calls to intervene after the US-owned prediction market Polymarket allowed users to place more than $77,000 in bets on whether major global banks, including HSBC and Lloyds Banking Group, will fail by the end of 2026.
Liberal Democrat MP Bobby Dean warned that such betting could be exploited by bad actors to manipulate market sentiment and trigger bank runs fueled by social media. He urged UK regulators to coordinate with US counterparts to address these risks. The European Securities and Markets Authority added that prediction markets are often rife with insider trading and manipulation due to limited identity verification.
In response, the Financial Conduct Authority confirmed it is discussing prediction markets with international regulators to protect market integrity. Polymarket chief legal officer Neal Kumar defended the platform, arguing that it democratizes access to information previously restricted to elite traders and helps combat disinformation.
