UK Calls for Ban on Betting on Bankruptcies of Banks on Polymarket

British authorities are calling for intervention in the operations of the prediction platform Polymarket, where users bet money on the bankruptcy of major banks, including HSBC and Lloyds Banking Group. Bets are open on the likelihood of these banks closing by the end of the year, with total positions exceeding $77,000. Although residents of the UK, USA, Canada, and EU countries are prohibited from using the site, it is accessed by residents of around 150 countries, some of whom bypass the bans using VPNs. The UK's financial regulator (FCA) is discussing the situation with international partners to prevent potential market disruptions. Politicians and analysts express concerns that such bets could incite panic among depositors, as already seen with Silicon Valley Bank and Credit Suisse. UK MP Bobby Dean highlighted the threats of manipulation and panic, urging authorities to consult US regulators. The European Securities and Markets Authority (ESMA) also warned of manipulation risks on the platform. Polymarket believes that information about the state of banks is public, and their platform merely makes this data accessible to a wider audience.

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