Wealthsimple clears regulatory hurdle to bringing prediction trading to Canada – The Globe and Mail Wealthsimple clears regulatory hurdle to bringing prediction trading to Canada – The Globe and Mail

Prediction markets might be one step closer to coming to Canada, after online financial services platform Wealthsimple received approval from Canadian securities regulators to offer forecast contracts. Prediction markets allow users to bet on whether certain events are going to happen, making binary “yes/no” or “over/under” wagers. The controversial sector has grown rapidly in recent years, driven by U.S.-based platforms like Polymarket and Kalshi.

Though a 2017 ruling largely banned these kinds of wagers, Matthew Burgoyne, Chair of Osler’s Digital Assets and Blockchain practice, tells The Globe and Mail that companies can apply to securities regulators to offer forecast contracts to Canadian residents under certain conditions. Wealthsimple’s approval permits it to offer contracts related to economic indicators, financial markets and climate trends, but not elections or sporting events.

Matthew says that these decisions create “a safe place for Canadian residents to trade these types of contracts,” especially important as many Canadians are accessing foreign and unregulated platforms via VPN services.

Despite approval from Canadian Investment Regulatory organization, provincial and territorial securities regulators could still choose to block companies from operating in their jurisdictions.

If you have a subscription, you can read the full article, “Wealthsimple clears regulatory hurdle to bringing prediction trading to Canada on the Globe and Mail website.