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ARTICLE · 19 MAY 2026

The Offshore Hub For Prediction Markets

Walkers
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Bermuda has emerged as a regulatory pioneer by licensing crypto-based prediction markets under its digital asset framework, treating event contracts as derivatives rather than gambling products. As prediction markets blur the lines between traditional derivatives trading and betting, understanding how these platforms fit within existing legal frameworks becomes critical for operators and institutions.

BermudaFinance and Banking
Leonie Tear
Leonie Tear
Joshua Bradbury
Joshua Bradbury
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Key takeaways

  • Bermuda has taken early steps among offshore markets to regulate and license a crypto-based prediction market.
  • The rise of prediction markets is inevitable, obtaining clarity over the regulatory treatment of the event contracts traded on such markets is paramount.
  • Bermuda has shone a torch on the path forward, by licensing the company as a digital asset business derivative exchange provider, it recognises that event contracts are derivatives, not bets or wagers. 

Bermuda leads offshore regulation of prediction markets with licensed digital asset derivatives framework

The Bermuda Monetary Authority (BMA) has granted a digital asset business licence to a prediction market provider, marking it as one of the first movers into the regulated offshore market. Prediction markets have seen significant increase in popularity and attention throughout 2025 and into 2026, with institutions like Kalshi and Polymarket dominating headlines. 

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