Wu learned that the European Securities and Markets Authority (ESMA) issued a statement saying that many event contracts in prediction markets, if they meet the definition of financial instruments, are already subject to the EU’s retail investor ban on binary options implemented since 2018. ESMA stated that whether it qualifies as a financial instrument depends on the characteristics of the contract, not the marketing method, and event contracts with binary outcomes and fixed returns are likely to fall within the regulatory scope. ESMA emphasized that this statement does not introduce new restrictions but reiterates existing regulatory requirements against the backdrop of the rapid development of prediction markets; even if such products are offered only to professional or institutional clients, they must still comply with the authorization requirements of MiFID II.