TechFlow News: On April 18, according to Hong Kong’s Now Finance, the Investor and Financial Education Council (IFEC), under the Securities and Futures Commission (SFC) of Hong Kong, stated that prediction-market trading activities or contracts are not investment products. Members of the public engaging in prediction-market trading activities receive no regulatory protection; should problems arise, redress may be difficult—or even impossible—to obtain. The IFEC noted that prediction markets are speculative markets created for the purpose of making forecasts, enabling participants to wager on the outcomes of specific future events and thus containing elements of gambling. Currently, prediction-market trading activities in Hong Kong may constitute illegal gambling.
The IFEC emphasized that investing is not merely placing a probabilistic bet. Whether it involves listed company stocks and bonds, precious metals, real estate, collectibles, or virtual assets, the decision to invest should hinge on the intrinsic value and growth potential of the underlying asset. The public should reflect on the fundamental nature of investment and clearly distinguish between investing and gambling.
