Wealthsimple has received regulatory approval in Canada and plans to launch its independent prediction market app, Wealthsimple Predict, this summer, offering local retail investors approximately 4,000 event contracts provided by Kalshi. Tradable themes will cover financial markets, economic data, and climate-related events.
Canada approves under derivatives framework
This arrangement signifies an increase in Canada's openness to prediction market products. Following an authorization granted by the Canadian Investment Research Organization (CIRO) in March of this year, Wealthsimple became the second investment dealer in Canada to be approved to offer prediction market contracts. CIRO will regulate these products under derivatives regulations and require contracts to have a settlement period of at least 30 days.
Unlike the United States, where product attributes are still under debate, Canada has already incorporated related products into its existing derivatives framework. Wealthsimple's launch effectively brings Kalshi's event contracts to the Canadian retail market.
Kalshi is simultaneously advancing its encrypted perpetual business.
While expanding its prediction market coverage, Kalshi is also accelerating its foray into crypto derivatives. The company announced this week that its perpetual futures product is now available for trading. Previously, on May 31st, Kalshi officially announced its crypto perpetual futures business.
Kalshi disclosed that within two weeks of its launch, its perpetual futures platform had already exceeded $5.5 billion in trading volume. The platform currently offers 11 perpetual contracts related to crypto assets and stated that it is still in discussions with regulators regarding more products.
- Perpetual futures trading volume exceeded $5.5 billion in two weeks after launch.
- Currently, 11 crypto-related perpetual contracts have been provided.
- More products are still in discussions with regulatory agencies.
The controversy in the United States continues to escalate.
Kalshi's expansion is facing increasing resistance in the United States. Semafor previously reported that the Indian Gaming Association, the American Gaming Association, and several labor groups have lobbied the U.S. Senate to amend the CLARITY Act to explicitly prohibit prediction market platforms from offering contracts for sports and casino events.
Legal challenges are also mounting. CME Group filed a lawsuit against the CFTC on Thursday, targeting the regulator's approval of Kalshi's crypto perpetual contracts and its laissez-faire attitude towards Coinbase's similar product. Previously, in May, the CFTC approved Kalshi's Bitcoin perpetual futures and, by not taking enforcement action, allowed Coinbase to launch a similar product.
Outside of North America, other regions are taking a more cautious approach. Spanish regulators have asked internet service providers to block Kalshi and Polymarket; Indonesia has banned Polymarket; and regulators in Japan and South Korea have also taken measures against prediction market activities. In the United States, at least 11 states have recently challenged prediction markets, and the controversy continues to escalate.
