Nevis regulator launches prediction market licence for operators and suppliers
Licences & markets2 min read
In brief
- NOGA has launched a prediction market licensing regime in Nevis.
- The licence is open to operators and B2B technology and service providers.
- NOGA said the framework includes due diligence, anti-money laundering and customer protection standards.
The island of Nevis, part of the Caribbean nation of Saint Kitts and Nevis, now has its own regulatory framework for prediction markets. Through NOGA, it has opened a licensing scheme that targets operators as well as service providers in the sector. Consumer-facing operators, technology suppliers and service providers are all covered by the Nevis Prediction Market License.
According to NOGA, the licence will cover many contract types, from binary to multi-outcome markets tied to subjects such as sports, politics, elections, weather and cryptocurrencies. The regulator said the new framework will build in rules it already has on due diligence for companies, anti-money laundering and customer protection. The stated purpose of these requirements is to protect market integrity and lower manipulation risk on prediction market platforms.
NOGA oversees gambling activity in Nevis and already licenses international B2B and B2C gaming businesses. It also maintains rules that bar local residents from taking part in online gambling. The move follows the launch of a prediction market framework in Gibraltar earlier in the year, according to the report. The report adds that jurisdictions continue to debate whether prediction markets are gambling products or financial instruments.
NOGA Chief Executive Officer Nuri Katz told local media: "As prediction markets continue to develop, regulatory approaches need to reflect the way these platforms operate and the risks associated with their activities."