As prediction markets gain traction in Canada, legal and regulatory questions are emerging around how existing insider trading laws apply to these new forms of event-based contracts. A recent Globe and Mail article explores how platforms offering contracts tied to corporate disclosures could create new opportunities for the misuse of material non-public information, while prompting regulators, financial institutions and public companies to reconsider existing compliance frameworks.

Speaking with The Globe and Mail’s Alexandra Posadzki Adam Garetson, partner and leader of Gowling WLG's Blockchain & Digital Assets Group, discussed why Canada's current insider trading regime may not neatly address this evolving market, noting that existing securities laws were designed around trading in company-issued securities.

"The insider-trading laws in Canada were built for a different world. They weren't built for prediction markets."

To read the full article, click the link below (subscription may be required):

About Gowling WLG's Blockchain & Digital Assets Group

As blockchain, tokenization and other decentralized technologies reshape the global economy, businesses and investors need trusted legal guidance to navigate the regulatory landscape and seize new opportunities. Gowling WLG's Blockchain & Digital Assets Group brings together professionals from across our firm—including capital markets, tax, financial services, intellectual property and litigation—to provide tailored, forward-thinking advice on the full spectrum of digital asset issues in Canada and internationally. Learn more