Legal expert Jin Jianzhi has highlighted the legal risks associated with blockchain-based prediction markets in China, where they are often classified as gambling. While the U.S. typically views prediction markets as financial derivatives, China and many other countries consider them akin to gambling operations. In China, operating a prediction market is largely equated with running a casino, potentially implicating project operators, promoters, and payment facilitators as accomplices in gambling offenses. Although ordinary participants are generally not criminally liable, they may face administrative penalties if involved in significant betting activities. Jin also noted that sensitive topics like politics and elections increase enforcement risks, suggesting that compliant prediction markets are unlikely to emerge in China in the near future.