Polymarket, the crypto-based prediction market platform, is facing increasing regulatory scrutiny across multiple jurisdictions. The Gambling Regulatory Authority of Singapore has taken a firm stance against Polymarket, officially blocking access to the platform within the country This report analyzes the recent developments and their implications for the platform’s future operations.
Key points:
The Gambling Regulatory Authority of Singapore has taken a firm stance against Polymarket, officially blocking access to the platform within the country. This action is grounded in the Gambling Control Act 2022, which requires all gambling operators targeting Singaporean residents to obtain proper licensing.
- Polymarket has been labeled an illegal gambling operation in Singapore
- Visitors to the site now encounter a warning from the regulatory authority
- Penalties for using unlicensed platforms include fines and potential jail time
European Challenges
Polymarket’s regulatory troubles extend beyond Asia, with significant developments in Europe. The Autorité Nationale des Jeux (ANJ), France’s gambling regulator, blocked access to Polymarket in November 2024. French authorities consider Polymarket a form of illegal betting. Compliance with local gambling laws is under scrutiny.
United States Regulatory Pressure
Polymarket faces mounting pressure from the Commodity Futures Trading Commission (CFTC) in the United States. The CFTC has proposed stricter rules on prediction markets. In early 2022, the CFTC settled with the Delaware-registered Blockratize, Inc. d/b/a Polymarket over charges of offering off-exchange event-based binary options contracts. Polymarket paid a $1.4 million civil monetary penalty.
Although headquartered in New York, Polymarket barred U.S. residents from participating since the 2022 settlement with the CFTC. Since the CFTC settlement, the legal operator of Polymarket became Adventure One QSS Inc., a corporation organized and existing under the laws of Panama.
Coinbase, a major U.S. crypto exchange, has received a subpoena from the CFTC seeking account information related to Polymarket.
Implications and Context
Polymarket‘s regulatory challenges highlight the growing global concern over crypto-based prediction markets and their potential classification as gambling platforms. The platform, known for hosting high-stakes prediction markets on events such as U.S. presidential elections, operates in a gray area that regulators are increasingly seeking to define and control.
Conclusion
As regulatory bodies worldwide tighten their grip on crypto-based prediction markets, Polymarket faces an uncertain future. The platform will need to navigate complex regulatory landscapes across multiple jurisdictions to continue its operations. This situation underscores the importance of clear regulatory frameworks for emerging financial technologies and the need for platforms to proactively engage with regulators to ensure compliance.
