France Considers Blocking Polymarket for Unlicensed Gambling
French authorities are considering banning Polymarket due to concerns about unlicensed gambling, according to The Big Whale, a web3-focused French publication.
Polymarket facing ban in France due to unlicensed gambling.
LISTEN TO THIS ARTICLE:Polymarket’s approach, which involves betting on political events among other markets using cryptocurrency, is considered gambling under French law, which means it is subject to strict regulations and possible bans.
A source close to the Autorité Nationale des Jeux (ANJ), France’s National Gambling Authority, explained that even though Polymarket uses cryptocurrencies, it is still considered a betting activity, which is not legal in France. The source also highlighted that the ANJ has the authority to block platforms that do not comply with local gambling regulations.
Vast Sums Bet on U.S. Presidential Election
Since its launch in 2020, Polymarket has raised $74 million from venture capital investors and crypto figures, including Ethereum co-founder Vitalik Buterin. The platform attracted over $3.2 billion in bets on the U.S. presidential election alone, with trading volumes reaching $294 million on November 5.
William O’Rorke, a partner at ORWL Avocats, explained that the ANJ can restrict Polymarket in France, even though the platform does not specifically target French residents. The ANJ’s interest reportedly came after a French trader who placed a bet of more than $30 million on a Trump victory, which will have made a profit of roughly $19 million.
More Regulation News
ANJ Examining Polymarket’s Operations
Autorité Nationale des Jeux has said that they are “currently examining its operation as well as its compliance with French gambling legislation.”
Polymarket already restricts U.S. users after settling with the Commodity Futures Trading Commission (CFTC) in early 2022. The platform agreed to pay a $1.4 million fine for unlicensed trading operations and ceased services for U.S. residents as part of the agreement.
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