Crypto News – Polymarket Faces Potential Ban in France Amid Record-Breaking Election Bets

Crypto News- Polymarket Faces French Ban Over Huge Election Wager

Crypto News– Polymarket, a decentralized platform where users can place cryptocurrency-based bets on political events, sports, and other outcomes, has seen a surge in popularity, particularly around the US presidential election. Over $3.2 billion was reportedly wagered on the platform during this high-stakes period, with $294 million traded in a single day on November 5, setting a new record.

French Regulator Eyes Ban Over $30 Million Trump Bet

The French gambling authority, ANJ (Autorité Nationale des Jeux), is reportedly preparing to block access to Polymarket in France after a French trader placed a massive $30 million bet on a Trump victory. This bet could have earned the trader around $19 million in profits, which has sparked regulatory concerns about Polymarket’s compliance with French gambling laws. A spokesperson for ANJ stated that although Polymarket operates using blockchain and cryptocurrency, its nature closely resembles gambling, which is regulated under French law.

“We are currently examining its operation and its compliance with French gambling legislation,” an ANJ spokesperson told The Big Whale. Legal expert William O’Rorke from ORWL Avocats noted that, despite Polymarket’s focus on uncertain outcomes, it fits within the legal definition of gambling, meaning the ANJ has the authority to block the platform’s access in France.

Potential Workarounds and Previous Regulatory Challenges

While the French ban looms, users in France may still access Polymarket via VPNs due to the platform’s crypto-based infrastructure, which allows for relative anonymity. However, Polymarket’s issues with regulators aren’t new. In 2022, the US Commodity Futures Trading Commission (CFTC) fined the platform $1.4 million for not registering as a designated contract market, and it also raised concerns about betting on political events.

Polymarket’s Future After the US Elections

Polymarket saw significant user engagement and bet volume during the US elections, helping drive its growth and increase its mainstream appeal. The platform’s election-related markets gained exposure on major financial outlets, including Bloomberg, showcasing its relevance in the world of finance. As the platform navigates regulatory scrutiny, its future remains uncertain but continues to capture the attention of investors and crypto enthusiasts alike.