Copyright gadgets360
Romania's National Office for Gambling (ONJN) has officially blacklisted leading blockchain-based prediction market Polymarket, citing its operation as an unlicensed gambling platform outside state oversight. The regulator's action follows a significant spike in cryptocurrency-based wagering during the local and presidential elections in Romania, when Polymarket's trading volume topped $600 million (roughly Rs. 53,200 crore). Authorities stated that, despite the platform's use of blockchain technology, its structure and activities fall under the country's gambling laws. Crypto Betting Platform Faces Global Legal Scrutiny In a statement, ONJN defined Polymarket's operations as “counterparty betting,” meaning users wager against each other on future events, with the platform earning commissions. This decision “is not about technology, but about the law”, ONJN President Vlad-Cristian Soara explained, adding that national gambling laws still apply whether wagers are made in cryptocurrency or Romanian lei. As part of the ruling, Romanian internet providers have been ordered to block local access to Polymarket's website. The ONJN identified several infractions, such as the lack of player protection measures, fiscal reporting, and anti-money laundering (AML) compliance systems. While Polymarket has described itself as an “event trading” or “information market” platform, regulators maintain that its operations meet the legal definition of gambling, given users' direct monetary wagers and the platform's intermediary role. Romania is now part of an increasing number of nations that are strengthening their regulation of decentralised betting and financial services based on blockchain technology. Bitcoin Slips to $107,400 Amidst Broad Market Decline Polymarket is no stranger to regulatory scrutiny. In 2022, the platform was fined by the US Commodity Futures Trading Commission (CFTC) for running unregistered derivatives markets and was subsequently required to block American users. Similar restrictions are imposed in France, Belgium, Poland, Singapore, and Thailand. The parent company of the New York Stock Exchange, Intercontinental Exchange (ICE), recently invested $2 billion (roughly Rs. 17,754 crore) in Polymarket, demonstrating the platform's ability to draw in investment and expand its user base despite these setbacks. Looking ahead, Polymarket appears to be preparing a return to the US market, this time focusing on sports-related prediction markets. Reports indicate that, following a recent CFTC no-action letter to a crypto derivatives exchange acquired by Polymarket, the platform may resume limited trading for US users before the end of November, marking a significant comeback despite ongoing regulatory scrutiny. Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.
