Polymarket, a decentralized prediction platform, has restricted access for French traders following an investigation into its compliance with gambling laws by France’s national gaming authority, the ANJ.
Reports emerged Friday that French users attempting to access the platform via a VPN encountered access blocks. This ban has yet to be formally added to Polymarket’s terms of service.
Polymarket Continues to Face Strong Regulatory Scrutiny
The scrutiny comes from a French trader’s large bets on Donald Trump winning the 2024 US Presidential election, raising concerns about the platform’s operations in France.
A French journalist on social media highlighted the restriction, sparking further attention to Polymarket’s legal challenges.
The platform, which allows cryptocurrency-based betting on political events, sports, and other outcomes, became popular during the US presidential race.
“Even if Polymarket uses cryptocurrencies in its operation, it remains a betting activity and this is not legal in France – a source close to the National Gaming Authority (ANJ), the gambling regulator, explained to me,” French journalist Grégory Raymond wrote on X (formerly Twitter).
Reports claim users wagered over $3.2 billion during the election period. The platform saw a record trading volume of $294 million on November 5. Ahead of the results, Trump held a 67% probability on Polymarket for securing a win.
However, later research suggested that 30% of the platform’s trading activity could be linked to wash trading. The platform was allegedly used for repetitive buying and selling to inflate perceived market activity.
Such practices can distort public sentiment and encourage further betting.
Also, the platform reportedly paid out significant sums to top bettors following the election. Three high-value traders collectively earned $47 million. The largest single payout amounted to $20.4 million.
In a post-election development, the FBI confiscated Polymarket CEO Shayne Coplan’s electronic devices. Sources allege the raid is tied to market manipulation accusations. No formal charges or arrests have been made.
Despite these regulatory challenges, the platform recently reported plans for launching its own token. The platform is seemingly trying to keep its popularity alive beyond the election hype. However, more regulatory hurdles are expected.
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