France’s gambling authority has ordered internet service providers to block access to prediction platform Polymarket, citing illegal gambling and market manipulation concerns. The move follows similar
In a significant regulatory development, France's Autorité nationale des jeux (ANJ) or National Gambling Authority, instructed internet service providers (ISPs) to block access to the prediction platform Polymarket. This decision comes amid growing concerns over illegal gambling and potential market manipulation tied to the platform’s operations.
Polymarket operates as a prediction marketplace where users can buy and sell contracts linked to future events such as elections, sporting outcomes, economic data releases, and geopolitical developments. The platform has seen substantial growth in popularity, with billions of dollars in trading volume over the past two years. However, its status remains under scrutiny from regulators due to concerns that some event contracts might constitute illegal gambling or unlicensed financial products.
This is not an isolated incident; Polymarket faces similar regulatory challenges globally. It has already been geoblocked in several countries including Singapore, Poland, Portugal, Hungary, Ukraine, Brazil, and Indonesia. As of the latest update, it was blocked in 36 regions worldwide. France’s ANJ first flagged Polymarket for non-compliance with national gambling laws back in November 2024.
The French regulator highlighted several concerns, including addictive features that mimic regulated gambling offerings but lack protective mechanisms found in legal markets. Additionally, there are worries about outcome manipulation tied to certain event contracts on the platform. A cybercrime investigation by Paris’ Public Prosecutor’s Office revealed a lack of identity verification processes such as Know Your Customer (KYC) checks.
This development has broader implications for prediction market platforms globally. Similar actions have been taken in the United States, where Kentucky and at least 17 other states sued various prediction markets on June 17th. The Commodity Futures Trading Commission also took legal action against eight states that interfered with its exclusive authority over federally regulated event contracts.
For traders, this move underscores the evolving regulatory landscape for prediction market platforms. It is crucial to stay informed about regional regulations and potential changes in laws affecting these markets. As more countries take actions like France’s ANJ, it may become increasingly challenging for such platforms to operate without facing significant legal hurdles.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.