Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The National Gambling Authority of France (ANJ), the country’s gambling oversight body, is reportedly getting ready to prohibit Polymarket in France.
As per French media outlet The Big Whale, a source from ANJ indicated that Polymarket operates illegally within the nation. “Even though Polymarket utilizes cryptocurrencies in its operations, it constitutes a betting activity, which is not permitted in France.”
Numerous regulatory bodies across various jurisdictions are scrutinizing Polymarket, which allows users to wager on the likelihood of nearly any event.
Recently, over $3.2 billion in wagers have been placed concerning the US elections. The report stated that on November 5 alone, the platform recorded a volume of $294 million.
Additionally, crypto whales and investors have earned millions on the prominent decentralized prediction market.
For example, a French trader known as Théo placed bets exceeding $30 million on Trump’s victory and realized approximately $48 million in profits. This could be a significant factor attracting the authority’s scrutiny.
The ANJ source mentioned that the authority intends to “forbid access” to the Polymarket site in the near future.
William O’Rorke, a partner at the French law firm ORWL Avocats, described Polymarket as “similar to a sports bet.”
“Unlike financial institutions, the ANJ possesses the authority to block the platform even though Polymarket does not explicitly target French users.”
Although Polymarket is based in New York, it is currently inaccessible to American users. Reports have emerged indicating that the betting platform compensated U.S. social media influencers for election-related content.
Related Posts
ANJ Could Block Domain Name, Website
The gambling regulator informed the publication that it is aware of the French whale who has accumulated millions on Polymarket.
“We are aware of this site and we are currently reviewing its operations as well as its adherence to French gambling regulations.”
Moreover, O’Rorke pointed out that the authorities might block the domain name in France. He added that the ANJ could exert pressure on players that facilitate its access to the French market.
However, it remains uncertain how the French regulators would implement a ban on Polymarket. This is due to the fact that even if the domain or website is blocked, it can still be easily accessed via a VPN.
Polymarket Sees Similar Trajectory to Early DeFi Skepticism
Mohd Kifa, head of compliance at Flipster derivatives exchange, draws parallels between the current skepticism surrounding the betting market and the early doubts about decentralized finance (DeFi).
He told Cryptonews that Polymarket’s unexpected success this year has highlighted the potential of prediction markets as the next significant application of blockchain technology.
“A fitting analogy for Polymarket’s current ascent is the DeFi Summer of 2020. While the excitement surrounding DeFi quickly subsided back then, the attention it attracted mobilized talent and capital, resulting in substantial advancements in DeFi today. Polymarket may experience a similar path.”
Nonetheless, he noted that skepticism continues to exist in this market. Some believe that Trump’s recent increasing odds are the result of manipulative tactics, while others contend that Polymarket is not as liquid as it seems.
The post French Gambling Regulator Likely to Ban Polymarket: Report appeared first on Cryptonews.
