Polymarket Faces Scrutiny in France Amidst Regulatory Concerns
French users attempting to access the Polymarket platform via VPNs have reportedly encountered blocks, according to reports this Friday. However, this prohibition has not yet been formally added to Polymarket’s terms of service.
Polymarket Under Regulatory Watch
The current scrutiny stems from a significant winning bet placed by a French trader. This trader wagered on Donald Trump’s victory in the 2024 US presidential election. This successful bet has raised concerns regarding the platform’s operations within France.
A French journalist highlighted this restriction on social media, drawing further attention to Polymarket’s legal challenges. Others have lamented this prohibition in the “land of freedoms.”
The platform, which allows users to bet on political, sports, and other events using cryptocurrency, gained popularity during the US presidential election.
According to French journalist Grégory Raymond on X, “Even if Polymarket uses cryptos in its operation, it remains a betting activity and it is not legal in France, as a source close to the Autorité Nationale des Jeux (ANJ), the gambling regulator, explained to me.”
Reports indicate that users wagered over $3.2 billion during the election period. The platform recorded a record trading volume of $294 million on November 5th. Before the official results, Donald Trump held a considerable lead on Polymarket with a very high probability.
However, subsequent research suggested that 30% of the platform’s trading activity might be linked to wash trading. The platform may have been used for repetitive purchases and sales to inflate the perceived market activity.
Such practices can distort public sentiment and encourage further betting.
A Platform Threatened, Yet Planning Ahead
Furthermore, the platform reportedly paid out substantial sums to top bettors after the election. Three traders collectively earned $47 million, with the largest single payout amounting to $20.4 million.
In a post-election development, the FBI confiscated the electronic devices of Polymarket’s CEO, Shayne Coplan. Sources allege that the raid is related to market manipulation accusations. However, no formal charges or arrests have been made.
Despite these regulatory challenges, the platform recently announced plans to launch its own utility token. Polymarket is currently seeking to maintain its popularity beyond the election fervor. However, further regulatory hurdles are anticipated.
The bottom line: It’s potentially the end of the road for Polymarket in the land of freedoms.
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