thenewscrypto.com
- Polymarket faces scrutiny from the gambling authority of France.
- A French bettor cashed in big by wagering on Trump’s election win.
The blockchain-based prediction market platform Polymarket, known for its role in the U.S. presidential elections, is facing mounting scrutiny from French gambling authorities.
The national gambling authority of France, Autorite Nationale des Jeux (ANJ), reportedly plans to ban Polymarket. It cites the platform’s operations as unlicensed gambling, which is prohibited under French law.
Notably, Polymarket facilitated trades worth $294 million in a single day during the election. The ANJ has labeled the platform’s activities as betting. Moreover, stated that such undertakings can only be provided by authorized operators.
The platform’s rapid growth around high-stakes events like the U.S. elections caught the regulator’s attention, leading to potential scrutiny regarding compliance with local laws.
If the ban is enforced, Polymarket in France will be blocked from accessing the site. However, users could bypass the restriction through VPNs. This coincides with the broader concerns about prediction markets, as U.S. regulators like the Commodity Futures Trading Commission (CFTC) have also scrutinized such platforms for their capability to promote harmful incentives.
Meanwhile, the platform has caught the eye of U.S. regulators, with the CFTC proposing new rules in May aimed at prediction markets. Although the CFTC wrapped up its public comment period in August.
The industry waits for a decision from the Securities and Exchange Commission (SEC) on whether it will introduce its own regulatory framework. This hints at the broader regulatory interest in this emerging financial sector.
A French Trader Bagged $21M in Profit
The French polymarket trader, identified as “Theo,” gained enormously after placing a $26 million wager on Donald Trump’s victory. His bet yielded a $49 million payout. Donald Trump secured the presidency, while Theo’s gain might be marked as one of the richest paydays in political betting.
His success underscored Polymarket’s prominence among French users and led the French authorities to pay attention to the platform, which led to concerns about the compliance of the platform in France.
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