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France is considering potential restrictions on Polymarket, a platform that allows users to bet on future events using cryptocurrency, due to concerns that it may be operating as an unlicensed gambling service.
According to The Big Whale, a French web3 publication, the platform’s model falls within the legal definition of gambling under French law, which could lead to strict regulations or even a ban.
A source from the French National Gambling Authority (ANJ) explained that despite Polymarket’s use of cryptocurrencies, it still functions as a betting platform, which is illegal in France.
With over $3.2 billion in bets placed on major events like the US presidential election, Polymarket has raised $74 million from notable investors, including Ethereum co-founder Vitalik Buterin. On November 5 alone, the platform recorded $294 million in trading volume.
While Polymarket doesn’t specifically target French users, the ANJ’s attention was triggered by a large bet placed by a French trader, who staked more than $30 million on a Trump election victory, with potential gains of around $19 million. The regulator is currently reviewing Polymarket’s compliance with French gambling laws.
Following a settlement with the Commodity Futures Trading Commission (CFTC) in 2022, Polymarket is no longer accessible to users in the US. As part of that settlement, the platform paid a fine and agreed to cease operations for US residents.