Polymarket, a prominent blockchain-based prediction market, has barred access to users in France as regulators investigate its alignment with national gambling laws.
The move, implemented on November 22, underscores the platform’s attempt to address legal scrutiny while preserving its decentralized ethos.
The crackdown by France’s national gaming authority, the ANJ, followed reports of significant bets on the 2024 U.S. presidential election.
French regulators reportedly took interest after a trader wagered heavily on Donald Trump’s potential re-election—a topic that spurred high activity on the platform.
Polymarket enables users to bet on real-world outcomes, such as elections and sports events, using cryptocurrency.
Its decentralized structure, governed by smart contracts instead of intermediaries, has drawn attention from regulators worldwide, particularly in jurisdictions with strict gambling laws.
Despite Polymarket’s decision, its terms of service had not been updated to reflect the restriction at press time. French users attempting to access the platform encountered digital barriers, although some circumvented the block using VPNs.
The ANJ, known for enforcing stringent gambling laws, is now investigating Polymarket’s operations. The case highlights the challenges faced by decentralized platforms navigating diverse legal systems. Neither Polymarket nor the ANJ has commented publicly.
Polymarket’s rise to popularity stems from its innovative use of blockchain to create prediction markets. However, this innovation is also its Achilles’ heel, as regulators worldwide grapple with how such platforms fit into existing frameworks.
Observers argue that Polymarket’s move to restrict access to French users reflects a cautious approach to compliance. Yet, the effectiveness of such measures remains questionable, especially with users finding ways around the restrictions.
The investigation in France could set a precedent for how regulators treat blockchain-based prediction markets. Platforms like Polymarket must find a delicate balance between their decentralized principles and the demands of local laws, which differ significantly across borders.
For now, Polymarket’s actions demonstrate the growing pains of decentralization as it seeks to navigate the murky waters of global compliance. Whether regulators and decentralized platforms can find common ground remains a pressing question for the future of blockchain innovation.
