By Mark Hunter
23 hours agoThu Nov 07 2024 09:59:47
Reading Time: 2 minutes
France has taken steps to prohibit Polymarket’s services, viewing the platform’s predictive markets as illegal gambling
The ban comes amid increased regulatory focus on crypto markets in France, aiming to enforce gambling laws on platforms engaging in betting-like activities
The move aligns with France’s recent stance on tightening controls over crypto-related activities
French authorities may ban Polymarket, a prominent U.S.-based decentralized prediction market platform, according to a report. French outlet The Big Whale reported that regulators have cited concerns that Polymarket’s structure violates the country’s gambling laws by allowing users to bet on future events, following the platform enjoying $3.5 billion worth of betting in the lead-up to the US election . This decision aligns with France’s efforts to closely regulate crypto services to protect consumers and uphold financial laws.
Gambling or Free Speech?
Polymarket, known for letting users bet on outcomes ranging from political events to economic indicators, has drawn scrutiny across multiple jurisdictions. France’s regulatory body, the Autorité Nationale des Jeux (ANJ), has highlighted that prediction markets could be considered gambling due to the element of financial speculation and risk.
“We recognize the innovative potential of blockchain,” an ANJ spokesperson said, “but betting on unpredictable outcomes crosses into gambling territory.” France’s current regulations classify many speculative activities as gambling, which must meet strict licensing and consumer protection requirements.
Polymarket’s decentralized nature, which makes it hard for authorities to monitor transactions, has raised red flags. According to the ANJ, Polymarket’s services “open the door to risks similar to those posed by traditional unregulated gambling.” This perspective aligns with European Union standards, where stricter regulations on decentralized finance (DeFi) services are increasingly being implemented.
Polymarket Hits Back
In response to the proposed ban, Polymarket has argued that it is not a gambling platform but a marketplace for information and free expression. “Our goal is to allow users to gain insight into public sentiment on critical issues,” a spokesperson stated. However, the platform could face penalties or further restrictions if it continues to operate within French borders.
This decision underscores a regulatory trend where European governments scrutinize crypto activities that blur the line between traditional finance and new decentralized tools. France has recently intensified its regulatory oversight on crypto-related operations, often citing risks related to financial stability and consumer protection. This latest effort reflects a broader push by French authorities to establish a regulated framework that curtails what they see as unlicensed gambling.
Information contained on this page is provided by an independent third-party content provider. This website makes no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact editor @americanfork.business
