Key Points
- Polymarket, a leading blockchain-based prediction market platform, has blocked access to French users amid an investigation by France’s National Gaming Authority (ANJ) into its compliance with national gambling laws.
- The regulatory scrutiny intensified after a French trader known as “Théo” (or “Fredi9999”) reportedly earned nearly $80 million from bets on the 2024 U.S. presidential election outcome.
Platform Implements Regional Restrictions
Polymarket has taken preemptive action by restricting access to users in France, implementing what the platform calls “view-only mode” for persons located in France and other restricted jurisdictions, including the United States. While French users can still access market information, they are currently prevented from placing new trades on the platform.
A Polymarket spokesperson confirmed the restriction, stating, “Users in France can continue to access Polymarket for critical information about the events that matter most to them, but for the time being we’ve hit pause on new trades. We took this step proactively while we continue to engage with stakeholders in the country about our platform and prediction markets more generally.”
Regulatory Challenges and Compliance
The investigation by France’s ANJ highlights the growing regulatory challenges faced by decentralized prediction markets. The platform’s innovative use of blockchain technology and smart contracts has attracted significant attention from regulators worldwide. The French investigation could set a precedent for how decentralized prediction platforms operate in highly regulated jurisdictions.
Technical Workarounds and Future Implications
Reports indicate that some users have managed to circumvent the geographical restrictions using Virtual Private Networks (VPNs), raising questions about the effectiveness of such regulatory compliance measures. The situation underscores the broader challenge decentralized platforms face in balancing their commitment to accessibility with the need to comply with varying national regulations.
The outcome of the ANJ’s investigation could have significant implications for the future of prediction markets and their ability to operate within established gambling laws. For now, Polymarket’s proactive approach to regulatory compliance suggests a shifting landscape for decentralized platforms operating in strictly regulated markets.
