France Investigates Polymarket Over Unlicensed Operations

• France’s ANJ is reviewing Polymarket’s compliance with local gambling regulations.
• Polymarket drew scrutiny after a French trader won $47M on Trump’s re-election.
• ANJ may block Polymarket over unlicensed operations and $3.5B in election trades.

The ANJ, France’s National Gaming Authority, has reportedly been looking into Polymarket — a blockchain prediction market platform. The platform operates worldwide and recently gained a huge amount of attention, as users from all over the world participate in the U.S. presidential election.

In this election period alone the trading volume of Polymarket reached $3.5 billion. Following Donald Trump’s victory, $450 million is expected to be distributed to users. However, the French regulators are concerned about the platform possibly offering unlicensed gambling services, with possible legal action against the platform in the future. 

Record Trading Volume 

Polymarket’s operations caught ANJ’s attention after a dramatic surge in betting activity. The platform attracted global users, particularly during the U.S. presidential election. Notably, a French trader known as Theo placed multimillion-dollar bets on Trump’s re-election. According to reports, Theo secured a $47 million payout, prompting further regulatory inquiry. 

The rising popularity of Polymarket’s prediction markets has triggered concerns about its compliance with French gambling laws. The local news outlet The Big Whale has reported that ANJ is now investigating the platform, reviewing its operations, and assessing its legal status in France.

ANJ is considering several enforcement measures regarding these concerns. Cutting off the domain names that allow access to Polymarket is one option. The other is pressuring media outlets to cut ties with the platform.

Potential Enforcement Measures 

Despite the right of ANJ to impose technical restrictions, users could still circumvent them. As it turns out, users can use VPNs to mask their actual location to access Polymarket. That’s because the platform demands no more than a crypto wallet to access. Unlike traditional platforms, it does not force identity verification. Despite the regulatory hurdles, ANJ has not announced a timeframe for a ban.

Regulators worldwide have come after Polymarket. As early as 2021, the U.S. Commodity Futures Trading Commission (CFTC) started probing the platform. Later, the commission recommended that such risks be addressed in prediction markets by proposing rules. 

Regulatory Challenges Beyond France

Polymarket’s French case marks the start of a trend of regulators cracking down on blockchain gambling. The platform has come under mounting pressure globally. Compliance and market integrity are becoming a priority for authorities.

According to some sources, Polymarket conducted its own investigation into the trading activities of a bettor, Theo. The investigation concluded that personal political views dictated his bets. It also pointed to his extensive past in financial services.

However, there are ongoing doubts about the platform’s unlicensed operations. These services, regulators say, create risks to the financial markets. Polymarket is also under active CFTC and ANJ investigations. The outcome of these probes could determine the platform’s future. Similar blockchain platforms may also face tighter regulatory oversight.