Polymarket, a leading blockchain-based prediction market, has restricted access to users in France following a government investigation into its compliance with the country's gambling laws, according to local media reports.
The platform, known for allowing users to bet on real-world outcomes using cryptocurrencies, introduced the block on November 22nd. The move comes amid increased scrutiny by France's national gaming authority, the ANJ.
French user blocked
At the time of writing, Polymarket's official terms of service did not reflect the decision to block users. But when I tried to access the site from a server in France, I encountered a digital barrier.
French cryptocurrency news outlet The Big Whale was among the first to report on the block, revealing that some users were using virtual private networks (VPNs) to circumvent the restrictions.
The investigation reportedly began after a French trader placed a large bet on President Donald Trump's victory in the 2024 US presidential election, an event that sparked significant activity on the platform.
Polymarket's global expansion and use of cryptocurrencies has raised questions about the company's legal standing in jurisdictions with strict gambling regulations, including France.
Neither Polymarket nor ANJ responded to requests for comment on this matter. The ANJ, which oversees online gambling activities in France, has a reputation for strictly enforcing national laws. The investigation into Polymarket highlights the difficulties decentralized platforms face in dealing with different regulatory environments.
Polymarket's rise to prominence was fueled by its innovative use of blockchain technology. It allows users to create and participate in markets and predict the outcome of everything from elections to sporting events.
Regulatory uncertainty
The platform operates on the principle of decentralization, and the market is managed by smart contracts rather than traditional intermediaries.
But this innovation is also a focus for regulators in multiple countries, including the United States. The French study could set an important precedent for prediction markets operating in highly regulated jurisdictions.
Observers say platforms like Polymarket need to balance efforts at decentralization with the need to comply with local laws, which vary widely from country to country. While Polymarket's action to block French users may be seen as a step towards compliance, the effectiveness of such measures is questionable given the ease of circumventing the restrictions via VPN. There is room for debate.
This raises broader questions about how decentralized platforms can address regulatory concerns without compromising their core principles. ANJ's findings could further clarify how regulators perceive decentralized markets and whether such platforms can coexist with established gambling laws.
For now, Polymarket's moves demonstrate a cautious approach to navigating the complexities of global compliance.
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