France’s gambling regulator, the National Gaming Authority (ANJ), is expected to block access to Polymarket, a major cryptocurrency-based prediction platform, local news channel The Big Whale reported.
Such a move would be one of the country’s strongest regulatory moves against a crypto entity. Known for its blockchain-driven betting on global events, Polymarket gained widespread attention during the recent US presidential election, attracting more than $3.2 billion in bets worldwide.
According to sources familiar with the matter, ANJ’s move comes amid growing concerns over the platform’s classification as a gambling activity under French law.
On November 5 alone, users placed $294 million in bets on the platform. A source close to the ANJ stated:
“Polymarket’s model involves betting on uncertain outcomes, which qualifies it as gambling under French regulations, regardless of crypto activities.”
While Polymarket operates from the US and restricts access to US users, a French trader’s high $30 million bet on a Donald Trump election victory has reportedly caught the attention of ANJ. The trader made approximately $80 million from various bets on the outcome.
Polymarket’s unique model allows users to bet on predictions in various categories – from financial markets to political events – using crypto transactions on a decentralized blockchain network.
The platform launched in 2020 and has raised $74 million in funding, with support from notable figures such as Ethereum co-founder Vitalik Buterin. While the platform’s supporters advocate using blockchain to create a transparent prediction market, the lack of user identity checks poses regulatory challenges for authorities around the world.
Under French law, the ANJ has the power to restrict non-compliant online gambling platforms, even if these platforms do not directly target French users.
Lawyers told the news outlet that ANJ’s actions could include blocking Polymarket’s domain in France and discouraging media outlets and third-party platforms from linking to it. However, because Polymarket’s account setup only requires a crypto wallet and no personal identification, users can bypass the restrictions by using VPNs.
The ANJ acknowledged that it is “investigating”. [Polymarket’s] operations and compliance with French gambling laws,” but did not specify a timeline for the expected restrictions.