Polymarket, a leading blockchain-based prediction market, has restricted access to French users due to a government investigation into its compliance with the country’s gambling laws, according to local media reports.
The platform, which is known for allowing users to bet on real-world outcomes using crypto, implemented the block on November 22. The move comes amid heightened scrutiny from France’s national gaming authority, the ANJ.
French users blocked
At the time of writing, Polymarket’s official terms of service did not reflect the decision to block users. However, attempts to access the site from a French server resulted in a digital barrier.
French crypto news outlet The Big Whale was among the first to report on the blockade, revealing that some users had managed to bypass the restriction using virtual private networks (VPNs).
The investigation reportedly began after a French trader placed significant bets on President Donald Trump winning the 2024 US presidential election, an event that triggered significant activity on the platform.
Polymarket’s global reach and use of crypto have raised questions about its legal status in jurisdictions with strict gambling regulations, including France.
Neither Polymarket nor the ANJ responded to requests for comment on the matter. The ANJ, which oversees online betting and betting activities in France, has a reputation for rigorously enforcing national laws. The Polymarket research highlights the difficulties decentralized platforms face in navigating different regulatory landscapes.
Polymarket’s rise is fueled by the innovative use of blockchain technology. It allows users to create and participate in markets and predict the outcomes of everything from elections to sporting events.
Regulatory uncertainty
The platform works on the principle of decentralization, where markets are governed by smart contracts instead of traditional intermediaries.
However, this innovation has also made it a point of interest for regulators in several countries, including the US. The French study could set an important precedent for prediction markets operating in highly regulated jurisdictions.
Observers note that platforms like Polymarket must balance their commitment to decentralization with the need to comply with local laws, which can vary widely from country to country. While Polymarket’s actions to block French users can be seen as a step toward compliance, the effectiveness of such measures is questionable given the ease with which restrictions can be circumvented through VPNs.
This raises broader questions about how decentralized platforms can address regulatory issues without compromising their core principles. The outcome of the ANJ’s research could provide further clarity on how regulators perceive decentralized markets and whether such platforms can co-exist alongside established gambling laws.
For now, Polymarket’s move signals a cautious approach as the company tries to deal with the complexities of global compliance.